ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Tuesday, March 11, 1997 TAG: 9703110048
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: RADFORD
SERIES: SOUTHWEST VIRGINIA'S LIFELINE
Second of two parts
SOURCE: LESLIE HAGER-SMITH THE ROANOKE TIMES
When Carilion Radford Community Hospital relocates out to Interstate 81 in 1998, it will deal a heavy blow to businesses and leave the city with a gaping economic wound in its west side.
That's the prognosis from Radford's civic and business leaders, and they see recovery as a long-term prospect.
Carilion employs about 700 hospital workers and there are perhaps 200 more who supply ancillary services within the medical arts district that surrounds the hospital on Radford's west side. Their loss will be felt first, but it is not the only threat to Radford's economy, according to Bud Jeffries of Main Street Radford, a nonprofit group that promotes the downtown area.
Three-quarters of the hospital's patients come from outside the city limits. Most will arrive at the new location via I-8, bypassing downtown and causing loss of its lifeblood: retail sales. Florists, gift shops and pharmacies may be hit particularly hard, according to Jeffries.
Curtis Graham, manager of Radford City Florist, agreed. "Initially, it will have a negative impact on Radford, but as the corridor develops, hopefully the city will recover."
On a daily basis, about 30 percent of Graham's deliveries are to the hospital. At the least, his shop's delivery schedule will be affected. At most, he may consider moving or opening a second location closer to the new hospital.
Charlie Whitescarver, owner of the 1106 Tavern, is cautiously optimistic that development of the hospital and collateral businesses along Virginia 177 ultimately will benefit the city. Medical services, hotels, restaurants, gas stations, convenience stores and other small retailers are expected to build on county land near the new facility.
Appropriate signs and adequate parking will determine whether Radford prospers along with them, Whitescarver said.
"The City Council will soon be considering a parking facility for the city on Norwood Street. If we're going to see a benefit from visitors, that facility must be built," he said. "The traveler from I-81 will turn on Norwood; not find parking - the municipal lot is not readily visible - they'll turn right around and go back to 81. If that issue isn't addressed, Radford will have a real struggle for the next decade."
Government officials grew ill at ease with the city's economic profile in the late 1980s when the hospital's intentions to increase beds and services became known. The move now under way was beyond their control, however, and efforts have focused on stemming the outflow of revenues. The Comprehensive Revenue Sharing Agreement states that in exchange for not annexing Montgomery County property in the Virginia 177 corridor, Radford will receive 271/2 percent of all revenues generated by sales, property and personal property taxes. The agreement applies to a narrow footprint of about 2 square miles, extending along Virginia 177 from the corporate limit, at Rock Road, to the interstate.
Radford has agreed to sell Montgomery County wholesale water at the corporate line, and to transport 250,000 gallons of sewage a day through city lines, provided that the county improves the system to accommodate the increased flow.
The city will not extend water or sewer lines into the county: That will be the county's responsibility. American Electric Power will provide electric service.
When negotiations were first undertaken, the hospital was considering a location between Rock Road and the interstate, on Virginia 177. The city and county worked with the New River Valley Planning District Commission to produce basic concepts for orderly development spreading in both directions from that midpoint.
Since then, Carilion announced plans to build across the interstate, on the far side of the exchange from Radford. "The thrust of development will now be from the interstate, back toward the city," City Manager Bob Asbury said.
The owner of several fast-food franchises confirmed that the Virginia 177 interchange has tremendous appeal and would have been developed long ago if water and sewer service had been available.
Chain restaurants in recent years have been building with little regard to "cannibalizing" their existing shops. This will be true at the 177 interchange, which, despite the presence of several fast-food eateries in downtown Radford and Fairlawn, represents an additional market in the view of franchisers.
Bill Armentrout, owner of The Medicine Shoppe, was uncertain how development along the corridor would affect his pharmacy, but finally said: ``You know people - they go for convenience. If they put a drugstore in across the street from the new hospital, I'm sure they'll go there instead of driving into town to see me."
Symptoms of impending malaise so far have been mild, and some retailers report little or no concern for the economic future; they cite their stable, in-town customer base or the specialty services they offer.
"I don't see it as a negative or positive for my own business," said Marianne Beeson of Sew Biz. The store's line of sewing machines, specialty fabrics, and unusual notions draws customers from a 100-mile radius.
"We've been here 13 years and our business just gets better and better," said Amy Hinkle, a manager of BT's Restaurant. This year's earnings were their highest ever. Manager Ken Day credits the fact that they have worked to build a dual clientele: BT's serves a business lunch crowd and, after hours, attracts students to its bar.
Real estate agent Evelyn Clark, a resident of the "Plan A" district where the present hospital building sits, said it was far from certain that all local labs and physicians would follow the hospital to its new location. She cited the examples of Roanoke and Blacksburg, where doctors' offices are situated throughout town, and said she had talked with two physicians who had no immediate plans to relocate.
Al Shumate, technical director of "The Long Way Home," said development of the corridor can only be good for his enterprise. The outdoor drama drew 3,200 people from outside the community last summer, producing revenues for the city of $108,000.
Shumate relies on tourist brochures, travel guides and a single billboard at Exit 105 on northbound I-81 to advertise the Long Way Home. Respondents to a survey he conducted cited the billboard more than any other advertising medium as influencing their attendance.
LENGTH: Long : 119 lines ILLUSTRATION: PHOTO: GENE DALTON/THE ROANOKE TIMES. Earth-moving equipmentby CNBworks on the site of the new Carilion Radford Community Hospital.
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