The South Rome Redevelopment Corp. and Mercy Housing Southeast will not move forward with Phase Two of the Etowah Terrace project, which was focused on redevelopment of the old McCall Hospital building on South Broad Street.

“We did not get funds for the project from the Department of Community Affairs,” said South Rome Redevelopment Director Melissa Jones.

“It’s a small deal, it was only going to be 52 units, and we would still have to have that commercial space, the grocery store, and you can’t get tax credits for that commercial piece.”

Jones said there might also be some unknown environmental issues with the McCall Hospital.

“That just continues to add to the amount of money that we have had to spend initially without get any funds coming in,” Jones said.

“I wish something would happen so that we could get the eyesore down up there,” said Jackie Jenkins, a member of the Redevelopment agency board.

Ron Morris, the owner of the old McCall Hospital, said his plans are still to fix up the property.

“I’ve got other people interested in it and I would certainly entertain any ideas of other investment,” Morris said.

He has owned the property for about two years but has been in discussions with the South Rome agency and Mercy Housing Southeast for much of that time.

Anne Rigas, another South Rome Redevelopment board member, said she was terribly upset that the deal didn’t work out.

“I think we have a lot of history invested with the McCall Hospital. I want the whole block improved,” Rigas said.

Jones said her office would now focus on single-family residential development. The SRRC owns some 20 lots across South Rome.

“We’re going to try to work with Wendy Green and APD Solutions,” she said. “We’re going to try to incorporate a program to get people’s credit where it needs to be further their education and get them interested in purchasing their own home in South Rome.”

Jones office is also working on the first South Rome Gala, called “Reflections of Our Past,” planned for Friday, Aug. 24, at the Rome Civic Center.

Former Atlanta Mayor Shirley Franklin will be the guest speaker for the event that will begin with a reception at 6 p.m. and include dinner at 7:30 p.m. The Infinity Band of Atlanta will be performing after Franklin’s speech.

Tickets are $50 for an individual and $500 for a corporate table. The tickets are available at the South Rome Redevelopment office, 119 South Broad St. Reservations can be made by calling 706-236-2826.