The sale of a town-owned building is helping Boones Mill to pay off its debts.
Town Manager B.T. Fitzpatrick said the sale of a structure at the Village Park property known as Building 6 closed in November. John Garst’s Boone Dominion Process Co., which had rented the building, purchased it for $325,000.
The town is using the bulk of that revenue — approximately $273,000 — to pay off two loans with Virginia Community Capital. Fitzpatrick said the loans were used to support the renovation of a two-story industrial building at the Village Park.
Though the town is still making payments on the Village Park property — the former North American Housing Corp. complex it purchased in 2011 — Fitzpatrick said he’s glad to reduce the town’s overall debt burden.
“That’s a wonderful thing for the town,” he said. “That helps our debt limit and our borrowing ability.”
Prior to the sale, the town was running up against its debt limit. Now, Fitzpatrick said, the town could borrow some, though he said there are no plans to do so at this time.
“We can borrow a little bit of money, but I’d like to get more things paid off so that we’re in a better situation,” Fitzpatrick said.
The town also plans to use up to $42,834 of the money from the sale to bring water and sewer service to Garst’s building, which Fitzpatrick said was a condition of the sale. The Western Virginia Water Authority, which last year began managing the town’s system, did that work.
Finally, the town allocated $2,130 from the sale to cover attorney’s fees associated with it.
That leaves just under $7,000 from the sale not yet spoken for.
Overall, Fitzpatrick said he thought selling the building was a win for the town.
The town manager said Boones Mill didn’t have money available to fix up the building, but within just a few months of taking ownership Garst has already invested in it.
“In order to get the town in a better financial condition and where we need to be, this was just a no-brainer, in my opinion,” Fitzpatrick said.