EDA Board Chairman Reflects on Past and Future of EDA Recovery Efforts as End of Term Approaches

Citing time conflicts from his operational responsibilities for his Mountain Home B&B and Appalachian Trail hiker’s overnight accommodations facilities, current Front Royal-Warren County Economic Development Authority (EDA, FR-WC EDA) Board of Directors Chairman Scott Jenkins has notified the Warren County Board of Supervisors he will not be seeking reappointment to the EDA board at the end of his current term on February 29. In a letter to Board of Supervisors Chairman Cheryl Cullers, Jenkins expresses gratitude for appointment to his 3-year term the last year of which he served as chairman. Jenkins was appointed to serve the remaining three years of a departed member’s term.

“This was a difficult decision for me, one that required much deliberation and careful consideration. I offer the attached letter as an expression of my thoughts on what has been accomplished over the past three years and what lies ahead for the FR-WC EDA,” Jenkins wrote in a cover-letter email accompanying his five-page PDF “attached letter” referenced above.

In that referenced five-page reflection on his tenure on the EDA board, Jenkins added this: “When I joined the EDA Board, I expressed optimism that, with an improved governance structure in place, along with a new executive director, a forward-looking focus was on the horizon for the EDA and our community. I also expressed a strong interest in working to foster growth in our small business sector that is so very vital to the local economy and our sense of community. My optimism remains. Warren County is well-positioned for sustainable economic growth consistent with its rural/small-town character and sense of community.”

EDA board Chairman Scott Jenkins, at the head of the EDA board table to the left, cited time conflicts with his and his wife’s Mountain Home B&B operations in notifying the County supervisors he will not seek reappointment to the board when his term expires on the final day of February. Royal Examiner File Photo

In the official notice of his pending departure, Jenkins addresses the numbers involved in the attempted recovery of assets and related litigations, including unresolved liability issues with the Town of Front Royal, regarding the estimated $26-million EDA “financial scandal”:

“With regard to the fraud, embezzlement, unjust enrichment, or other actions that resulted in the loss of millions of EDA dollars, much progress has been made in recovering assets, but more work remains. To date, the EDA has been awarded judgments totaling $27,984,694.10 but has only recovered $7,728,888.40 (cash, real estate, and other assets) through litigation and mediation. The EDA will never recover the full amount lost, but it is committed to continuing efforts to recover as much as possible. To date, the EDA has incurred legal costs in excess of $7.6 million. Remaining legal efforts are primarily focused on collection of judgment awards. These activities will continue through Fiscal Year 2025 and will be dependent upon Warren County’s support,” he observed.

“Resolution of financial disputes with the Town of Front Royal was a major focus of my attention over the past year. Central to the dispute is the Town’s formal commitment to such joint projects as the construction of the new Front Royal Police Station, Avtex Infrastructure Improvements, and Leach Run Parkway construction. As a result of fallout from Jennifer McDonald’s tenure, the Town of Front Royal reneged on agreements to reimburse the EDA for related costs it incurred, leaving the EDA saddled with hundreds of thousands of dollars of debt. Despite best efforts, the EDA was unable to achieve a resolution with the Town, so the EDA’s lawsuits against the Town remain open, albeit inactive, as the EDA continues to evaluate a path forward that best serves community interests,” Jenkins wrote under the sub-header “Litigation and Asset Recovery.”

Rather than continue to single out and analyze isolated passages, we will link the full text of Jenkin’s notice of pending departure from the EDA board and his “Summary of Accomplishments and Ongoing Concerns“ so readers can examine his full analysis in context.