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After year-and-a-half gap, town council catches up on EDA activity, in and out of town

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In restarting a public dialogue between the existing Economic Development Authority and the Front Royal municipal government on February 8, EDA Board of Directors Chairman Jeff Brown reminded town officials of his observation to them on that last occasion 18 months earlier while the Town was still involved in a three-pronged effort with the EDA and Warren County to investigate and correct what allowed the now $24-million-dollar-plus EDA financial scandal to fester and develop over a several-year period.

Noting he had also been the one to give that report, Browne revisited it: “I said there was a catastrophic failure of oversight by the EDA, County, and Town with plenty of blame to go around*. I haven’t changed my view on that,” he said in opening.

After a positive exchange with new Town Manager Steven Hicks, EDA Board Chairman Jeff Browne reintroduced the Front Royal Town Council to the dynamics and current status of the EDA as it continues to conduct business in and out of town. Royal Examiner Photos Roger Bianchini

“There was massive embezzlement, bad investments, poorly written agreements, and a dangerous system of overly centralized check writing and bookkeeping. It all set up for a perfect storm,” Browne echoed from his 2019 report to council, pointing to “insufficient checks and balances, lots of misplaced trust and weak verifications” – concluding, “You had a right to be concerned then.

Front Royal Virginia

But that was 18 months ago as the new EDA Board of Directors, with County, and initially, for a short time Town, assistance were already involved in dismantling, replacing, and rectifying the EDA structure as the financial scandal evolved under criminal and civil court scrutiny.

Of the direction since then, Browne pointed to installation of the very checks and balances previously missing, including County-mandated third-party bookkeeping, and “multiple eyes on all transactions”. He said the refurbished EDA Board had developed what he termed “a guns and butter strategy” that freed the new EDA staff – Executive Director Doug Parsons and Administrative Assistant Gretchen Henderson – to pursue economic development initiatives (butter), while the new EDA Board of Directors oversaw the legal and peripheral issues (guns).

File photo of an EDA Board meeting prior to departure of Gray Blanton, upper right, and Ed Daley, center-left, the latter to an ‘interim’ stint as WC Administrator from which he hopes to return to the EDA Board of Directors.

However, that year-and-a-half of “Guns and Butter” was a strategy the Town Council missed involvement with, choosing rather what one might term a “Lawyers, Guns and Money” strategy as so poetically described on our Opinion page recently by Fred Schwartz. The lawyers, guns (metaphorically of course) and money to a great degree were pointed directly at the EDA over the objection of then Mayor Gene Tewalt, who unsuccessfully recommended a policy of cooperation and rebuilding with the EDA and County, as opposed to a litigious one supported by council and pushed forward through the office of the former interim mayor and interim town manager.

Browne proceeded into detail on the EDA’s current holdings, in and out of the town limits, and explanations on the EDA’s attempt to divest itself of properties it “never should have been involved in” by the new board’s estimation.

Shot of the Stokes Mart building and adjacent apartments at 514-516 E. Main, one of the properties the new EDA has moved to divest itself of ownership of.

He also pointed to over a million dollars thus far recovered in insurance and settlements with involved parties in the EDA’s civil litigation.

He pointed to the recent recruitment of drone manufacturer Silent Falcon to the county; as well as the potential landing of an eastern regional medical marijuana manufacturer/distributor in Parallel LLC, that could bring a major commercial tax revenue source, along with hundreds of jobs to the county and town, not to mention the purchase of Baugh Drive warehouse the EDA hopes to divest itself of ownership of as soon as possible.

The sprawling warehouse at 426 Baugh Dr. currently has three short-term lease tenants, with a fourth in the wings, as well as at least one potential buyer on the horizon, as the new EDA works to clean up the real estate management situation it inherited.

The EDA Board Chairman pointed to a drive west for business relocation into the Valley that he said the EDA and County are working to take advantage of, utilizing advantages like the Interstate Highway system crossroads and Inland Port that are located here. Of working together to achieve the maximum result of that effort, Browne observed, “We either hang together or we hang separately”. As to the advantages of working together economically, Browne pointed to the pending sale of McKay Springs parcels that are jointly owned by the EDA, County and Town.

