Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, August 27, 1995 TAG: 9508280127
SECTION: CURRENT PAGE: NRV2 EDITION: NEW RIVER VALLEY
SOURCE: BRIAN WISHNEFF STAFF WRITER
DATELINE: LENGTH: Medium
They reached an agreement for sharing local tax revenues in the corridor area, now known as the Gateway, along Virginia 177 [leading from Radford out to Interstate 81]. Under terms of the agreement, Radford would receive 27.5 percent of the local tax revenue from development in this part of Montgomery County.
Then, the governments, working through the New River Planning District Commission, agreed on how the land would be used in the Gateway.
Recently, I participated in a study that projected the economic impact of a completely developed Gateway. I was involved in reviewing the assumptions and data collection that went into these projections. They are conservative projections.
The study projects approximately $650 million of investment, more than 17,000 construction and permanent jobs, and $7 million in local tax revenue annually to Radford and Montgomery County.
Under the formula, Radford would receive more than $3 million in new local tax revenue annually. This has the effect of taking pressure off taxpayers who live in the city.
These projections indicate what a tremendous development opportunity the Gateway represents for Radford, Montgomery County and the entire New River Valley.
The mountainous terrain in Southwest Virginia causes our region to be considered "land-poor." Large tracts of land that can be developed are scarce. Tracts next to an interstate highway with utilities are rare. Yet, that's the opportunity the Gateway presents.
Several years ago, Radford Community Hospital purchased land in the Gateway to build a replacement hospital. Recently, the hospital said a site at the southern end of the Gateway area would serve its purposes better and has hired an architect to develop plans.
The hospital also said it would provide up-front funding to extend utilities to the site, in effect bringing them to the entire 2,800 acres.
By choosing this site, the hospital is creating an opportunity for a quicker, greater tax windfall for the landlocked city.
The new site will bring utilities to the entire Gateway immediately, enabling development to begin years sooner. That means the investment and new jobs will occur sooner.
Radford will receive new tax revenue from the entire corridor almost 10 years earlier than it would have if the original site had been chosen. The tax-sharing agreement takes effect in phases between now and the year 2005, unless water service is brought to the area sooner. By the hospital building at the southern end of the Gateway and bringing water service to the entire area now, this will make the entire corridor eligible for tax sharing 10 years sooner.
The hospital is the catalyst for this development, since it is funding the utility extensions. In its current location, the hospital, as a non-profit organization, contributes little to the tax revenues of Radford.
By building in the southern end of the Gateway, the hospital provides Radford the opportunity to share in the benefits of development in Montgomery County immediately.
Let's salute our city officials for negotiating such a far-sighted agreement. The benefit will be a long-term source of tax revenue for the city and its taxpayers to enjoy permanently.
Brian Wishneff is the former Roanoke director of economic development, an economic development consultant, and coauthor of an economic impact study of the Gateway area paid for by Radford Community Hospital.
by CNB