County EDA Working Toward Significant Property Sales as 2025 Comes to an End, Hints at Municipally Reunited EDA

At its last regular meeting of 2025 on December 12, a 4-person quorum of the Front Royal-Warren County Economic Development Authority (FRWC EDA, EDA) came out of Closed Session to three action items, one added after the closed session. Those items were:

7-A, Approval of an FB&T (First Bank & Trust) Third Forbearance Agreement involving the EDA’s remaining bank debt dating to the “Financial Scandal” during the tenure of now imprisoned former Director Jennifer McDonald, circa 2014/2018. We were told that EDA banking debt, which has traversed through several financial institutions has been reduced to $15.6 million.

And if the final two December 12, 2025 Action Items are achieved as proposed that debt could be reduced by slightly more than another $7.5 million ($7,503,500).

A quorum of the FR-WC EDA, from left, James Fox, Robert Cullers, Rob MacDougall, and Bruce Townshend, listened to remarks from remotely patched in participants. Those were EDA attorney Rodney Young of TimberlakeSmith and USDA (U.S. Dept. of Agriculture) Director Business and Cooperative Programs, Rural Development Joe Boatright. Royal Examiner Photos Roger Bianchini

And toward achieving that goal, first goes Action Item 7-B, Approval of a Letter of Intent (LOI) for a Buyer of approximately 113 acres of Avtex/Royal Phoenix property within the Town limits of Front Royal, south of Kendrick Lane.

Accompanying paperwork noted that the 7-B Letter of Intent was a “non-binding expression of interest” of the two involved parties, and that “The final terms of any transaction will be memorialized in a definitive Contract for Purchase and Sale (PSA) executed by the Purchaser and Seller” at a future date.

EDA Board Chairman Rob MacDougall told us the EDA is hopeful that contract will be achieved in January. The existing contractual terms listed in the Letter of Intent indicate a sale price of $6,451,500 to be paid to the EDA by purchaser Provident Realty Advisors Inc. And MacDougall noted that if a contract is presented and acted on Item 7-B, the buyer will have 270 days to evaluate the feasibility of moving forward with the purchase.

Accompanying paperwork on the proposed 113-acre Avtex/Royal Phoenix property sale to Provident Realty Advisors Inc. indicated an apparent sub-entity known as Provident Data Centers. Information on the company’s website indicate that rather than a “jump on the Data Center bandwagon”, Provident Realty Advisors background indicates a lengthy, multi-faceted developmental track record around the country for the Dallas, Texas based Provident Realty Advisors and its sub-sets.

The Provident Realty Advisors website states, “Since its formation in 1991, Provident has developed or invested in more than $6 billion of real estate projects spanning nationwide. Today, our portfolio encompasses $2.9 billion across various real estate asset classes,” adding under the subheader “Why Provident”:

“Provident leverages deep industry expertise, a trusted network, and strong financial capabilities to identify high-potential real estate opportunities that deliver lasting value. Our experienced team excels at structuring efficient, investor-aligned financing and driving execution across complex transactions. With a long-standing track record and a commitment to performance, our goal is value creation across every stage of a project.”

Concerning Action Item 7-B, due to its location within the town limits it appears much of the final negotiations on potential uses of the 113-acres on the Avtex/Royal Phoenix site will be between the proposed purchaser and Town of Front Royal Planning staff.

In fact, regarding the currently County-overseen EDA to reflect the potential future reinvolvement of the Town’s municipal government, perhaps even a merger of the two currently parallel municipal EDAs, it may be noted that both Town Manager Joe Petty and Town Councilman Glenn Wood attended the December 12 EDA meeting as observers.

FR-WC EDA Board Chairman Rob MacDougall, standing left, talks with Front Royal Town Manager Joe Petty, also standing, during meeting break. Also present from the town government was Councilman Glenn Wood.

That coming negotiations between proposed purchaser Provident Realty Advisors Inc. and the Town of Front Royal could be crucial to finalizing the 7-B sale may have been indicated in a lone negative vote on the three Action Items. That “no” vote on item 7-B came from EDA Board member Robert Cullers, resulting in a 3-1 vote of approval. Both Action Item 7-A and 7-C were approved by unanimous 4-0 votes of present members Rob MacDougall, Bruce Townhend, James Fox, and Cullers. Asked about his no vote on 7-B following the meeting Cullers said simply, “Data Centers and water concerns.”

The final, added Action item 7-C was approval of the sale of 82 lots along Rivermont Acres Road just across the Shenanoah River from the Avtex/Royal Phoenix property to a total of 18 buyers. The estimated sale price there is $1,052,000 if all 82 lots sell at the already agreed upon prices.

The EDA Board of Directors prepares to adjourn to Closed Session to discuss several Open Meeting Action Items. Those included two proposed sales of property that could generate as much as $7.5 million to be applied to reducing the EDA’s banking debt of $15.6 million generated during the FR-WC EDA “financial scandal” of 2014/2018.

Reunited – Learning from past mistakes?

It appears now, as 2026 approaches, may be an appropriate time for Front Royal and Warren County to seriously consider reuniting their economic development entities. Readers may recall the town pulled out of the long-standing joint EDA as uncovering of the circa 2014/2018 “EDA financial scandal” and related municipal liabilities were being discussed.

Town officials at the time claimed a lack of financial liability because they no longer appointed EDA board members. That choice was made voluntarily as part of a 2012 effort to prevent double taxation of town citizens for services provided jointly by the town and county.

But that the town remained involved in FR-WC EDA operational decisions leading to financial liability was most blatantly illustrated by the Town’s extension of a $10-million “bridge loan” to the EDA for the ITFederal project over a period of 3 months that was sought by then EDA Executive Director Jennifer McDonald to illustrate to the involved bank the community’s commitment to the ITFederal Avtex developmental proposal.

Comments at the time indicated that the involved bank was reluctant to make an EDA requested $10-million loan to pass on to ITFederal to facilitate its Avtex land purchase and development project because it doubted ITFederal had the resources to accomplish its proposed developmental plan. But after 3 months of the Town’s “bridge loan” remaining in place the bank agreed to the $10-million loan to the EDA to pass on to ITFederal. That $10-million EDA loan to ITFed, which eventually grew to $12-million, became the largest single FR-WC EDA financial liability of the “EDA financial scandal”.

And likely that financial liability relates to the above-cited third extension of a First Bank & Trust Forbearance Agreement. That agreement indicates continuing “good faith negotiations” between the EDA and FB&T to resolve the ongoing EDA debt dating to the “financial scandal” era of 2014/2018.

As stated above, it seems as 2026 approaches it may be a good time for the Town and County’s elected officials and staffs to revisit a joint perspective on future economic development prospects, especially perhaps to remove existing “financial scandal” liabilities likely to be judged mutual if resolved in a court of law.