Busy week for EDA: Appointments, Town FOIA, director hunt, bond issue

Monday’s special meeting quorum and two surviving staff members – Royal Examiner Photos/Roger Bianchini

On Monday morning, April 15, at the first of two special meetings of the Front Royal-Warren County Economic Development Authority Board of Directors called this week secretary and assistant secretary appointments were made. A three-member quorum – only five of the seven board seats are currently occupied – voted to appoint Ed Daley, in his absence, as secretary; and Vice-Chairman Bruce Drummond took on the duty of assistant secretary. Present were Chairman Gray Blanton, Drummond and Treasurer Tom Patteson, along with Interim Executive Director John Anzivino and Attorney Dan Whitten.

As literally everyone in Warren County not in a coma now knows, the FBI and State Police swooped in Tuesday to search the EDA headquarters and remove some items related to criminal investigations stemming from the EDA forensic audit and consequent civil litigation seeking the return of over $17 million in allegedly embezzled or misappropriated EDA assets.

A coordinated – well, as coordinated as possible – April 17 press perusal of the front portion of the EDA office during Wednesday’s closed session indicated that the computer hard drive and a cell phone previously seen in former Executive Director Jennifer McDonald’s still-locked down office were no longer on her desk. EDA officials would not confirm whether any of the office printers had been removed by law enforcement the previous day.

Above, EDA Attorney Dan Whitten and Board member Greg Drescher oversee a school staff tech person locking down outside access to the executive director’s computer upon announcement of her resignation on Dec. 20, 2018. Below, a somewhat emptier desk in the still locked-down office the day after FBI-VSP search of EDA headquarters.

Wednesday’s special meeting closed session was called to discuss candidates in the running to succeed Interim Executive Director John Anzivino on a permanent basis, or at least as permanent as such things may be. Returning to open session the board quorum of four – up by one from Monday with the addition of Mark Baker – resolved to continue the process of selecting its new executive director.

During a brief discussion with media following adjournment Anzivino declined to speculate on when an appointment might be announced. Previous EDA board discussion indicated a desire to have a permanent director in place in May. Anzivino indicated the field had been narrowed to three from which to choose.

While declining to give any detail on the previous day’s search by federal and state law enforcement, Anzivino reiterated that the EDA will continue to cooperate in the criminal investigation related to information uncovered by the forensic audit of EDA finances underway since mid-September 2018.

Anzivino also said that from personal observation work appears to be continuing on the building on the ITFederal site. ITFederal and its principal Truc “Curt” Tran are among the nine defendants named in the EDA civil litigation seeking recovery of allegedly misappropriated EDA assets. While stating he no longer plans to relocate ITFederal to the 30-acre parcel at the Royal Phoenix Business Park sold to him for one dollar, he has indicated a plan to rent space in the building under construction out.

A road to where? – Phase One of the West Main St. connector was authorized with a three-building ITFederal complex generating 600 high-paying tech jobs promised by Congressman Bob Goodlatte on 30 acres gifted by the EDA for one dollar to get the re-development ball rolling at the former Superfund site. Recent FIOA information indicates Goodlatte asked for the $10-million EDA loan to Tran and ITFederal.

Positive PR

During the open portion of Monday’s special meeting Board Chairman Gray Blanton broached the idea of getting an accounting of current business the EDA is engaged in as a positive counterpoint to the heavily-publicized scandal revolving around the alleged embezzlement of EDA assets discovered by a lengthy, six months and counting and $760,000 and climbing forensic audit of EDA finances.

Anzivino said he would prepare a press release summarizing property maintenance, project development, and tenant recruitment, including the U.S. Census Bureau for a training center.

Town FOIA request

Also on Monday Vice-Chairman Drummond asked if the town government was going to get its formally requested copy of the forensic audit that has thus far resulted in the filing of civil litigation seeking recovery of that minimum $17.6 million in EDA assets said to have been moved for personal benefit during Jennifer McDonald’s directorship and oversight of EDA finances.

Chairman Blanton responded that he saw no reason the Town shouldn’t get a copy.

However, EDA Attorney Dan Whitten cited a semantical issue with the Town request, which had initially been stated as for the “final report” which Whitten pointed out does not yet exist. The forensic audit continues to develop, so no “final” version is available.

As previously reported, it has been noted that thus far only the EDA Board of Directors has seen the written updates of the forensic audit and Anzivino confirmed that once those drafts of the Mueller Report, I mean the Cherry Bekaert Report have been reviewed by the EDA board they have been shredded.

Following Wednesday special meeting Anzivino said he thought his Tuesday meeting with Town Attorney Doug Napier and Town Finance Director B. J. Wilson went well, and that the semantical issues would be worked through to try and accommodate the Town’s request to be kept abreast of the information thus far available from the forensic audit.

And a bond issue

Following adjournment of the approximately 15-minute Monday meeting, the board broke before reassembling at 11 a.m. for a joint signing of the approximately $11 million bond issue on three capital improvement projects. Those projects are renovations at Ressie Jeffries Elementary School and on county and school space at the Health and Human Services complex in the old middle school building on 15^th Street; and construction of the new Rivermont Fire Station.

County Board Chairman Dan Murray joined Blanton and Drummond in signing the documents, with county and school administration staff present, as well as Sands-Anderson bond counsel Dan Siegel.

From left above, Dan Murray for the County and Gray Blanton and Bruce Drummond for the EDA sign off on bond issue for three capital improvement projects as Tom Patteson and Greg Drescher chat in background. Below from left, Drescher, bond counsel Dan Siegel and Doug Stanley chat as Bruce Drummond seated, peruses the paperwork.