Three Southwest Virginia projects dealing with workforce training and housing, Hurricane Helene recovery for businesses and tourism received approval for funding Thursday from the GO Virginia Region 1 Council.
The Appalachian Highlands Housing Partners’ project to develop a modular training and production facility at the old Buster Brown building in Lebanon was approved for more than $748,000. The regional GO Virginia council, part of a statewide economic development program, met at the Southwest Virginia Higher Education Center in Abingdon.
The housing organization was created by the Wellspring Foundation of Southwest Virginia to address the region’s urgent need for workforce housing.
The housing program purchased the property, which totals 92,000 square feet, in the Russell County Industrial Park and the plan is to refurbish it into a training facility where modular housing will be built and then sold. One floorplan is for a 1,400-square-foot, two-story cottage.
The project will create a “talent pipeline” in modular construction, electrical, plumbing and HVAC trades, leading to a credential in modular construction not currently available in the area, according to a description of the project provided by GO Virginia.
Mayana Rice, director of the housing program, told the council the project will be developed over 18 to 36 months and the goal is to create 145 jobs and 50 internships over five years.
The money will be used to support the buildout of classroom and laboratory space as well as curriculum development.
The project is being done in partnership with the local school systems, community colleges and Virginia Tech.
The Laurel Gateway project, by the town of Damascus and Washington County, was awarded $75,000 for a market and feasibility study for developing a 23-acre property. The site is owned by the town and is located off Virginia 91, past the U.S. 58/91 split and just outside the town limits, Damascus Town Manager Chris Bell said.
Damascus and its surrounding communities bore the brunt of Hurricane Helene, which blew through on Sept. 27, 2024, resulting in dozens of swift-water rescues, tearing up nearly a mile of U.S. 58, destroying bridges and damaging or destroying homes and businesses.
“The flash flooding severely damaged and/or destroyed about 140 structures, greatly impacting our downtown corridor and specifically our business district with an estimated $12 million of damage to property and another $6 million of lost revenue,” Bell said. “Beyond the toll it took on our residential community, bike shuttle companies, restaurants, retailers and multiple lodging establishments were either closed permanently or temporarily as a result of Helene.”
The inland effects of the storm also severely damaged a 17-mile stretch of the Virginia Creeper Trail, which is the lifeblood of the town’s economy, he added. It will be repaired by the U.S. Forest Service, but the government shutdown is delaying the start of the work, Bell said.
The storm resulted in a real economic challenge for the town, which has been looking for other ways to bring tourists to Damascus, including fishing tournaments.
The town manager mentioned a few possible uses for the site, including the light manufacturing of recreational goods, a leadership training facility or executive team building retreat center, a campground with a fishing lodge or an outdoor recreational hub with rock climbing, obstacle courses and zip lines.
The money approved for the project is coming from a Hurricane Helene Business Relief Initiative, a separate fund created to help with recovery from the storm.
All funding provided by GO Virginia requires matching local funding of at least half the amount.
Other projects that were discussed by the council on Thursday were:
- The Friends of Southwest Virginia’s Creative Economy and Tourism Recovery Initiative, which was approved for $250,000. The project will support economic recovery by expanding workforce training, enhancing digital access for tourism businesses, deploying visitor-focused marketing tools and improving regional market research capabilities. The money will also come from the hurricane recovery fund.
- A $97,500 check was presented to Wise County officials to pay for a feasibility study of placing a nuclear microreactor in the county. The funding was approved in January. Microreactors are compact reactors that can be transported by trucks and would produce up to 20 megawatts of thermal energy that could be used as heat or converted to electric power. County Administrator Mike Hatfield said Thursday that a meeting that will kick off the study will be held soon. He said the county is working with the new Virginia Nuclear Hub on the study, which will also look at possible sites.
The GO Virginia Region 1 Council covers the cities of Bristol, Galax and Norton, and the counties of Bland, Buchanan, Carroll, Dickenson, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise and Wythe.