Staff Writer

After two years of planning and waiting, Avesta Housing received the green light June 1 to pursue its plan to turn Park Street School into housing.

Avesta Housing, the Portland-based nonprofit housing agency, had been waiting for funding from MaineHousing Authority.

“We are excited,” said Debora Keller, Avesta’s director of development. “It’s just a great project for Kennebunk.”

Keller said Avesta has received funds from USDA rural development and state and federal tax credits from the Low Income Housing Tax Credit Program along with the MaineHousing Authority funds to make up approximately $7.5 million for the total coast of the project.

Park Street School will be converted into 30 low-income apartments for senior citizens.

Plans for the former school include removing the newer section of the building and replacing it with a wing to include apartments. Keller said Avesta also planned to convert an historic portion of the building into more apartments and open community space.

“The historic part will be gutted but we’re keeping all the historic aspects,” Keller said, such as some of the crown molding inside the building.

Keller said the project originally began in 2008.

“The economy delayed a round of financing so we had to wait,” Keller said.

Keller is now hopeful housing will be available in 2011.

This is not Avesta’s first project in Kennebunk. It also developed Pine Bluff on Cat Mousam Road and redeveloped the former Cousens School into 28 family housing units.

During a referendum Tuesday, Kennebunk voters had the chance to decide if $310,000 from the purchase of Cousens School would be used to buy the former Mobil gas station on Main Street. Many Kennebunk residents have said the town should not purchase the former gas station.

Results from the polls were not available before the Post’s print deadline, but will be available online at blog.kennebunkpost.com.

Voters in 2008 turned down the purchase of Park Street School, which town officials wanted as a possible new town hall.

Now that Avesta’s funding has been approved, the next step will be to acquire municipal permits, Keller said

Keller said the agency is compiling a list of people who are interested in living in the new housing units.

“We’re definitely on the fast track at this point,” Keller said. “I assume we’ll start construction by the end of this year and it will be completed by 2011.”

To be included on the interest list call Avesta at 1-800-339-6516.

Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.