By Heather Bell, Editor
RADFORD – The Radford City Council recently voted in favor of not awarding a $128,686 economic development grant to the Highlander Hotel in light of the city’s financial situation.
The Highlander Hotel has a 10-year agreement with the Radford Economic Development Authority to receive up to 80 percent of its real estate tax liability through the EDA’s Real Estate Development Incentive grant program. The REDI grant program was created to encourage economic development in the city by allowing new real estate construction to qualify to receive a rebate for real estate taxes paid. The city council’s June 17 vote means that rebate will not be given this year, but it will resume and will be extended by one year so the hotel will still get the 10 years of the program’s benefits.
“The city has every intention of fulfilling the agreement,” said Mayor David Horton, “but the agreement is paused for this year.”
Horton abstained from voting because the Highlander Hotel is owned by the Radford University Foundation. Horton is employed by Radford University.
Following the vote, Vice Mayor Seth Gillespie took to social media to say while he supports the REDI program he thinks the vote was the right move given the city’s financial situation.
“I was happy that the council, considering our current financial shortcomings, was able to unanimously agree to not fund the REDI rebate in the amount of 128,686.37 for fiscal year 2025,” Gillespie said. “I do strongly believe in incentives as a useful tool for economic development and am hopeful in future years we will be able to support this initiative. While not perfect, I do believe the REDI provides the city with a means to be able to recruit and attract new business ventures to our community.”
Gillespie also addressed the city council’s vote to approve the city restructuring its debt through the issuance of a six-million-dollar bond. According to Interim City Manager Craig Meadows, the bond will allow the city to pay off the four million dollar revenue anticipation note it currently holds and pay other debts at a low interest rate.
“Last night the council also moved to approve taking a general obligation bond in the amount of six million dollars,” Gillespie said. “It is certainly not ideal, but I do believe it serves as a better option than to request another RAN. The terms of this bond are for 15 years at a rate of 4.95%. This will allow us to work down our accounts payable and some breathing room on cash flow as we continue to aggressively address our financial future.”
City Council’s next meeting is scheduled for Monday, July 14 at 7 p.m. It will be the last official council meeting for Meadows. Incoming City Manager Todd Meredith, who currently serves as town manager for the Town of Pearisburg, will begin his tenure with the city July 21, 2025.