In response to queries, he admitted the EDA was currently financially insolvent due to repercussions of the financial scandal, and was being financially supported by the County at this time. However, some council members seemed surprised to learn that Warren County had not absorbed the EDA into its departmental structure, which could present a roadblock to the Town actively reengaging its continued membership in the half-century-plus old joint Town-County EDA. While the Town is currently advertising for applicants to a unilateral Town EDA Board of Directors, an EDA it would be totally responsible for the financial support of, the County has kept the EDA’s quasi-governmental, independent status open as a door by which the Town could reenter into active membership with the existing EDA.

While confrontational at times, the EDA board chairman’s exchanges with council and the mayor appears to have achieved dividends as illustrated by the late week move towards sale of the Afton Inn, below, for redevelopment. Above, Gary Gillespie during his Q&A with Browne.

And while some council grilling of Browne on details, particularly with pre-prepared written notes, took the tone of hostile cross-examination, the end result of Browne’s report and Q and A with council appeared, four days later, to be positive, as illustrated with the EDA’s Friday move toward the completion of the sale of the Afton Inn for redevelopment without a Town challenge on the title to the property.

See the entire EDA presentation and back and forth with town officials in this video.

Footnote: As Royal Examiner has previously reported, while the Town has attempted to distance itself from any portion of “blame” for the EDA financial scandal due to its agreement to no longer have EDA board appointment authority after the County took over full EDA operational funding nearly a decade ago, it was heavily involved with in-town EDA operations throughout the financial-scandal timeframe. In fact, it was the town council that authorized a $10-million-dollar “bridge loan” to the EDA to help facilitate the bank loan for the ITFederal construction project at the Royal Phoenix Business Park at the former Avtex site. That $10-million loan said to have been acquired “under false pretenses” in the EDA civil litigation, is the largest single item in the EDA’s civil suit seeking the return of over $24 million in allegedly misdirected or embezzled EDA, County, or Town assets. In seeking the “bridge loan” then EDA Executive Director Jennifer McDonald told town officials that without that show of “community support” in fronting that $10 million for the ITFederal project in town, the bank was hedging on approval of the loan to ITFederal through the EDA. That was likely because, as Royal Examiner has also previously reported, other than the $2-million value of the 30-acre Avtex property parcel gifted to it for a dollar by the EDA in 2016, ITFederal listed assets of only about $20,000 in its loan application.

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EDA in Focus

FR-WC EDA moves to guarantee records protection during transition to County IT oversight, goes to Closed Session on litigation, business matters

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The Front Royal-Warren County EDA held a special meeting on Wednesday, February 1, 2023, at 3:00 PM at the EDA Office on Kendrick Lane. All five Board members, legal counsel, and the County Director of Economic Development were present.

The meeting began with the discussion of moving the February Regular Meeting from Friday, February 24, to Tuesday, February 28 at 8:00 AM. The schedule change was unanimously approved.

Following the schedule discussion, the Board requested legal counsel to draft an agreement to protect EDA records in order to move forward with the information technology transition with the County.

The Board concluded the meeting with a closed session to discuss potential disposition of real property to business prospects, the small business loan committee applications, and legal consultation regarding active litigation. There was no new business following the closed session.


As noted above, the next regular monthly Board meeting will be held on Tuesday, February 28, 2023, at 8:00 AM at the Warren County Government Center.

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EDA in Focus

County overseen FR-WC EDA reviews Conservancy Park status, Small Business Loan Committee applications, future property marketing options

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The Front Royal Warren County EDA held its monthly meeting on Friday, January 27, 2023, at 8:00 AM at the Warren County Government Center. Four Board members, legal counsel, and the County Director of Economic Development were present. Chairman Jeff Browne participated remotely.

