EDA’s May 8 meeting action agenda

The EDA board met virtually today for a special board meeting and took action on a wide variety of measures:

New Board Member
The Board of Directors welcomes new director Melissa Gordon. Ms. Gordon is a Warren County native and is looking forward to applying her extensive experience in accounting and IT to promote business in the Front Royal Warren County area. Ms. Gordon’s goal is in serving on the Board of Directors is to help attract new businesses and increasing the tax base. This will help decrease the tax burden on individuals and families, as well as provide more services and jobs in the community. She hopes to use her experience working with federal, state, and local funding agencies to support the retention and growth of current businesses in the area and promote Front Royal and Warren County as an ideal location for new businesses. She will be serving on the EDA Finance and Asset Management committees.

514 E. Main St.
The Board acted on a New Business item that had been tabled from April 24, 2020, regular board meeting and approved returning the earnest deposit of ShenProp20, LLC when their efforts to purchase the property did not come to fruition.

The Board of Directors and Executive Director Doug Parsons are pleased to announce a sales contract for the purchase of 514 E. Main St., otherwise known as the Main St. Market Apartments, by Weber Properties, LLC for $127,500. The EDA hopes to close on this property by the end of the month. State legislation bars EDAs from owning multi-family housing properties so selling this property has been a priority for the agency.

Closure will allow the EDA to continue to focus on activities that bring jobs and economic opportunities to the Front Royal Warren County area.

Small Business Loan Updates
1. USDA Small Business Loan Committee- The Board continued to put the building blocks in place to start up the USDA Small Business Loan Committee. The Board appointed Mr. Jim Wolfe to chair the committee. Mr. Wolfe is the Entrepreneur in Residence and Assistant Professor of Management at George Mason University School of Business.

Additionally, the Board hammered out provisions of a loan application packet. Wolfe, Executive Director Doug Parsons, and EDA legal counsel Sharon Pandak, of Greehan, Taves, & Pandak, reviewed the draft with the Board and engaged in a detailed discussion of several important issues.

The Directors desire thoroughly vetted applicants and only those who meet the criteria will be awarded loans. Having a robust loan application process with high accountability and creditworthiness ensures that only good candidates who will have a successful impact on the economic life of our community will be considered.

2. RBEL/IRP Loans Emergency Deferment Program- The EDA wants to take the opportunity to remind current EDA small business loan clients who are current on their loan repayments as of March 2020 that they can request their loan payments be deferred through the month of August. Clients will be required to resume their regular monthly payments starting in September 2020. For each month the client defers their payment, one month will be added to the end of their loan commitment. Clients may contact the EDA office to request participation in this program. Please contact EDA Executive Director Doug Parsons.

Additional Items
The Board of Directors authorized EDA legal counsel Daniel Pond to file Warrant in Debt actions against former office tenant LaTasha Dozia-Earley/Selah Theater and RBEL loan client Stacy Sullivan/Primitives by Stacy. Efforts to work with these individuals on delinquent accounts failed to be resolved in 2019. Because of the extended lapse of time, the Board felt it necessary to go forward with collection actions.

Due to the continued COVID-19 pandemic and state of emergency, EDA Legal Counsel Sharon Pandak worked with the Board of Directors to approve an update to the current bylaws that further clarified the appropriate use of the virtual board meetings.

Finally, the Board had a brief discussion on the EDA FY2020-21 budget. Chair Ed Daley noted that the Warren County Board of Supervisors passed the budget earlier this month. There was no line item in the budget for debt service for the Front Royal Police Department. The goal is that the Town of Front Royal will obtain financing and pay off the construction loan the EDA secured in order to complete the project.