ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Thursday, August 22, 1996              TAG: 9608220034
SECTION: VIRGINIA                 PAGE: C-1  EDITION: METRO 
SOURCE: JEFF STURGEON STAFF WRITER 

EXPLORE PARK'S RENT SHOWS MUSEUM IS ON ROAD TO SUCCESS ROANOKE'S LIVING-HISTORY MUSEUM IS OUT OF DEBT AND GIVING A BOOST TO ITS FUND-RAISING PARTNER.

A rent of $14 per square foot can put a business in one of the offices in the tall, black First Union Bank building in downtown Roanoke. Another dollar would lease the top floor, former site of the Jefferson Club.

That's nearly the same price Explore Park is paying for its office space: about $13 per square foot. Explore Park's offices, though, consist of two trailers in the woods east of Roanoke.

Expensive? Yes, indeed, said a local commercial real estate agent.

But it means Explore Park has gotten out of debt.

The pricey rent is being paid to the River Foundation, Explore's fund-raising partner, to help clear some of the foundation's debt in turn.

The River Foundation's millions - I CHANGED BECAUSE THIS MAKES IT SOUND LIKE THEY SPENT MILLIONS AND STORY SUGGESTS THOUSANDSmoney paid for improvements at the living-history park.

The foundation bought the office trailers at a time when Explore Park - officially known as the Virginia Recreational Facilities Authority and the foundation's governing body - didn't have any money or credit. The foundation took out a loan to place the trailers in the park in 1994, said Greg Haley, its lawyer.

The authority is a special-purpose government agency created by the state to operate the park after River Foundation laid the groundwork.

For a time, the foundation collected little or no rent from Explore, but now it's getting reimbursed at a faster pace. That's good for park visitors because the better the foundation's finances, the greater its support to help Explore Park offer more to do, Haley said.

When both organizations get out of debt, the park will be eligible for more gifts and grants from outside organizations that support living-history attractions.

Even though the foundation charges rent, it contributes a much larger sum toward park operating expenses. That gift is budgeted to reach $350,000 over the 12 months ending June 30, 1997. It's about one-fourth of the park's operating budget.

The rent figure took effect July 1, and it is about 21/2 times the old rent of $1,250 a month. The park governing board is able to pay a higher rent because it will be out of debt by week's end. The debts were incurred in the park's start-up period, officials said

Although $170,000 worth of start-up debts remain on River Foundation's books, Explore officials said it is a milestone to clear up the park authority's liabilities.

"It creates a longer-term sense of stability," said Executive Director Rupert Cutler. "It's a better business climate."

The park's governing board sold land to return black ink to its books. But, "it's not at all like we're selling land to stay afloat," said Jack Loeb, chairman of the Virginia Recreational Facilities Authority and president of Loeb Construction Co.

The park didn't need the land and didn't think visitors would miss it, Loeb said. Two transactions took place this summer:

Edward Strange Jr. and his wife, Joann Strange, paid $19,000 for a one-sixth interest in 51 acres on the opposite side of the Blue Ridge Parkway from the park. The park had bought the interest from Joann Strange's family years earlier in what turned out to be an unnecessary step.

Albin Hammond last month paid $90,000 for 5.9 acres on the opposite side of the Roanoke River from the park.

A year ago, creditors were clamoring for the park authority to pay them for construction, printing, signs and the like connected to opening Explore Park in 1994. To ease the pressure, the park authority borrowed $70,000 from Crestar Bank to pay its creditors. Now that loan has been paid.

Explore Park has logged 15,000 visitors this season, with slightly more than two months until its Oct. 28 winter closing. It has a goal of 30,000, a 50 percent increase over last year's attendance.

LENGTH: Medium:   80 lines
ILLUSTRATION: PHOTO:  PHILIP HOLMAN/Staff. Explore Park is paying high rent 
          for these two trailers owned by the River Foundation, Explore's 
          fund-raising partner. In this way, the financially sound museum can 
          help clear some of the foundation's debt. color.