The regular meeting began with a discussion regarding a potential utility easement through the EDA’s Happy Creek Technology Park property to a neighboring parcel. The proposed development is in its early stages although the utilities could create a loop through the business park while also accommodating any potential future development on adjacent properties. The Board of Directors has concerns with any easements that may encumber any EDA owned property, however, they are open to future discussions if it can create an overall cohesive development area.

As part of the Committee Reports, Jorie Martin and Joe Petty provided an update regarding the Avtex Conservancy Property and recent presentations to the Board of Supervisors and Town Council. Mrs. Martin mentioned the interest in issuing an RFI (Request For Information) for the remaining property, and a work session may be scheduled to review the document.

Treasurer, Jim Wolfe, and the Director of Economic Development Joe Petty provided an update on the financial statements and the Board of Supervisors will soon begin having meetings regarding the Fiscal Year 2023-24 budget.


Royal Examiner file photo of EDA Board meeting, with full board and county director of economic development present.

Staff from the Virginia Economic Development Partnership (VEDP) provided a presentation regarding the Virginia Business Ready Site Program (VBRSP) and ways the EDA can position its available properties. The discussion gave the Board better insight into the types of businesses interested in locating in Virginia and types of assets they look for in property.

The FR-WC EDA is still looking for applicants to take part in the Small Business Loan Committee. The EDA approved four (4) certificates of satisfactions for previous loans that have been successfully paid off. The Board also approved two amendments to existing leases for C-CAP and the Happy Creek Technology Park Grazing Lease.

The Board concluded the meeting with a closed session to discuss potential disposition of real property to business prospects, the small business loan committee applications, and legal consultation. No new business followed the closed session.

The next regular monthly Board meeting will be held on Friday, February 24, 2023, at 8:00 AM at the Warren County Government Center.

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EDA in Focus

WC EDA release describes history, intent, and timing of Avtex Conservancy Park initiative

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Front Royal-Warren County EDA representatives presented to the Warren County Board of Supervisors on Tuesday, January 10, 2023. The Avtex Ad Hoc Committee members, Jorie Martin and Scott Jenkins, along with the County Director of Economic Development, were in attendance to discuss the Former Avtex Fibers Conservancy Parcel. The FR-WC EDA recommends conveying the Conservancy Parcel, consisting of 240 acres, from the EDA to the County.

Shortly after the final work shift concluded at the Avtex Fibers Plant in 1989, the community began to wonder about the future of the Avtex Property. In 1993, the Parks and Recreation Department released the document Front Royal’s Plan for Parks, Trails, Bike-paths, and Greenways. While the plan addressed the entire community, it was one of the first local plans that stated, “The Avtex property on the West side of Front Royal may be amenable to eventual Park use, following the resolution of issues concerning the EPA project to modify the land and ponds … retention of the area as an open-space/wildlife preserve is the most desirable use of this land following the completion of its cleanup in the following 10-20 years.”

Another document published in 2000, The Avtex Fibers Conservancy Park Master Plan Report, was the culmination of work by stakeholders and the community that focused specifically on the Avtex Property and stated, “The Master Plan recommends restoration of the basin area into a conservancy park that combines ecological restoration and conservation of native habitats with passive recreation opportunities for local residents and visitors.”

A map of the planned Conservancy area as a passive recreation park from the 2000 Master Plan for the area. Below, an EDA 2023 timeline for movement toward realizing the Master Plan for the Conservancy area.


 

Remediation of the Superfund site began in 2000 and continues today, as the EPA and FMC consistently monitor the property to ensure it is currently safe and in the future. The FR-WC EDA recognizes that now is the time to fulfill the community’s vision by implementing the 2000 Master Plan. Nationally there is an increase in the public’s interest in accessible green space and passive recreation. Additionally, the Avtex Trail would provide more opportunities to experience Front Royal’s location along the Shenandoah River.

“Moving forward with implementing the Conservancy Master Plan is just the beginning of a process to revitalize the site,” said Ad Hoc Committee Member Jorie Martin. “Avtex Fibers was once an economic engine of Front Royal, and the new trail will begin to change the perception of the property and create a fresh outlook for redevelopment on the remaining parcels.”

