ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, September 17, 1996 TAG: 9609170071
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: CHRISTIANSBURG
SOURCE: KATHY LOAN STAFF WRITER
MEMO: ***CORRECTION***
Published correction ran on Sept. 19 in Current
Correction
Vision 2020, a study of ways to stimulate economic development in the
New River Valley, includes proposals for the next 20 years. A story in
Tuesday's New River Current about the renovation of the former
Health-Tex plant in Christiansburg incorrectly reported the study's
scope. The Health-Tex renovation, recommended in the Vision 2020 study,
is just the last of three current building projects receiving federal
funding.
The last of a three-pronged approach to boost economic development in the New River Valley was put in place Monday with the announcement of a $1.2 million grant to renovate a former textile plant into a small-business incubator.
Besides providing start-up help for small businesses, the building also will house six to eight small manufacturing firms. Rep. Rick Boucher, D-Abingdon, joined Montgomery County officials to make the announcement Monday in the parking lot of the former Health-Tex building on Roanoke Street in Christiansburg. The grant comes from the Economic Development Administration of the U.S. Department of Commerce.
"Small businesses are the wellspring of economic growth in today's economy," Boucher said, as 80 percent of new jobs are created by businesses employing 200 or fewer workers.
The project is the third and final recommendation of a $200,000 study coordinated by the New River Valley Planning District Commission earlier this decade to look at building projects that would stimulate economic development in the region after major layoffs in defense-related industries, including the Radford Army Ammunition Plant.
The other two were a shell building in Dublin on land acquired from the Burlington Corp. and a small-business incubator on the old AT&T property in Pulaski County.
Loans to the Montgomery County Industrial Development Authority from area banks will make up the difference between the $1.2 million grant and the $1.66 million cost of the project. The loan will be repaid from tenant rental fees.
The project includes a new common entry court to the rear of the building; replacing the heating, ventilation and air-conditioning system; and basic renovation of the first floor of the building.
The IDA is pursuing a second grant to use to make loans to tenants to improve their spaces.
"Small-business incubators have a proven track record of assisting entrepreneurs as they enter the commercial market," Boucher said. He cited federal Small Business Administration statistics that indicate while 80 percent of small businesses survive five years or less, 70 percent of small business "hatched" in incubators survive beyond the first five years.
"That clearly demonstrates the success of the incubator concept," which helps small businesses share office expenses, clerical staff and utilities, Boucher said.
Henry Jablonski, chairman of the Montgomery County Board of Supervisors, said the county began to pursue the building about four years ago after learning it might be available.
The supervisors told their economic development staff to pursue the purchase, with the specific goal of providing assistance to small businesses within the county.
"We were progressively convinced that ... the property, when properly developed, would greatly expand local government's ability to help, particularly those small businesses with great promise but with limited resources," Jablonski said.
The county bought the building in 1993. Two businesses already occupying the building - H&W Controls, a computer service company, and NRVNet, an Internet access provider for the New River Valley - are expected to stay on. A clothing bank sponsored by the Montgomery County Emergency Assistance Program moved into the building's basement in July, with the agreement the space would be vacated when needed.
David Shanks, IDA chairman, said after an architect is obtained, the county would "be trying to bid it probably in the first part of 1997,'' with the better part of next year needed for construction.
The five-acre site fronts Roanoke Street, and the building has 138,000 square feet on two floors. Parking is available for about 200 vehicles. The building includes loading docks, freight elevators and a 100,000-gallon water tower that serves an automatic sprinkler system.
The six to eight manufacturing spaces will vary in size from 5,000 to 12,000 square feet.
With shell buildings and industrial parks previously being the primary focus of economic development efforts of Montgomery County, Economic Development Director Don Moore said "one of the frustrating parts of our work was that we were less able" to provide the needs of small-business operators.
"We really need to get the word out to all the businesses in the community that this facility is on track," Moore said.
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