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EDA in Focus

EDA welcomes Town Manager Steven Hicks to meeting & gets good news from McDonald bankruptcy hearing

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Things appear to continue to be turning in a positive direction for the Warren County Economic Development Authority (WC-EDA) in the wake of the recent sale of the Afton Inn for redevelopment by the 2 East Main LLC investment group. On the heels of that sale, authorized at a Special Meeting of February 12 and finalized a week later, the WC-EDA held its monthly meeting by way of the now familiar virtually connected ZOOM format the morning of Friday, February 26.

Two things stood out during the open session sandwiching a 57-minute closed session. The first was the welcoming of Town Manager Steven Hicks shortly after the 8 a.m. meeting start. It was the first appearance of a town manager with an accompanying update on Town business at an EDA Board of Directors meeting in about 18 months.

Beginning with the Afton Inn sale, it appears a newly thawed relationship between Town Hall, at right, and the WC-EDA has begun. It continued with Town Manager Steven Hicks presence at the Friday, Feb. 26, EDA Board meeting. Royal Examiner Photos by Roger Bianchini

That traditional line of communications was terminated during the tenure of former Interim Town Manager Matt Tederick as the town government took on an increasingly adversarial and litigious stance with the EDA as a revamped EDA board worked to right its ship in the wake of the $21-million-plus financial scandal alleged to have developed during the tenure of former EDA Executive Director Jennifer McDonald.


EDA civil litigation gets reboot

The second positive note came post closed session during Board Chairman Jeff Browne’s Executive Committee Report. Browne acknowledged a decision by Harrisonburg-based U.S. Bankruptcy Court Judge Rebecca B. Connelly returning consideration of exactly what assets Jennifer McDonald can claim as part of her bankruptcy filing to the state court level.

“The bankruptcy court has remanded her particular case to state court to assess damages, at which point damages are assessed it will go back to the bankruptcy court to decide whether or not it should go back to the state courts or be handled in the bankruptcy court,” Browne told his board.

Contacted after the meeting, Browne elaborated on the implications of Judge Connelly’s ruling. He explained it will allow the EDA’s civil litigation against McDonald to re-start to determine exactly what EDA assets McDonald may have misappropriated and how they may have been used to purchase properties or other tangible assets. Her surviving real estate company MoveOn8 is also part of her bankruptcy filing, he noted.

The EDA’s civil litigation against Jennifer McDonald, on the job in December 2016 as the late Patty Wines, right, chairs meeting, and other co-defendants not in bankruptcy court, can once again proceed at the state level in the Warren County Courthouse.

When the state court findings are returned to the U.S. Bankruptcy Court in Harrisonburg, Judge Connelly will determine what assets McDonald can legitimately claim as her own that are subject to bankruptcy claims and asset distribution, versus what assets held by her or her real estate company the EDA would have civil claim to as restitution for her alleged criminal acts of embezzlement and misappropriation of EDA funds to her own use.

A virtual Town-EDA ‘lovefest’

Back on the Town-EDA relations front, EDA Board Chairman Browne welcomed Hicks by virtual connection, offering him the opportunity to give his report prior to adjournment to the closed session. And while an opening portion of that report was acknowledgment of the town council’s decision to move forward with creation of its own EDA with Hicks as executive director, that there was a renewed sense of Town-EDA cooperation was soon apparent.

“As town manager I’m here to help in any way I can,” Hicks told Browne and the four-member EDA Board quorum present virtually (Browne, Harold, Pattison, Wolfe), before reporting on the status of the Town’s FY-2022 Budget process.

“I just want to congratulate you on your new position. You must have found the secret to a 48-hour day,” Browne told Hicks at the conclusion of the town manager’s report. “I just want to tell you for our board, that anything we can do to help in the areas you’re focused on: redevelopment, tourism, retention of businesses are all good things that we look forward to working with FREDA (Front Royal Economic Development Authority) on.

EDA Board Chairman Jeff Browne, above virtually at Friday’s EDA Board meeting, and Front Royal Town Manager Steven Hicks, below in file photo of recent council meeting, seem to be on the same page on cooperation between now separate County and Town EDAs.

“We would like to work with you and coordinate with the Town. I think that we can do a lot to help economic development for the entire area. So, we appreciate you’re stepping up and taking on what will be a challenging task,” Browne added of Hicks new dual role.

“Will do – I’ll definitely stay in contact and share everything as much as I can with you and Doug (EDA Executive Director Doug Parsons) and Ed (Warren County Interim County Administrator Ed Daley). So yea, sounds great,” Hicks replied.

At that point EDA Board member Jim Wolfe, who has taken point in his board’s work on development of short and long-term Strategic Planning on economic development and job creation, joined the conversation. Wolfe offered to get a copy of what the WC-EDA has done on that front recently to Hicks by Monday.

