ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, January 7, 1996 TAG: 9601110002
SECTION: BUSINESS PAGE: D1 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
THE expectation that more land will be available for economic development is stirring optimism that 1996 will be a good year for corporate expansions in the Roanoke Valley.
But that growth could be tempered by a national economic slowdown, developers said.
Area communities can market an additional 600 to 700 acres of industrial land that was not available a year ago, said Barry Evans, president of the New River Valley Economic Alliance.
Near Covington, a just-completed bridge provides access to the remaining 250 acres in the Alleghany Regional Commerce Center at Low Moor. Bacova Guild Ltd. has taken 47 acres for a new factory, which is scheduled to be completed in time for the company to move some of its operations from Bath County beginning in February.
Roanoke County officials will continue to market 100 buildable acres in Valley TechPark, a county-owned industrial park. They plan a push in 1996 to identify and market private land suitable for industrial development.
In Botetourt County, businesses could begin to buy lots in the spring in the massive Greenfield development, said Administrator Gerald Burgess. Nearly half of the 922-acre property could be earmarked for industry, with the rest for recreation, schools and other public facilities.
Small business development will get attention, too, as the Roanoke Regional Chamber of Commerce and several partners plan to open a business incubator before April 1. A location has not been announced.
Economic uncertainties raise questions, however, about how quickly the land can be sold.
"All indications are that the economy is slowing down. If you look at retail sales, they are off this season. If the economy is slowing, there may be less interest in corporate expansion," said Phil Sparks, chief of economic development in Roanoke. Another interest rate cut, however, "could quickly turn around, and we could see a real upturn," Spark said.
Burgess agreed a drop in rates could lead to more borrowing. That "keeps industry investing, and it keeps people building homes," he said.
Burgess estimated the total value of taxable construction projects in the county in 1995 exceeded $40 million, which would be a record for the sixth consecutive year, but figures were not available yet. He said he sees no reason to expect construction to let up this year.
There are other encouraging signs, such as the number of calls to the Roanoke Valley Economic Development Partnership from companies or their representatives to ask about industrial development opportunities. The office had 717 calls in 1993, 771 in 1994 and 1,001 in 1995, as of Dec. 27.
More companies than usual are considering doing business in the New River Valley or expanding their operations there, and officials expect to announce some deals within several months, Evans said. The leads resulted from aggressive marketing of the area by the organization he heads and state economic developers, he said.
Beth Doughty, the Roanoke partnership's executive director, sees a trend in which more companies that are choosing to locate in the Roanoke Valley pay higher-than-average wages. Arkay Packaging, which is building a cosmetic-packaging plant in Botetourt County, was recently hiring press operators at $12 an hour and lead operators at $18 an hour, Burgess said. A.O. Smith Corp., a Milwaukee, Wis., diversified manufacturing company, plans to pay an average of $11 an hour at its proposed Botetourt County factory, sources have said.
LENGTH: Medium: 72 lines ILLUSTRATION: PHOTO: photo - Botetourt County Eastpark Commerce Centerby CNBcolor WAYNE DEEL/STAFF
2. graphic - Who's who at Botetourt County's Eastpark Commerce
Center. color.