Development Story Archives - West Virginia Public Broadcasting

Luxury Harpers Ferry Hotel Eyes Revitalization District Status

Hill Top House Hotel, a controversial luxury venue planned for Harpers Ferry, is pursuing new financing models through West Virginia’s tax increment financing program.

Overlooking the Potomac River, the future site of the Hill Top House Hotel has been blocked off with chain-link fences and sheets of fabric for years.

First proposed in 2007, the luxury hotel aimed to renovate and expand a historic nineteenth-century hotel that had fallen into disrepair.

The plan generated controversy among residents concerned about the scale of the project, which includes an underground parking garage, on-site restaurant and public green space.

For their part, representatives with SWaN & Legend Venture Partners — the Virginia-based investment group that owns the property — have maintained their intention to see the project through, even as local objections have ebbed and flowed.

But community pushback has not come without challenges, according to SWaN CEO Karen Schaufeld. The years of delays to the project have altered the project’s costs, which Schaufeld said rose significantly during the COVID-19 pandemic.

“The increase in construction and building costs due to numerous delays and, subsequently, the COVID-19 pandemic caused Hill Top’s total project cost to balloon to $150 million,” she wrote Thursday in an email to West Virginia Public Broadcasting.

To offset these new costs and help complete a project decades in the making, SWaN representatives are pursuing a new financing model: West Virginia’s tax increment financing (TIF) program.

Schaufeld wrote that admission to the program is a “financial necessity” for the hotel’s completion.

Some properties along Washington Street in Harpers Ferry have been purchased and prepared for development by SWaN & Legend Venture Partners.

*Photo Credit: Jack Walker/West Virginia Public Broadcasting*

The TIF program identifies areas in need of development and economic revitalization. By designating these areas as TIF districts, property developers can receive financial support for their projects on site.

When a site is declared a TIF district, its property value is frozen for a number of years, during which property owners can further develop within the district without facing increased property taxes.

On April 4, the Jefferson County Commission took the first steps toward securing the hotel its new status, voting narrowly to submit a TIF district application to the West Virginia Department of Economic Development.

This is merely a first step in the process, as the Jefferson County Commission will receive final approval over TIF districting plans.

Still, during an April 4 commission meeting, some members of the commission expressed concern over the speed of the application process, and encouraged additional time for public feedback.

Additionally, county commissioners expressed concern that the application was not complete at the time of their voting.

“I think we need to schedule another public hearing,” said County Commissioner Tricia Jackson, who voted against the application. “I think it would be irresponsible and reckless for this commission to advance this without having completed application information and [having] the public’s involvement.”

Last fall, the commission hosted a separate public hearing to receive community input over the plans. Additionally, the commission hosted a workshop on TIF districts in late March in preparation for the project.

Schaufeld said that the TIF district application “is a dynamic document, which contains values that change with time.”

This Harpers Ferry overlook has been slated for the development of Hill Top House Hotel, prompting detours for local access roads.

*Photo Credit: Jack Walker/West Virginia Public Broadcasting*

“Since the progression of this TIF application was delayed by many months due to the Jefferson County Commission itself, there are certain areas that are being updated,” she wrote.

Other members of the commission said delaying the application process could have adverse effects on the project on the whole.

County Commissioner Pasha Majdi, who voted in favor of the application, added that the commission would have time to review the results from the Department of Economic Development before making a final decision.

“I’m concerned that if we delay this application, we would risk losing funding for public benefits like an underground parking garage and green space,” he said. “The project, it’s going to continue regardless. But without a TIF these public benefits could be lost.”

Ultimately, the commission voted in favor of the application 3 to 2, advancing a project characterized by years-long standstills.

In her email, Schaufeld wrote that SWaN expects a “swift turnaround” on their application, and a response from the Department of Economic Development within 60 days of its submission.

Once a response has been received, the application will return to the Jefferson County Commission for final approval. If approved, the county will then have three to six months to finalize bonds for the project.

Schaufeld added that the project’s latest advancement has brought renewed excitement.

“We hope that after many years of costly delays we will be able to bring this project to life so that these economic benefits can finally come to Jefferson County,” she wrote.

Senate Approves New I-73 Corridor Economic Commission

The West Virginia Senate unanimously approved an economic commission to identify funding and development opportunities tied to an interstate highway corridor that would span southern West Virginia.

The I-73 highway corridor is currently under construction in southern West Virginia and legislators are looking to parlay the project into an economic opportunity.

West Virginia’s portion of I-73 would connect the state to highways stretching from Michigan to Myrtle Beach. With the region opened to more out-of-state travelers, lawmakers hope economic opportunities will roll in with them.