“Then you and I can sit down and talk about it at some point. And if any other board members want to join me … So, I want to make sure that the … Town has our plan and use that for a touch point for how you coordinate on different projects,” Wolfe said of developing a unified plan of action community wide.

EDA Board member Jim Wolfe jumped on the Town-County EDA cooperative bandwagon with an offer of added assistance from himself and other EDA board members, to Hicks in his new role as FREDA executive director.

“I’d appreciate that,” Hicks replied, perhaps seeing his “48-hour days” reduced in some measure by that level of County EDA involvement with his work on the Town side. Continuing in that vein of cooperation, Hicks added, “Again, I just wanted to call in (on ZOOM) and touch base with you all and be as transparent as I can. And always reach out to me when you need anything, and I’ll do the same.”

“Good, thank you so much,” Browne replied to the new attitude being reflected out of Front Royal Town Hall as Hicks signed off from the meeting.

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EDA in Focus

Did Town Council’s December 1 ‘Special Closed Meeting’ violate multiple FOIA laws?

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Royal Examiner editorial department staff have occasionally pondered the often overly vague language of motions used to adjourn to Executive/Closed Sessions, particularly on the Town side of local municipal government. Those motions and the information in them are guided by Virginia Freedom of Information Act (FOIA) standards on a variety of levels. Royal Examiner recently contacted Virginia FOIA Advisory Council Executive Director Alan Gernhardt about those standards, particularly as they applied to a December 1 “Special Closed Meeting” of the Front Royal Town Council called by Mayor Chris Holloway.

Gernhardt’s response referenced a history of Virginia FOIA Advisory Council opinions on the state standards for balancing the public’s right to know how they are being governed by their elected officials and those officials’ occasional need for some degree of secrecy, generally in competitive bidding, property transactional, legal, and personnel matters. How the wording of motions to adjourn to Closed/Executive Session must balance these sometimes-conflicting standards in a democratically based but also economically competitive and sometimes legally contentious society, revolve around three elements. Those are (1) the subject of the closed meeting; (2) the purpose of the closed meeting; and (3) reference to the applicable FOIA law section exempting the meeting from the public view.

File photos during a previous Front Royal Town Council Closed Session in Town Hall. On December 1, 2021, council could not use the second floor meeting room due to a previously scheduled planning commission meeting, so moved to the first-floor Finance Dpt. section of the building, which was totally locked to public access for at least a portion of that meeting. Royal Examiner File Photos by Roger Bianchini

“The law clearly states, and this office has previously opined, that a motion that lacks any of these three elements would be insufficient under the law,” one example of an earlier state FOIA Advisory Council opinion Gernhardt provided to Royal Examiner states. However, it adds that: “… when identifying the subject of a closed meeting, the subject need not be so specific as to defeat the reason for going into the closed session but should at least provide the public with general information as to why the closed meeting will be held.”


This information takes us to the motion used to convene the December 1 Special Meeting closed session announced the previous day. That motion circulated with the “Town Council Special Closed Meeting” agenda prior to the meeting, reads in its entirety: “I move that Town Council go into Closed Meeting pursuant to Section 2.2-3711.A.7 of the Code of Virginia for consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation involving a former employee of the Town, where such consultation or briefing in Open Meeting would adversely affect the negotiating or litigating posture of the public body.”

For starters, the passage “pertaining to actual or probable litigation involving a former employee” seems far too vague to comply with state FOIA statutes since the discussion seemingly involves only one former employee, hence one litigation – So, which is it, actual or probable litigation?

The question is an important one because whether the litigation has been filed and has appeared on a court docket impacts the degree of specificity or vagueness with which the “subject” or “purpose” of the meeting may be described. For unfiled litigation, Gernhardt told us such descriptions as “litigation with a former employee” are sufficient to meet FOIA requirements because “it says more than just ‘litigation matters’ while not disclosing the actual nature or details” of a case yet to be filed on a court docket.

Photo of minutes of Dec. 1 Town Council ‘Special Closed Meeting’ approved by council on Dec. 13. The only open portions of the meeting were the motions to go into closed session, and coming out certifying that only topics cited in first motion were discussed behind closed doors. But what active litigation, as Royal Examiner has been told it was, involving what ‘former employee’ was discussed? The Town will not specify, despite FOIA law precedents pointing toward more than vague litigation references for filed court cases. Note, the meeting time was announced the previous day as 6:30 p.m.

Regarding legal cases that have been filed with detail of an alleged cause made by a specific party made public through the court system, Gernhardt said somewhat more specificity is required. “For litigation matters, I generally would recommend using the style of the case if it has already been filed and appears on a public docket,” he said. “Style” in this case appearing to reference at base minimum, whom the litigation is with. That is the policy that Warren County and its post-financial scandal, re-tooled Economic Development Authority (EDA) have taken with all motions on existing litigation.

