County plans to finance portion of BRBDC cost

Alleghany County is seeking financing to pay for a portion of the cost of the Blue Ridge Business Development Center (BRBDC).

The BRBDC will eventually host Wilkes Community College, Alleghany JobLink, space for a call center and a business incubator. Construction on the center, located in the former Bassett-Walker building, is scheduled to begin on Oct. 7, with a scheduled completion day in mid May of 2003.

The county is currently seeking financing from two sources — a U.S. Department of Agriculture loan and financing from AF Bank (Alleghany First). AF Bank was the low bidder for the $780,000 loan among local banks, offering an interest rate of 5.925 percent for 15 years. However, the county is pursuing the USDA loan simultaneously, since it would offer a 4.75 percent rate.

County Manager Don Adams said that he has not heard back from USDA representatives with an official answer on the loan, therefore, both loan processes are proceeding. "We plan to keep both options open until we get final word from USDA," Adams said.

he loan terms received from AF Bank will require a first payment of $49,213 in 2003, followed by payments of $96,105 in 2004 and $93,010 in 2004. Adams said that the payment amounts are not exact and will change if the lower-rate USDA loan is approved.

The telecenter project, which is slated to cost about $2,214,000, is being financed through several sources.

Among them is an EDA (Economic Development Administration) grant for $1 million that was announced earlier by Congressman Richard Burr. Adams said that money is not in the county's accounts as of yet. Other sources include an Appalachian Regional Commission grant for $200,000, a Rural Internet Access Authority grant for $150,000 and $84,000 from the state bond funds from Wilkes Community College. Not included in the total is $125,000 that will paid by the town of Sparta toward the original $250,000 purchase price. The town is paying the $125,000 in four installments.

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