Of its findings unveiled in now-filed court documents ordered produced in the EDA’s civil litigation, investigative public accounting firm Cherry Bekaert writes, “As of the date of our working papers, MCDONALD (capitalization in context) appears to have systemically embezzled funds, with and without the apparent aid of collusion, that were accessed through the EDA from bank credit facilities designated and restricted for Town and/or County-sponsored capital improvement and development projects. This resulted in estimated losses of approximately $21,000,000.”
Uh oh, I know what some of you are thinking – that dirty political “c” (collusion) word right here in River City.
And as some suspected, and was verified by the April 16 search of EDA headquarters, federal authorities are involved in the EDA investigation. In fact fairly reliable Royal Examiner sources indicate a U.S. Western District of Virginia federal grand jury is currently convened in Harrisonburg regarding the alleged EDA financial embezzlements now cited at over $21 million dollars.
April 16 was exactly three months and one day after Cherry Bekaert officials met with state and a variety of federal officials for over six hours in Charlottesville regarding their suspicions of financial corruption at play in the conduct of Front Royal-Warren County Economic Development Authority business.
That January 15 Charlottesville meeting with state and federal officials was the culmination of a nearly six-week series of meetings, presentations and interviews culminating with two major developments occurring on December 20, 2018 – Jennifer McDonald’s resignation and admission by email of liability for the return of $2.7 million of EDA assets; and the EDA Board of Directors’ authorization for Cherry Bekaert officials to meet with federal authorities.
Federal climax …
In its report summary, Cherry Bekaert presents a chronology of its presentation of its findings to EDA and County officials. That chronology includes:
– a December 5, 2018, briefing of the EDA board on its findings of irregular activities, including questions to the board about its knowledge of potential fraudulent activities;
– a December 6 interview with McDonald during which she was confronted with evidence, and “admitted to using funds sourced from bank credit facilities restricted for Town and County projects”;
– a December 14 briefing of the EDA board “and certain members of the County Board of Supervisors on the results of our discoveries to date and concerns of suspected criminal activity”;
– the scheduled December 20 EDA board closed session discussion of the Cherry Bekaert findings after which Cherry Bekaert was informed of McDonald’s resignation AND after which the EDA authorized the firm to contact the U.S. Attorney for the Western District of Virginia;
– then there was Cherry Bekaert’s December 21 contact with U.S. Attorney Thomas T. Cullen and several assistants during which the company “verbally conveyed our evidence and findings to date regarding the EDA financial irregularities and the fact MCDONALD had admitted personal liability for $2,700,000 in an email to (the EDA);
– and finally, the January 15, 2019, six-hour meeting in Charlottesville with “Assistant U.S. Attorney Sean Welsh, Western District of Virginia, Special Agents from the VSP, a representative from the Department of Justice Public Integrity Section, and the Federal Bureau of Investigations (‘FBI’) on our findings.”
As we have alluded to in past stories there are multiple reasons federal officials could be involved in the EDA situation. They include, though may not be limited to, the potential of illegal wire transfers of money or the movement of misdirected cash across state lines – both federal offenses; the involvement of a former federal superfund site; the potential involvement of federal EB-5 Visa Program funds in some involved transactions; and perhaps even the potential of federal racketeering charges coming into play were the above referenced “collusion” to accomplish some of the alleged embezzlements proven to be true and far reaching enough.
McDonald civil attorney Lee Berlik has asserted that his client is being smeared by her former associates as the architect of “implausible conspiracies” involving all of the eight other EDA civil suit defendants to cover for “every bad decision made by the Warren EDA board over the last several years”.
And however it came about, the Cherry Bekaert findings raise the possibility that the conduct of EDA business in recent years appears to have brought the quasi-governmental organization created to facilitate economic development in the Town and County to the point of insolvency.
“As of the date of our working papers, the EDA appears to be insolvent,” Cherry Bekaert writes, adding, “The monies suspected to be misappropriated by MCDONALD will likely result in shortfalls of funding to complete duly authorized construction projects for the Town and County.
