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Regional commission seeks Christiansburg home; Radford’s share could be $246,000 or ~$18,000 a year
Summary
The New River Valley Regional Commission told Radford City Council it has a $2 million purchase agreement for a Christiansburg bank building and estimates a $3.25 million project cost; financing options include a lump-sum assessment ($246,000 for Radford) or a 20-year note (~$18,000/year).
Kevin Byrd, director of the New River Valley Regional Commission, told Radford City Council the commission is under a purchase agreement for the former American National/Atlantic Union bank at 2950 Market Street NE in Christiansburg and laid out a financing plan for a regional office and meeting space.
"We have a purchase agreement in place for $2,000,000 for the facility," Byrd said, adding preliminary architecturals show the building can accommodate two meeting rooms and room for future expansion. Byrd estimated construction and upfitting for meeting spaces at about $1,250,000 on the high end, producing a total estimated project cost of roughly $3,250,000. The commission’s due-diligence period runs through Oct. 16, Byrd said.
Byrd described two financing pathways identified by finance advisor Davenport & Associates: participation in a Virginia Resources Authority pooled financing program or responses to a private-bank RFP. Montgomery County has offered to make a lump-sum payment of $600,000 and to back the loan, a contribution Byrd said would improve financing terms for the region.
Using a capital-assessment formula based on population, Byrd showed Radford’s lump-sum share would be just under $250,000; on a 20-year note he estimated Radford’s annual payment at about $18,000. Byrd said the commission currently receives about $240,000 a year of unrestricted local funds and that most other funds are restricted grant dollars.
Council members asked whether the commission had re-evaluated rental options and about the impact on Radford’s existing dues. Byrd said the commission had surveyed rental and purchase options across the region and concluded the Christiansburg building offered a better long-term value and access to transit and emergency-operation space. He said full financing results should be available in about two weeks.
No formal action was required of Radford tonight; Byrd said the regional board will meet Sept. 26 to consider financing options and the commission will provide a memo and an annual report documenting services and past partnering work with the city.