The FR-WC EDA will continue to work with Warren County, the Town of Front Royal, EPA, and FMC to ensure that the development of conservancy property and, ultimately, the redevelopment of the entire Avtex Property is a top priority for our community.

For more information regarding the FR-WC EDA’s vision for the Former Avtex Fibers Conservancy Parcel, contact the Avtex Ad Hoc Committee Members Jorie Martin at mmartin@wceda.com and Scott Jenkins at sjenkins@wceda.com, and the presentation can be found at wceda.com. Information regarding the EPA’s cleanup efforts and reports can be found at www.epa.gov.

About the Front Royal-Warren County Economic Development Authority:

The mission of the Front Royal-Warren County Economic Development Authority (FR-WC EDA) is to strengthen the economic growth of our community by fostering a friendly business environment and providing services to create and retain quality jobs in Warren County. The Authority also supports community tourism, recreation, and arts & cultural initiatives to provide a better quality of life for the County’s residents, workers, and visitors. Coordination with the Board of Supervisors, County staff, the Town of Front Royal, and State agencies are integral to promoting economic development and tourism throughout Warren County.

For more information, contact Jeffrey Browne, FR-WC EDA Board of Directors Chair, at 540-635-2182, jbrowne@wceda.com

 

WC EDA proposes County takeover of Avtex Conservancy Park’s 240 in-town acres; Supervisors approve six of seven Airport Lease Agreements

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EDA in Focus

WC EDA proposes County takeover of Avtex Conservancy Park’s 240 in-town acres; Supervisors approve six of seven Airport Lease Agreements

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At a January 10th work session the Warren County Board of Supervisors received four staff reports beginning with members of the now unilaterally County-overseen but still legally named Front Royal-Warren County Economic Development Authority (Avtex Conservancy property proposal), and proceeding with Deputy County Administrator Taryn Logan (FY 2023 thru 2028 Draft Capital Improvement Plan), Finance Director Alisa Scott (Fiscal Policy Guidelines for Capital Asset Replacement Program), and Human Resources Director Jane Meadows (Department Updates and Position Reclassifications).

The board then convened a Special Meeting called to hold public hearings on seven lease agreements at the County-overseen Front Royal Airport (FRR), including with drone manufacturer and new FRR Fixed Base Operator Silent Falcon (for the “airport house”), new hangar maintenance contractor Aero Services LLC (for the “maintenance repair facility”), as well as Randolph-Macon Academy and four individual hangar tenants. All but one of those lease agreements was unanimously approved.

At the request of Finance Director Alisa Scott, item H-4, the hangar lease agreement with Michael W. Christensen was held – there were no speakers at any of the seven public hearings – but a vote on the Christensen lease was tabled at Scott’s request until the board had a chance to review and discuss with staff a note inserted from Christensen regarding terms in his lease.

When in doubt always look to staff for guidance – above, the supervisors, four present physically, Jay Butler by remote hook up, were guided to a motion to table a vote on one airport hangar lease by County Administrator Daley and Assistant County Attorney Jordan, pictured below. Royal Examiner File Photo of Board


The request for an altered motion to table the vote from the approval motion included in the agenda packet on all seven requests seemed to collectively confuse the board for about five minutes after North River District Supervisor Delores Oates observed Scott’s requested Christensen lease motion differed from the one in her agenda packet. But with some guidance from the county administrator and assistant county attorney, the adjusted motion to table a vote on the Christensen lease was eventually made and approved without dissent.

Want a 200-plus acre, riverside walking, biking trails park?

The work session opened with a presentation from the now more-commonly referenced Warren County EDA’s Board of Director members Jorie Martin and Scott Jenkins, with support from County in-house EDA Executive Director Joe Petty. Beginning with Martin, they explained a proposal to have the County take over possession and management of the Conservancy area, a total of 240 acres at the former 467-acre Avtex synthetic fibers manufacturing plant opened in 1940 as the American Viscose subsidiary of British Viscose. The plant was built as a war materials production facility out of the range of German bombers as World War II was engulfing Europe. In the late 1980s the plant was closed by state and federal regulators after byproducts of the plant’s manufacturing processes were linked to the production of carcinogenic materials being released into the environment on multiple levels. On the brighter side, Martin noted the property’s history, not only in the production of war materials for the battle against European fascism, but also materials used in NASA’s U.S. space program.

