The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, July 9, 1994                 TAG: 9407090207
SECTION: LOCAL                    PAGE: B4   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   52 lines

STATE ENDS CONSULTANT'S CONTRACT THE FEDERAL GOVERNMENT SAID TIES TO DISNEY SUGGESTED A CONFLICT OF INTEREST.

The state on Friday terminated its contract with a consulting firm it hired to do traffic studies on a proposed Walt Disney Co. theme park in the face of opposition to the firm by the federal government.

The U.S. Department of Transportation called the hiring of Dewberry & Davis of Fairfax County inappropriate because the firm was already under contract to Disney.

State Department of Transportation officials insisted there was no conflict and that federal authorities had previously approved the $8.7 million contract. But in a news release, the department said Gov. George F. Allen terminated the agreement because ``it now appears the federal agency will reverse its decision and withdraw its approval.''

David R. Gehr, Virginia's transportation commissioner, said the state will send out requests next week for new bids on the 18-month contract. A new contractor should be chosen by August.

Dewberry & Davis, which is under contract to Disney through November, was hired by Disney during the early stages of planning for the $650 million theme park to do traffic estimates.

The state contract is for preliminary design work for the proposed widening of eight miles of Interstate 66 and construction of a new interchange to serve the Disney's America park near Haymarket. That work would be included in the federal environmental impact statement analyzing the road projects' effect on traffic and air quality.

Asked whether the canceled contract would set back Virginia's review of Disney-related roads or jeopardize the theme park's scheduled 1998 opening, Allen spokesman Ken Stroupe said the project should not be delayed more than two months.

``I think, hopefully, the delay will be minimal at this point,'' Stroupe said. ``It's still early. The environmental impact statement had not proceeded a great deal. I think there will be a minimal delay.''

Park opponents had challenged the awarding of the contract, citing a possible conflict of interest.

A Federal Highway Administration spokesman on Thursday told The Washington Post that Mark Tumlin, the agency's Virginia division administrator, has informed state officials their hiring of the firm is unacceptable because of the perception of impropriety.

KEYWORDS: DISNEY'S AMERICA by CNB