Council candidate Rappaport responds to Holloway reading of Town stance on FRPD debt

The following is my rebuttal to the Front Royal Town Council’s insistence that they do not have a Moral Obligation to finance and pay the debt for the construction of the Police Station that they are occupying.

When someone or an entity occupies a building or home, then it is typically reasonable that the individual or entity either pays a mortgage or rent to the owner or holder of the note. The Town of Front Royal to the best of my knowledge has paid zero. The town’s offer to make a paltry $10,528.95 good faith one-time payment in July was an embarrassment to the town citizens as it would only have covered half of the monthly payment. If a regular citizen were to treat the banks in such a manner, then it would be reasonable to assume that the banks would sue for default and take the property back.

Bruce Rappaport implored council on Sept. 14 to assume the debt service on its new police headquarters. In response, Chris Holloway read an attorney-prepared statement citing council’s stance it has no legal or moral obligation to pay for its police station because the loan does not have a discussed, though never-achieved 1.5% interest rate attached. Royal Examiner File Photo by Roger Bianchini

It is clear to me that initially the Town and the County failed to do their due diligence regarding the viability of winning a New Market Tax Credit loan; however, the County was proactive and went out to get financing for their projects when it became clear that the NMTC wasn’t likely to happen. Whereas the town decided to be reactive and gamble on winning a lawsuit to help pay for the police station. When Bryan Phipps a high level NMTC Administrator executive suggests that the Town take the 2.5% 30-year fixed loan, then instinctively I am all in. The bickering between the County and the Town has to end and a good first step is for the Town to admit that they have a moral obligation to pay.

Collaboration is the key to success. The Town and County have both dug in their heels and that approach is a recipe for disaster for the community. If the town doesn’t take on the FRPD financial obligation and the County stops paying the debt service, then it will hurt both the Town and County’s ability to obtain construction loans in the future because we have defaulted on our Moral Obligation to pay our debts. I want to put an end to these attitudes, and it is a big reason as to why I decided to run for Town Council.

Bruce Rappaport
Front Royal, Virginia