More Federal Help Expected For Some Coal Communities

 

 

By Fred Pace

August 27, 2016 - A state lawmaker who represents some of the West Virginia counties hardest hit by coal's decline says grants announced this week are a start, but much more help will be needed to turn around that region's economy.

Sen. Ron Stollings represents West Virginia's 7th Senatorial District that includes Boone, Logan, Lincoln and parts of Wayne and Mingo counties.

"My district is coal country and has more communities negatively affected by the downturn in the coal industry than probably any other district in the state," Stollings, D-Boone, said.

After hearing of the grant awards on Wednesday for one particular project in his district, Stollings said more federal help is needed.

"I am expecting significantly more federal funding for the Hobet project," he said, referencing Gov. Earl Ray Tomblin's hope of turning a former surface mining site into a place that will attract business and industry.

A $200,000 federal grant from the Appalachian Regional Commission for the Hobet strategic plan in Boone and Lincoln counties was announced on Wednesday in Huntington. The grant was part of $38.8 million in new economic and workforce development awards given to help coal communities hurt by the downturn in the coal economy. Over $16 million was awarded to projects in West Virginia.

"First of all, I am thankful for the funding to study the Hobet project, but more help is going to be needed to help diversify the economy in the southern coalfield region," Stollings said. "The Hobet project is a game changer for southern West Virginia."

In May, Tomblin announced the first phase of the Hobet project, including the preliminary site development plans and the release of a Division of Highways request for qualification (RFQ) for the design and construction of an access road that could cost approximately $100 million.

The route will include a new 2.6-mile road, heading west from U.S. 119 and W.Va. 3 to the existing haul road north of Danville in Boone County. The road will provide access to the Phase I development area, covering nearly 4,000 acres west of Corridor G, according to Tomblin's release.

"The DOH plans to award a contract in October 2016, and construction is slated to begin March 2017," Tomblin said.

He said the state has submitted a federal transportation grant application to fund this new stretch of four-lane road.

"I have worked tirelessly to move this project forward, because the people of southern West Virginia and our entire state deserve to see it become a reality," Tomblin said in a release. "I'm proud of the steps we have taken to launch the first phase of this project, establishing a clear path forward that will ensure it reaches its full potential, helping to diversify our state's economy and provide new opportunities to those who have called this region home for generations."

With the help of Marshall University's Center for Environmental Geotechnical and Applied Sciences, mapping of the site has been completed to provide a more accurate representation of the size and scope of the project, Tomblin said.

In its entirety, the Hobet property includes more than 12,000 acres of land.

Tomblin said mapping has also helped the team identify prospective sites for strategic development moving forward.

Tomblin added that local utility companies have identified existing utility lines, and the state continues to develop plans to extend water, sewer and fiber infrastructure to the site. Costs will be determined as part of the DOT bid process, Tomblin said in the release.

Stollings and Tomblin both say the project has received support from local landowners and final negotiations are underway.

"Land titles will be transferred to the West Virginia Economic Development Authority," Tomblin said. "The state continues to work to secure necessary land titles and outline the next phases of development for the property. The state also continues to pursue additional federal funds to support the Hobet project, help diversify the state's economy and support local community projects."

Stollings said this project represents the most potential to transform and diversify the economy of the region.

"We are working with the West Virginia Development Office to use this grant to develop a strategic plan and economic assessment for the Hobet mine site that is focusing on 12,000 acres," Stollings said. "It's a regional project that can be 17 miles across and has all the potential in the world to help the southern coalfields region transform and diversify its economy."

Stollings said the Hobet site has a lot of infrastructure already there or nearby.

"The access road is the biggest thing right now, and I fully anticipate the federal government will help us with the access," he said. "I really think this Hobet site will be the most important project to help us diversify the economy in West Virginia's southern coalfield communities."

U.S. Congressman Evan Jenkins, R-W.Va., agrees with Stollings.

"The Hobet mine site has unlimited potential for economic growth, and this grant will allow the state to develop a strategic plan to make this potential a reality," he said. "These grants are critical to helping revitalize communities hurt by the downturn in coal."

A total of 29 awards were made as a part of the Obama Administration's Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative to stimulate economic growth and opportunity in communities.

Wednesday's awards were granted from the $65.8 million in POWER funding announced by ARC and EDA in March 2016.

"Most of the awards announced in Huntington on Wednesday were the first awarded from a competitive POWER federal funding opportunity," said ARC Federal Co-Chairman Earl Gohl. "They were awarded to provide implementation, planning and technical assistance grants in support of projects in coal-impacted communities. There is more to come."

Wendy Wasserman, communications and media relations director for the ARC, said the grant applications that are in the next round of funding are still under review.

 

"We expect to make another round of announcements before the end of the year," she said.