Walking trails on preserved land, including riverside acreage, connecting various portions of in-town properties including some schools, has been determined to be an optimal future use of the EDA overseen property due to more restrictive developmental restrictions placed on that area due to past uses. Portions of the Conservancy area were where the synthetic fibers manufacturing plant’s cleaning basins were located. The Conservancy area of the former federal Superfund site has been ruled unsuitable for development with buildings or any use requiring digging much below the surface. And it was explained that certain portions of the property will not be included in the proposed public access park area.

The Conservancy Park area’s 240.7 acres shaded in brown. The outlined area above the limited usage options Conservancy area is the EDA office property and planned Royal Phoenix Business Park off Kendrick Lane. The outlined area across the river is forecast for possible residential development. Below, County in-house EDA Executive Director Joe Petty at podium, and EDA board members Scott Jenkins and Jorie Martin, seated in front row, teamed up in presenting a proposal to convey ownership of the projected Conservancy park area to the County under stewardship of its Parks & Recreation Department.

So, with the more restrictive developmental parameters WC EDA officials believe that County ownership under the umbrella of its Parks and Recreation Department would be a viable future direction for the property, the county, and the community. Would the supervisors agree after exploring operational dynamics, EDA officials are seeking to know.

“Is there a budget for this grand plan?” Delores Oates asked, perhaps drawing a green line in the sand on direct County involvement. “I see we have money available, it looks like $93,000 – $93,000 doesn’t go very far in government programs – So Joe, do we have a budget to maintain

this as a park for the county because I want to understand what it’s going to cost the County taxpayers should we accept this conveyance and what we’re getting ourselves into.”

Petty noted that the EDA was currently maintaining some trails in the Conservancy area and pointed to cost estimates done in 2017 when a plan for the park was being developed. “This is going to be a process. We know it’s going to take some time,” Petty began, pointing to available (ARCA) funding that might open the path to other state or federal grant funding for Conservancy area redevelopment. “I think the discussion tonight is if even the County board has the appetite to take this initiative on,” he told the county’s elected officials.

At this point County Administrator Ed Daley chimed in. “I might add to that, there is nothing anticipated with this that would require a capital investment by the County. So, this would be done when State or Federal money becomes available. If that takes two years, three years, five years, etcetera. What we’re looking at right now is there is a particular opportunity with lots of federal money available. But we’re not looking to add this on to the County budget or anything of that kind. There will be a maintenance cost, but quite frankly that’s going to be minimal,” Daley assured the supervisors.

“So, you said it would be minimal but this is 240 acres of maintenance,” Oates countered, estimating a cost to cover two additional employees “at least” for that job “on a regular basis.”

“No, mam,” Daley countered, pointing to a minimal amount of those 240 acres requiring actual maintenance, within the limited developmental guidelines for the property. “This is all going to be natural state,” Daley said of the the Conservancy parkland that will be available to the public.

Avtex Superfund remediation site Conservancy area Master Plan dating to 2000, illustrating sections and walking and bike trail paths, some mirroring old roads through this section of the old synthetic fibers plant. Three rectangular, light brown areas toward the river are labeled ‘Meadow Habitats’ with the one on left containing a path labeled ‘Meadow Walk’.

“There is a Consent Decree for most of this property,” Petty pointed out, adding, “Even though we or anybody who owns this – the EDA currently does not maintain this. This is ARCA funding by (surviving former plant owner) FMC and they contract with a company called Parsons,” Petty explained, indicating that the EDA or any future owner’s maintenance responsibility would be limited to any new trail development, and that the Consent Decree would maintain FMC’s maintenance of existing areas requiring continued maintenance.

