WSET.com - ABC13Unused Rail Tracks Costing City & County Thousands

Reporter: James Gherardi l Videographer: R.J. Burnette

Danville, VA - Danville and Pittsylvania County owe the state of Virginia almost $1 million after a railroad track was built apparently for no reason. They now have to pay back unused grant money after a deal with Swedwood fell through.

Part of the agreement to bring Swedwood back in 2006 included building railroad tracks funded partly by the state, which Swedwood agreed to use daily to move their products. But they never once used them, and now the city and county are the ones left footing the bill and Swedwood is off the hook.

Almost a mile of railroad tracks that sit without a single car.

"There was an oversight if you want to call it that," said Coy Harville, Pittsylvania County supervisor and chairman of the Regional Industrial Facility Authority.

The track cost nearly $2 million and was built for the Swedwood plant in Cane Creek Industrial Park. Harville was on the Regional Industrial Facility Authority, one of the groups that signed off on the rail's construction back in 2006.

"Why do we want to get in a fight with Swedwood? We're glad they're here, and there's jobs and that's what we're all about," he said.

These tracks were a part of the agreement that brought Swedwood to Danville. The company was supposed to use them to transport material.

Harville says Swedwood did not have to pay the bill to the state because it's not in writing.

There was a written agreement signed by Kate Berger for Pittsylvania County and Jerry Gwaltney for the City of Danville, according to Jeremy Stratton , Danville's economic development director.

It was drafted by Swedwood lawyers, and some city officials say it was completely one-sided.

"With Swedwood, there was a rail agreement with the state and the localities and in that agreement, Swedwood promised that they were going to - they had us in a commitment that they were going to use 520 cars," said Stratton.

It wrote the company out of having to pay for not using the tracks, but was signed by the county and city because Swedwood agreed to employ 740 workers within 10 years.

"It far outweighs $450,000 for the county and city. We know money is money, but we've got 300 jobs and we're looking at 740 jobs," said Harville.

The city and county each have to now pay $450,000 back to the state department of transportation within two years. The county voted in their previous board of supervisors meeting to pay in monthly installments. Danville city council will vote on how they will pay back their bill to the state in March.

Officials from Swedwood did not return calls from ABC 13 News.