ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, November 20, 1996 TAG: 9611200053
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MATT CHITTUM AND CHRISTINA NUCKOLS STAFF WRITERS
Two counties added bait to the Roanoke Valley's economic development hook Tuesday.
Supervisors in the counties of Roanoke and Botetourt each gave the go-ahead to put up shell industrial buildings.
Roanoke County Supervisors approved $599,250 Tuesday to pay for construction of a new shell building on U.S. 460 East near Bonsack. The Botetourt Supervisors conveyed an 18.62-acre site in Vista Corporate Park on U.S. 11 to the county's Industrial Development Authority, which has set up financing for a building expected to cost about $900,000.
"This will be the first time I know of that two shell buildings will be on the market at the same time in the Roanoke Valley," Botetourt County Administrator Jerry Burgess said. Burgess said he and Roanoke County Administrator Elmer Hodge agree that having both buildings will be an asset in drawing prospective industries to the valley.
A shell building Botetourt County built in its East Park Commerce Center was shown to 16 companies in just four months, Burgess said. That attests to what a potent temptation a building can be.
"A conservative estimate of 75 to 80 percent" of industrial prospects are looking for an existing facility, said John Loftus of the Virginia Economic Development Partnership.
Heating and cooling equipment manufacturer York International eventually moved into the Botetourt building. Dynax America, an auto parts manufacturer that also looked at the building, ended up buying a site next to it.
Roanoke County's shell building will be located on a 105-acre tract on U.S. 460 East near Bonsack. The property, owned by Roanoke development company Fralin & Waldron Inc., is known as Valley Gateway. It will be developed through a partnership among county officials, Fralin & Waldron, the Greater Roanoke Valley Development Foundation, the Regional Chamber of Commerce, the Roanoke County Industrial Development Authority and the Virginia Department of Transportation.
Roanoke County will purchase 16.2 acres of the tract for the shell building at $243,000. That money will remain in an escrow account until an industry moves into the building. The shell building will be marketed to attract an industry planning to make a minimum $10 million investment. The estimated $87,000 in property taxes would repay the county for the land purchase in three years.
The land deed for the tract will be transferred to the development foundation, which will pay to construct the 75,000-square-foot building.
The county will put up another $200,000 in bonds for construction of an 850-foot road leading from U.S. 460 to the shell building. Work on the road is scheduled to begin in the spring. County officials plan to apply to VDOT next year for industrial access road funds to reimburse themselves for that expense after the road is built.
The remainder of the county's $599,250 contribution is split between engineering and grading expenses and improvements to U.S. 460.
The county plans to extend a sewer line along Carson Road to the industrial site in the future, but the estimated $150,000 needed for that project will be paid by commercial developers moving onto the property.
The 65,000-square-foot Botetourt building will be located on a site next to A.O. Smith Automotive Products Co. The site features a railroad spur and is large enough to expand the building to 233,000 square feet.
The planning and approval of the project took only 45 days, Burgess said.
The Industrial Development Authority has arranged up to $1 million in financing for the project through three banks. Payments will be interest-only for three years at 6.9 percent, Burgess said.
LENGTH: Medium: 69 lines ILLUSTRATION: GRAPHIC: Map by staff.by CNB