Council work session consensus is to move forward with new EDA

Following adjournment to a work session, closed session to discuss its litigation with the existing Front Royal-Warren County Economic Development Authority (EDA), the Front Royal Town Council minus Mayor Tewalt and Councilwoman Cockrell went into open work session discussion of its EDA options on August 24.

In the wake of its decision to sue the existing, half-century-old joint Town-County EDA for virtually all the $21-million-plus the EDA was initially trying to recover in its own civil litigation against former EDA Executive Director Jennifer McDonald and 14 amended complaint co-defendants, the primary option has been movement to create its own second EDA to handle future in-town economic development. That movement was authorized with the Virginia General Assembly’s granting the Town of Front Royal permission to become the first Virginia municipality to concurrently become part of two co-existing EDA’s.

Following that authorization, on July 13^th council voted 4-1, Thompson dissenting, Holloway absent, to move forward with creation of a new unilateral Front Royal EDA. And on the August 24^th work session agenda was open meeting discussion of that new EDA.

However, during a tracing of his perspective of the evolution of the joint EDA in the wake of the County’s assumption of 100% of the operational funding in 2012, Interim Town Manager Matt Tederick introduced an unexpected variable. That variable was the option of returning to a jointly operationally funded EDA at the former “fair-funding formula” percentage split of approximately 70/30 – discussion indicated the split was actually 72/28% based on populations at the time.

Matt Tederick leads work session discussion of past EDA processes as he sees them unfolding as council ponders EDA choices. Royal Examiner Photos by Roger Bianchini – Royal Examiner Video by Mark Williams

Tederick told council that based on the County’s Fiscal Year-2021 EDA Operational Budget allowance of $406,000, the Town’s share would be $121,808, an amount he equated generally to the Town funding its own, new EDA. There was no clue given as to why the Town would consider giving up its no operational funding status with the joint EDA achieved in 2012 as part of ongoing Town-County negotiations on eliminating double taxation burdens on town citizens for countywide services they have been taxed for as both town and county residents.

However, in the wake of Tederick’s historical summary of the post 2012 EDA he termed “the Warren County EDA”’s increasing focus on industrial prospects and businesses outside the town limits, while moving away from maintenance of in-town businesses as the town wrestled with increasing numbers of empty storefronts, a council consensus, including Thompson and Holloway, appeared to be that the Town’s expenditure of $121,000 or so would be better spent with its own EDA, rather than the Town-County EDA under joint financing and management.

“In looking at the numbers, you mentioned $121,000, and that would provide us with some very general support, whereas we could use that money to specifically work on redeveloping in town and that could also help us with some of these commercial properties because blighted buildings aren’t just residential, they’re commercial as well,” Letasha Thompson responded to the interim town manager’s situational summary.

Letasha Thompson and Gary Gillespie to Thompson’s right, concurred on moving ahead with the new EDA process …

Gary Gillespie agreed with the unilateral approach – an approach discussion on the County and EDA side has indicated is against a growing trend toward regional EDA’s – saying he wanted to move forward with applications to the new EDA board and staff.

“And I agree, us spending $121,000 with the County when we can fund our own EDA for practically the same price and concentrate on us, especially our redevelopment, I think it’s a win-win situation for us,” Chris Holloway chimed in, adding, “And I agree with everyone else, I think we ought to do the application process.”

… as would Chris Holloway, to Tederick’s right. While Tederick appears to be setting the backdrop for council’s EDA decision-making process, as he has said, ultimately it is council’s decision, not his.

Chairing the meeting for the mayor, absent on an annual camper vacation according to the vice mayor, Bill Sealock said council’s direction seemed clear for the interim town manager to move ahead with advertising for EDA board and staff positions.

Moving on, Sealock raised the issue of the permanent town manager search. It was cited that there had been 41 applicants on the second go-round of Baker Tilly’s executive search process, the final two applicants in the first round having been rejected by council. Tederick drew laughter, saying he had been a 42^nd applicant but had decided against the application to remove the “interim” from his title.

And if there was consensus on the incumbent council side on the EDA process during the work session, at the earlier meeting one candidate for council seeking to break that consensus again made his case against the path council is pursuing.

Veering away from the dominant weekend walking mall public comments discussion, Bruce Rappaport called council’s pursuit of a second, unilateral EDA an unnecessary exercise in redundancy.

“We have a Front Royal-Warren County Economic Development Authority in place. It is a retooled group and I see nothing but big things starting to happen. And the redundancy of the additional salary that we’ll have to bring in … at least at $99,000 a year or more to be the director and the redundancy of an assistant that will have to help the director. And the time that council has been spending on this as well … I believe we have other places that we need to spend our time and efforts – and I think it’s time we move on from this,” Rappaport told council.

A different perspective on the Town’s EDA situation was presented during the regular meeting by council candidate Bruce Rappaport.

He said “collaboration” with the County and existing EDA would be “the best step forward” for all involved in both municipal governments.

A little less than an hour later a seemingly united council decided that re-tooled or not, and despite the new EDA executive director’s stated co-emphasis on business retention and recruitment inside and outside the town limits, as a future priority, decided that a unilateral Town EDA is its preferred path forward at this point.

See the entire work session discussion in this exclusive Royal Examiner video: