Town assessing space

With some small construction items still underway at the new wastewater treatment plant and the police department possibly needing a permanent home, Orange Town Council members are taking stock of their property.
Earlier this year, town manager Greg Woods introduced the idea of purchasing the vacant Virginia Department of Transportation (VDOT) property on Waugh Boulevard as a permanent location for the town police department. Currently, the town rents the department's space on Blue Ridge Drive. However, that lease will be up in two years, though an option does exist for five additional years. Meanwhile, Woods said purchasing the VDOT property could save money in the long run.
Woods said assuming the town could get a 2 percent interest rate on the money used to purchase the property and keep it for 20 years after the current rent on Blue Ridge Drive is up, the town could spend $651,777 for the property and renovations and be economically neutral. He said any lesser amount would be a benefit to the town.
However, council members weren't convinced. They suggested waiting for the VDOT property's new assessment which should happen in the fall and working with the current owners of the Blue Ridge Drive property to determine any flexibility in the rate. Council member Kent Higginbotham also suggested taking stock of the town's current property, which Woods said he is in the middle of now.
"We are really looking at what is the best use of the funds we have going forward," Woods said.
He said the town owns major property, such as the town hall and public works building, as well as several smaller storage lots or sheds on Montevista, Peliso and Railroad avenues and Lafayette Street. Woods said there are also some properties that are less than an acre that will need to be researched further using tax maps.
Some property is also rented out, like the Train Depot, being finished (the wastewater treatment plant) or has been recently renovated (the town hall). Woods said the town hall renovation was completed in 2010. Currently, planning and zoning, finance, the town manager and the town clerk are all based out of the town hall. He said eight employees work in the building, which has no plans for expansion.
As for the wastewater treatment plant, construction began in 2008 and was substantially finished to be operative by the Department of Environmental Quality (DEQ) deadline of Dec. 31, 2010. However, several small construction items are ongoing. Woods said the ongoing items are minor, including some programming changes and a valve installation. He said he expects the plant to be finished by the end of the month.
Once fully complete, Woods said the loan amount for the plant will be finalized, allowing the town to negotiate the loan terms with DEQ.
"We won't be spending all we qualified for [initially] so it won't be worst-case," he said.
Woods said a change in the loan terms would help tremendously.
"I can see there being no deficit in 2-3 years," he said.
Currently, the deficit is covered by money in the reserve fund. Woods said the fund, which includes water and sewer reserves, is approximately $4 million. This year, $676,000 in sewer reserves are expected to be used to cover a deficit in the sewer fund. However, Woods said that is worst-case scenario and could be affected by various things including availability fees from Roundhill.
As for where the police department comes in, Woods said its all about priorities.
"The first priority is the wastewater treatment plant," he said. "Then is May-Fray Avenue or the police department the next priority? Then other things. It depends on the money."
Woods said there is no rush on deciding where to locate the police department.
"Our lease is up in two years and then renewed for five after that unless we give notice," he said. "We are not under pressure yet. Actually, if we did something now, we would have to pay for both [locations] at the same time."