The Hyattsville City Council last week approved a $3 million industrial revenue bond for a private developer's use in converting the Hyattsville Armory into a mall of shops and restaurants.

The developer, Klaus Scheurmann, who recently moved from Corpus Christi, Tex., to Washington, paid $490,000 for the old armory, built during World War I. The armory is a partial reproduction of Windsor Castle. Scheurmann wants to rename the armory "The Castle on the Hill."

The city will not be responsible for the bond should Scheurmann default. Hyattsville is acting as a type of co-signer by showing its approval for the project. Scheurmann is responsible for finding the loan and is assured a lower interest rate because of the city's action.

It will take several months before the loan can be obtained and work begun on the 64-year-old armory, at Rte. 1 and Jefferson Street, a city spokeswoman said.

In other business, the council received a design concept plan for the Hamilton Street Corridor from the Maryland-National Capital Park and Planning Commission.

The report, requested by the city, will be used to renovate the business district in West Hyattsville. Buildings will be renovated, facades cleaned up and the area landscaped, the spokeswoman said.

The council also decided to buy an $11,192 van for its recreation and parks department from Lustine's Chevrolet.

The council will advertise for a base communications station for the police department. CAPTION: Picture, The Hyattsville City Council approved a $3 million industrial revenue bond for conversion of the World War I-vintage Hyattsville Armory into a mall. By JOEL RICHARDSON -- The Washington Post