“Based on our analysis of the EDA’s annual financial reports for the years ended June 30, 2018 (Audited); 2017 (Audited); and 2016 (Unaudited), the EDA’s operating expenditures … exceed EDA operating revenues in all three fiscal years, resulting in operating losses of approximately $427,000; $559,000; and $694,000, respectively … We could not find evidence that the EDA maintained sufficient cash reserves available to offset any operating losses apart from the periodic sale of any property unencumbered by debt,” the report page titled “Consideration of Insolvency” continues.
“Contrary to paying down outstanding bank debt, MCDONALD instead appears to have convinced EDA BOD (Board of Directors) Members, the Town, and the County to initiate more capital projects through increased bank financing channeled through the EDA by using various ruses, such as questionable tax incentives that have yet to be realized and bogus budget representations of the EDA’s financial ability to pay for debt servicing,” the Cherry Bekaert report states.
BOY, falling back on some of my preferred reading material over the years I can’t figure out if this is a chapter from “The Godfather” or “A Confederacy of Dunces”.
See more on the Cherry Bekaert report and allegations contained in the newly-filed EDA civil case documents in upcoming Royal Examiner stories.
EDA ups ante in civil litigation versus McDonald – without defense objection
Could the Warren County Economic Development Authority (EDA) and its former executive director, Jennifer McDonald, be headed toward a settlement of the EDA’s multi-million dollar civil litigation against her and her two real estate LLCs, MoveOn8 and DaBoyz? That would appear to be a possibility in the wake of a “Stipulations” agreement hearing Friday morning, April 9, in Warren County Circuit Courtroom A.
After the adjournment of the 9 a.m. docket hearing to deal with remote phone connection issues for other defendants’ attorneys not present for the two-pronged April 9 hearing, Judge Bruce D. Albertson reentered the courtroom at 9:25 a.m. with the remote connection issues resolved. EDA lead civil attorney Cullen Seltzer of the Richmond law firm of Sands Anderson then read the five-point “Stipulations” submission to the court as McDonald and her attorney Peter Greenspun listened at the defense table.
The first of those stipulations set an amount of $62,315,315.51 as the EDA’s claimed damages in the civil case against McDonald and her two real estate companies alleged to have been used to move EDA assets to her or co-defendants’ personal benefit. It is worth noting that the original EDA civil litigation filing was in the $21-million range, later being amended with added defendants to near $28 million.
The second and third stipulations note that the McDonald-LLC defendants “take no position on the basis for” that plaintiff-claimed amount; nor do they admit to “any wrongdoing” regarding the EDA’s claim of damages.
It is the wording of the final two stipulations approved by the court that may hint at negotiation between the plaintiff and defendant:
“The Defaulted Defendants (McDonald, MoveOn8, and DaBoyz) have endorsed an order providing money damages judgment in the amount of $62,315,315.51 in favor of the plaintiff (the ‘Money Judgment Order’),” Stipulation 4 reads, followed by this:
“No sooner than 60 days from April 9, 2021, Plaintiff’s counsel may tender to the Court the Money Judgment Order if the Defaulted Defendants and the Plaintiff do not sooner enter into an agreement satisfactory to the parties. The Defaulted Defendants do not oppose the Court’s entry of the Money Judgment Order once tendered pursuant to this paragraph.”
Defense attorney Greenspun and his client left the courtroom after the five minutes it took for the “Stipulations” submission to be read to the court by EDA counsel and for Judge Albertson to accept them, as indicated above, without objection from the defendant or her counsel, as the second part of the morning’s hearing began. That hearing was on a “Protective Order” request by defendant April Petty’s attorney Bill Shmidheiser to prevent volumes of his client’s bank records not relevant to the EDA case against Petty being posted on a secured database accessible by all the associated defendants, 15 in the first amended complaint and nine more added later.
