New EDA chief responds to Town concerns – ‘It’s just not the case’

Interim Mayor Tederick at head of table leads council through discussion of ending the Town’s relationship with the existing EDA. It was an idea that quickly gained steam with council’s younger and less-tenured members. Royal Examiner File Photos/Roger Bianchini

During recent discussion of the Town’s economic development future it was commented that the myriad legal issues the EDA is currently facing may be occupying an undue amount of its staff’s attention, leaving little time for proactive economic development initiatives. The observation appeared to be in support of the idea the Town should pursue creation of its own EDA, severing all ties to the existing Front Royal-Warren County Economic Development Authority that has guided Town and County commercial and industrial growth, maintenance and redevelopment for three-plus decades.

Those legal issues Town officials worry are keeping a new EDA staff from its primary function include the Town’s own civil suit against the EDA to recover “as much as $15 million” in misdirected Town assets from the EDA, in addition to the EDA’s own expanding civil litigation now seeking recovery of $21.3 million from what has now climbed to 10 surviving human defendants and five associated business entities.

The central figure in that EDA civil suit is its former Executive Director Jennifer McDonald, who resigned on December 20, 2018, under increased scrutiny of contracted financial fraud investigators and her own board of directors.

With a contract agreed to in late April, Doug Parsons took over executive leadership of the EDA on May 8. He took the helm from Interim Executive Director John Anzivino with the hope of guiding the Front Royal-Warren County EDA out of the financial scandal that developed over local girl McDonald’s decade of EDA leadership and toward a regained sense of purpose and direction of the EDA’s mission.

Following the September 27 monthly meeting of the EDA Board of Directors we asked Parsons about the concern expressed by Town officials that his and Administrative Assistant Gretchen Henderson’s time was overburdened by legal issues generated during both of their predecessor’s tenures. Henderson began with the EDA two days before Parson’s arrival.

Doug Parsons says the new EDA staff has not lost focus on its primary mission of economic development, retention and expansion.

“I respectfully disagree – it is just not the case,” Parsons replied adding, “We are actively marketing our properties on East Main Street, 404 Fairgrounds Road and 426 Baugh Drive. We’ve had very healthy interest in all our properties.

“We have worked with existing industry on business retention issues to see if we can help them with challenges or opportunities for expansion.

“We have worked with the State Development Officer on several prospects and with the State Site Characterization Program to increase the competitiveness of our sites to others in the state. And I would especially note that we are working to increase the tier rating of the Happy Creek Technology Park,” Parsons said of the 143 acre business park lying mostly inside the town limits.

Parsons noted that two large vacant parcels in that business park lying totally in town have all the infrastructure in place for development and that the EDA is working with the Town on rezoning to industrial to help foster that development.

I guess that’s what contracted law firm Sands Anderson is on board for, to carry the EDA’s litigation ball and allow economic development officials to focus on economic development issues.

Sands-Anderson attorneys Cullen Seltzer and Dan Siegel, at head of table to EDA Board Chair Ed Daley’s right, at the Oct. 4 EDA Special Board Meeting after which $3.7 million and seven defendants were added to the EDA’s civil litigation.

In fact during a break in the EDA board’s October 4 special meeting, Parsons told us he would miss the planned tour of the ITFederal site to make a noon appointment on EDA business.

Parsons pointed out that a majority of the EDAs’ micro loan recipients are small businesses located in town, “So our micro loan program has benefitted town businesses,” he observed of an ongoing relationship.

“So I feel we are working on economic development issues as well as mitigating the troubles of the past,” Parsons said of the EDA’s ongoing positive relationship with the Town of Front Royal.

Parsons concluded his remarks with an invitation.

“The Town of Front Royal has an open invitation to attend our board meetings. So any interested parties, council members or staff, can attend and learn more about our operations and activities,” he said, adding a thank you to two regular Town attendees at the EDA’s monthly 8 a.m. meetings, Town Manager Joe Waltz and Community Development Director Felicia Hart – “I would like to thank Joe Waltz and Felicia Hart and everyone at the Town for their past cooperation on projects.”

The EDA board and staff appear to be working hard to retool and refocus on its primary mission – seems like a good time to bail according to some on town council.

As for the council initiative to sever ties to the existing EDA over the lingering consequences of past misdeeds alleged to have occurred under different leadership, Parsons said, “If they start their own EDA that is entirely their choice. I will respect their decision one way or the other. And I hope to work with them in a spirit of cooperation on the Happy Creek Technology Park and Avtex site.”

Council divided on move toward second, Town-controlled EDA