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

DATE: WEDNESDAY, March 29, 1995                   TAG: 9503290072
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: BRIAN KELLEY STAFF WRITER
DATELINE: CHRISTIANSBURG                                LENGTH: Medium

COUNTY WILL SEEK GRANT MONEY FOR FACTORY RENOVATIONS|

Montgomery County will apply for a $2.8 million federal grant to help pay for the renovation of the former Health-Tex plant in Christiansburg as an economic development project.

The county Board of Supervisors voted 4-3 to seek the grant from the federal Economic Development Administration. Supervisors Jim Moore, Joe Stewart and Larry Linkous opposed the measure.

The $2.8 million is only part of the tab to renovate the first floor of the two-story factory, build an addition and make other improvements. The county Industrial Development Authority is seeking a $939,000 local match via loans from local banks.

The county won't learn if it has won the grant for six to eight months, said Don Moore, Montgomery's economic development director. The money is to come from federal funds set aside to help with the creation of jobs in areas affected by the shrinking of the military.

Economic development officials envision using the first floor of the Health-Tex building for several tenants. For the past three years, the second floor has been used for warehouse space for Donkenny Inc., employing two people. At least two other entities are interested in the lower floor, including New River Community College, Moore said.

Debate among board members centered on whether the Health-Tex building would be a viable economic development project that would cover the cost of debt service for the IDA's borrowing with the rents collected from tenants. If lease revenue failed to cover debt service, county taxpayers would be liable for the cost.

Moore, on the losing side, suggested a new building could be constructed for as much as it will cost to renovate Health-Tex, located on Roanoke Street just east of downtown.

In other business Monday the board:

Voted to move the polling place for county precinct B-3 from Belmont Community Center to Belmont Christian Church. The county Electoral Board found the previous site lacked sufficient space for the election or for parking. The supervisors held a public hearing before making the change, but no one commented on it.

OK'd spending $18,650 to repair light fixtures and replace wiring in the county courthouse parking lot. Alvis Electric won the contract to repair the lights. County Administrator Betty Thomas said inoperative lights have caused concerns for employees and the public working or attending night meetings at the courthouse.

by CNB