$2.5 Million In Loans Converted to Grants for Buchanan IDA

by Cathy St. Clair
News Editor
  Some $2.5 million in loans to Buchanan County for projects at the Buchanan County Information Park and the Appalachian School of Law, were forgiven Friday during a note shredding ceremony at the Buchanan County Industrial Development Authority offices.
  “Today is not just a note shredding to memorialize the conversion of these loans into grants,” said VCEDA Director Jonathan Belcher. “It is a time to reflect upon the successes that these funds helped build, which we all worked on together over the years to make happen.”
  The Virginia Coalfield Economic Development Authority converted three loans it formerly issued for the projects into grants. The total amount of the funds converted into grants was $2,565,238.
  “This is an important occasion, not just for the debt relief that this will give the Buchanan County IDA, but as an occasion for us to step back and reflect upon the successes of the projects involved, how they got started, and what they mean for Buchanan County and the region,” Belcher said.
He noted that the loans-turned-grants were significant not only for the debt relief they provided, but also because all three represented successful strategies employed by Buchanan County in diversifying the economy.
  Successful strategies, he said, which had their beginnings in Buchanan County.
  The three loans converted into grants included:
  $1 million for the original Appalachian School of Law project which was  issued in 1996 and was used to renovate the old Grundy Junior High School building as the first administrative and academic building for ASL;
  $1,111,532 paid down to $900,142 to construct the initial phase of the first building at the Buchanan Information Park in 1995 for occupancy by Issues and Answers, which continues to operate there today; and
  $895,437 paid down to $665,096, issued in 1996 to complete the second floor of the information park building, originally used to house Pro Air and later used to house the Virginia Employment Commission customer service call center, which continues to operate there today.
  “As far as why these funds are now being converted into grants, it is because these funds have now fulfilled their purpose and demonstrated their success,” Belcher said. “They were made as loans until the projects got off the ground, and now, in accordance with a new policy on loan forgiveness adopted last year by the VCEDA Board, they are now being changed into grants.”

For more of the story, see the print edition of the Mountaineer, on sale at newsstands now.  For more information on how to subscribe to the Mountaineer, call 276-935-2123 today.

Legislators Oppose APCO Rate Increase

  A broad coalition of Southwest Virginia legislators, in an effort to bring relief to their constituents who have expressed concern over Appalachian Power Company’s (APCO) recent rate increases, have banded together to express their opposition to the rates increases.
  Del. Bill Carrico (R-Fries) is spearheading the coalition.
  Carrico noted he had received large amounts of calls, letters and emails on this issue -- something other legislators have reported as well.
  "After contacting APCO and the State Corporation Commission, I have decided to bring my colleagues from the General Assembly together in an attempt to resolve this issue as soon as possible," Carrico said. "I also want to make it very clear that I strongly oppose this rate increase, along with all Southwest Virginia legislators.”
  The coalition is also taking action to alleviate the problem. 
  “We have contacted Attorney General Bob McDonnell’s office, and sent a letter to the State Corporation Commission, who is currently reviewing the increase, urging them to render a fair and prudent verdict as soon as possible,” said Del. Terry Kilgore (R-Scott). 
  In fact, in a brief issued to the SCC by the Attorney General’s office on February 5, McDonnell recommended a modest 3.8 percent increase rather than the proposed 25 percent hike by APCO.  The coalition hopes that by acting as a united front, quick action will follow.
  “Our people need relief, and they need it now,” said Sen. Phillip Puckett (D-Russell).
  The coalition is working to educate the public, “because APCO failed to do so,” Carrico alleged.
  “The power company advertised this as a 25 percent increase, but most power bills are increasing by more than that,” coalition members noted.
  The reason for the confusion is a fundamental change in AEP’s policy, which the coalition said was unannounced to the public and to them. 
  “In the past, the price per kilowatt hour decreased if your household used over 900 kilowatt hours (which most houses do.)  With this rate increase, APCO virtually wiped away the price break after 900, which amounts to a huge increase for most households,” Carrico said.
  The coalition, which also includes Sen. Brandon Bell (R-Roanoke), Sen. Roscoe Reynolds (D-Martinsville), Sen. William Wampler (R-Bristol), Del. Ward Armstrong (D-Henry), Del. Anne Crockett-Stark (R-Wytheville), Del. Dave Nutter (R-Christiansburg), Del. Joe Johnson (D-Abingdon), Del. Dan Bowling (D-Tazewell), Del. Allan Dudley (R-Floyd), Del. Bud Phillips (D-Dickenson), and Del. Danny Marshall (R-Danville), is taking steps to help citizens get their message out. 
  The coalition has urged individuals to continue writing the State Corporation Commission (SCC) until a decision is made.

For more of the story, see the print edition of the Mountaineer, on sale at newsstands now.  For more information on how to subscribe to the Mountaineer, call 276-935-2123 today.

IDA Eyes Change in Financial Institution
Government Interest Rate Appeals to Board

by JoBeth Wampler
Staff Reporter
  The Town of Grundy Industrial Development Authority is looking into switching banks.
  After a brief closed session meeting to discuss a potential business, councilman Chris Mitchell suggested the IDA look into changing its checking account provider.
  According to Mitchell, Wachovia offers a government interest rate through discount Treasury bills of around five percent. Compared with the IDA's current rate of 1.5 percent with Grundy National Bank, Mitchell said the difference would be an average of around $20,000 per year.
  The board decided to allow Town IDA Director Chuck Crabtree to investigate the matter and report back at the next regularly scheduled meeting.
  The IDA approved a motion to supply the Grundy Plaza building with the proper air filter and heat pump maintenance.
  According to Crabtree, the town had been offered a bid for the air filter maintenance at $880 to construct 88 individual metal air filter frames and $330 per trip to change the filters. Currently, he said, it is the tenants' responsibility to change the air filters; however, not all of them do so as regularly as they should, he noted.
  After Crabtree suggested hiring the company and asking them to maintain air filters every three months, Mitchell made the motion to do so.
  Chris Shortridge seconded the motion, which was approved unanimously.
  After mentioning the need for a service contract on all heat pumps in the building, Shortridge made a motion to allow Crabtree to prepare an advertisement for bids to maintain and service the heat pumps in the Grundy Plaza building.

For more of the story, see the print edition of the Mountaineer, on sale at newsstands now.  For more information on how to subscribe to the Mountaineer, call 276-935-2123 today.