Latest updates from the Front Royal/Warren County EDA

In response to the COVID-19 pandemic and accompanying emergency declarations, the EDA Board of Directors conducted an unprecedented online board meeting on March 27, via a web conferencing platform called Zoom.

Despite the change in meeting format, the Directors had a full agenda and passed a significant number of motions as they continued to move forward on banking, property, and legal issues.

To ensure the EDA maintains transparency and operational efficiency, The Board passed important motions supporting the State of Emergency declaration and changing the EDA by-laws to allow the use of electronic means to conduct meetings.

Sale of 506 E. Main St.: The EDA passed a motion returning the $5,000 deposit by Will Huck when the purchase was mutually terminated. The board also agreed to authorize settlement documents for the new purchaser of the property. The EDA is very eager to get this property into the hands of private businesses and support small business growth on Main St. in downtown Front Royal.

Solar Panels Sale-EDA Office Building: The Board and the purchaser of the solar panels, Sunlight Properties, LLC, amended the sales contract in order to comply with the Governor’s emergency declaration to reduce non-essential work and activities. The Board agreed to an extension so that Sunlight Properties, LLC will be able to finalize the purchase and remove the panels after the Governor lifts the state of emergency.

EDA Small Business Loan Program: The Board of Directors expressed concern about the impact the COVID-19 crisis might have on the small business borrowers in the two EDA small business loan programs, the Revolving Business Enterprise Loan (RBEL) and Intermediary Relending Program (IRP). An attempt was made to devise a temporary relief measure to help support EDA loan clients. Further refining of this policy is expected at a future board meeting.

Legal Settlements: Finally, the Board of Directors passed two motions in order to resolve some specific legal issues. The Board approved a pay agreement with Small Business loan client Steve Ontiveros of Fireball Arcade.

The Board also approved a settlement agreement with Cornerstone, L.P., LLP.

In addition to approving a new lease with commercial tenant Visionary Optics at 1325 Progress Drive, the Board continued to take up a robust agenda and made several significant decisions.

New Civil Action: Based on compelling evidence, the Board of Directors approved a resolution to file a civil action against the following: TLC Settlements, LLC; Tracy L. Bowers; Service Title of Front Royal, LLC; Victoria L. Williams; Century 21 Campbell Reality, Inc.; Jeanette M. Campbell; Walter L. Campbell; Rappawan, Inc; and William T. Vaught, Jr.

The Board deliberated over this matter and did not take this vote lightly. However, the Board felt it was in the best interest of the taxpayers of Front Royal and Warren County to initiate this filing. The public is entitled to have past financial improprieties brought to light and to recover assets that were illegally taken.

A settlement with Joseph F. Silek, Jr.: The Board of Directors finalized a settlement with Joseph F. Silek, Jr. as it pertains to the property known as the “Royal Lane Workforce Housing”. The EDA is committed to resolving legal matters through constructive dialog and negotiation if possible. The Board of Directors appreciates the cooperation of Mr. Silek. With this matter resolved, the EDA looks forward to the future.

Security Agreement with First Bank & Trust: Executive Director Doug Parsons and the Board of Directors appreciates the positive relationship the EDA has with First Bank & Trust. They are an important partner in the good work the EDA is doing to bring jobs and economic development to the Front Royal Warren County area.

This resolution is a companion to a Forbearance/Extension agreement the Board passed in December 2019. These actions will save the taxpayers $67,843.46 per year in debt service. This action is part of a strategy to improve the overall financial situation of the EDA and be a responsible steward of the taxpayer’s money.

The Board of Directors will have a special board meeting Friday, April 10 at 8 a.m. The Board of Directors will have a regular board meeting on Friday, April 24 at 8 a.m.

EDA files second civil suit against 9 new real estate-involved defendants