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Pullman Developers Pitch Project to State Officials
By Art Harvath, HNN Correspondent

Shaffer's Answers Appear Inconsistent

The public and private developers for the Pullman Square project were in Charleston Friday to make their pitch for another $10.6 million in public funds.

The Transit Authority general manager Vickie Shaffer and Metropolitan Partners’s Tim Rollins and Bill Dargusch made their proposal for the money before the West Virginia Economic Development Grant Committee.

Shaffer told the board that “in April and May” of this year HURA (Huntington Urban Renewal Authority) reached an agreement with Chi Chi’s Restaurant. Rollins told the board that the agreed upon price with Chi Chi’s was $1.75 million, and that $600,000 of the grant money they were applying for would go towards paying that price.

On Monday HNN contacted Rob Carl, vice president of investor and media relations for Chi Chi’s parent company Prandium. Carl said they were “continuing to discuss a fair and equitable agreement price.”

“There is no agreement in place,” said Carl.

Concerning the shuttle bus purchases Shaffer said that “TTA has piggybacked with Santa Clara County Transit Authority in California for the purchase of the shuttle buses. All six will be delivered next year.”

Piggy backing is when bigger transit authorities buy buses with an option to buy more at a later date. If the buses aren’t needed, they contract with smaller transit companies to enable the smaller company to buy at a reduced rate.

Maureen Raine, of the Santa Clara County Transit System, was in the dark when asked Monday about Shaffer’s remarks concerning the buses. Raine is in charge of the purchasing and selling of the buses for Santa Clara.

“I’m not aware of any options that are available on new buses,” said Raine. “We do have some buses going out for bid soon, but as far as new buses I just don’t know of any options I have available. I’m not familiar with TTA or Huntington, West Virginia, so I just don’t know how to respond,” she said.

The Federal Transit Administration grant was over $26 million. In their application for the $10.6 million grant from the state, the developers said the FTA grant was $17 million.
Rollins explained this discrepancy to the board. “There were the purchase of buses…and related equipment for those buses,” said Rollins. “There is some funds available for grant administration and for an FTA consultant…some of the dollars have been spent on predevelopment activities to date on some of the market analysis and early design work.”

“So netting those cost categories out, you end up with about $17.6 million,” said Rollins.
Board chairman Brian Kastic asked Rollins and Shaffer to specifically name what money sources they had actually dedicated to the project.

“You absolutely, positively have the FTA grant?” asked Kastic.

“Oh, yea,” replied Shaffer.

“You absolutely, positively have $650,000 from HURA?” asked Kastic.

“Yes,” said Shaffer.

“You have the $500,000 from the Empowerment Zone,?” Kastic asked.

“Yes.”

“The city of Huntington has the $500,000 in account. It’s not promised, because the city has actually no fiscal standing, so they actually have $500,000 set aside for the project?” asked Kastic.

Shaffer replied, “yes.”

“In a separate account?” asked Kastic. “It’s not promised in next year’s budget?”

“Yes, it’s Community Development Block Grant money,” replied Shaffer.

Richard Dixon, director of Development and Planning for Huntington, said Monday that there is no money set aside in the Community Development Block Grant for the Pullman Project.

“We do have $200,000 set aside for street improvements in Huntington, but there is no specific grant set aside (for the Pullman Project),” said Dixon.

HNN also contacted the Empowerment Zone office to ask about the $500,000 grant Shaffer told the committee the EZ has committed.

EZ director Cathy Burns was unavailable for comment. Empowerment Zone employee Jennifer Evans said to her knowledge no grant has been awarded to the Pullman Project.

“I can’t imagine not knowing about a grant of that size,” said Evans.

Neither Shaffer nor Rollins returned phone calls.