Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, August 16, 1995 TAG: 9508160088
SECTION: VIRGINIA PAGE: A1 EDITION: NEW RIVER VALLEY
SOURCE: By BETTY HAYDEN STAFF WRITER
DATELINE: BLACKSBURG LENGTH: Long
Virginia Tech claims the commonwealth as its campus, but Blacksburg business leaders fear the university's latest push to expand its outreach to other parts of the state, especially Roanoke, could come at the town's expense.
At issue are two new incentive programs the university announced July 5 funded with $250,000 in state and private monies to encourage Tech faculty members to use the university-owned Hotel Roanoke and Conference Center.
The state-funded Center for Organizational and Technological Advancement will supply $150,000 to fund new continuing education programs to be housed at the conference center. The other incentive program uses $100,000 from an anonymous donor to help faculty members lure meetings and conferences of professional organizations to the Hotel Roanoke.
The incentive programs, similar to ones at other university conference centers, come at a time when the Hotel Roanoke's general manager, Gary Walton, concedes that the hotel is not meeting its budgetary projections. Walton said the incentive programs are not a "quick fix" but instead are designed to boost business over a longer period of time. He said the fall and spring look promising.
Blacksburg merchants say these incentives set a bad precedent for the future and just confirm what many already believed.
"Totally unsurprising," Bill Ellenbogen, a Blacksburg restaurateur says of the programs. "Once they announced the hotel, it was a given they were going to push everything down there. It's merely an affirmation of what was already forecasted."
The Greater Blacksburg Chamber of Commerce approved a resolution Tuesday afternoon declaring its opposition to the incentive programs.
In Roanoke, Bill Carter, general manager of the Radisson Patrick Henry Hotel, said anything that brings new business to the Roanoke Valley is a good thing for all downtown businesses. The use of state funds to attract this new business for his competition bothers Carter, though, and he said, "I don't believe it's fair."
Ray Smoot, Virginia Tech's treasurer, said the state funds will be used to develop educational programming at the conference center, a public facility.
COTA director Harold Kurstedt said the incentive programs were developed to excite faculty about bringing their professional groups to the area and developing programs to spur regional economic development, not because the Hotel Roanoke needs them.
The anonymous donor supported the Hotel Roanoke and contributed the $100,000 for the express purpose of promoting the hotel project, Kurstedt said.
Larry Linkous, chairman of the Montgomery County Board of Supervisors and a Republican candidate for the 12th District seat in the House of Delegates, said he supports Virginia Tech's continuing efforts to foster regional cooperation, but he wants to protect the economic health of the New River Valley.
He said he'd like to see a similar incentive plan established for conferences and education programs held at Virginia Tech's on-campus Donaldson Brown Hotel and Conference Center. University officials agree with Linkous, but said the funds aren't available right now.
Del. Jim Shuler, D-Blacksburg, who is running against Linkous this fall, said he "doesn't support moving potential conferences and committee meetings from Blacksburg to other sites.
"Virginia Tech is an economic catalyst for this region," Shuler said. "I believe that the university's first `outreach' priority should be economic and educational leadership for the New River Valley."
The president of the Blacksburg chamber, Todd Halwas, said local businesses realize the university's overall positive impact but, "we want to register our concern with the university and let them know we think this is going to have a negative impact on the business community."
Smoot called the chamber's resolution "short-sighted."
Smoot and other university officials insist the new initiatives are not intended to detract from Blacksburg or the 100-room Donaldson Brown center.
Smoot said the Blacksburg hotel had its best year ever during the fiscal year that ended June 30, with revenues up by $300,000 for a total of $2.9 million. He also said Virginia Tech hopes to attract more business for Blacksburg by a heightened recognition of the university and its campus facilities.
Ted Settle, director of Donaldson Brown, said he understands the business community's concerns, but he thinks they are unwarranted.
Tech has never confined its continuing education efforts to Blacksburg, Settle said. About 60 percent of Tech's continuing education programs were held off campus and out of town last year.
"All I can say is that we've just spent millions to renovate this building. We want to make this place very successful," Settle said. "I don't see the Donaldson Brown center going away because of Roanoke."
He cited the strong need for an on-campus hotel and conference center for groups seeking access to laboratories and Tech's library. He added that spillover business from Donaldson Brown filled 3,000 additional rooms last year at other hotels.
Larry Hincker, director of university relations, said no matter how many times officials lay out the facts about Donaldson Brown and Virginia Tech's commitment to the town, "the Blacksburg community doesn't want to believe it. All are going to benefit."
by CNB