Supervisors deny EDA request for dismissed charges legal fees – for now

On Tuesday, January 21, the Warren County Board of Supervisors denied the current EDA Board of Director’s request that four past and three current members be compensated for their legal fees related to three misdemeanor criminal indictments brought by the Special Grand Jury empaneled to explore potential criminality tied to the EDA financial scandal and consequent civil litigation.

EDA Board Chairman Ed Daley responded to questions about the EDA legal fee request and general financial situation prior to Tuesday’s vote. Photos and video by Mark Williams, Royal Examiner.

The charges for unintentional misfeasance and nonfeasance in the conduct of their public offices were brought against the entire previous board of supervisors, County Administrator Doug Stanley and former County and EDA Attorney Dan Whitten, as well as the seven past and current EDA board members. After the charges were dismissed against all defendants as not crimes by statute or even English Common Law upon which Virginia law is based, the previous County board voted to reimburse its members and staff’s legal expenses, with only ousted Shenandoah District Supervisor Tom Sayre dissenting.

North River Supervisor Delores Oates, who made the motion not to approve the request, qualified it with the disclaimer “not at this time with the information we have at this time”. Oates said she did not feel comfortable committing county taxpayer funds to the EDA legal expenses without more information.

EDA Board of Directors leave Tuesday night’s meeting after the vote not to cover seven past and current members legal fees related to dismissed misdemeanor charges.

Oates, along with Board Chairman Walter Mabe and Vice-Chair Cheryl Cullers, the latter who seconded the motion not to approve the legal restitution for now, have been frequent attendees at EDA Board of Directors meeting in recent months. All have expressed a desire to work with the existing board to try and right the EDA’s financial ship from past mistakes or allegedly criminal activities orchestrated by former EDA executive director, Jennifer McDonald. McDonald currently faces 34 felony criminal indictments by the EDA Special Grand Jury related to the EDA financial investigative audit and civil litigation.

“It would be ludicrous for us to turn our backs on our EDA,” Board Chairman Mabe recently stated, in stark contrast to the Front Royal Town Council’s increasingly hostile and litigious stance against the Town-County EDA. Discussion of the Town and County roles in support, or a lack thereof, of the current EDA should make for interesting agenda item discussion at Thursday’s scheduled Town-County Liaison Meeting.

Happy Creek Supervisor Tony Carter argued for the reimbursement, at least partially, noting that the EDA board had agreed to pay the requested total of $36,827.17 back when it was financially able – “though that might not be for a while,” Carter observed.

Tony Carter suggested a middle ground, partial coverage of EDA legal fees with the promise that money will eventually be paid back when the EDA again becomes solvent, perhaps when the Town pays its $8-million plus bill on the FRPD headquarters construction project financed by the EDA.

Carter suggested perhaps capping the EDA board compensation at $4,000 per member since questions have been raised about the disparity in some legal fees, compared to others. Former EDA Board Chairman Greg Drescher’s legal bill was $10,000, twice that of the next highest amount of $5,000 submitted by long-time former EDA Board Treasurer William “Billy” Biggs. Other EDA legal fee totals ranged from $4809.17 (Patteson) to $3,000 (Drummond).

Carter suggested postponing a vote, rather than denying the request due to the timeframe around reintroducing failed motions – one year. However, Acting County Attorney Jason Ham verified that a supervisor voting with the majority denying a motion, or in this case approving a motion to deny the request, could reintroduce the defeated initiative at any time.

Consequently, Carter voted with Oates, Cullers and Mabe to deny the request, leaving only Archie Fox voting against the denial.

Watch the discussion on this exclusive Royal Examiner video: