EDA moves on line of credit extension, continued County financial support and Baugh Drive HVAC repairs

Following a 4-hour Closed Session at its monthly meeting on May 21st, the Front Royal-Warren County Board of Directors passed two resolutions and one motion:

On a motion by Jorie Martin, seconded by Jim Wolfe, the EDA Board unanimously approved the following resolution:

RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA, APPROVING AN EXTENSION OF THE EXISTING LINE OF CREDIT

WHEREAS, the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (the “Authority”) has requested the extension of its existing line of credit (the “Line of Credit”) with First Bank and Trust (the “Lender”) and such extension has been agreed to by the Lender in a commitment letter dated May 11, 2021 (the “FB&T Commitment”) a copy of which is on file with the Authority.

NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA:

1. The Chairman or Vice-Chairman of the Authority, either of whom may act, is hereby authorized and directed to execute and deliver the FB&T Commitment which extends the maturity date of the Line of Credit from June 30, 2021, to September 30, 2021.

2. This resolution shall take effect immediately.

And also on a motion by Jorie Martin, seconded by Jim Wolfe, the EDA Board unanimously approved the following resolution:

RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA, APPROVING AN UPDATED SUPPORT AGREEMENT WITH THE COUNTY OF WARREN, VIRGINIA RELATING TO A FORBEARANCE AGREEMENT AND APPROVING AN EXTENSION OF SUCH FORBEARANCE AGREEMENT

WHEREAS, the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (the “Authority”) has requested the continuation of assistance from the Board of Supervisors (the “Board”) of the County of Warren, Virginia (the “County”) by entering into an updated Support Agreement, to undertake a non-binding obligation to appropriate moneys to the Authority in connection with the Forbearance Agreement, dated March 10, 2020 (the “Forbearance Agreement”) between the Authority and First Bank (the “Lender”) relating to monthly debt service payments of the Authority due to the Lender under the EDA Loans (as defined in the Forbearance Agreement) during the 2022 Fiscal Year and the extension of such Forbearance Agreement from June 30, 2021, to June 30, 2022.

NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA:

1. In consideration of the Authority’s undertakings with respect to the Forbearance Agreement, the Chairman or Vice-Chairman of the Authority, either of whom may act, is hereby authorized and directed to execute and deliver the Support Agreement and to extend the Forbearance Agreement from June 30, 2021, to June 30, 2022. The Support Agreement shall be in substantially the form presented to this meeting, which is hereby approved, with such completions, omissions, insertions, or changes not inconsistent with this resolution as may be approved by the Chairman or Vice-Chairman of the Authority, in their sole discretion, the execution thereof by the Chairman or Vice-Chairman of the Authority to constitute conclusive evidence of his or her approval of such completions, omissions, insertions or changes.

2. The Chairman or Vice-Chairman of the Authority, either of whom may act, is authorized to extend the Forbearance Period (as defined in the Forbearance Agreement) from June 30, 2021, to June 30, 2022, and to approved documentation of such extension.

3. This resolution shall take effect immediately.

Finally, on a motion by Tom Patteson, seconded by Jim Wolfe, the EDA Board unanimously approved a motion to authorize the Chair to sign an agreement with AirServe to replace Rooftop Unit #1 and repair Rooftop Units #4 and 5 at 426 Baugh Dr. for $18,796.

The EDA Board of Directors will have their next regular monthly board meeting via Zoom on Friday, June 25, 2021, at 8 a.m.

(From a release by the WC EDA)