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State asks 16 sponsors to explain building delay
[Jul-21-2006]
By Eric Eyre
Staff writer
Sixteen economic development projects across West Virginia risk losing up to $58 million in previously awarded state grant money unless developers prove they have taken significant steps to complete the projects.
West Virginia Economic Development Authority members unanimously passed a resolution Thursday that requires the 16 project sponsors to attend a meeting Aug. 3 in Charleston. The grant recipients, which include state agencies and local development groups, will have to provide detailed plans for getting their projects off the ground.
The projects in question include South Charlestons plan to build a $1.5 million biotechnology incubator and the Putnam County Development Authoritys proposal for a $3.2 million business park in Hurricane.
In 2003, a state Economic Grant Development Committee awarded nearly $225 million for 47 projects, including industrial parks, parking garages and sewage plants.
This thing has been in the marketplace for four years, said state Commerce Secretary Tom Bulla, chairman of the WVEDA. If you havent completed a project within four years, theres a problem with it.
Board members could yank funding from some projects as early as Aug. 17, but they might wait until September to decide which projects are no longer viable.
WVEDA members have estimated that about $20 million in grant money likely wont be spent, but they wont know an exact amount until they hear from grant recipients Aug. 3. Project sponsors must show definite plans for spending their grant money and completing projects.
The authority plans to return the money to the state Legislature, which established the grant committee.
Were bringing this to a head, said WVEDA board member Rick Slater. One thing clear is they cant change the scope of the projects. If someone said we want to build a basketball court, but now we want to build a football field, they cant do it.
In May, authority members rejected a request from the city of Clarksburg to spend a $4.3 million grant initially intended for a parking garage on a parking lot and other downtown development projects.
Thirty-one agencies awarded grant committee funding havent spent all the money they received, according to a report released Thursday. More than $73.8 million of the $225 million remains unspent.
For instance, the state Department of Health and Human Resources hasnt spent a dime of the $1 million it received to build a trauma center in Logan County. The project is expected to cost $5 million. Meanwhile, the state Division of Natural Resources has spent only $34,000 of its $3 million grant to expand the lodge at Twin Falls State Park.
Most of the 16 targeted grant recipients have spent less than half of the money they received form the grant committee in 2003.
The state development authority agreed Thursday to allow five projects in Morgantown, and Marshall, Jefferson, Hampshire and Barbour counties to extend deadlines to complete construction by December 2007. Those projects have financing and construction plans in place.
At the Aug. 3 meeting, each of the 16 sponsors of targeted projects will have 30 minutes to explain why they shouldnt have to give up their remaining grant money. All projects were supposed to be completed by the end of this year.
Were not going to let this roll on and on, Slater said. Were trying to see whether they have concrete timelines and contracts in place. Well know a lot more after we hear from the 16 grantees.
Also Monday, board members:
Gave final approval for three low-interest loans: $720,000 to Hammack Enterprises, a pipe and valve manufacturer in Nitro; $1.56 million to Bridgeport-based FMW Composite Systems, which makes a titanium composite; and $400,000 to Hughes Supply Co., a Raleigh County communication and electrical product manufacturer.
Gave preliminary approval for a $299, 475 loan to S.J. Morse Co., which makes wood-veneer panels in Capon Bridge.
To contact staff writer Eric Eyre, use e-mail or call 348-4869.
Projects under fire
Location/Project/Unspent amount
South Charleston/biotechnology incubator/$1 million
Man/trauma center/1 million
Wyoming County/Twin Falls State Park lodge expansion/2.9 million
Moorefield/sewer plant/4.8 million
Morgantown/WVU fire academy/1.8 million
Parkersburg/Riverfront Park /2.6 million
Hurricane/business park/2.8 million
Randolph County/railroad bridge/1.2 million
Morgantown/public theater and marina/10.9 million
Morgantown/neurosciences institute/7.8 million
Fairmont/technology park/9.9 million
Logan County/Chief Logan State Park lodge/3.4 million
Morgantown/Square at Falling Run/1 million
Beckley/business parks/3.8 million
Fayette County/Wolf Creek Park/0.57 million
Clarksburg/parking garage/2.6 million
Total: $58.3 million
Source: West Virginia Economic Development Authority
Contact:
Eric Eyre
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