WATERVILLE -- Neighbors of the old Gilman Street School on Tuesday got a first look at plans to turn the 1913 building into affordable family apartments.

Developers Collaborative of Portland wants to build 33 one-, two- and three-bedroom apartments in the building, to be rented for $450 to $750 (heated). Partners Kevin Bunker, Richard Berman and Jim Hatch said they are targeting tenants who earn $20,000 to $36,000 a year.

About 70 people including abutters, city councilors, City Manager Michael Roy and other officials turned out for the meeting, held in the school gymnasium.

Berman said they want to renovate the gymnasium and let the city use it, perhaps for $1 a year.

But neighbors' comments were reminiscent of those aimed at prior developers who tried but failed to turn the building into affordable housing. The plan looks beautiful, but bringing 33 apartments to a nice neighborhood will draw the wrong kind of people, increase traffic and noise and decrease property values, according to some neighbors.

"You do beautiful work, but you're talking about 33 housing units in a quiet enclave of classic homes in a well-established neighborhood," resident Lawrence Bloom said. "You can't get away from that fact. It's like a wolf in sheep's clothing. If the roof is gold, if there's jade on the side of the building, you're not going to be able to change what's going on inside."

Berman, Hatch and Bunker have a purchase and sale agreement to buy the building from Peter Arena of Brunswick and said they would close on the deal in August 2009. They plan to pursue historic tax credits to develop the building to historic standards. They have done other projects such as Brickhill, the former Maine Youth Center in South Portland, which they transformed into a mixed-use project of offices, affordable housing, market-rate condominiums and open space.

The developers garnered an award from the federal Environmental Protection Agency in 2005 for their work, which tries to take existing buildings as opposed to building new ones, get community input, work with local, state and the federal government and rehabilitate them while maintaining their historic nature and character.

Berman said the gymnasium is a beautiful structure and worth saving for city use but resident Fred Biermann said the city has no need for it.

"Beware of people giving gifts that we don't need," he said.

Others disagreed. City Councilor John O'Donnell, D-Ward 5, said the city does have need for a gymnasium and has used the Alfond Center gymnasium on North Street since the Gilman School gym could no longer be used.

"This, as they say, is an incredible gym and believe me, it'll get used," he said.

Brenda Roy said her daughter is a high school student and that Waterville Senior High School does not have the space for cheerleader practice. Cheerleaders could walk to the Gilman Street School if that were available, she said.

"I would love to see this gymnasium preserved," she said.

Biermann said he thinks the school should be razed. Bunker disagreed.

"We see this building and we see it's something worth saving," he said.

Resident Ave Vinick said he is not opposed on principle to having affordable housing in the neighborhood, the developers have good credentials and he would like to see the building restored and used.

"I, for one, would like to at least pursue the study of this and get further information about maintenance issues and financing," he said.

Bunker said the estimated cost for rehabilitation of the school, which is eligible for the National Register of Historic Places, is $9 million. If nothing is done, the building will fall apart, he said.

The developers said they plan to have about 90 parking spaces at the site and plant trees and other greenery on all four sides of the school property.

The building would be professionally managed, but a manager would not be on site all the time. The building would be overseen by the Maine State Housing Authority, according to Hatch.

The developers are working with Amy Cole Ives, an architectural historian who talked about the school's history Tuesday.

"It's a fine example of school architecture from the early 20th century," she said.

The property currently is zoned to allow for 28 apartments; the developers are asking councilors to change the terms of the zone to allow for 33 units. They are proposing seven three-bedroom apartments, 16 two-bedroom apartments and 9 or 10 one-bedrooms.

Berman said neighbors typically are fearful when they first hear of such plans for development, but all of his firm's projects have been successful and are impeccably managed.

The building would be taxable property, according to the developers.

Amy Calder -- 861-9247

acalder@centralmaine.com