“Thank you for that clarification. I wasn’t aware that FMC had a Consent Decree arrangement with us,” Oates responded.

Asked for a timeline on a decision by Board Chair Vicky Cook, EDA board member Scott Jenkins replied, “We’d like to get that decision here in the first half of the year, so this fiscal year. We’d like to have the conveyance completed by June.” Petty added that the ARCA funding (referenced available $93,000) was done by the calendar year, and was already in the EDA’s possession for the coming year.

So, by June we should know if the county supervisors have bought into the idea of incorporating a portion of the base 240 acres designated to be a naturally maintained walking and biking trail park with riverfront aspects into the County’s Parks & Recreation Department system along the east side of the South Fork of the Shenandoah River. One might guess that a looming question to be answered is how deep did Superfund cleanup and remediation work on this section of the old Avtex property go, assuring potential users that they won’t be exposed to any lingering hazardous materials seeping up through the Conservancy park soil. Royal Examiner later posed that question to WC EDA Executive Director Petty, who noted it wasn’t the first time he’d heard it.

“I think that all parties will have the public’s health and safety as a number one priority if the trail moves forward. There will be continued conversations with the EPA to ensure it is safe to use for walking/biking trails, as we are not planning for any other public use on the site other than passive recreation.

“I’d also like to share this link to the EPA that refers to human exposure at the Avtex Site.”

Watch the County video of both the work session and special meeting. The EDA Conservancy Park Conveyance discussion begins 30 seconds into the video.

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Crime/Court

Judge notifies involved parties of denial of all defense motions to overturn jury verdicts in EDA civil liability cases

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According to Front Royal-Warren County Economic Development Authority Board of Directors Chairman Jeff Browne, the now County overseen EDA has received notice from civil case Judge Bruce D. Albertson on his ruling in the five defense motions to overturn jury verdicts of liability in the EDA financial scandal civil litigations. That ruling on five civil cases totaling over $14 million dollars of liability is denial of those motions to overturn.

“We understand all motions were denied, which is a great victory for Warren County residents and the Warren County EDA,” Browne told Royal Examiner Tuesday afternoon by phone. Browne’s understanding is based on a December 13th letter from 26th Judicial District Judge Albertson to plaintiff and defense counsels in the five personal liability cases at issue. There are also two associated business liabilities.

Between July and October the Warren County Courthouse saw a lot of EDA ‘financial scandal’ action, with five trials resulting in liability verdicts totaling over $14 million. Below, EDA civil case lead attorney Cullen Seltzer and his team are on a winning streak in civil liability cases related to the EDA financial scandal.

“This matter was before me on November 30, 2022, for hearing on Motion(s) to Set Aside filed by Defendants. I deny each motion for reasons cited by Plaintiff,” Judge Albertson wrote involved counsel, citing preparation of a Final Order by plaintiff counsel and the noting of any defense objections to that order. It is possible defendants could appeal the court’s ruling to higher state courts.


The liabilities found by five Warren County Circuit Court civil case juries, four in July, and one in October, include:

  • Truc “Curt” Tran ($1,821,192.01 compensatory, interest liabilities), Tran’s ITFederal company ($10,419,327.38 compensatory);
  • Donald Poe ($604,973.12 compensatory, punitive, interest), Poe’s Earth Right Energy company ($948,646.25 in compensatory, punitive, interest);
  • Samuel North (approximately $893,000 compensatory, punitive, interest, & statutory conspiracy);
  • William Lambert ($296,555.34 compensatory, punitive, & interest);
  • April Petty ($125,000 compensatory judgment liability).

See story on these motions hearings (Judge ponders rulings in multiple defense motions to overturn civil case jury finding of liability in EDA financial scandal cases) as well as other related trial stories on the Royal Examiner website under “News” category, subcategories “EDA in Focus” or “Crime & Courts”.

