Luray Artisan Bakery to become part of amenities at 15 Campbell Street
By Randy Arrington
LURAY, Aug. 14 — Dozens gathered Friday morning in a parking lot near 10 shovels lined up in a prepped pile of dirt around back on the north side of the building. The conversation was lively. Smiles abound. Officials from state and local agencies mingled alongside representatives of financial institutions and community non-profits, as well as town residents, business owners and other interested parties.
“Today is about so much more than breaking ground on a building,” said Gina Hilliard, President of the Luray-Page County Chamber of Commerce.
Recognizing the many entities that came together to make the workforce housing project at 15 Campbell Street come to fruition, a long line of speakers continously commented on the theme of “community” — both the one being built, and the one that came together to make the project possible.
“What impressed me was the level of support [the developer] received from the community,” said Chris McNamara, Strategic Housing Officer at Virginia Housing. “We received letters from business owners, town and county officials, and many others…”
A crowd of nearly 100 came out on Friday in Downtown Luray for a groundbreaking ceremony hosted by the Chamber to mark the beginning of a 12-month renovation period. Those improvements should conclude with a ribbon cutting in the third quarter of 2027, according to developer Brad Herman, president and CEO of Hub Development, LLC.
“We believe affordable housing is a right…the right to have a clean and nice place to live,” Herman told those in attendance. “I can’t tell you how fortunate we feel to be doing this project here in the Town of Luray. I came to Luray because of a building, but I very quickly fell in love with a Town and a community. This project has been built by this community and for this community.””
For more than two years, Herman has been making regular trips to Luray to meet with local officials to discuss everything from the type of housing needed to parking requirements, from what type of eatery to include to securing enough financing to make the project move forward. The Town of Luray supported Herman’s work with the Northern Shenandoah Valley Regional Commission to secure $1million in Industrial Revitalization Funds (IRF) awarded last summer by the Governor’s Office.
The Virginia-based developer, with headquarters in Richmond, purchased the former Warehouse Art Gallery building at 15 Campbell Street from the children of Linda Nash in November 2024 for $950,000.
“A little over two years ago after Ms. Nash passed, there was concern, because as a downtown director, empty buildings give us heartburn,” said Jackie Wood, Program Director for the Luray Downtown Initiative. “Thank you for choosing Luray.”
At the end of 2022, Nash ended a 21-year occupancy by the local art gallery of 11,000-plus square feet in the building’s first floor. The Gallery’s 1,000-plus exhibits relocated to two new sites — the fine arts gallery near the corner of Main and Broad, and The Art Space on Route 211 west of Luray. Nash purchased the building in 2011 and decided to renovate and develop the space for multiple uses. As initial renovations got underway, Nash passed away in 2023 and her children later listed the property for sale at nearly $1.5 million.
Built in 1932, the developer plans to utilize all three levels of the structure and its 33,000 square feet, including the creation of 28 long-term rentals. Among those workforce housing units will be 24 one-bedroom units (two of which will be ADA compatible), three two-bedroom units and one studio apartment. Herman said the renovations, which could reach $5 million, will include the creation of an “everyday diner-type” eatery and co-working space for remote workers.
On Friday, it was announced that Luray Artisans Bakery will be the “eatery” in the lower level. Those who attended the groundbreaking were allowed to tour the lower level, which contained renderings of what the space will look like by next summer. Various rooms of exposed brick are currently divided by beams of original milled lumber, but the vision for the vast space shows a modern look against the eclectic backdrop.
“On Nov. 16, I put out a post and started baking out of my home…nine months later I’m standing here at this groundbreaking of this wonderful building talking about a 4,000-square-foot bakery,” said Kelli South, owner of Luray Artisan Bakery. “I’m glad our bakery could be part of this ginormous project for the community. I can’t wait to bake for all of you.”
The IRF funds being used for a portion of the renovations must be dispersed within 18 months — and the clock started ticking when the award was announced last summer. IRF grant applications are rated and evaluated on a point system. Luray Town Manager Bryan Chrisman told PVN during an interview last summer that the $1 million application and award was specifically tailored to this project, and it gained points because of the workforce housing element, as well as addressing the renovation of a vacant building in the Town’s Historic District that was also considered “derelict” and “blighted” after the utilities were disconnected in 2023.
Chrisman also said the $1 million grant from the state to the Town can be reused after this project to fund future development projects in Luray. As Hub Development moves forward with construction at 15 Campbell Street, the developer will submit those expenses to the Town for reimbursement. Those disbursements will serve as a loan to the developer, which must be paid back with interest. Interest rates are dictated by the state, but typically are set around 3 percent. A grant agreement document is created with draws on the money scheduled out, so both the developer and the Town know what to expect.
“It was huge…and it was definitely huge for the Town,” Chrisman said. “Getting 28 units for workforce housing… that’s an enormous thing. Also, there’s the co-work space that gives folks the ability to rent a cubicle with reliable internet. The IRF money goes [from the state] to the Town as a grant with no payback, but it’s a loan to the developer. The faster they pay it off, the less interest they pay.”
The Town may use the interest payments in any way they choose, as a new revenue stream flowing into the general fund. However, the original $1 million principal may be loaned out again and again for future projects. In fact, the terms of the application dictate that they must be used in this way, with the Virginia Department of Housing and Community Development (DHCD) approving each disbursement for the initial project (15 Campbell Street) and overall approval for future projects under strict guidelines.
“It’s not a ‘one-and-done’ like most grants. It’s critical. It’s a huge win for Luray. This grows legs and will help in the future,” Chrisman said. “We, locally, can identify projects and we will have the money to fund new projects and development. Developers will know that money is sitting there for them to use. It can be the key to whether they do it here or somewhere else. It’s a jump starter moving forward. It’s not just this one project. We’re looking forward to not only the immediate impact, but the impact for years to come.”
The overall impact of this project was not lost on Friday’s crowd.
“This will bring folks living downtown,” said Luray Vice Mayor Ron Vickers. “And now we have a broad grant to work with.”
“Brad is not just doing a housing project…You are creating a community here,” said Nina Fox, Page County Director of Economic Development and Tourism.
“Public-private partnerships are special and they can accomplish a lot,” said Brandon Davis, Executive Director of the Northern Shenandoah Valley Regional Commission. “We tend to latch on to them when we find a good one….and I’m looking forward to the ribbon cutting.”
“Projects like this require someone to see the potential and believe in the future of our community,” said Hilliard, in closing out the Chamber’s groundbreaking ceremony. “Thank you for choosing to develop this building and breathe new life into this space…and make our community an even better place to live, work and do business.”
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