City earmarks up to $1 million for Areva expansion

By Bryan Gentry

Published: July 10, 2008

Lynchburg’s Industrial Development Authority on Thursday agreed to spend up to $1 million supporting the local expansion of Areva.

Half of the incentive money would be paid to Areva as a cash grant. The other half would help improve the city’s infrastructure around the company’s Old Forest Road facility.

Those improvements include sidewalks on a nearby residential street and another stoplight.

The French nuclear energy company plans to spend $25 million expanding its facilities in the city. It also plans to hire 500 new employees. Areva currently has about 2,000 employees in Lynchburg.

City policy allows the authority to pay a company for up to 2 percent of its physical improvement investment and 2 percent of its payroll increase.

Marjette Glass, director of Lynchburg’s Office of Economic Development, said incentive money would be paid as Areva verifies those expenses.

The final amount could total under $1 million, depending on the exact amount Areva spends.

Glass said Areva agreed to let half of the incentive money be used for physical improvements needed to support the expansion.

“To me, that’s being a great corporate citizen,” Glass said. “That’s something that we feel benefits everybody.”

The improvements center on Kings Drive, a narrow residential street next to Areva’s office on Old Forest Road.

The city plans to construct sidewalks on the street, as well as install a new traffic signal at the intersection of Kings Drive and Old Forest Road.

The city issued a request for proposals on Monday describing the project.

According to that document, Areva plans to build a 100,000- square-foot building and a parking lot adjacent to its current Old Forest Road facility.

The company owns several lots on Kings Drive — including a home it bought in June, according to city land records — and is asking for zoning approval to use those parcels for a parking lot.

The Lynchburg Planning Commission will meet July 23 to consider the request. If it approves the rezoning, City Council could take up the matter Aug. 12.

The expansion has been backed by several government incentives.

In June, Gov. Timothy M. Kaine announced that the Governor’s Opportunity Fund would provide a $1 million grant. The Virginia Economic Development Partnership chipped in $1.5 million.

The Governor’s Opportunity Fund requires a local match, which the Industrial Development Authority’s contribution meets, Glass said.

City Council usually budgets $200,000 per year to the Strategic Initiatives Fund, which pays the local incentives. Glass said some money is left in the fund from prior years when no incentives were paid.

Areva officials could not be reached for comment.