THE WARREN SENTINEL
Article date: October 24, 2002

Additional Avtex funding will be necessary by next summer

By: Roger Bianchini

While Bill Barnett's comment that, "It's better than building bridges in Iraq," drew laughter, his message was serious. Barnett was addressing the necessity of attracting additional federal funding of $10 million to complete demolition and asbestos abatement work at the Avtex Superfund site.

At the Oct. 18 Front Royal-Warren County Economic Development Authority meeting executive director Stephen Heavener pointed out, "We are fast approaching that $12 million mark." That is original cost estimate of the remediation work, which the U.S. Army Corps of Engineers now say will fall $10 million short.

The Army Corps is conducting and overseeing the current demolition and abatement work at the site. It is estimated that the initially federally budgeted $12 million will be expended by next summer. Former plant owner and cleanup partner FMC Corporation representative Doug Bement told the EDA, "We must be diligent. It took these contracts that are in place to move the Corps into this phase (of cleanup work) and if we don't get the additional money in this budget year they will demobilize. And that would be a disaster."

Keeping the Army Corps on site and mobilized is recognized as a priority. The consequences of demobilization would leave the Avtex redevelopment project floundering. And floundering is not a happy condition for the EDA at Avtex.

"Our liability in 2008 is considerable. We need to do something in the next five years." EDA director Bill Sealock observed. The timetable for local redevelopment of a portion of the site into a business park hits the wall in 2008.

The contract the EDA has on the property as the representative of the town and county states, "That if the EDA does not sell all of the property for commercial or industrial use prior to the 8th anniversary of the Prospective Purchaser Agreement (March 27, 2008), the EDA shall have the option of either (1) paying FMC, the United States and the Trustee an amount equal to the net proceeds that would have been paid had the unsold property been sold for fair market value on the 90th day of the 8th anniversary date, or (2) convey the unsold property to a party designated by the United States and FMC upon the total payment of $1,000 to the EDA."

With those options in mind Barnett said, "We need to prepare to start marketing the site." The board discussed the types of commercial or light industrial businesses that should be targeted.

"What does light industrial mean?" John LaBarca asked, "Is it appropriate for the site?"

Sealock replied that he had visited some light industrial commercial parks in Ohio and other nearby states. "Some are like college campuses when you roll on in. I was duly impressed."

"We need to maximize the profit potential. We don't have a lot of space," LaBarca said. Barnett observed, "Some people in the community look at this as free property... but it is one of the most expensive pieces of property in the country... we need tax- generating, job- generating industry and business on the site."

Barnett said that in a recent conversation, 10th District U.S. Congressional Representative Frank Wolfe said that he was "very confident" that the necessary additional federal funding would be found. Wolf and U.S. Senator John Warner have been strong supporters of the Avtex redevelopment project.

"I would... strongly encourage you to investigate all other potential sources of funding," Governor Mark Warner told the EDA in a Sept. 27 letter responding to inquires about potential state funding.

With the state facing a $1.5 billion budget shortfall, the efforts of Warner and Wolf in seeking the necessary funding out of an also tight federal budget seem pivotal to the EDA's hope of staying on schedule to make the Avtex property profitable locally.

At another juncture in last Friday's meeting, Heavener noted that the contracts between property owners and SYSCO were being closed that day. He said that it was expected that payment of the property for the SYSCO food warehouse and distribution center would be made this week. The EDA will realize a $100,000 contribution out of that deal. Half of the amount will come from the buyer and half from the seller of the property.

The board discussed how to best determine the layout of the acre that will surround the McKay House, Battle of Front Royal, Civil War historical site that was donated to the county as part of the SYSCO purchase of the Horton property.