By Valerie Garner

It is a high stakes economic play for 500 jobs courted by four states. Solstas Lab Partners has dual headquarters in Roanoke and High Point, North Carolina. Both locations are in play for a major Solstas expansion. Solstas’ Roanoke administrative headquarters is located in Carilion’s administrative building at Riverside.

By permission of Solstas

The Solstas name evolved from a merger of Carilion Labs in Roanoke and Spectrum Laboratory Network of High Point and now ranks as one of the country’s largest full-service labs. They provide all lab services for the Carilion Clinic hospitals. Solstas employs 400 in Roanoke and 721 in High Point. Since 2009 Solstas has grown substantially making seven acquisitions in Delaware, Tennessee, Alabama and Florida.

Besides Roanoke and High Point they reached out to other locations for tentative proposals. The other locations were Knoxville, Tennessee and to a lessor degree in Alabama said Solstas Vice President Bud Thompson in a phone call Monday.

Last Tuesday High Point City Council approved a $500,000 incentive package. A few days later Guilford County Commissioners approved another $500,000 for a total of $1 million. The state of North Carolina may kick in another $450,000 said Thompson.

High Point had a cap of $1000 per job in their economic development policy.

The hiring would take place over a 5-year period. The expansion will add $11.6 million to High Point’s local tax base. The average wage of the new jobs is over $45,000 annually confirmed Thompson.

The projection for the additional 500 jobs was based on their growth experience in High Point. “In two years they added 300 full-time equivalent jobs … we’re expecting the future to look like the past,” said Thompson.

There would be consolidation from the six lab acquisitions made in 2011. No jobs would be transitioned from Roanoke to High Point said Thompson. He expects that all of Roanoke’s IT and billing functions will remain here. They will continue to make the labs inside of Carilion Roanoke Memorial as efficient as possible he said.

“Our practice is to integrate labs onto the same operating system and information technology platforms,” said Thompson. Other eligible consolidation functions normally include billing and high-end testing. In any given week there are 160 to 180 job postings in their service area.

Rob Ledger Roanoke’s economic development director said Monday that he couldn’t release the incentives offered by the city to Solstas. He said they offered them several buildings and/or sites he could not name until Solstas communicates their decision.

Ledger did say that “we are extremely interested in it and we would do everything in our power to make it happen.” He said they explained the kind of incentives they would be eligible for but it never went any further.

Thompson shared that Roanoke provided a tentative proposal that was 40 percent less than that of High Point. That wasn’t the only reason for the more rigorous approach for expansion in High Point. “Since a substantial portion of our corporate activity resides in High Point it makes sense to build off of that infrastructure that exists there,” he said.

“As a growth oriented company if things go the way we expect them to jobs will be created in a lot of different communities,” said Thompson. Placing future jobs will coincide with the best interests of the company. “We have high aspirations for future acquisition” and he expects the Roanoke Valley to benefit from that growth.

The location itself lies evenly between Winston-Salem, Greensboro and High Point, the Piedmont Triad. The anticipated site for the 90,000 square foot building is near their current Piedmont Centre campus to the north just inside the High Point city limits. It is a half-mile off of Route 68 on Federal Drive close to the I-40 interchange and the Greensboro Airport.

Access to an airport for their larger labs is a plus but not a critical component for this expansion explained Thompson. They move specimens through their own logistics air service.

The entire 90,000 square foot building needs to be on one level with a large open space to accommodate their lab automation equipment. Riverside had no room. “More than one story would be disruptive to workflow,” said Thompson.

Another point Thompson made was that the Triad region provides better recruitment for certain jobs. They also have a higher unemployment rate making it easier to recruit entry-level positions. He also believed employees willing to relocate would be easier since there is more opportunity of employment for a spouse.

According to an article in the High Point Enterprise Dr. Michael Hanbury chief operating officer said it is in “our interest and our intent would be, all things being equal or better, is to provide those jobs and those resources here in High Point.”

Thompson was quick to point out that with the Virginia Tech Medical School and Research Center along with other enhancements Roanoke will become more attractive for certain kinds of positions in the future.

Thompson made clear there is no final agreement with High Point yet. Solstas will scrutinize the proffered conditions and benchmarks the company would be required to meet in order to receive the grants. He doesn’t expect any problems but it will be two to three weeks before they see it.

High Point has had a tough time as the “furniture capital of the world.” Furniture manufacturing has moved overseas and unemployment has risen. “This is a big deal for that community,” said Thompson. It is the largest job creation in the city of High Point by a single company in the last 13 years. Construction of the expansion is slated for mid-year.

Loop Tunnel

In a closed session Monday Roanoke City Council chose Northwest Recreation Club and Roanoke Valley Youth Soccer, and Roanoke Natural Foods Co-Op for further consideration to occupy the former Countryside golf course property.

The Northwest Recreation Club proposes a soccer complex that takes up most of the central area available for development. The area set aside for recreation in the Master Plan adopted by city council allowed for up to a maximum of 13 acres for recreation. Northwest Recreation Club is asking for 17.5 acres. The remaining three acres of residential mixed-use property is adjacent to the Runway Protection Zone (RPZ) and air traffic noise.

Councilwoman Anita Price’s husband Charles Price is a Northwest Region I football coach. Price and Northwest Recreation Club President Clay Dawson have been lobbying for the property for a year.

The proposal includes four full-size soccer/multipurpose fields with an additional smaller practice field. One soccer field can also be used for football. At least one field would have artificial turf and multiple fields would have lighting. The tennis building would be expanded to twice its size and used for locker rooms, restrooms and office space.

