Wythe County commits $1 million in local funds to move Barrett Mill water/sewer project forward

The Wythe County Board of Supervisors voted March 25 to commit $1,000,000 in local funds toward the Barrett Mill infrastructure project so the county can close Rural Development grant and loan financing and proceed with construction.

County staff briefed the board on recent Rural Development calculations and a funding package that, as discussed in the meeting, would include a roughly $1,932,000 grant, a $1,932,000 loan and an additional loan of about $3.5 million at an estimated 2.5% interest rate to complete the full project scope. Staff said the county previously rejected bids for one portion of the work (division 3) and that proceeding with local funds for that division would allow Rural Development to finalize paperwork and close on the grant and loan portions covering divisions 1 and 2.

County Administrator Tarrin (staff) and staff advised that using $1,000,000 in local funds toward the project was preferable to shifting more local funds into another project that carries a higher interest rate. After discussion, Supervisor Morgan moved and Supervisor Smith seconded a motion to commit $1,000,000 of local funds; the board approved the motion by roll call.

The board’s vote authorizes staff to finalize Rural Development paperwork and close the grant and loan package; staff said the county would then proceed to secure the remaining construction financing and complete the Barrett Mill project. The board did not provide a detailed repayment schedule for the local commitment in the meeting minutes; staff said they will follow up with final loan documents and timing.