Shmidheiser cited 3 pages related to a $41,000 check deposit regarding one real estate transaction as relevant to the case out of an estimated one thousand pages of Petty’s bank records from at least six accounts reviewed by the plaintiff attorneys and posted to the database.
EDA co-counsel Sean Hutson argued that the defendant should not be the one to determine the relevance of her own documents, that other defendants’ counsel should. After he polled four defense attorneys connected to the hearing remotely and getting four “no objections” to Petty’s counsel’s request, Judge Albertson granted Petty’s requested exclusion of apparently unrelated bank records from the case database.
Following adjournment after that 20-minute hearing, we asked EDA lead counsel Seltzer about the implications of the Money Judgment Order “Stipulations” agreement approved by the court earlier. However, he declined to discuss details of the status of an active case on the record.
So, we soon tried EDA Board of Directors Chairman Jeff Browne with whom we’d briefly discussed the morning’s hearing following adjournment of an 8 a.m. Emergency Meeting of the EDA Board earlier that morning. No action followed a 50-minute closed session. During the brief open session, Browne explained the “emergency” designation simply meant the meeting had been called within 24 hours of its convening.
While also reluctant to discuss the still-active EDA civil litigation, Browne did observe that the entering of a signed agreement by the involved parties citing a 60-day window to reach a mutually satisfactory conclusion was a positive sign that discussion would take place. Of the potential of such discussion, Browne observed, “If we can avoid trial and save tons of money by coming to an agreement it would be a positive development. I hope it works out.”
County updating equipment, rewriting IT software in wake of system ‘intrusion’
During his update on County business at the virtual meeting of the Warren County-Front Royal Economic Development Authority Board of Directors Friday morning, March 26, Interim County Administrator Ed Daley addressed the status of the County’s software situation in the wake of the early March discovery of what has been termed an “intrusion” of that system. Daley has fallen short of calling the incident a “hack” due to an absence of discovered consequences such as stolen files or manipulation of existing files or systems.
However, the consequences which began with a nearly three-week halt in use of all county officials and staff emails due to the County server being taken down as a security precautionary measure, continues to be felt. As previously reported, the local IT system intrusion was part of a larger “intrusion” of software at various unspecified locations across the country. It’s source and purpose continues to be a matter of investigation from the federal level down.
A day prior to Daley’s report at the EDA’s monthly meeting, Warren County Emergency Services Coordinator Rick Farrall’s March 25 County “Situation Report” also began with an update on the post software “intrusion” consequences:
- Warren County Email Update
- Warren County, the Warren County Sheriff’s Office, and the Warren County Department of Fire and Rescue Services are still experiencing significant computer/email issues. The County is working diligently to restore full computer and email service to all personnel.
- Please note that any emails sent to County personnel at warrencountva.net, warrencountysheriff.org, or warrencountyfire.com may not be received until all email services are fully restored.
A clue to that restored service came Friday during the interim county administrator’s report to the EDA. Daley told the EDA board that 150 new laptop computers were slated to arrive Tuesday (March 30). Contacted late Friday afternoon, Daley told Royal Examiner by phone that it was anticipated all County emails would be back online at the beginning of the coming week, possibly coinciding with the arrival of the new computers and a rewrite of the County IT network. The system overhaul is to assure whoever was behind the intrusion no longer has access to the system, Daley explained. In a late update Monday morning, Daley said it now appeared the computers would not arrive until Thursday, delaying the restored email use until later in the week.
“We’re just busy buying computers and throwing computers out and wondering why we still have 2007 computers… – It’s a new experience every day,” Daley began his report to the EDA board Friday morning.
“Well, we wish the County well – it’s a horrible problem,” EDA Board of Directors Chairman Jeff Browne told his former fellow EDA Board member and chairman. EDA officials later told Royal Examiner the separate EDA server had not been impacted by the County intrusion, though a downed 10-year-old router had temporarily taken the EDA system offline for about a day this past week.
