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

DATE: SATURDAY, June 5, 1993                   TAG: 9306050439
SECTION: VIRGINIA                    PAGE: B-3   EDITION: METRO 
SOURCE: By DAVID M. POOLE STAFF WRITER
DATELINE:                                 LENGTH: Short

ROANOKE COUNTY BOND SALE MAY HAVE BENT RULES A LITTLE

Roanoke County used some creative bookkeeping in its sale of $4.2 million in tax-free bonds to buy the former Traveler's Building near Tanglewood Mall.

The tax-free status of the bonds was called into question because Roanoke County stands to receive rental income above allowable limits.

County Finance Director Diane Hyatt got around the problem by having one tenant, Blue Cross and Blue Shield of Virginia, make improvements to the building in lieu of $55,480 in rent.

"It was a way to pay us something without paying us something," Hyatt said.

The arrangement raised eyebrows when it came before the Board of Supervisors last month. The board approved the arrangement after Hyatt assured them it was legal.

Blue Cross and Blue Shield will pay the $55,480 to HCMF Real Estate and Housing Management Co., which will hold the money in escrow. HCMF will then use the money to pay part of renovations that will be necessary before Roanoke County can move its offices to the building in December.

Hollins District Supervisor Bob Johnson voted for the arrangement because HCMF will receive no fee for the transaction. Johnson is president of HCMF, which was the listing agent for the building.

by CNB