EDA Board extends Afton Settlement date, approves Crime Coverage insurance claim among other post-Closed Session actions

This press release has been updated to include the resolution documents passed by the Board of Directors. Additionally, the first two motions passed out of Closed Meeting have been corrected from yesterday’s press release to include specific language from their corresponding resolutions.

The EDA Board of Directors met for a Special Board meeting Wednesday, January 6. After a 40-minute Closed Meeting, the Board voted on three actions in greeting the new year:

• On a motion by Jorie Martin and seconded by Tom Patteson, the board unanimously passed a resolution approving a Release and agreeing to an amount of $500,000 with Cincinnati Insurance which represented the total amount of the Commercial Crime Coverage policy to settle a claim regarding alleged misconduct by, among others, its former Executive Director, Jennifer McDonald.
• On a motion by Jorie Martin and seconded by Greg Harold, the board unanimously passed a resolution approving the Commonwealth of Virginia’s Commonwealth Opportunity Fund Performance Agreement with Silent Falcon UASA Technologies. The $161,482 grant is an inducement to the company choosing to move from New Mexico to Warren County. With this agreement, Silent Falcon is committed to bringing jobs to the county as well as making a significant capital investment in building construction for their new operation here.
• On a motion by Jorie Martin and seconded by Tom Patteson, the board unanimously passed a resolution approving a Release and agreeing to an amount of $500,000 with Cincinnati Insurance which represented the total amount of the Commercial Crime Coverage policy to settle a claim regarding alleged misconduct by, among others, its former Executive Director, Jennifer McDonald.
• On a motion by Jorie Martin and seconded by Greg Harold, the board unanimously passed a resolution approving the Commonwealth of Virginia’s Commonwealth Opportunity Fund Performance Agreement with Silent Falcon UASA Technologies. The $161,482 grant is an inducement to the company choosing to move from New Mexico to Warren County. With this agreement, Silent Falcon is committed to bringing jobs to the county as well as making a significant capital investment in building construction for their new operation here.
• On a motion by Greg Harold and seconded by Tom Patteson, the board unanimously approved a motion to extend the date of settlement with 2 East Main, LLC for the purchase of the Afton Inn to February 12, 2021. The developers, Jim Burton and Alan Omar, are dedicated to renovating the historic building which will bring jobs and commerce to downtown Front Royal.
• Lastly, in New Business, on a motion by Jorie Martin and seconded by Tom Patteson, the board unanimously approved an annual grazing lease with Jeremy Baldwin for $1,000. Board Chairman Jeff Browne congratulated the new Town Manager and new Town Council members. He had a good meeting this week with Town Manager Steven Hicks and is hopeful of starting a new chapter for EDA-Town relations back that focuses on economic development issues.

The EDA Board of Directors will have their regular monthly board meeting via Zoom on Friday, January 22, 2021 at 8 a.m.

APPROVAL OF COMMONWEAL TH’S DEVELOPMENT OPPORTUNITY FUND PERFORMANCE AGREEMENT WITH Sll.,ENT FALCON UAS TECHNOLOGIES

WHEREAS, Warren County (“County”) has been awarded a grant for $161,482 from the Commonwealth’s Development Opportunity Fund (“COF”) to induce Silent Falcon UASA Technologies (“Silent Falcon”) to locate in the County and creating and maintaining a significant number of new jobs; and

WHEREAS, the County will provide those grant funds to the Industrial Development Authority of the Town of Front Royal and County of Warren dba the Warren County Front Royal Economic Development Authority (‘•EDA”) so that the EDA can provide the funds to or use them for Silent Falcon provided that Silent Falcon meets criteria relating to Capital Investment and New Jobs;

NOW, THEREFORE, BE IT RESOLVED that the EDA hereby approves the attached Commonwealth’s Development Opportunity Fund Performance Agreement with Silent Falcon VAS Technologies, Warren County and the Virginia Economic Development Partnership, and authorizes its Chair to sign the Performance Agreement.

APPROVAL OF SETTLEMENT WITH CINCINNATI INSURANCE COMPANY OF POLICY CLAIM FOR EMPLOYEE THEFT

WHEREAS, the Industrial Development Authority of the Town of Front Royal and County of Warren dba the Warren County Front Royal Economic Development Authority (“EDA”) made a claim on its insurance policy with Cincinnati Insurance Company (“Cincinnati”) under the Policy’s Commercial Crime Coverage, which has a $500,000 limit of liability, regarding alleged misconduct by, among others, its former executive director Jennifer McDonald; and

WHEREAS, the EDA and Cincinnati desire to resolve the claim by Cincinnati making payment to the EDA in the amount of$500,000 upon the EDA executing the attached Release of Cincinnati from any further liability;

NOW, THEREFORE, BE IT RESOLVED that the EDA hereby approves the settlement and the attached Release, and authorizes its Chair and Secretary to sign the Release on its behalf.