Tuesday, November 25, 2008
Board exploring options for park
Explore Park's board is considering what to do if a developer cannot secure a loan.
The board that oversees the now-closed Explore Park decided Monday to rehire the park's former director to help it prepare a "Plan B" in case a proposed and much publicized family vacation destination resort doesn't work out there.
Although the details of her part-time position have to be worked out, Debbie Pitts told the board she would accept such a job if it were offered to her.
At the three-hour retreat of the Virginia Recreational Facilities Authority board, discussion revolved around the possibility that Florida-based developer Larry Vander Maten might not be able to exercise his lease option when it expires next summer.
If not, either he or the board could drop the project altogether, or he could negotiate for an extension of his option. Vander Maten has already opted to take an extension clause in his original contract with the board.
Board member Stan Lanford, who has worked closely with Vander Maten during the past four years, said, "We're in a position now ... where giving an extension is better than not giving one."
Lanford said that, "if there's any hope he can still go forward, I hope there is some way we can work it out."
Although board Chairman Fred Anderson and Lanford said they had been reassured by Vander Maten this week that he remains optimistic the project will be completed, Lanford acknowledged that the developer "is the first to admit there's nobody out there right now" willing to lend him the $90 million he's pledged to spend on the project.
While Vander Maten's continued enthusiasm drew praise from board members, they also decided that the myriad uncertainties about the park site's future required that they rehire Pitts, who retired in June after overseeing the shuttering of the park.
Last April, Vander Maten asked the board to revise the terms of the lease to extend its length from 50 to 99 years and raise the amount he would be required to spend from $20 million to $90 million.
He indicated that he had not been able to obtain financing at that time because of the "dire state of affairs" in the national economy, but that banks had told him the longer term would make the project more attractive.
Although his original five-year lease option required him to take possession of the property by this past June, it also had a clause allowing him a one-time, one-year extension if financing proved elusive.
Under the new terms, Vander Maten is required to take possession by June next year. Construction must begin by June 2010.
But the authority only has oversight of the site if it operates a historical, ecological and educational project there.
Because Explore Park had shut down in November 2007, the property was scheduled to revert to the state on July 1 this year.
State Del. William Fralin, R-Roanoke, who also sits on the park board, introduced legislation in the 2008 session that extended the authority's oversight until July 1, 2009.
New legislation would be needed this year to allow the board to extend its option for Vander Maten.
Although the board has $281,000 in cash and debt of $166,000 in the form of a loan from the state, board members also were concerned about the lack of income for the property.
Both public and private money completely dried up when the park shut down, and a series of agricultural leases, which bring in about $6,000 a year, are expiring this year because the board expected Vander Maten to take over the property in June.
One of Pitts' first jobs will be to find out if those leases can be extended, and to see if it's possible to resume renting the chapel and grounds for weddings and other private special events, as well as the occasional movie shoot.
In another item from Monday's retreat, board member Bill Tanger asked the authority to consider endorsing the construction of a temporary boat landing on a disputed spit of land at the end of Rutrough Road at the Roanoke River.
Six outdoors groups have threatened to sue the authority if it blocks their effort to build the ramp. Tanger presented a letter from the Virginia Department of Transportation saying it is willing to issue a permit to the groups for the construction of a "boat slide" at the site.
The board has contended that the site is part of its property, not the roadway.
Discussion of the issue was put off until the board's next meeting, Jan. 20.





