By Mannix Porterfield
CHARLESTON — Money to satisfy its remaining $6.9 million in outstanding bonds was shifted into escrow accounts Thursday, but Tamarack’s future remains a big question mark.
By setting aside the cash from its economic development tourism account, the West Virginia Parkways Authority is able to invest another $1.2 million a year in turnpike upkeep.
Just where that leaves the popular mecca for West Virginia artisans near the Beckley exit isn’t clear.
Gubernatorial aide Jim Pitrolo, who chairs the authority as Gov. Joe Manchin’s representative, said the administration is still pursuing ways of enabling Tamarack to earn a profit — or at least break even. Since its inception, it has operated in the red, drawing down money each year from concessions to keep it afloat.
Two years ago, when Manchin telescoped the authority’s mission into a single objective — running a safe toll road — the idea was to shift Tamarack to the Commerce Department. With that, the authority effectively was taken out of the economic development and tourism business.
Moving Tamarack into the commerce agency remains to be done, and there was no firm indication from Pitrolo just when this is likely to occur.
“Once we get that business model in place, then we can move Tamarack anywhere,” he said.
“But the question is right now is, it still takes someone to support Tamarack. And until we find a source for that support, we’ll continue to work on it.”
Which means the tourist outlet needs an annual infusion of some $1 million to make ends meet, he said.
“Tamarack is doing better,” Pitrolo said.
“We just continue to look at the business model to see what we can do to drive more business that way.”
Pitrolo said he isn’t sure if Tamarack could be turned over outright to private industry, but there is some thought to letting out a contract to manage it.
“We would never give up the purpose of Tamarack,” he said. “We’re never going to give up the mission of Tamarack. So with that in mind, someone would have to come in and agree to manage it with that in mind.”
Bond counsel Roger Hunter said the move to set up two escrow accounts to pay off A-bonds and B-bonds means the defeasance can occur before the month is out, or about a month sooner than projected. The accounts were set up to meet the bond debt coverage test and pay off the bonds incrementally.
“We have been moving very, very quickly and aggressively to get this done just as quickly as possible,” he told the authority.
Hunter said this move is “an important part” of the July 1 decision to impose an across-the-board toll increase of 60 percent, and one that permits “additional deeper discounts for the traveling public.”
Once the authority empties its reserves to dump money into the escrow accounts, Hunter reminded members, money will again flow into the fund, but how it will be spent is a decision for the board, since nothing in the bond agreement obligates it to anything specific.
Hunter termed the defeasance of Tamarack’s bonds “sort of a logical step” that follows Manchin’s decision in 2007 to leave the authority with the singular role of running a highway.
On another matter, Tamarack’s general manager, Cheryl Hartley, advised the board the new State Museum at the Culture and History Center has proven a hit in its first 10 days of operation.
Based on sales so far of souvenirs, West Virginia products, books and the like, Hartley said it appears the museum likely will “perform better than expected.”
In a two-hour session, the authority named Cam Lewis as its vice chairman, and fellow board member Mike Vinciguerra as secretary.
In other matters, the authority:
-- Approved $162,000 for the purchase of a tandem truck from Worldwide Equipment of Huntington.
-- Agreed to spend $28,352 on eight treadles for toll equipment maintenance from The Revenue Markets Inc. of Accord, N.Y.
-- Let a $37,016.86 contact to SteelCon Supply of Beckley to supply concrete reinforcing materials for the salt bin at the Standard maintenance center.
-- Approved a total of $95,000 in contacts to MidAmerica Uniform Co., of New Albany, Ind., and West Virginia Uniform of Charleston, to provide uniforms for the maintenance, toll and tourist information employees.