Just two days after town council’s vaguely adjourned to Special Closed Meeting of December 1, the County EDA adjourned to a 12-item Closed Meeting that included six real estate, four legal, one bank re-financing/legal, and one personnel matter. ALL 12 matters were identified as to “subject” by name with some degree of purpose though not to a degree to defeat the purpose of having the discussion behind closed doors by FOIA requirements. Ironically, three of the four legal matters related to litigation between the County EDA and the Town of Front Royal municipal government. We will include that litigation portion of the EDA motion to illustrate what we believe is a FOIA-compliant motion into closed on existing legal matters, now being used by both the County and its EDA:

“4. CLOSED MEETING Dec. 3, 2021, motion into: … · 4 matters – Consultation with legal counsel and briefings by staff members pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body, EDA v. Jennifer McDonald, et al., EDA v. Town of Front Royal, Town of Front Royal v. EDA, and legal advice related thereto and regarding other matters relating to claims of the Town of Front Royal pursuant to Va. Code §§ 2.2-3711.A.7 and 8.”

To contrast, let’s revisit the Town motion in question as presented and approved in that meeting’s minutes as having been read into the record by Vice-Mayor Lorie Cockrell, seconded by Letasha Thompson: “I move that Town Council go into Closed Meeting pursuant to Section 2.2-3711.A.7 of the Code of Virginia for consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation involving a former employee of the Town, where such consultation or briefing in Open Meeting would adversely affect the negotiating or litigating posture of the public body.”

On the Town side it appears one of the three elements required by FOIA law – “subject” is missing in that whether it is an unfiled “probable” litigation or an “actual” litigation that has been filed, say for example former Council Clerk Jennifer Berry’s federal sexual harassment suit, at the time scheduled for trial in February 2022, is not specified.

And were it to be filed litigation that was discussed behind closed doors December 1, is it possible a second key element, “purpose”, is missing? For the only purpose cited in the motion is “consultation with legal counsel and briefings by staff members or consultants”. Could that be enough “purpose” to satisfy FOIA law regarding “actual” litigation in what was called as an “emergency meeting” as will be discussed in more detail here later; or would additional detail such as “discussion of approaching filing deadlines” be required?

Royal Examiner spoke to Jennifer Berry’s attorney, Tim Cupp, in her suit against the Town on December 1st looking for clues the closed session might have been called regarding his client’s case. While declining to speculate why the mayor had called that special closed meeting, Cupp did note that December 1 was the final day for Discovery motions filings in the Berry case on the Harrisonburg federal Western District of Virginia docket slated for trial in February. Could it be a coincidence that within days of the Front Royal Town Council’s “Special Closed Meeting” of December 1, the Berry vs. Town of Front Royal federal sexual harassment trial in which Mayor Holloway has been named as a figure in alleged attempts to have Berry withdraw a related internal complaint involving former vice mayor and councilman William Sealock, was rescheduled to May 2022?

File photos from a council meeting and work session before Council Clerk Jennifer Berry, above right’s, position was eliminated by downsizing of town staff during interim town managership of Matt Tederick, and prior to her filing a federal lawsuit citing alleged sexual harassment by former councilman and vice-mayor Bill Sealock. Berry also alleged then Councilman Chris Holloway, above left, among others, attempted to get her to withdraw an internal complaint about the alleged behavior. According to her suit’s timeline it appeared the full council was aware of Berry’s allegations against the vice mayor by the time of these January 2020 meetings.

Ultimately, as Gernhardt pointed out to Royal Examiner, a determination on meeting FOIA law compliance would be determined by a judge were a complaint to be filed that it had not been in a particular case. Gernhardt also provided Royal Examiner with a Virginia Supreme Court ruling, BEVERLY COLE, INDIVIDUALLY, ET AL. v. SMYTH COUNTY BOARD OF SUPERVISORS, ET AL. (No. 17120 May 28, 2020), which overturned a lower court decision, and mandates the above-referenced “subject” and “purpose” standards.

In that case, the Virginia Supreme Court ruled unanimously that the Smyth County Board of Supervisors used an improper motion to go into closed session and talked about matters beyond the scope of the claimed exemption.

While exploring FOIA law regarding the above issues of adequate “subject” and “purpose” standards being met in convening the December 1 “Special Closed Meeting” two other factors attracted Royal Examiner editorial staff’s attention. Those were, first, the short turnaround on notice of the meeting being circulated, approximately 27 hours, as opposed to the three-day minimum public notice for non-emergency special meetings; and second, the fact that both access doors to the section of the Front Royal Town Hall where the special meeting was taking place were locked while the meeting was still in progress.

Locked Out or Not Locked Out?

Notice of the council special meeting emailed to the media at 3:22 p.m., Tuesday, November 30, by Town Administrative Assistant and Council Clerk Tina Presley read: “The mayor has called a special closed meeting for Wednesday, December 1, 2021, at 6:30 p.m. in Town Hall.”

With a Town Planning Commission work session on a new short-term tourist rental ordinance under development scheduled for 6 p.m. in the second-floor meeting room town council normally uses for meetings at Town Hall, it was unclear exactly where that council special meeting would be held. In response to inquiries, it was eventually determined to be somewhere in the Finance Department section of Town Hall. That section is on the Crescent Street/Afton Inn side of the first floor of Town Hall to the left as you enter the primary, East Main Street entrance.

We note this because when the December 1st planning commission meeting ended around 7 p.m., the two media present, this reporter and Alex Bridges of the Northern Virginia Daily, attempted to enter the Finance Department section of town hall to ascertain if the council special meeting was still in progress and await its adjournment for any announcement or action. Finding the access door locked, we sought the assistance of Planning Director Lauren Kopishke, mingling with planning commission members on their way out of town hall. Surprisingly, Kopishke found that her access code credential was somehow disabled, preventing her assisting media access to the area of the council special meeting.

Press also established that the rear parking lot outside access door, the only other entrance to that section of the building, was also locked between 7:15 and 7:30 p.m. Town Manager Steven Hicks later informed the press that once out of closed, the open meeting was adjourned at 7:46 p.m. without any announcement or action.

Town Manager Steven Hicks, center, holds council’s attention at an earlier 2021 work session in town hall’s second-floor meeting room where ‘To lock or not to lock the outside access doors’ was not the Shakespearean question at hand.

So, in addition to questions about FOIA public disclosure standards being met, the additional question of public/press access to the open portions of the special meeting were raised. Questioned about this, Hicks told Royal Examiner that the doors in question had been unlocked at the meeting’s convening and adjournment, so that any public or press present could have accessed the open portions of the meeting. Unfortunately, no member of the press or public, to our knowledge, was present at those specific times of 6:30 and 7:46 p.m. to test that timely locking and unlocking scenario.

Special or Emergency Meeting?

Council Clerk and Administrative Assistant Tina Presley sent media an e-mailed notice of the meeting at 3:22 p.m. Tuesday, November 30, some 27 hours prior to the meeting’s announced 6:30 p.m. open session starting time the following evening. In a Dec. 2nd telephone conversation regarding the special meeting’s announcement, Ms. Presley relayed to Royal Examiner’s Norma Jean Shaw, “I just did what the mayor asked me to do.” When asked why she didn’t post the meeting notice on social media or the Town’s website Presley stated, “I guess I could have, but I only sent it to the three local reporters who normally cover the council meetings.”

The fact the meeting was bypassing the normal three-day minimum public notice of municipal government meetings indicated that it was not only a “special meeting,” but an “emergency” one requiring immediate attention for one reason or another.

Was there sufficient reason, as the town manager contends there was, to designate an “emergency” meeting that allowed less than three-days’ public notice? Because of the ongoing refusal of the town administrative or contracted legal staff to elaborate on the subject or purpose of what is now admitted to have been closed session discussion of existing litigation, your guess is as good as ours. But is the fact we are still guessing at answers to numerous questions about that behind-closed-doors meeting an indication that the Front Royal Town government is in ongoing violation of Virginia Freedom of Information Act standards?

Perhaps a judge will tell us.

Could answers to questions about the subject and purpose of town council’s Dec. 1 ‘Special Closed Meeting’ be mandated by a local judge? Perhaps, though it appears the Va. Supreme Court has already weighed in on the issue regarding filed litigation requiring more “subject” and “purpose” specificity than unfiled to convene into closed session.

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EDA in Focus

Warren County EDA reaches bank agreement on McDonald parcel, moves C-CAP rental forward among other actions in final meeting of 2021

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The Board of Directors of the Front Royal and Warren County Economic Development Authority (EDA) held the combined November and December meeting via Zoom. All Board members attended the meeting.

The Board adopted two resolutions. One resolution to approve C-CAP using Suite C located at the EDA office building to store food for distribution. The use of Suite C is at no cost to the organization while it transitions to a lease in Suite B and C-CAP will provide evidence of an insurance policy to cover the use of Suite C. The EDA and C-CAP will negotiate the terms of a lease on Suite B and possibly Suite C at the Kendrick office location at an agreed rental rate.

The second resolution authorizes the EDA Chair and Treasurer to finalize details of an agreement with Atlantic Union Bank where it gives up its claim in the Jennifer McDonald bankruptcy and the EDA will release its claim on the property formerly owned by “Little Rugratz” on Virginia Avenue. The existing bank loan is more than the value of the property and the release of the EDA claim allows the bank to sell the property. In return, by the bank releasing its claim in the bankruptcy, the EDA can recover a higher percentage of the recovery from the McDonald bankruptcy and save money in attorneys’ fees.

