The city of Beckley is preparing an agreement to transfer the Pinecrest Business and Technology Park to Raleigh County, which has available Covid relief funding to develop infrastructure at the site.
The decision came to light roughly two months after the city announced it had spent all of its American Rescue Plan Act funding, which was initially believed to be the source of funding for infrastructure development at Pinecrest.
Beckley Mayor Ryan Neal and Raleigh County Commission President Greg Duckworth confirmed in separate interviews with The Register-Herald on Friday that a deal was in the works to transfer the 146-acre Pinecrest property.
Neal described the deal as a “win, win” for the city and the county.
“(The county) has the funds to do the infrastructure already sitting there,” Neal said. “The city of Beckley does not have the funds.”
Neal said Beckley would also reap the benefits of new businesses at the site through the business and occupancy tax.
Duckworth said the commission is excited to be part of seeing Pinecrest developed.
“I feel like it’s the next place for Beckley to grow, is that area,” Duckworth said. “We’ve not discussed how much we would put into infrastructure but we are in discussions ... We’re all three (county commissioners) very interested in seeing that side of town grow.”
He added that what’s good for Beckley is good for Raleigh County.
“As things develop and grow, the tax base is going to grow with that and the county still gets a piece of that tax base,” Duckworth said. “But bigger than that is creating opportunities and jobs. And if our county seat is growing and doing well, then so is our county.”
Duckworth said the county has roughly $4 million left in American Rescue Plan Act funding though they do have several projects they are considering for the funds.
“We’re still working on a water plant down in the Glen Daniel area ... the PSD needs to repair water tanks, and they need new lines,” he said. “The need is so much greater than what we have, so putting it in the right places that makes the most sense and that affects the most people is kind of where we want to be. And we want to create jobs and opportunity for growth.”
Duckworth said federal guidelines state that ARPA funding must be allocated by the end of 2024 and spent by the end of 2026.
Neal said the paperwork for the property transfer was “almost finalized,” though it will needs to be approved by the Beckley Common Council.
Duckworth said he hopes to see the item on the next Beckley Council agenda, which would be on Aug. 13.
“As soon as it’s deeded over, I would want to move aggressively on getting infrastructure on that property,” he said. “We’d have to look at what that costs and how much of it are we going to work on ... who are the people who want to build out there immediately and who is looking for future development. There’s a lot to talk about with all that.”
In June, the Beckley Common Council approved an ordinance to sell two parcels in Pinecrest along the East Beckley Bypass to Matchpoint LLC, which is owned by Dr. Divya Rajan, a nephrologist in Beckley.
According to the ordinance, each parcel is approximately one acre and would be sold at $75,000 per parcel.
When asked what the county plans to do about finding an engineer to develop infrastructure at Pinecrest, Duckworth said he assumed the city would have that worked out before approving the property transfer.
The Thrasher Group, Beckley’s engineer of record, has been working on developing infrastructure plans for the site.
However, after a project manager with Thrasher presented a $480,000 infrastructure and site development plan for 30 acres in Pinecrest to the city, council members and the public began to question why the engineering work was not put out to bid first.
As a result, Beckley issued an RFP (request for proposal) for engineering and architecture firms interested in developing infrastructure at Pinecrest.
Four firms, including Thrasher, submitted their qualifications to the city for consideration.
Unlike bids for construction projects, where the city typically chooses the firm with the lowest price, for engineering projects, Beckley must choose the firm it feels has the best qualifications for the job.
This process is called Quality Based Selection and is regulated by state code.
According to Beckley At-Large Council Member Cody Reedy, the city had yet to conduct any interviews with the engineering firms despite opening their bids at a June 25 meeting.
According to West Virginia Code, bids expire after 90 days.
Reedy said both of the city’s at-large council members would be involved in the interviews when they are scheduled, as they are with all bids that the city receives.
Reedy said he was unsure when those interviews would be scheduled but hoped to have more information on them next week from Beckley City Attorney Bill File.
Transferring the property to the county could also help the city avoid potential legal action threatened by the Pinecrest Development Corporation, which was not only frustrated with the city’s lack of movement on the Pinecrest property but also claimed it was a breach of contract.
As part of the agreement approved by the city in 2022 when it accepted the property from Pinecrest Development Corporation, the city agreed to develop a written plan to bring infrastructure to the 146-acre property within 18 months.
No such written plan has been developed.
There has also been controversy between the Pinecrest Development Corporation and the city of Beckley over funding for infrastructure at Pinecrest.
In a letter to the city, James Sheatsley, an attorney representing board members from the Pinecrest Development Corporation, wrote that the city, during negotiations, played up the millions it received in ARPA funding that could be used for infrastructure development.
“The ability of the City of Beckley, including its representations of use of ARPA funds, was not only material but critical in the decision of the Board of Directors to make the transfer,” Sheatsley wrote.
ARPA funds were also mentioned as the funding source for infrastructure in the press release announcing the property transfer from the Pinecrest Development Corporation to the city in December 2021.
However, in a June Beckley Common Council meeting, File said the city never discussed using ARPA funds for the project.
