
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, July 17, 1993                   TAG: 9307170092
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium

GRANT MEANT TO HELP AREA HANDLE ARSENAL CUTBACKS

The Department of Defense has awarded the New River Valley Planning District Commission $197,800 to help the region deal with the massive cutbacks at the Radford Army Ammunition Plant.

Holly Lesko, regional planner for the Planning District Commission, said the grant will be used to examine the strengths and weaknesses of the area's economy and formulate a regional defense conversion plan.

"We hope to have the strategy ready by spring and actually get started implementing next summer," she said.

The money won't provide a quick fix for the area's sagging economy, but it could help the region diversify its work force for the future, Lesko said.

The Planning District's study will include a labor force study, resource analysis and a search for potential industrial sites.

Rep. Rick Boucher, D-Abingdon, and Sen. Charles Robb, D-Va., complimented the Planning District Commission for its quick response in applying for the funds.

"The commission has been ahead of the curve," Robb said in a prepared statement. "I have been impressed with their foresight as we have worked together to develop contingent economic plans."

"They have just done a superb job," said Boucher, who held a news conference to discuss the grant.

Lesko said the Planning District Commission will apply for more defense conversion funds to build infrastructure once the planning process is finished.

Starting next year, private companies will be allowed to lease empty buildings at the arsenal. The Planning District Commission is responsible for marketing the property, but none of these funds will be used for that purpose.

Boucher said 18 companies have expressed an interest in locating at the arsenal.

"I am cautiously optimistic that before the conclusion of this year the Radford arsenal will accommodate its first commercial work," he said. "Our goal is to replace all of the jobs which have been lost as a result of lessened demand for ammunition and decreased defense spending."

The arsenal has laid off more than 2,000 workers in the past two years, cutting its work force in half.

Col. Bill Forrester, the arsenal's commander, said he didn't expect anymore layoffs in the next year, but it's still a possibility.

"It's difficult in these times to talk in absolutes," he said. "Currently, our workload is pretty well stabilized for the next year."

by CNB