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ELKINS -- Funding for an expansion project at Armstrong Flooring has been approved by the West Virginia Economic Development Authority.
Robbie Morris, executive director of the Randolph County Development Authority, announced during the RCDA's regular meeting Wednesday that the WVEDA board of directors recently approved a $5 million loan for the project at Armstrong Flooring
"They also, essentially, gave us a two-year commitment letter -- normally they do either six months or a year, it's easy to get it extended, but knowing what the construction timetable is for the Armstrong project, they approved that," Morris said Wednesday. "I'll now be starting the process of the construction financing with help from our legal counsel."
Also, the board unanimously approved a grant administration agreement with Region VII Planning and Development Council in regard to the Armstrong project.
"As you all are aware, we received a $2.5 million grant from the U.S. Economic Development Administration -- with the assistance in applying for that from Region VII Planning and Development Council," Morris said.
Morris went on to explain that while the RCDA will be administering the grant, administrative services were provided by Region VII.
"The compensation for the administrative services is a lump sum fee of $65,000, and that number has been circulated through all of the financial projections for the Armstrong project. Again, in essence, Armstrong is paying this fee -- Armstrong is accepting of this fee," he said.
As previously reported by The Inter-Mountain, the expansion project at Armstrong Flooring will add 85,000 square feet to the local facility, which is the largest pre-finished hardwood flooring plant in the country. Made possible by the $2.5 million grant from the U.S. Economic Development Administration, the project was announced in October by U.S. Sen. Shelley Moore Capito, R-W.Va., along with federal, state and local officials, the Randolph County Development Authority and Armstrong leaders.
The distribution center project also is expected to help retain 60 existing jobs and generate approximately $16.2 million in private investment, officials said.