MARTINSVILLEAs of now, theres no payment plan in place, to repay the $800,000 grant given to fund the College of Henricopolis School of Medicine. While discussions have taken place, Martinsville officials said on Tuesday they would like an official written statement from the Virginia Tobacco Region Revitalization Commission, making it clear the group expects the city to repay the money.

The city and (its) staff are in close communications with, and closely following deliberations by, the tobacco commission regarding the TROF grant, Martinsville Mayor Gene Teague said during Tuesday nights council meeting.

But as of this time, there has been no official communication from the tobacco commission regarding the citys obligation to repayment, nor has a repayment schedule been worked out or communicated, he said.

In late 2014, the city and Dr. Noel Boaz signed a performance agreement to receive the commissions grant. Listed as the grantee, the city accepted responsibility for the money, which it then turned over to Boaz to help establish the College of Henricopolis School of Medicine.

That school still has not opened for students. In addition, the facility did not meet certain benchmarks by the halfway point of the 36-month grant, as was required. In January, school officials received an extension from the commission, but that decision was reversed in May, after the school changed from a for-profit concept to a nonprofit institution.

Commission officials have said that TROF grants are intended for projects designed to increase the tax base in communities, and the commission would not have awarded the medical school the $800,000 grant if the school had stated in its original application that it is a nonprofit entity.

We will be communicating with Dr. Boaz in the coming weeks regarding the project, his ability to repay any or all of the grant and then, of course, the citys next course of action, Teague said.

Both verbally and in a written letter to the commission, Boaz has stated his organization, the Integrative Centers for Science and Medicine, cannot afford to repay the grant. Also, officials with the medical school have said they think the grant should not have to be repaid because the commission should consider the money as an investment in the school. Over the last two months, the city council made statements in open session that they wanted to speak with Boaz, however, he claims that no one has reached out to him to make it happen.

Teagues remarks were brief. He said they were essentially what we (the council) said back in May after the commission decided to require that the grant be returned.

He commented in response to recent media reports about the issue, he said.

We want to make sure everybody understands were still working on it, Teague said, referring to handling the matter. We have not stopped working on it, even though we dont talk about it publicly as often as I think some folks would like.

Where it stands

When the commission asks for a grant to be returned, the standard practice in a case like this is to turn first toward the company involved. The commission did that, writing to Boaz and asking him to return the funds. He responded in July, stating that he didnt have the money and didnt feel his organization, which has struggled to raise more than $180,000 in the last two years, would be able to collect it.

Again, as per state policy, once the commission received that letter, the company automatically gets a 30-day extension. The last response from the commission to Boaz went out on July 31, meaning it will be at least Aug. 31 before any official notification is sent to the city.

If Boazs time runs out and he has not responded, we will assume that he is unable to pay and will send an official request to the City, said Jordan Butler, the commissions public relations coordinator. It is fair to say that we have not officially made a request of the city just yet, but we are in touch with them.

Speaking from the floor during the council meeting, city resident Ural Harris called for the council to ask the Virginia State Police, or the state itself, to investigate how money put toward the medical school project and especially the TROF grant has been spent.

Theres no telling how many people have given money to this school, or signed for money for it, said Harris, a former council candidate who is on the Martinsville Planning Commission. I think they deserve an answer to where its (the money) been.

A lot of people did put money in this (project) and was fleeced, I think, he continued.

Read the original here:

Talks continue on medical school payback | News ... - Martinsville Bulletin