If Charles Dickens were alive today and looking for a modern-day location for “A Tale of Two Cities,” he might choose Frostburg.

Slowly but surely, things are looking up, City Administrator John Kirby told the Allegany County Chamber of Commerce meeting of the Economic Development Committee on Thursday at the Bell Tower Building.

Kirby pointed out private investments on the Mountain City’s Main Street, such as developer Michael Joy’s renovation of the Lyric Building into a mix of retail, office and luxury rental apartments, among a handful of others’ investments.

On the horizon, the city’s center will boast up to 20 additional parking spaces. And in 2012, the city will celebrate its bicentennial.

But it also is, in some respects, the worst of times for the once coal-dominated, now college-populated town. Kirby cited the country’s economic downturn and its trickle-down effect from the federal government to state and local governments.

“State and federal governments will make massive cuts,” Kirby said. “We’re going to see the impact.”

Kirby said the city’s priorities include public safety, water and sewerage. The city must find an average of $1.2 million over each of the next 20 years in order to remain in compliance with a consent decree to upgrade the city’s sewer system. The problem is not unique to Frostburg. Most towns and Allegany County government all have the same issue.

“Everything else is extra,” he said, adding the city just received word a longstanding federal grant was not renewed. “They don’t care where (the $1.2 million) comes from. That’s just the reality of being at the bottom of the food chain.”

Rick Thayer, committee member, asked Kirby if the city was working with the state Department of Business and Economic Development and the county’s economic officials in order to spur retail growth. Kirby said small retail is not the county’s interest. The city does work with the Cumberland Allegany County Industrial Foundation to lure new ideas and businesses to the downtown area.

Committee member Robin Summerfield, local field representative for U.S. Sen. Ben Cardin, told Kirby he once lived in Frostburg and was surprised the city’s atmosphere lacked a “college town” feeling despite the enormous influence of Frostburg State University. Summerfield asked Kirby if a survey could be done to see what the students would want to bring them to Main Street.

“It doesn’t feel like a place where a college is,” Summerfield said.

Kirby said the average FSU student is “urban American” and when they shop, “they go to things they’re familiar with” such as the big box retailers.

Kirby said an untapped revenue source could be the estimated 10,000 adults who visit the campus annually but never make their way to Main Street. He did say interest has been expressed in a Dollar Store — “the 5- and 10-cent stores of the 21st century.”

Some of the news is bad, Kirby admitted, but not all of it. The likely approval of the city’s Arts and Entertainment District — city officials will know for sure in September — is another spur in the heel of economic development.

“Things are really coming together for us,” Kirby said, but because of the economic hardships “we may have to wait a little longer.”

Contact Kevin Spradlin at kspradlin@times-news.com.