The Board is working with Public Works to address the maintenance issues at the Kendrick Lane building including HVAC repairs and installation of water shut-off valves.


The EDA and County are working on soliciting bids for appraising all the EDA properties. The first priority is the Baugh Drive building.

Chair Jeff Browne updated the board on Nature’s Touch and the VDOT grant. Scott Jenkins stated all the marketing material for the Commonwealth is updated and was approved by VEDP (Virginia Economic Development Partnership).

Greg Harold presented the final draft of three Standard Operating Procedures (SOP) that will be used as guides for EDA and prospective purchasers of EDA property. He stated the documents were not “static”, but are “living” documents that will be modified as needed. The three SOPs approved are Letters of Intent, Contract Management, and Property Disposition Due Diligence. The documents will be posted on the website by December 15.

The EDA and Warren County are working on a Memorandum of Understanding (MOU) to govern the transition of EDA’s staff moving to the County payroll and EDA’s role in future economic development in the county. One change beginning immediately is the County will permanently take over receiving and coding EDA bills prior to the EDA Chair and Treasurer approving the expenses.

The EDA Board approved the meeting schedule for 2022 and future meetings will be in person. The next EDA meeting will be on Friday, January 14th at 9 a.m. The location will be posted on the website as well as the remaining dates for 2022.

(From an EDA Press Release of December 5th)

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Crime/Court

Little civil consequence of more criminal prosecution delays in EDA case

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Contacted about the new dates in late 2022 of trials in the now federal prosecutor-handled criminal indictments against former Front Royal-Warren County Economic Development Authority (EDA) Executive Director Jennifer McDonald, current EDA Board of Directors Chairman Jeff Browne said while it has little, if any, impact on the EDA’s civil litigation seeking recovery of assets, he understands public frustration from continued delays on the criminal side of the EDA financial scandal.

“I don’t believe the delay in the criminal case impacts our civil case. We have no control over the criminal case, but it is frustrating that Warren County residents must wait so long for justice to be served. I understand the reasons for the delay, but it still is frustrating,” Browne told Royal Examiner.

The reason for the delay continues to be, as it has been from the outset for the most part, the volume of evidentiary documentation in the case, as well as the introduction of new attorneys into the legal equation who must absorb the information in that documentation estimated at well over a million pages.

File photo of Jennifer McDonald booked in August 2019 during state criminal prosecution process. That was her second arrest related to the local/state criminal investigation of EDA finances during her executive director leadership of the EDA. Royal Examiner File Photos


Most recently, federal Judge Elizabeth Dillon granted McDonald’s newest attorney, court-appointed Andrea Harris’s request for a continuance of McDonald’s criminal trials slated for the first week of this month. The federal prosecutor from the Western District of Virginia did not object to the continuance. Consequently, new trial dates between October 11 and November 18, 2022, are now on federal docket. Since the delay came at the request of the defense, speedy trial guidelines will not come into play.

As Royal Examiner previously reported, on August 31 McDonald was re-arrested on a 34-count indictment handed down by the Western District of Virginia Federal Prosecutor’s Office in Harrisonburg.

On April 16, 2019, FBI and Va. State Police jointly seized material from EDA offices, including the former executive director’s office computer which had been locked down from outside access since Dec. 20, 2018.

Of those 34 counts, 16 were for money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” – our best guess representing ITFederal principal Truc “Curt” Tran. The 40-paragraph True Bill elaborating on the charges to a Harrisonburg Grand Jury is dated August 25, and signed by then-Acting U.S. Attorney Daniel P. Bubar. McDonald was once again released on bond.

Dan Whitten, left, Greg Drescher, back to camera, former county attorney and EDA Board chairman respectively, as well as Tim Grant, seated at computer, lock down McDonald’s office and computer as a potential crime scene in the wake of her Dec. 20, 2018, emailed resignation in the wake of mounting closed session scrutiny by her board. Below, the same office following the April 16, 2019, FBI-led seizure of materials from the EDA offices.

The charges and outline of the case in support of them echo earlier criminal indictments filed at the state level before the State Special Prosecutor’s Office in Harrisonburg turned the case over to federal authorities in late 2019. The state special prosecutor had dropped the indictments it had filed to avoid speedy trial issues due to the volume of evidentiary material – estimated at 800,000 to over a million pages at the time. Failure to meet speedy trial deadlines could have led to defense motions for dismissal of charges on the criminal side of the EDA financial scandal case.

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EDA in Focus

EDA emerges from lengthy Closed Session to consider assistance to Angel Tree Program and C-CAP winter food storage

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(Editor’s note: The Salvation Army notified Royal Examiner that their holiday toy collection/distribution program is known as Angel Tree, as opposed to the Marine Corps Toys for Tots effort. We in turn notified the EDA Board Chairman and received permission to make the correction to this press release.)

