THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, October 2, 1995                TAG: 9510020120
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
                                             LENGTH: Short :   46 lines

GROUND BROKEN FOR 2 PRISONS IN SOUTHWEST

The groundbreaking for two state prisons in the coalfields will show that more state facilities - not necessarily prisons - should be located in southwest Virginia where the jobs are needed, local officials said.

The maximum-security Red Onion Prison will have its groundbreaking Tuesday at the site on the Wise-Dickenson county line. On the other end of Wise County, the Wallens Ridge Prison will have its ceremonies the week of Oct. 16 near Big Stone Gap.

The $72 million Red Onion facility alone is expected to provide several hundred jobs at the prison and in spinoff employment. The coalfield region has a high rate of unemployment.

Funding for the Red Onion prison was threatened during the 1995 General Assembly session. Among the problems were questions about ground compaction studies and the struggle to complete the deeds.

Now that the hurdles have been cleared, Richmond should take notice that southwest Virginia is a good site for more state facilities, said Del. Clarence ``Bud'' Phillips, D-Castlewood. His optimism is shared by both Wise and Dickenson county officials.

The Red Onion project will open some doors for more industry at the site, said Dickenson County supervisor and former board Chairman Damon Rasnick.

The primary road for the prison will allow access to land that can be developed for industry, he said. Water and sewer service at the site will mean more benefits in the future, he said.

The Red Onion facility should be completed in 1997, with prisoners coming in one year later.

For Big Stone Gap, the $74.9 million Wallens Ridge project is the first of its kind, with the town's Housing and Redevelopment Authority selling bonds to build the prison. The facility will be leased to the state for 20 years, then the state will own it.

Site clearing will begin soon.

``We're pretty much on track,'' said Chuck Miller, the director of the housing authority in Big Stone Gap. ``We're anxious to get started.'' by CNB