The Roanoke Rapids Sanitary District will be able to repay the state Department of Commerce more than $500,000 of a $1 million water improvement grant in three installments.

Despite the lack of job creation in the first five years of the Carolina Crossroads Music and Entertainment District and having to repay the money, RRSD CEO Dan Brown said the organization stands behind the project.

"It's not happening as fast as everyone wants it to," Brown said this morning. "We still think it's viable. As long as they continue to work it, it will happen."

Brown believes the economy was the biggest factor in development not happening as expected. "We're seeing one of the most oppressing economies since the depression."

While the Crossroads development has not happened as planned, Brown said the water improvements the Community Development Block Grant funded are benefitting the area. Hilton Garden Inn, the only development in the district besides the Roanoke Rapids Theatre, is connected to the system. The system also ties into the county system, Brown said.

Interest, however, is still there, he said. "When Rapids Jam announced the festival one of the local developers had positive comments. I think every thing envisioned is still on the table for commercial, other theaters and other entertainment venues."

Development, Brown said, should continue to be worked on. "They should not abandon that vision."

Brown said he believed the November Old Crow Medicine Show concert at the theater was a good start. "You had a band that was between shows. It got positive response."

He said he believes that model has to be developed. "Somebody's got to be looking down the road to see where and when a band is."

While the district would rather put the money back into the community, Brown said, "Unfortunately, the CDBG people's hands are tied. Not being able to use the money in the local community is aggravating. We've got to work it and continue this investment and nurture it."

The grant issue was discussed at Tuesday night's city council meeting because Carolina Crossroads has not lived up to its job creation expectations, generating only 42 jobs at the Hilton Garden Inn, a memo presented said.

The memo was included in the agenda packet for information on a public hearing for the closeout of a $1 million Community Development Block Grant to fund water improvements to the development.

Part of the 2005 agreement leading to awarding of the grant was the commitment by the city to create 100 full-time jobs that would benefit from the installed water improvements, the memo from Planning and Development Director Amanda Jarratt said.

That means more than $500,000 of the money must be returned. "Because the job creation requirements were not met, $538,155 of the $1 million award must be returned to the Department of Commerce," the memo said. "Additional extensions from the Department of Commerce cannot be granted."

Of the $1 million awarded, $958,155.12 was spent on construction, planning and administration, the memo said. "At the time of the grant award, the Roanoke Rapids Sanitary District agreed to fund any payback requirement on behalf of the city of Roanoke Rapids if the job creation goals were not met.

"As we proceed through the Community Development Block Grant closeout project process, the city of Roanoke Rapids will coordinate with the Roanoke Rapids Sanitary District regarding the necessary return of grant funds."