The College Park City Council last week took another step in the development of the sprawling Lakeland Urban Renewal Project.

The council approved a contract with Leon Weiner and Associates of Wilmington, Del., for construction of two housing projects at the site, said Jack Callahan, the city's director of urban renewal.

The city has agreed to help Weiner secure tax-exempt bonds to finance construction of the projects, which are both federally assisted. Last week, the City Council approved setting up a nonprofit corporation that will act as a guarantor of those bonds, but will not be liable to repay them should Weiner fail to keep his end of the agreement, Callahan said.

The first project, named Alden Park, will consist of 24 rental town houses for low- and middle-income tenants, with rents subsidized by the Department of Housing and Urban Development under Section 8.

Weiner will pay the city $39,600 for the land.

The second project, known as the Berkley Project, will contain 32 subsidized town houses for low- and middle-income persons and a six-story apartment building with 128 units, Callahan said. The apartments will not be government subsidized. Weiner will pay the city $264,000 for the land.

Another housing project at the site, the Spellman House, recently opened. A federally subsidized residence for senior citizens, it was named for Gladys Noon Spellman, the former 5th District congresswoman.