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Crime/Court

Judge ponders rulings in multiple defense motions to overturn civil case jury finding of liability in EDA financial scandal cases

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After over five hours of arguments surrounding five EDA civil case defendants’ motions to overturn jury liability verdicts totaling over $14-million, Judge Bruce D. Albertson took those arguments under advisement Wednesday afternoon, November 30th. Some court officials anticipate rulings at some point in the coming week in the cases of April Petty ($125,000 compensatory judgement liability); William Lambert ($296,555.34 compensatory, punitive, & interest liabilities); Donald “Donnie” Poe ($604,973.12 compensatory, punitive, interest); Truc “Curt” Tran ($1,821,192.01 compensatory, interest); and Samuel “Sammy” North (approximately $893,000 compensatory, punitive, interest, & statutory conspiracy).

In addition to the above personal liabilities, Poe’s EarthRight Energy (ERE) company ($948,646.25 in compensatory, punitive, interest) and Tran’s ITFederal ($10,419,327.38 compensatory) were also handed down by Warren County Circuit Court civil case juries in recent months.

Five civil case defendants plus two companies, plaintiff EDA, and a community, await the court’s ruling on motions to overturn verdicts of liability in the EDA financial scandal trials. Below, a chart of EDA civil liability jury findings – Royal Examiner File Photos

All but North’s trial were heard in July. North’s, also originally scheduled for July, was delayed to October by a later withdrawn bankruptcy filing. This week on the final day of November, attorneys for the defendants echoed arguments sometimes heard at trial during earlier motions for dismissal of cases or claims against their clients due to what defense attorneys asserted both then and now, was a lack of substantive evidence of collusion with EDA financial scandal central figure and former Front Royal-Warren County Economic Development Director Jennifer McDonald. Rather, some defense attorneys claimed their clients were unwitting victims of McDonald’s from various business or personal connections.


Those personal connections include North’s marriage to McDonald; Lambert’s former personal relationship with McDonald’s sister; what attorney William Schmidheiser called Petty’s casual acquaintance McDonald, acting as his client’s real estate agent in the sale of her home. On the business side, Poe’s ERE company was contracted through McDonald to perform various solar  energy and energy maintenance projects for the EDA under what plaintiff EDA attorneys contended were false pretenses McDonald presented to her board of directors; and Tran’s ITFederal was recruited through the joint effort of McDonald and then Virginia Sixth District U.S. House Representative Bob Goodlatte to become the first commercial redevelopment client at the former Avtex Superfund site, also with what plaintiff counsel said were false contractual and asset information concerning ITFederal alleged to have been presented to the EDA board.

Several attorneys, most prominently Tran attorney David Jones Jr., also argued that several claims categories should not have applied to their clients at trial. Prominent among those were the “ultra vires” claim of profiting off the actions of an official acting outside the range of their legal authority, and associated claims of “conversion” and “unjust enrichment” being applied to their clients for actions of then EDA Executive Director McDonald. Consequently, Jones for Tran particularly and other defense attorneys argued that some jury instructions submitted were improper, creating an incorrect evidentiary scenario for those juries to deliberate on. So, procedural errors on bench rulings on evidence admissibility or jury instructions were claimed as grounds to overturn jury verdicts.

In Poe and ERE’s case, defense counsel William Ashwell also noted that some of the contracted work had been successfully completed by Poe’s company. He told the court that when payments were made by the EDA board to his client’s company: “The EDA eventually adopts her (McDonald’s) actions by their actions” and consequently his client is not the one who should be held liable for the return of money for work accomplished. Ashwell also sought to overturn any personal liability of Poe for payments made to his company.

In opening his arguments to overturn or limit Tran and ITFederal’s liability, Jones noted that he was “in the somewhat unenviable position of not being the trial attorney – Am I in the position of fresh eyes or of where fools rush in where angels fear to tread,” Jones wondered as he launched what would be an approximate hour of argument on his client’s behalf. During that hour Jones questioned the liability finding on a number of grounds and questioned whether ITFederal was, in fact, in breach of contract as claimed by the EDA in seeking recovery of the balance of the $10-million loan the EDA gave ITFederal for development at the former Avtex site.

