WASHINGTON - A West Virginia economic development panel created to award grants from the proceeds of approximately $200 million in lottery-backed revenue bonds to be issued by a state authority narrowed its list of eligible projects to 67 this week.
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The Economic Development Grant Committee, which was created by the Legislature in March to help revitalize the state's economy, selected the 67 projects, representing about $400 million in grants, from 195 applications that were seeking a combined total of more than $1 billion, according to Alex Macia, general counsel to Gov. Bob Wise. Macia represents the governor at the nine-member panel's hearings.
However, the committee still has to further whittle down their selections.
"We're pleased with the ideas that have been put forth, and there is a lot of creative thinking involved," Macia said. "We can't fund everything."
The committee certified its first project in May -- a $70 million grant that will be used to help finance the $150 million Wheeling Victorian Outlet Center. The funding is contingent upon the developers securing at least $49.9 million in private funding by Jan. 15.
After the Wheeling grant, the panel has about $130 million in unallocated grant funds remaining.
Some of the top contenders include the West Virginia High Tech Consortium Foundation, which has submitted a $19 million request toward the construction of a technology park in Marion County, and a $1 million request for a grant to help construct a terminal building at the Martinsburg Airport, according to Macia.
The committee rejected a $40 million request for the construction of a dam in southern West Virginia and all sewer project requests that were not tied to the attraction or retention of businesses, Macia said.
In two weeks, the committee will begin holding four public hearings around the state to get public comment on the projects being considered, according to Secretary of Tax and Revenue Brian M. Kastick, the committee's chairman. The panel then will reconvene to further narrow the number of projects it will consider.
Following some due diligence, the panel expects to begin certifying projects at the end of August, Kastick said.
He added that the panel would like to have the $200 million in bonds issued in two segments -- one in mid-fall and another early next year. The committee is limited to two bond issues.
The West Virginia Economic Development Authority will issue the bonds. Jackson & Kelly is bond counsel, and Salomon Smith Barney Inc. is the lead underwriter for the negotiated sales.
Kastick said he expects the lottery revenue to grow at a slower pace in the coming years, in effect eliminating further funding available to the committee.
"We anticipate this will be a one-time process," Kastick said.
Lottery revenues grew by 43%, to $849 million, this fiscal year, and will increase by a projected 30%, to $1.1 billion, in fiscal 2003, according to John Musgrave, director of the West Virginia Lottery.
"We're still expecting an increase, but smaller than we have had in the past," Musgrave said.
The committee has a secondary claim on the state's lottery revenue, which also is pledged to fund parks, a college scholarship fund, and the West Virginia School Building Authority, among other things, Kastick said.
