County EDA Board elects officers for coming fiscal year; reviews operational, budget and banking matters

On Friday, June 25, the Economic Development Authority Board of Directors met for their monthly board meeting, which included a two-and-a-half-hour closed session during which legal, banking, and real estate matters were discussed. The latter topic included the potential disposition of real property related to Avtex Redevelopment, as well as real estate at Baugh Drive and the Stephens Industrial Park. No announcements came out of the closed session.

During the open session that followed, the Directors discussed EDA committee reports, a draft Fiscal Year-2022 budget, and held officer elections for the coming Fiscal Year. Starting July 1, 2021, EDA Board officers will be Chair-Jeff Browne, Vice-Chair-Greg Harold, Treasurer-Jim Wolfe, Secretary-Jorie Martin. Tom Pattison’s motion to nominate that slate of officers passed without opposition, and there were no counter nominations.

A masked Jeff Browne chairs the EDA Board’s first in-person meeting in over a year at the WCGC, as what he termed a ‘hybrid’ meeting which was ZOOM broadcast prepares to go into closed session at 8:10 a.m.

Browne, who took over as EDA board chairman in the wake of Ed Daley’s departure for what was initially an interim appointment as County Administrator that has stretched on long enough that the “interim” has been removed from his title, called the board’s current and recent personnel “a great group to work with”.

Browne also noted that Friday’s meeting at the Warren County Government Center was the EDA board’s first in-person meeting in over a year since the COVID-19 pandemic restrictions went into effect. He called the meeting, held for the most part in the caucus room adjoining the main meeting room “a hybrid meeting” as it was broadcast, as have been all EDA meetings over the past year, on ZOOM.

During committee reports, Jorie Martin noted positive work on the Joint County-Town Tourism Board – “The bottom line is that I’m hoping this board will continue to work together, and I think it’s much more effective for us to be together as the County and the Town working together for tourism,” she noted, pointing to the next Joint Tourism meeting on Wednesday, June 30. Hmm, County and Town working together on economic development as opposed to litigating and duplicating efforts – what a novel idea.

Back in open meeting, Jorie Martin and Doug Parsons maintain masking precautions in the WCGC caucus room as committee reports were heard.

Operations and Budget

During his Executive Director’s Report, Doug Parsons informed his board of two “Business Retention and Expansion” projects with “significant new jobs and investment” prospects he termed “very exciting”. The EDA executive director also gave recently elevated County Planning Director Joe Petty a pat on the back, calling him “great to work with” on these initiatives.

Parsons also noted recently recruited drone manufacturer and operations contractor Silent Falcon’s plans for an Open House “to showcase their products and renovated space” at the County’s Front Royal Airport (FRR) in July or early August (OH BOY, Royal Examiner video camera field trip!!!).

Jim Wolfe, left of Martin, leads the discussion of marketing strategies and real estate opportunities on the horizon. Earlier, Executive Director Parsons also reported on upcoming events and opportunities to expand the EDA’s marketing presence state and nationwide. One will recall that Silent Falcon was recruited to the county from out of state and region.

The makeup of committees as to numbers and bylaws adjustments to accommodate necessary changes was discussed with EDA attorney Sharon Pandak. It was noted that with a two-person committee, a public notice of a “meeting” would be necessary just for one committee member to call the other to discuss projects. With a three-member (or more) committee, that would not be necessary.

Chairman Browne noted the advantage of having a point person forwarding projects to the point of authorization and final decision-making by the board. He stressed the importance of striking a balance between efficient operations and transparency in the wake of operational irregularities discovered during the financial scandal investigation. That criminal investigation, now in the hands of the Western District of Virginia federal prosecutor’s office, and consequent civil litigation targeting the previous executive leadership of Jennifer McDonald, and alleged co-conspirators, found a lack of adequate oversight by the previous EDA Board of Directors in place dating from around 2014-15 to early 2020. The new board is trying to avoid such absentee oversight without creating unnecessary micro-management that could stall successful recruitment or other economic development efforts.

After noting the relocation into the new Warren Memorial Hospital space earlier in the week, it was agreed that Jim Wolfe would spearhead efforts with ownership to market the old hospital. Options related to the presence of a commercial kitchen in the 108,000 s.f. space was broached as to possible uses as a culinary school and working restaurant in a portion of the building.

A draft FY-2022 Budget was reviewed, with comments on potential impacts of bank loan refinancing opportunities. Executive Director Parsons said if all refinancing opportunities came to fruition, it would equal $138,000 annually “to the good” for the EDA as it continues to emerge from the shadow of the alleged financial scandal that pre-dates the current EDA board and staff.

Also noted was a $90,900 adjustment from the potential of refinancing of the IT Federal loan, which is the single biggest line item – $10-million to $12-million – in the EDA’s civil litigation regarding the above-referenced financial scandal alleged to have occurred under the previous board and executive director’s tenures, the latter which ended in December 2019.

Parsons was noting an average monthly legal expense of about $7,000 just prior to the loss of the ZOOM connection to the board’s first “in-person meeting in over a year” at the Warren County Government Center. Contacted later, Parsons said several phone connections failed around the same time shortly before the meeting’s adjournment, cutting communications with several remote participants or observers, including EDA Attorney Sharon Pandak.

A little ZOOM phone orientation issue as the EDA Board convenes at 8 a.m. in the WCGC’s main meeting room. The meeting soon adjourned to a closed session in the adjacent caucus room, where the remainder of the closed and open sessions were held.

The Board of Directors will hold a Special Meeting on Friday, July 9, 2021, from 10-to-11:30 a.m. to take part in FOIA/COIA training, led by EDA Counsel Sharon Pandak of Greehan, Taves, and Pandak. The EDA Board of Directors’ next monthly meeting is scheduled for Friday, July 23, 2021.

(Some info in this story came from an EDA Press Release on the meeting.)