As noted in our original story on the hack – “A new municipal ‘normal’ – large scale software ‘intrusions’ and targeting an international human organ harvesting business?!?” – Daley said that while the beginning date of the intrusion hadn’t been established, it was verified it did not involve or impact election data from last November.
Daley told us that discussion of acquiring upgraded technology for the County was already underway when the intrusion was discovered March 7 to 12. In fact, the old County Information Technology was only capable of support of Windows 7, which will soon be non-serviceable as Window 10 and beyond continue development.
“So this gave us a reason to upgrade now,” Daley told Royal Examiner of the County IT software intrusion. One sign of the upgrade will be an eventual switch from .net to .gov in the County network, including staff and other official emails.
EDA authorizes escrow fund use to help cover FY-21 debt service
Following a multi-faceted hour-and-a-half closed session Friday morning the 26th at its regular board meeting of March, the Warren County-Front Royal Economic Development Authority Board of Directors authorized use of a portion of the $158,598.31 balance of an escrow account related to the Leach Run Parkway loan to make regularly scheduled loan payments for the Avtex loan and the Leach Run Parkway loan for April, May and June 2021. It was pointed out this will provide some relief to the County’s financial burden in covering the EDA’s debts for the remainder of Fiscal Year-2021 in the wake of the EDA financial scandal predating the current board and staff.
EDA attorney Sharon Pandak prefaced the motion by reviewing circumstances surrounding the Leach Run Parkway Loan escrow account, which also predates the current board and executive director’s tenure, and its recent reimbursement in part by United Bank following the bank’s finally closing with the Town of Front Royal on the assumption of responsibility for a loan to pay off the balance of the $8,440,797 FRPD headquarters construction project.|
Contacted later, EDA Executive Director Doug Parsons explained the original balance of the Leach Run Parkway Loan escrow account was $250,000 that had never been accessed. However, United Bank elected to draw on that Leach Run Parkway Loan escrow account for the interest and principal payments on the FRPD construction loan during the four months – November 2020 to February 2021 – it was awaiting finalization of the Town’s FRPD loan. The delay, as explained by both Town and EDA officials, was due to the discovery of a needed partial release of the deed of trust of the former Avtex Superfund site, for the 5.24-acre parcel upon which the FRPD headquarters is situated at 900 Monroe Avenue, had never been realized.
The Warren County Board of Supervisors chose to stop covering the EDA’s original FRPD loan payments that the Front Royal Town Council refused to accept moral responsibility for in the wake of the EDA financial scandal during the tenure of former EDA Executive Director Jennifer McDonald, after the October 2020 payment. That was when the EDA FRPD loan payments went from 3% interest-only in the $21,000 monthly range to over $50,000 in principal and interest monthly payments.
Parsons cited the United Bank Leach Run Parkway Loan reimbursed escrow account amount based on fluctuating monthly principal payments at $116,246.84, as noted above bringing the escrow account balance to $158,598.31. With a virtual ZOOM meeting torrent of numbers dancing through our heads, we asked Parsons for a rundown of exactly what was approved regarding the use of the escrow funds.
“In an effort to help the County service our debt, the Board of Directors voted this morning to apply $53,953.29 toward the loan payments of the Leach Run Parkway loan and the Avtex loan for the remaining three months of FY-21 – April, May, June 2021,” he began, breaking that number down further: Avtex loan monthly payments of $14,021.80 and Leach Run monthly of $3,962.63 totals $17,984.43 x 3 = $53,953.29.
With the FRPD loan future principal and interest payments finally assumed by the Town, as had always been anticipated by the EDA upon completion of the project it financed for the Town, the lone remaining sticking point on the FRPD financing situation between the Town and EDA appears to be reimbursement of the approximately $640,000 of construction loan interest previously covered by the EDA and the County. And it is likely that number was part of a closed session discussion of the EDA’s countersuit against the Town, the second of three closed session topics adjourned from open session to at 8:06 a.m. Friday.
Supervisors try to absorb County budget numbers: past, present and future
Early Tuesday evening, March 9, the Warren County Board of Supervisors, particularly its three newest, first-term, second-year trio of Chair Cheryl Cullers, Delores Oates and Walt Mabe, tried to get a handle on the County’s finances. First up on the work session agenda starting at 6 p.m. in the main meeting room of the Warren County Government Center was an Audit Report from Robinson, Farmer, Cox Associates’ Michael Lupton. That was followed by Deputy County Administrator Taryn Logan’s report on the status of a two-decade-old joint County-Town Wayfinding Sign project aimed at directing tourists toward the county’s myriad natural and historical attractions on both sides of the town-county line. And batting cleanup were Interim County Administrator Ed Daley and new Finance Director Keith McLiverty for an update on the Fiscal Year 2022 County Budget process.
Audit company representative Lupton gave an overall positive report, with some gaps in financial reporting. Lupton cited those gaps as a likely result of a high turnover among upper-level staff, most prominently at the head of the County Finance Department. Stabilization in that area with the arrival of County Finance Director McLiverty, who with Interim County Administrator Daley, helped guide the board through some of their logistical questions on the audit report summary, was cited as a positive turn for the future. Also acknowledged was interim help from former Finance Director Andre Fletcher, as well as Carolyn Stimmel, the latter mostly on the EDA side of the equation.
Some board questions revolved around what Lupton called “finicky numbers” related to asset versus debt ratios that are impacted by market fluctuations. Of particular attention were debt service numbers between $147 million and $155 million. It was explained that the $8 million discrepancy related to the County’s pension fund, which unlike past Capitol Improvement Project (CIP) debt, is not liable to a bank call, unless as Daley observed, the entire County staff hit retirement age at the same time.
As the actual numbers stand, Cullers cited an annual debt service of $953,000 to be covered. So, the supervisors are likely to be encouraging bond consultant Davenport & Company to be keeping a close eye on the approaching market numbers impacting potential savings on a group re-financing of a large portion of the CIP debt related to past public school and other construction projects.
Variables related to the aftermath of the Town-County Economic Development Authority (EDA) financial scandal, including still being prepared 2018 and 2019 EDA audits, as well as legal expenses were also prominent on the supervisors’ radar. Replying to a question from the chairwoman, Interim County Administrator Daley noted that the audit report “does not include EDA debt” but “did include County expenditures” on the EDA’s legal and operational expenses. There also was a $1-million discrepancy in EDA legal fees that seemed to be floating as an unresolved number.
Overwhelmed by “finicky numbers”, floating numbers, and delayed reporting of some budget variables during the past year, Board Chair Cullers commented several times, “It’s clear as mud” to which North River Supervisor Oates added, “Now, I’m really confused.”
Perhaps trying to cheer the supervisors up after their emersion into the depths of municipal finances, Daley suggested next year’s process would be easier after their “training” with this year’s budget and all its staffing and emerging post-EDA financial scandal variables.
Which way to tourism dollars?
On the Wayfinding Sign front, long-time County Planning Director and new Deputy County Administrator Logan reviewed the 20-year joint Town-County effort and new signage planned on both sides of the town-county line. She explained an urgency on the Town side related to new signage that would be paid for through the Town Community Development Block Grant (CDBG) that carries a spending deadline approaching at the end of the month.
She said that an MOA (Memorandum Of Agreement) between the municipalities was anticipated to be presented to the Board at its March 16 meeting.
Responding to a question from Fork District Supervisor Archie Fox, Logan explained that Wayfinding sign guidelines on the State side prevented Wayfinding Signs directing motorists to specific private business locations like motels, restaurants etc. However, she noted that other types of municipally developed signage, particularly in town, could be utilized outside the Wayfinding Sign Project to alert tourists to those types of amenities available in the town and county.