Plaintiff counsel Cullen Seltzer and Karissa Kaseorg countered, as they had at trial, that McDonald’s assertions to her board about the source of funding for the ERE energy and electrical work being through grants that would compensate the EDA for its payments to ERE; or alleged government contracts held by Tran’s ITFederal company that were non-existent created the path for those payments, and a $10-million loan in ITFederal’s case, substantiating the juries findings of liability on ultra vires, conversion, and unjust enrichment, among other plaintiff claims.

In response to some of Jones’ arguments for reduction or dismissal of his clients’ liability, Kaseorg told Judge Albertson that the motions to overturn hearings should not be an opportunity for defense counsel to retry the case with a “what we wish we had done” at trial. Of Jones’ argument to dismiss based on the inclusion of the plaintiff’s “conversion” jury instruction, plaintiff counsel noted that the defense had agreed to the conversion jury instruction at trial.

In conclusion plaintiff EDA counsel asserted the judicial decisions from the bench at trial had been proper as to both evidence admissibility and jury instructions, and that those jury verdicts of financial liability based on both sides cases as presented at trial should stand as handed down by those five juries. And now we are awaiting a decision on how the court will rate its own performance at those trials based on the defendants’ challenges and the plaintiff’s counter-arguments in support of the judicial rulings made at trial.

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Skyline Insurance

Shenandoah Shores Management Group

St. Luke Community Clinic

Strites Doughnuts

Studio Verde

The Institute for Association & Nonprofit Research

The Studio-A Place for Learning

The Valley Today - The River 95.3

The Vine and Leaf

Valley Chorale

Vetbuilder.com

Warren Charge (Bennett's Chapel, Limeton, Asbury)

Warren Coalition

Warren County Democratic Committee

Warren County Department of Social Services

Warren County DSS Job Development

Warrior Psychotherapy Services, PLLC

WCPS Work-Based Learning

What Matters & Beth Medved Waller, Inc Real Estate

White Picket Fence

Woodward House on Manor Grade

King Cartoons

Front Royal
45°
Cloudy
7:14 am5:39 pm EST
Feels like: 39°F
Wind: 7mph NNW
Humidity: 56%
Pressure: 30.22"Hg
UV index: 0
TueWedThu
55/43°F
63/43°F
63/48°F

Upcoming Events

Feb
7
Tue
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 7 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
Feb
8
Wed
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 8 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Feb 8 @ 6:30 pm – 9:30 pm
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Bingo to support the American Cancer Society mission, organized by Relay For Life of Front Royal. Every Wednesday evening Early Bird Bingo at 6:30 p.m. Regular Bingo from 7-9:30 p.m. Food and refreshments available More[...]
Feb
9
Thu
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 9 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
Feb
10
Fri
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 10 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
Feb
11
Sat
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 11 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
Feb
12
Sun
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 12 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
11:30 am Galentine’s Brunch & Market @ Vibrissa Beer
Galentine’s Brunch & Market @ Vibrissa Beer
Feb 12 @ 11:30 am – 5:00 pm
Galentine's Brunch & Market @ Vibrissa Beer
Come Celebrate Friendship & Treat Yourself! Only 30 tickets available and they will go quickly. Tickets include: A Beautiful Brunch at Vibrissa Beer! Two tickets to a Mimosa Bar at Vibrissa! A Silent Auction at[...]
Feb
13
Mon
8:00 am Chocolate Crawl
Chocolate Crawl
Feb 13 @ 8:00 am – 5:00 pm
Chocolate Crawl
The Front Royal Chocolate Crawl is back for its 3rd year, and it is BIGGER than ever. With over 20 businesses on our list, you’re guaranteed to find something amazing (to purchase) and meet some[...]
12:00 pm Valentine Tea @ The Vine & Leaf
Valentine Tea @ The Vine & Leaf
Feb 13 @ 12:00 pm – 4:00 pm
Valentine Tea @ The Vine & Leaf
Please join us for tea and dainties on Monday, February 13th, at either 12 noon or 2pm! The event will be held at the Vine & Leaf (477 South Street, Suite F), with guest speaker[...]