The EDA Board of Directors met today for their regular monthly meeting. All board members were present along with legal counsel. The Board went into closed session for approximately two and half hours to discuss transition, personnel, loan restructure, and disposition of property. The Board returned to open session at approximately 11:30.

The Board discussed the transition and how the county and the EDA were working well together. Taryn Logan, Assistant County Administrator, is also the Interim EDA Executive Director working on new prospects and marketing of EDA property. Ed Daley, County Administrator will work with the EDA on current projects. The County and EDA are actively recruiting a new Executive Director and administrative assistant. Jeff Browne thanked board members for stepping up to keep the EDA operation running smoothly.

Jeff Browne discussed the use of a portion the EDA administrative building through December 22nd for the Salvation Army Angel Tree holiday toy collection and distribution campaign. The EDA will also assist C-CAP in finding proper storage for needed food through the winter.


Jeff Browne and Scott Jenkins discussed the use of interns beginning in January to assist with EDA research and future projects. Scott Jenkins reviewed the “job description”. Taryn Logan stated the use of interns by the county has been a very successful venture in the past. Ed Daley, County Administrator, also supported the proposed program.

Marjorie Martin (Jorie) will assume the duties to update the website working with Queen Consulting. Meeting dates, and updated site information will posted.

The Board is working with vendors to clean the air conditioning ducts in the EDA administration building.

Next EDA Board Meeting: Combined meeting for November and December, December 3, 2021: The meeting will be held via zoom at 9:00 AM

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EDA in Focus

County Supervisors change November meeting date – stay mum on Closed Session EDA litigation discussion

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The only open session action taking by the Warren County Board of Supervisors at a Special Meeting of Tuesday, October 26, was authorization to change the date of a November Supervisors meeting from the 16th to the 18th. That item was a late addition to the agenda made and acted on prior to a scheduled closed session.

The bulk of the 5 p.m. meeting, about an hour-and-a-quarter, was taken up by a Closed/Executive Session to discuss Economic Development Authority litigation. As Royal Examiner readers know, that is an oft-behind closed doors topic over the last two-plus years in the wake of the $26-million to $62 million FR-WC EDA financial scandal that began unravelling in mid-2018. No announcement or action regarding that litigation was offered during the brief open session to adjournment shortly after 6:20 p.m.

As has been previously reported, the EDA financial scandal involves civil and criminal cases, the latter now handled at the federal level by the U.S. Attorney’s Office in the Western District of Virginia headquartered in Harrisonburg. Before criminal indictments were dropped by the Special Prosecutor at the state level due to speedy trial concerns surrounding the mountain of documented evidence, estimated at over a million pages, there were as many as 23 co-defendants alleged as co-conspirators of former EDA Executive Director Jennifer McDonald. The federal prosecutor launched action on August 31, filing a 34-count indictment against McDonald, including 16 counts of money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” (ITFederal principal Truc Tran perhaps?)

In related civil litigation, McDonald and the EDA reached an agreement in which $9-million-dollars of assets were ruled out of McDonald’s bankruptcy court filing as owed to the EDA, though without any admission of fault by McDonald. As part of that agreement the EDA recently announced assumption of ownership of McDonald Real Estate LLC MoveOn8’s undeveloped 41-acre Happy Creek parcel valued at over a million dollars.


The EDA and Town of Front Royal are also engaged in dueling civil countersuits initiated by the Town, claiming disputed lost assets related to the financial scandal. During the tenure of Interim Town Manager Matt Tederick, other than then-Mayor Eugene Tewalt, the town council chose to ignore EDA offers to sit down in a non-litigious, good faith effort to determine exactly what was owed to the Town related to the alleged misdirected EDA assets involved in Town and County capital improvement and economic development projects financed through the EDA. The Town has since initiated an effort to create its own unilateral Front Royal EDA (FREDA) operating independently of the over half-century-old Town-County EDA, which technically the Town is still a legal, if now silent, partner in.

That independent EDA effort has become a political hot potato in the coming Town Special Election to fill resigned member Jacob Meza’s seat. In recent years the County had fully funded EDA operational costs, with each municipality covering its own debt service related to EDA financing of projects. Independent conservative council candidate Bruce Rappaport has made the unilateral Front Royal EDA a major target of his campaign, citing it as a waste of town taxpayer money and destructive wrench in the cog of Town-County relations.

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EDA in Focus

‘Ghosts of EDA Loans Past’ come back to haunt county supervisors

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The most interesting part of Tuesday evening’s Warren County Board of Supervisors meeting was likely behind closed doors after the board adjourned to Closed/Executive Session for a legal-based answer to North River Supervisor Delores Oates question as to what benefit to the County and its taxpayers there was in approval of a Resolution admitting a “moral obligation” to continue to pay the debt service on bank loans made by the EDA during its developing financial scandal, circa 2016 or so. There was one of three loans at issue of particular interest – the $10-million-dollar loan to Truc “Curt” Tran’s ITFederal company poised to jumpstart commercial redevelopment at the 149-acre portion of the former Avtex Superfund site known as the Royal Phoenix Business Park.

