PULASKI CO., Va. – Pulaski County and the City of Radford are battling over a revenue-sharing agreement. Tuesday morning the county of Pulaski filed a lawsuit against the City of Radford.
Pulaski is challenging the constitutionality of a revenue-sharing agreement with Radford that dates back to 1978.
Bill Murphy, a Pulaski County resident, said he witnessed firsthand how the Fairlawn area developed over the years.
“I was with Long John Silver’s here in Fairlawn for thirty-five years,” Murphy said. “And I saw how the growth came on this side of the bridge.”
In 1978, some residents of Pulaski County petitioned the city of Radford to annex the Fairlawn area. To prevent Radford from supporting the annexation efforts, the two localities struck a deal.
Pulaski County agreed to give Radford 28 percent of sales tax revenue from businesses located between the Peppers Ferry intersection and Hazel Hollow Road — in perpetuity.
In return, Radford City Council agreed not to support any annexation petitions and to provide infrastructure support to help develop the Fairlawn corridor.
“All the businesses through here have flourished, as far as I can tell,” said Brent Cordell-Viers, a lifelong Pulaski County resident.
“Oh, it’s a business hub,” Murphy added. “Whenever Walmart came here several years ago — yes, we lost a Kmart — but it’s been a booming business for, I guess, twenty years now.”
The Fairlawn corridor has experienced significant growth since the 1978 agreement. Last year, Pulaski County paid Radford nearly $200,000 under the terms of the deal.
As one of the main routes connecting Radford and Blacksburg, the corridor is expected to continue generating substantial tax revenue.
Radford Mayor David Horton expressed frustration with Pulaski County’s stance on the agreement.
“The city is disappointed the Pulaski County Board of Supervisors has intentionally chosen not to honor the county’s contractual obligations,” Horton said.
In a statement, the Pulaski County Board of Supervisors responded: “Radford did not create a valid or enforceable obligation requiring Pulaski County to pay a share of its sales tax revenue to the City of Radford.”