EDA revisits costs surrounding Main Street Market site in old Stokes Mart

As Ron Llewellyn listens, Main Street Market owner Ginny Lesser explains her perspective on basic vs. structural maintenance of the EDA-owned building her business occupies. Royal Examiner Photos/Roger Bianchini

At its regular monthly meeting of January, the Front Royal-Warren County Economic Development Authority revisited discussion at a special meeting a week earlier about the authority’s ongoing ownership of the old Stokes Mart building now housing the Main Street Market.

At the January 30 regular board meeting, Main Street Market owner Ginny Lesser was present to explain her perspective on normal maintenance costs she is responsible for versus major structural repairs to the building she hopes the EDA will foot the bill for.

As EDA Secretary Missy Henry reported on January 23, Lesser is willing to pay for heating and air-conditioning (HVAC) maintenance in an attempt to reduce what has been an average $1500-plus monthly utility bill over the past two billing cycles, if the EDA will cover a minimally-estimated $51,000 roof repair expense. The HVAC repair has been estimated at around $14,000. The $51,000 roof repair is for a shingled roof, compared to a $144,000 estimate for a metal roof replacement, EDA staff explained.

Board member Ed Daley suggested that with potential contractor inspections and bids anticipated in that price range on the roof work in coming weeks that the EDA should have a structural engineer involved to represent its interests in getting the best deal possible. Interim Executive Director John Anzivino agreed, observing that the EDA should have a substantial overview of what it is taking on in costs and maintenance responsibilities for the building – “It is an EDA-owned building, we have a responsibility to fix it,” he told the board.

A roof in need of repair – the EDA-owned former Stokes Mart building now housing the Main Street Market catering to downtown Front Royal shopping needs.

Lesser told the EDA Board of Directors the office portion of the building has been closed off but the heating-related utility bills remain what she called “shockingly high”.

Board member Ron Llewellyn, who took the point on January 23 in wondering if the EDA should consider a sale of what he observed has become a money pit for the authority, pointed at a lack of insulation in the building that once housed Stokes Mart.

“There is no insulation in the building – I worked there about 40 years ago when I was in high school,” Llewellyn told his colleagues of what is apparently not a new issue of structural maintenance.

EDA Attorney Dan Whitten pointed out that like the previous tenant, B&G Goods that went out of business within two years, Lesser has a lease with an option to buy on the property.

Asked what the purchase price of her option to buy was, Lesser replied the remaining principal on the EDA’s purchase loan. Whitten verified that lease-to-buy price in Lesser’s contract.

The Main Street Market owner also said it was her understanding that her monthly rental covered the EDA’s mortgage payment. EDA Secretary Henry pointed to a recent rise in that payment, noting Lesser’s rental payment still came close but no longer entirely covered the EDA’s mortgage payment.

Llewellyn has cited a $440,000 number in questioning what he has termed a “too-high” EDA investment in the property at the intersection of East Main and Water Streets in downtown Front Royal, with an additional $50,000 or more expense looming. He has questioned the authority’s ability to recoup its investment through a sale.

The 2014 Deed of Transfer to the EDA/IDA (Industrial Development Authority) cites a purchase price of $398,218.85 and an assessment of $477,000. Whitten said the deed of purchase indicates the $398,000-and-change price covers both the Stokes Mart building and the residential rental building at the corner of East Main and Water Streets.

“I’m concerned where we’re going to end up – we should be cautious,” Daley told his colleagues of coming expenses to maintain the property as either a viable source of rental income or an attractive purchase option.

“We should explore interest in a sale,” Llewellyn reiterated of the point he made a week earlier. And on the topic of sales, Llewellyn told the board he had explored the EDA purchase of the building and discovered that despite the in-town location the town government had not been a catalyst in pushing the EDA toward that purchase.

“That is correct,” Town Manager Joe Waltz said of his exploration of the Town role, if any, at the time the building was purchased from former county supervisor Bernie Stokes’ trust in 2014. Stokes owned and operated the downtown business for decades before his retirement due to age and failing health.

Interim Executive Director John Anzivino was given direction to explore coming maintenance bids and oversee that the EDA interest in repairs at a reasonable price is maintained in conjunction with Lesser’s interest in her business on the site.

“I think we’ve given John enough on this,” board Chairman Blanton observed.

That discussion segued into Anzivino’s report on recent conversations regarding setting up electrical service at the EDA office complex through solar panels installed in the roof of the of the old American Viscose Admin building.

“I met with Green Technologies yesterday,” Anzivino reported. He explained that software was still being installed to allow the power to be shifted to the building’s internal systems to facilitate individual EDA and tenant controls of their electricity through the solar panel system.

Contacted about the potential of a solar power aspect to repairs at the Main Street Market while roof and HVAC repairs are being explored, EDA Attorney Whitten said there was no plan to install solar panels in the old Stokes Mart building as a potential alternative energy source.

In addition to the general store building, the property contains an apartment building to the far right behind the Main Street Market sign. Then there is the history of the site – Lane’s Tavern, where the county’s first justices met to hold court circa 1836.