North River Supervisor Delores Oates particularly wondered why it remains in the County’s interest to continue covering debt service on the Town/EDA-sponsored ITFederal loan. Anxious to see commercial redevelopment begin on a portion of the former Avtex Superfund site in town, the Front Royal Town Council made a one-month, which grew to three-months, ‘bridge loan’ of $10-million to the ITFederal project to illustrate Town support of that project to a skeptical bank targeted to finance the project. Below, five-plus years later an unoccupied, un-permitted building constructed at an estimated cost of $2 million or less memorializes the entire debacle. Further below, I guess the building looks kind of like what ITFederal presented back in 2016 – at least the first floor. Royal Examiner Photos by Roger Bianchini

Of particular interest, because the “moral obligation” for that loan was initially believed covered by the Town of Front Royal, whose elected officials agreed to provide a $10-million-dollar “bridge loan” requested by then EDA Executive Director Jennifer McDonald to indicate to First Bank and Trust that “the community” stood behind the loan and proposed project it supported. That request for and Town show of financial support for the ITFed project came despite the fact the company showed virtually no assets other than the three acres at the Royal Phoenix/Avtex site valued at slightly over $2-million-dollars that was “gifted” to the company by the EDA behind closed doors for one dollar.

A clue to what the county supervisors heard over about 15 minutes in Closed Session may have been offered by the board’s action out of it. After some hesitancy in response to the Chair’s call for a motion on the Resolution, Oates’ motion for approval of the “EDA First Bank and Trust Support Agreement”, seconded by Walt Mabe, passed by a unanimous roll call vote. The vote commits the County to continue to absorb those “moral obligation” payments through the Fiscal Year 2021-22 at an estimated cost of $214,000.



In open session, responding to questions about the Resolution in support of the “EDA First Bank and Trust Support Agreement”, County Administrator Ed Daley mentioned consolidation of three loans, including the above-mentioned ITFederal loan (at $9,551,500), as well as a First Bank and Trust Line of Credit ($8,691,600), and a First Bank of Strasburg loan ($3,450,000). Contacted later, Daley cited one condition that would bring the EDA’s payments to the bank on the ITFederal loan in line with what ITFederal pays the EDA monthly at about $42,000. Before the EDA payments fluctuated to more or less than the ITFed payments, sometimes as much as $7,000 a month more.

After County Administrator Ed Daley, left, summarized the proposed ‘First Bank and Trust Support Agreement’ and Supervisor Oates asked ‘Why?’ the County should continue to assume moral obligation payments it may not be responsible for, Interim County Attorney Jason Ham, right, suggested a Closed Session might be most appropriate to answer that question.

Despite the commitment to an estimated $214,000 in payments through this fiscal year, the board’s unanimous vote in support of its moral obligation payments likely reflects negative consequences were the County to bail on covering an EDA debt mid-fiscal year. But again, the agreement is only to the end of the current fiscal year, June 30, 2022. What might the future of “moral obligations” related to the “Ghost of EDA Loans Past” bring in FY-2022-23? – Stay tuned for another seasonal episode of “A Front Royal-Warren County EDA Carol”.

Thermal Shelter bathrooms

County Administrator Daley was also prominent in responding to another matter raised by three speakers during Public Comments about things, not on the meeting agenda. That was the elimination of two bathrooms in the Health and Human Services Complex at the old 15th Street middle school utilized by the County and involved churches and civic organizations to house the community’s homeless indoors at night during the winter. Opening that discussion was First Baptist Church Pastor Christy McMillin-Goodwin, followed by Aneita Bryant and Jim Bunce.

First Baptist Church Pastor Christy McMillin-Goodwin opened Public Comments discussion of how communications broke down between involved Thermal Shelter parties on the removal and delayed replacement of indoor bathrooms nearest the winter homeless shelter.

That trio said an alternate plan for mobile outdoor restrooms was unadvisable due to security and additional personnel to monitor out-of-building night trips, as well as potential severe weather issues. Noting a replacement plan that would not have new indoor facilities in place in time for this winter’s thermal shelter setup, these speakers wondered how the removal plan had been initiated without notice to those involved in helping the County operate the thermal shelter. Bryant suggested allowing access to the next closest indoor facilities.

In responding, Daley said he had been at point for the County in initiating the bathroom removal due to failing pipes that caused toilet backup issues. He said he had envisioned a much quicker turnaround in replacing the removed indoor facilities in that section of the building than ended up being the case. He promised to work proactively with those involved to see that an adequate alternate overnight option was available when the thermal shelter opens as winter arrives.

