New WSH to keep Staunton competitive

STAUNTON — The timing of plans to go forward with a new Western State Hospital and free up valuable Staunton real estate is coincidental to other developments on the table in Waynesboro and Augusta County, according to city officials.

The Staunton City Council on Thursday voted unanimously in favor of a memorandum of understanding on the move. It states that in exchange for the city’s Industrial Development Authority deeding the city property in the business park, the Virginia Department of Mental Health, Mental Retardation and Substance Abuse Services will deed 266 acres of the existing hospital campus – excluding the 31-acre property where the Commonwealth Center for Children and Adolescents is located – to the IDA for future private redevelopment. 

The deal allows for a smaller hospital to be built on 70 acres within the city’s Crossroads Business Park – property that is adjacent to the current location along Interstate 81 and Route 250.

Vice Mayor Dave Metz said the proposal was four years in the making and is incidental to the timing of other, recently-announced projects in the region.

In Waynesboro, two major mixed-use proposals have been announced in the last two months – the Waynesboro Place development near Interstate 64 that calls for high-end apartments, office space, retail and a movie theater, and the South River Complex downtown.

Augusta County supervisors in May approved a rezoning request that cleared the way for the 135-acre Augusta Marketplace along I-81 and Route 262, just a few miles north of the Western State Hospital area. That project proposes nearly 1 million square feet of retail development, a 180-room hotel and amenities such as big box stores and a movie theater near Verona.

“It helps to keep Staunton competitive,” said Councilwoman Andrea Oakes following Thursday’s council meeting. “If the city’s not growing, it will die. And this gives us the opportunity to grow and remain competitive with Waynesboro as well as Augusta County. Again, it’ll bring in a lot of revenue for the city of Staunton.”

Staunton Economic Development Director Bill Hamilton said the location of the 266 acres “is the corridor where business development wants to be at this point.”

The city had been land-locked by state-operated facilities like Western State Hospital and the Frontier Culture Museum – on opposite sides of Route 250.

“We had very few options to accommodate interest in private development, whether that was for office, retail, whatever,” Hamilton said.

Del. Chris Saxman, R-Staunton, on Friday praised the council’s vote and said it was a “huge” deal for Staunton.

“I am very pleased that Staunton City Council members voted unanimously to move forward with these important projects that will not only benefit those Virginians who receive critical care services from Western State Hospital, but also our community as these projects will bring hundreds of jobs and economic development opportunities to the area,“ Saxman said in a written statement.

City leaders are hopeful of the project’s economic benefits to the city – particularly with increasing sales tax revenue.

Saxman said the Western State Hospital project is expected to employ more than 400 construction workers on-site during the maximum build phase.

The project, he added, would provide a modern mental health facility. Also, he said the sale of the excess property “will provide for great economic development opportunities in the area.“

“By expanding the tax base, state and local governments working together will be able to hold the line on tax rate increases,“ Saxman said. “This is of tremendous importance to local families adversely impacted by these tough economic times.“

Metz said he sees the project bringing in both venture capital and equity capital.

“And that’s a good thing,“ Metz said.

Metz also said after Thursday’s council meeting that the $15 million the city is pledging toward the new hospital’s construction costs is worth it to increase the city’s tax base.

“It’s a big risk in the sense that if the property doesn’t sell, yes, we’ve got 300 acres of land and we’ve got a $15-million debt,“ Metz said. “But ... I wouldn’t have voted for this if I didn’t really believe that we can sell the property and wind up at least breaking even ... because of the taxes coming off of it ... ”