Logan also reviewed how the changes from a Town Tourism Department and move to outside private-sector contracted marketers advised by the Joint Town-County Tourism Committee were impacting Tourism promotion on both sides of the town-county line.
Approaching the two-hour mark, Daley and Finance Director McLiverty’s report was fairly brief, with Daley telling the supervisors, minus absent Happy Creek Supervisor Tony Carter, that they would return at the end of the following week with the FY-2022 Budget summary.
It was noted near the work session’s end that the planned Joint Meeting, Retreat or “Advance” as it is now being referenced, with the Front Royal Town Council is targeted for May, though no date has yet been established.
For more detail on all these discussions watch the linked County meeting video and/or view the linked PowerPoint presentations.
- Warren County Audit Presentation – FY2020
- Wayfinding Sign Report – March 2021
- Warren Comp Annual Finance Report – 2020
EDA welcomes Town Manager Steven Hicks to meeting & gets good news from McDonald bankruptcy hearing
Things appear to continue to be turning in a positive direction for the Warren County Economic Development Authority (WC-EDA) in the wake of the recent sale of the Afton Inn for redevelopment by the 2 East Main LLC investment group. On the heels of that sale, authorized at a Special Meeting of February 12 and finalized a week later, the WC-EDA held its monthly meeting by way of the now familiar virtually connected ZOOM format the morning of Friday, February 26.
Two things stood out during the open session sandwiching a 57-minute closed session. The first was the welcoming of Town Manager Steven Hicks shortly after the 8 a.m. meeting start. It was the first appearance of a town manager with an accompanying update on Town business at an EDA Board of Directors meeting in about 18 months.
That traditional line of communications was terminated during the tenure of former Interim Town Manager Matt Tederick as the town government took on an increasingly adversarial and litigious stance with the EDA as a revamped EDA board worked to right its ship in the wake of the $21-million-plus financial scandal alleged to have developed during the tenure of former EDA Executive Director Jennifer McDonald.
EDA civil litigation gets reboot
The second positive note came post closed session during Board Chairman Jeff Browne’s Executive Committee Report. Browne acknowledged a decision by Harrisonburg-based U.S. Bankruptcy Court Judge Rebecca B. Connelly returning consideration of exactly what assets Jennifer McDonald can claim as part of her bankruptcy filing to the state court level.
“The bankruptcy court has remanded her particular case to state court to assess damages, at which point damages are assessed it will go back to the bankruptcy court to decide whether or not it should go back to the state courts or be handled in the bankruptcy court,” Browne told his board.
Contacted after the meeting, Browne elaborated on the implications of Judge Connelly’s ruling. He explained it will allow the EDA’s civil litigation against McDonald to re-start to determine exactly what EDA assets McDonald may have misappropriated and how they may have been used to purchase properties or other tangible assets. Her surviving real estate company MoveOn8 is also part of her bankruptcy filing, he noted.
When the state court findings are returned to the U.S. Bankruptcy Court in Harrisonburg, Judge Connelly will determine what assets McDonald can legitimately claim as her own that are subject to bankruptcy claims and asset distribution, versus what assets held by her or her real estate company the EDA would have civil claim to as restitution for her alleged criminal acts of embezzlement and misappropriation of EDA funds to her own use.
A virtual Town-EDA ‘lovefest’
Back on the Town-EDA relations front, EDA Board Chairman Browne welcomed Hicks by virtual connection, offering him the opportunity to give his report prior to adjournment to the closed session. And while an opening portion of that report was acknowledgment of the town council’s decision to move forward with creation of its own EDA with Hicks as executive director, that there was a renewed sense of Town-EDA cooperation was soon apparent.
“As town manager I’m here to help in any way I can,” Hicks told Browne and the four-member EDA Board quorum present virtually (Browne, Harold, Pattison, Wolfe), before reporting on the status of the Town’s FY-2022 Budget process.