Public Hearings

Also Tuesday following public hearings, the board unanimously approved three Conditional Use Permit applications, two for short-term tourist rentals and one for a private use campground. Following application summaries by Planning Department Deputy Director Matt Wendling the first two CUP applications, Charles and Lou Ann Dotson’s for the Private Use Campground on their property on Burma Road in the Man-Da-Lay Subdivision; and Jacob W. Lott Jr. and Sandra J. Kiepfer for a short-term tourist rental on their 1.6-acre lot on Little Indian Road in the Blue Mountain Subdivision in Linden went to a vote with no public hearing speakers. Wendling did note that a letter from the chairman of the Blue Mountain Property Owners Association had been received, expressing “no problem” with Lott and Kiepfer’s short-term tourist rental application.

Up last were Nicole and Sean McMinn with a short-term tourist rental permit application for their 2.42-acre property on Sagar Drive in the Highland Estates Subdivision in the Fork District. Again, there were no public speakers after the applicants responded to the board chair’s offer to summarize their request. The D.C.-based couple told the board they had run into little opposition from neighbors, and what opposition there had been from neighbors was not from those closest, but with property over a thousand feet from theirs.

Nicole McMinn and her husband Sean marshaled neighbor and tourism-related business support for their short-term tourist rental permit application.

And while there were no public speakers, the McMinns noted a number of letters to the board from supporters of their short-term tourist rental CUP application, which they asked to be read into the meeting record. Board Clerk Emily Ciarrocchi then read nine letters of support, including one with “25 to 30” signatures. Several of the letters, including one from the owner of the Downriver Canoe Company, noted positive impacts on tourism-related businesses from short-term renters. One letter noted, “They come; they spend; they leave”.

The board then made its final unanimous vote of approval on a motion by Archie Fox in whose district the applicant’s property lies, seconded by Walt Mabe.

Following that vote, Happy Creek Supervisor Tony Carter noted a “Bless you” included in one of the letters read by the clerk that was well-timed to a sneeze by someone present in the government center meeting room.

Approaching an election he chose not to be a part of two days after Halloween this year, Tony Carter was on a comic roll Tuesday evening suggesting politician as perhaps the scariest costume for the Oct. 31 to Nov. 2 window.

In fact, facing a future out of the public eye politically – Carter did not file to be on the ballot for reelection to his Happy Creek seat in November – Carter appeared at times Tuesday to be auditioning for Comedy Club spots during his member report and at various other times during the meeting. In fact, his coming local election, Halloween costume advice during his member report led three of his four colleagues to decline to try and “follow that act”.

See all the fun, business, and other public perspectives, including opening Public Comments speaker Michael Williams question as to whether a recent church-sponsored candidates forum in which the moderator was shown prior to the forum to have contributed to one church-associated candidate’s campaign could threaten that church’s tax-exempt status on U.S. Constitutional separation of church and state guidelines, in the County video:

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Apple Dumpling Learning Center

Apple House

Auto Care Clinic

Blue Ridge Arts Council

Blue Ridge Education

BNI Shenandoah Valley

C&C's Ice Cream Shop

Code Ninjas Front Royal

Cool Techs Heating and Air

Down Home Comfort Bakery

Downtown Market

Dusty's Country Store

Edward Jones-Bret Hrbek

Family Preservation Services

Front Royal Women's Resource Center

Front Royal-Warren County Chamber of Commerce

Gourmet Delights Gifts & Framing

Green to Ground Electrical

Groups Recover Together

I Want Candy

I'm Just Me Movement

Jen Avery, REALTOR & Jenspiration, LLC

Main Street Travel

Makeover Marketing Systems

Marlow Automotive Group

Mary Carnahan Graphic Design

Mountain Trails

National Media Services

Ole Timers Antiques

Phoenix Project

Reaching Out Now

Royal Blends Nutrition

Royal Examiner

Royal Oak Bookshop

Royal Oak Computers

Royal Oak Bookshop

Royal Spice

Salvation Army

SaVida Health

Skyline Insurance

St. Luke Community Clinic

Studio Verde

The Studio-A Place for Learning

The Valley Today - The River 95.3

The Vine and Leaf

Warren Charge (Bennett's Chapel, Limeton, Asbury)

Warren County Department of Social Services

Warrior Psychotherapy Services, PLLC

What Matters & Beth Medved Waller, Inc Real Estate

White Picket Fence

Woodward House on Manor Grade

King Cartoons

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6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
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Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Bingo to support the American Cancer Society mission, organized by Relay For Life of Front Royal. Every Wednesday evening Early Bird Bingo at 6:30 p.m. Regular Bingo from 7-9:30 p.m. Food and refreshments available More[...]
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