WSET.com - ABC13Danville & Pittsylvania Co. Must Pay Back Loan

Danville & Pittsylvania Co. Must Pay Back Loan

DANVILLE, Va. (AP) -- An unused rail extension funded in part by a state grant is going to cost Danville and Pittsylvania County $450,000 each.

The Commonwealth Transportation Board awarded the matching grant help pay for the $1.9 million project. The city and the county sought the funding to build a 4,800-foot track to Swedwood Danville's plant. Each provided $150,000 in matching funds.

The state grant requires 521 rail cars to use the truck annually within five years. The Danville Register and Bee (http://bit.ly/w46CKC ) reports that the track hasn't been used since the Swedwood facility opened.

The Virginia Department of Rail & Public Transportation has agreed to a two-year extension to pay back the funding.

(Copyright 2012 by The Associated Press. All Rights Reserved.)