“I just want to congratulate you on your new position. You must have found the secret to a 48-hour day,” Browne told Hicks at the conclusion of the town manager’s report. “I just want to tell you for our board, that anything we can do to help in the areas you’re focused on: redevelopment, tourism, retention of businesses are all good things that we look forward to working with FREDA (Front Royal Economic Development Authority) on.
“We would like to work with you and coordinate with the Town. I think that we can do a lot to help economic development for the entire area. So, we appreciate you’re stepping up and taking on what will be a challenging task,” Browne added of Hicks new dual role.
“Will do – I’ll definitely stay in contact and share everything as much as I can with you and Doug (EDA Executive Director Doug Parsons) and Ed (Warren County Interim County Administrator Ed Daley). So yea, sounds great,” Hicks replied.
At that point EDA Board member Jim Wolfe, who has taken point in his board’s work on development of short and long-term Strategic Planning on economic development and job creation, joined the conversation. Wolfe offered to get a copy of what the WC-EDA has done on that front recently to Hicks by Monday.
“Then you and I can sit down and talk about it at some point. And if any other board members want to join me … So, I want to make sure that the … Town has our plan and use that for a touch point for how you coordinate on different projects,” Wolfe said of developing a unified plan of action community wide.
“I’d appreciate that,” Hicks replied, perhaps seeing his “48-hour days” reduced in some measure by that level of County EDA involvement with his work on the Town side. Continuing in that vein of cooperation, Hicks added, “Again, I just wanted to call in (on ZOOM) and touch base with you all and be as transparent as I can. And always reach out to me when you need anything, and I’ll do the same.”
“Good, thank you so much,” Browne replied to the new attitude being reflected out of Front Royal Town Hall as Hicks signed off from the meeting.
Summary of the Warren County EDA Board meeting of Friday, February 26
The EDA Board of Directors conducted their regular monthly board meeting this morning, February 26, via Zoom. The Board welcomed Front Royal Town Manager Steven Hicks prior to going into Closed Session. Mr. Hicks noted that the Town’s budget proposal for the fiscal year 2022 was being prepared. A summary overview was included in the board packet and digital copies of the 32-page presentation are available from the EDA office. Please contact Administrative Assistant Gretchen Henderson at 635-2182.
Board Chair Jeff Browne congratulated Mr. Hicks on his appointment to Executive Director of the Front Royal EDA and stated that the Board of the Front Royal Warren County EDA is looking for working with him.
Following an approximately 30-minuted Closed Meeting, the Board approved a motion on the disposition of McKay Springs. In order to facilitate and expedite the sale of parcels at the McKay Springs location, the Board approved transferring the parcels deeded in the name of the EDA to Warren County.
Continuing in Open Session, Jeff Browne gave a report from the Executive Committee. He advised the Board and the public that Warren County will be designated as a Spotted Lanternfly quarantine locality in mid-March, along with Clarke and Frederick counties, and the City of Winchester. This will impact businesses located in and doing business in Warren County. For more information please visit www.vdacs.virginia.gov/plan-industry-services.shtml
Director Jim Wolfe shared information on the progress of the EDA Strategic Plan updates. He’s looking forward to feedback on the working document and completing a final draft for review.
Asset Committee Chair Greg Harold discussed a new development that will have an impact on the EDA-owned property on Royal Lane. He shared the news that the Town of Front Royal is considering updating the Town Code to allow a Conditional Use Permit to be bonded with the property rather than the owner. With this change, Harold expects to improve the successful marketing of this property for a developer of multi-family workforce housing. The EDA is very interested in selling this property and supports the Town Planning Department in its efforts.
EDA Executive Director Doug Parsons had several items of interest to share, including the launch of the renovated EDA website at www.wceda.com, and that the auditors are finalizing their report. Additionally, he reported that the proceeds of $323,179.18 from the sale of the Afton Inn have paid down the principal on the First Bank & Trust Line of Credit. This lowered the payment, saving the taxpayers $1,242.70 per month, or $14,912.40 per year.