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IDA seeking funding to up-fit Riverstone facility

The Halifax County Industrial Development Authority (IDA) approved a resolution Tuesday morning that seeks a $2.8 million grant from the tobacco commission that meets next week in Richmond. During its special called meeting, IDA members submitted an economic development grant program application for $2.8 million to establish a Center for Coatings Application and Education at Riverstone.

According to the resolution, “the facility will conduct applied research and development of coatings technology in the wood, metal and plastics sectors.”

The grant will be used for the up-fitting of the “high bay” facility at Riverstone Center, the installation of necessary robotics and the procurement and purchase of specialized coating equipment in order to establish the center, the resolution states.

Halifax County Board of Supervisors approved a similar grant application to the Virginia Tobacco Commission for $2.7 million during its meeting Monday evening that supports the IDA’s application to establish the Coatings Center project at Riverstone.

Supervisors also agreed to provide a 10 percent match - up to $270,000 — should the tobacco commission approve the grant application next week.

During their Tuesday morning meeting, IDA members also ratified a construction contract award for Green View Advanced Manufacturing Center (former Daystrom building) to low bidder J. E. Burton Construction Company.

The contract award for demolition projects totaled $166,541 and did not include roof replacement or installation of a fire suppression and alarm system, according to IDA Development Director Patsy Vaughan.

Those projects are expected to be bid out to subcontractors, she added.

Although Burton was the low bidder, Vaughan explained the contract came in combination with McDannald Construction Company who will be working jointly with Burton Construction Company on the Green View project.

Bids were opened on Dec. 22.

The contract was awarded for lump sums for demolition of areas B and B1 at the manufacturing center and site demolition and contractor fees for six months, all totaling $166,541.

A breakdown of costs includes the following:

• Area B and B1 demolition - $34,569

• Area B roof demolition - $19,940

• Site demolition - $35,722

• Contractor fee (six months duration) - $76,310

According to Vaughan, the contractor fee was stipulated for six months at a monthly rate of $12,718.33.

“It is understood the total contract amount will be adjusted by the monthly amount as the contract duration changes from six months, more or less,” she added.

Vaughan said it is anticipated the work to be accomplished within the contract for the Green View Advanced Manufacturing Center will take approximately six months.

The IDA closed on the Sinai property Dec. 28 purchasing the former Daystrom building from Fred D. Godley using $900,000 in tobacco commission funding.

The Daystrom project was awarded a $900,000 tobacco commission grant to purchase the building and a $1.8 million grant to up-fit the building by taking the roof completely off, IDA officials said.

Vaughan said total renovations are expected to cost less than $2 million and will not exceed the money the IDA has been awarded for the project.