For the recreational investment by the club the city will not receive any monetary compensation. As a nonprofit the city will not receive any tax revenue. The club anticipates that their investment will generate collateral tax revenue from out of town teams. The city paid $4.1 million for the property and is still paying on the debt. NWR is asking for a 20 to 40 year lease.

A letter of interest from John Lipscomb of L & M, LLC, one member of a group, proposed purchase of the tennis building and 2.5 acres. It was rejected in favor of NWR. Lipscomb offered $100,000 for the property that would feature a tennis-pro. The for-profit entity would have generated tax revenue.

The Roanoke Natural Foods Co-op letter of interest is a lease-purchase offer. The lease for the 12.2 acres would start at $100 annually in the first year with an option to purchase the parcel for $90,000 by the end of the tenth year. They propose crops, orchards, chickens, and a donkey (to deter predators) along with 22,000 square feet of loop tunnels.

In addition a 2000 square foot office and produce packing structure would include retail space for community shopping two days a week. Roanoke Regional Airport owned the parcel before a land swap agreement transferred ownership to the city. This parcel was occupied by homes in the 1980s. The homes were relocated when the airport was expanded. The property is located in the direct flight path of the airport’s runway six.

The original purpose for purchasing the golf course property was to increase Roanoke’s housing stock and tax base. That proposition fell through years ago and the city has been struggling to offload the property ever since.

In a design yet to be developed the neighborhood will get an investment of $1.5 million in capital improvement funds to install trails and natural areas.

9th District Congressman Morgan Griffith

WASHINGTON – Congressman Morgan Griffith (R-VA) issued the following statement today regarding his vote in opposition to the new version of the Budget Control Act of 2011: 

“Last week I made the difficult decision to compromise and voted for Speaker Boehner’s plan. While the Boehner plan was not perfect, it was a realistic approach and a step in the right direction. Among other things, it required passage of a Balanced Budget Amendment to the Constitution before a second increase in the debt ceiling.

“However, the legislation before us today was not quite as good. By contrast, today’s deal only requires a Balanced Budget Amendment to be voted on – not passed. I hope the Democrat controlled Senate will pass a Balanced Budget Amendment as a common sense solution to solve America’s debt problem, but it is far from certain. Additionally, there is a provision which, if there is congressional inaction, would allow President Obama to effectively raise the debt ceiling an additional $1.2 trillion, triggering an equal amount of blind cuts.

“After thoroughly reviewing the legislation and hearing from constituents, I came to the conclusion that I should not vote for this bill.”

Former 22nd District Senator Brandon Bell

UPDATED: 6:20 p.m. in BOLD.

 Call it a rematch or just another candidate announcement prospect but this may be the most interesting race in our area for 2011. Former Republican State Senator Brandon Bell is challenging Republican Senator Ralph Smith in the 19th district.

In a phone call with Brandon Bell, who was traveling on business he said, “it is highly likely that I will run.” He is preparing to put together his committee and gather signatures he said. Bell is running as an Independent.

There was a rumor that he might run several weeks ago but he had to get approval. Bell works for a broker-dealer who had to approve any activity outside of his financial securities firm. He received that approval just a few days ago. He can now “pursue this as an outside venture.”

“There are a lot of interesting challenges when you start looking at things from an Independent perspective,” he said. That is why it has taken him so long to come to his decision.

Bell said, “he doesn’t foresee anything that will prevent him from running at this point though nothing is 100 percent.” He’s still exploring possibilities for a campaign manager and staff.

Being a Republican all his life it is a big step for him. As an Independent he feels that in the current political climate it is an advantage. He will “represent all the people in the 19th district and their needs regardless of party.”

He gradually came to his decision after seeing that no one else was challenging Senator Smith. “Once they pulled out the U-Haul and moved everyone around it started me thinking,” he said.

If Bill Stanley had stayed in the 19th district he would have supported him said Bell. He was not recruited he said but has fielded many requests to run. “I made up my own mind … I became more and more encouraged that it might be a two-way race,” said Bell.

Roanoke Attorney John Lichtenstein who said earlier that he was contemplating a run as a Democrat in the 19th district did not return phone calls.

In 1991 Bell represented Roanoke’s 21st District before losing to current Democrat John Edwards in 1995.

In 2003, Bell was elected in the redrawn 22nd Senate District. Now the 22nd district is no more and Smith moved to run in the 19th district where Bell is a resident. Bell said, that the precincts that were moved from the 22nd district to the 19th district he won by eight percent in 2007 against Smith. The precincts included Salem, Montgomery County and Roanoke County.

Smith in 2007 moved to Bell’s 22nd district and set out to take Bell’s senate seat. Smith in the June 12, 2007 Republican primary won over Bell by 75 votes a one-percentage point margin.

Smith by moving into the 19th district pushed Senator Bill Stanley to the 20th district in a Republican strategy to take over the Virginia Senate. Governor McDonnell is supporting Stanley in his challenge against Democrat incumbent Roscoe Reynolds.

Bell later broke with Republicans endorsing Creigh Deeds for governor in 2009 then switched his endorsement to McDonnell two weeks before the election. He endorsed Bob McDonnell over Deeds for Attorney General in 2005.

Governor Tim Kaine appointed Bell to Radford University Board of Visitors in 2008.

He is President and owner of Bell Wealth Management a personal financial services consulting firm in Roanoke. Bell lives in Roanoke County with his wife, Debbie and their two children.