On Thursday, the West Virginia Senate unanimously approved SB 354. The bill would create an economic commission to advise local industry leaders on development and federal funding opportunities available to them following the project’s completion.

Sen. Mark Maynard, R-Wayne, said the commission hopes to turn the highway’s construction into an economic opportunity for McDowell, Mercer, Mingo and Wayne counties, which the new corridor will intersect.

He added that the highway construction project would qualify the region for new funding opportunities.

“There’s some federal funding out there available for this that currently the state of West Virginia doesn’t get for highway programs,” he said. “Hopefully we can go after some of that.”

Receiving approval from the Senate, the bill now awaits review from the West Virginia House of Delegates.

“Just by making this [corridor] a real thing, it will solve the economic issues because it will allow interstate commerce,” Maynard said. “At the exit ramps, it will allow development, fast food restaurants and truck stops.”

“The bounds are limitless,” Maynard said.

Justice Proposes $50 Million Budget For Affordable Housing

Announced Thursday, Justice’s proposal would provide $50 million of state surplus funds for the construction of single and multi-unit houses across West Virginia.

A budget proposal from Gov. Jim Justice aims to ensure that workers and their families can find affordable housing.

Announced Thursday, Justice’s proposal would provide $50 million of state surplus funds for the construction of single and multi-unit houses across West Virginia.

“We’re constantly wanting people to come to West Virginia,” Justice said.

By expanding affordable housing options, Justice hopes to make moving to the state easier. “We need to devote ourselves to trying to stimulate and bring more and more and more folks,” he said.

Rising rental costs and persistent economic depression has placed stress on housing markets across West Virginia. In recent years, millions of dollars in federal funding has aimed to improve the state’s affordable housing options.

Erica Boggess, executive director of the West Virginia Housing Development Fund, said Thursday that the added funding would mark an important step toward bolstering housing accessibility in the state.

“We’re very pleased and excited that the governor has proposed this funding to help with this important initiative,” she said.

With additional funding from the state, housing officials are hopeful for more accessible options ahead. “Housing is truly a component of economic development, and it’s the foundation that makes our communities thrive,” Boggess said.

W.Va. Program Offers Stipend While Learning Computer Code

A program that trains West Virginians to write computer code now offers a living stipend. Generation West Virginia’s NewForce is offering $11 per hour for residents accepted into the program who demonstrate a financial need.

NewForce is a six-month, fully-remote, tuition-free coding school for West Virginia residents.

They are now accepting applications for the seventh group of residents looking to work in the tech economy. This is the first time the stipend has been offered.

Since the program started, 86 percent of graduates have found employment in software development within six months of graduating. The median starting salary for program graduates is $48,000 annually.

No coding experience is required.

Generation West Virginia is hosting a virtual information session, a live information session via Zoom on Nov. 3 at 7 p.m.

You can learn more at generationwv.org/programs/newforce/ and register for the information session here.

NewForce applications are due by Nov. 26.

Q&A: Berkeley County Development Authority Outlines Challenges & Statewide Impact

Berkeley County is one of the fastest growing counties in West Virginia. According to the U.S. Census Bureau, between 2013 and 2016, the population grew by 4,300 people. It’s also the second most-populated county in the state.

With big businesses like Procter and Gamble moving in, it seems like the population will only continue to grow, so how does the county handle that?

West Virginia Public Broadcasting spoke with Sandy Hamilton, Executive Director of the Berkeley County Development Authority to talk about challenges in the growing region and her thoughts on the county’s overall impact on the state.

Biggest Challenges:

Building a dependable workforce
Keeping up with infrastructure needs

Impact:

Hamilton says she hopes Berkeley County’s growth “provides hope” for the rest of the state and for each area of West Virginia to focus and emphasize its strengths.

Report: West Virginia Childhood Adversity Tops US Average

The analysis looked at the percentage of children with Adverse Childhood Experiences – commonly known as ACEs. West Virginia scored higher than the national average of 46 percent.

Adverse Childhood Experiences include:

· Having a parent or guardian who died or served jail time

· Having parents that are divorced or separated.

· Living in households with violence or in households that are struggling financially.

· Childhood exposure to neighborhood violence.

· Living with someone mentally ill, suicidal, depressed or addicted.

· Being mistreated due to race or ethnicity.

Experts say ACES contribute to high stress levels that derail healthy development and raise risks for unhealthy behaviors.

The analysis was produced by the Johns Hopkins Bloomberg School of Public Health’s Child & Adolescent Health Measurement Initiative in collaboration with the Robert Wood Johnson Foundation.

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from Charleston Area Medical Center and WVU Medicine.