Now County Overseen EDA Prepares for Property Sales and Works Toward Renewed Economic Development Initiatives

Before adjourning to Closed Session on pending legal matters at its regular meeting of Friday morning, January 23rd, the now Warren County overseen Economic Development Authority (EDA, WC EDA, FR-WC EDA) discussed the dynamics of several pending property sales as part of its Action Items. Those Action Agenda items were:

7-A. Approval of Resolution Approving Rivermont Acres Contracts of Sale;  and

7-B. Approval of Resolution Approving Revised Memoranda of Understanding with SCCF (Shenandoah Community Capital Fund).

Below are excerpts from the Resolutions the EDA approved by unanimous 4-0 votes on these Action Item matters, first regarding Rivermont Acres:

“WHEREAS, the EDA owns a number of lots of unimproved land located on Rivermont Acres Road in Warren County, Virginia (hereinafter referred to as the “Rivermont Acres Properties”); and

“WHEREAS, contracts for the purchase of certain of the Rivermont Acres Properties have been executed by various purchasers; and …

“1. The EDA Board of Directors does hereby agree to enter into and execute the contracts of purchase for the Rivermont Acres Properties, as identified on Exhibit A to this Resolution, and hereby agrees to enter into an amendment to each such contract of purchase in the form of an Addendum, as identified as Exhibit B to this Resolution, and which subjects the sale and conveyance of the Rivermont Acres Properties to notice and regulatory approval requirements that must be satisfied as a conditions precedent before any of the Rivermont Acres Properties subject to this Resolution may be conveyed and …

“2. The EDA Board of Directors authorizes its Chair and Secretary to execute on behalf of the EDA the contracts of purchase and corresponding addenda, and the Secretary is authorized and directed to affix or to cause to be affixed the seal of the EDA to same.”

Of the second Action Item matter it was resolved that:

“WHEREAS, at its meeting on October 24, 2025, the EDA Board approved:

“1. a Memorandum of Understanding with SCCF (Shenandoah Community Capital Fund) to administer a small business loan fund of $330,000, identified as the USDA Intermediary Relending Program (the “IRP Fund”); and

“2. a Memorandum of Understanding with SCCF to administer a small business loan fund of $220,000, identified as the USDA Rural Business Development Grant (the “RBDG Fund”) (collectively referred to as the “SCCF MOUs”); and

“WHEREAS, thereafter the EDA and SCCF identified changes to be made to the SCCF MOUs (referred to hereinafter as the “Revised MOUs”); and

“WHEREAS, the parties have agreed to approve and enter into the Revised MOUs which shall supersede and replace the previously approved SCCF MOUs; and

“NOW, THEREFORE, BE IT RESOLVED THAT:

“1. The EDA Board of Directors does hereby agree to enter into and execute the Revised MOUs, which have been attached to this Resolution and which shall supersede and replace the previously approved SCCF MOUs; and

“2. The EDA Board of Directors authorizes its Chair and Secretary to execute on behalf of the EDA the Revised MOUs, and the Secretary is authorized and directed to affix or to cause to be affixed the seal of the EDA to the Revised MOUs.”

Other Business

In other business, EDA board member Bruce Townshend was appointed to take on the role of Treasurer through June 30, the end of the fiscal year, in the wake of the death of board member Dave McDermott. McDermott was remembered fondly by his colleagues for his work on the EDA board.

From left, EDA Board members James Fox, Robert Cullers, Chairman Rob MacDougall, and newly appointed Treasurer Bruce Townshend. Royal Examiner Photos Roger Bianchini

It was noted by remotely connected EDA counsel Rodney Young of the Timberlake Smith firm that the EDA Board of DirectorsTreasurer’s role was especially challenging due to the lack of support staff.

And speaking of support staff, current Front Royal Town Manager Joe Petty was present for the meeting. Petty is a former Executive Director of the Front Royal-Warren County Economic Development Authority on the County side in the aftermath of the “EDA financial scandal”.

At right, away from the meeting table, former Executive Director of the FR-WC EDA on the county side, Joe Petty. Petty is the current Front Royal Town Manager. There has been recent talk on the County side of reuniting the existing dual County and Town EDAs into one cooperative economic development structure. Might Petty help achieve that? Stay tuned, EDA drama fans.

As usual, the board received Executive and Asset Committee updates among its agenda items.

After a 5-minute recess, at 9 a.m., an hour into the 8 a.m. meeting, the board adjourned to Closed Session to discuss the status of some pending legal matters.

Closed Session variables

One of those legal matters was a legal staff review of “Curt” Tran and his ITFederal Company’s appeal of the lower court ruling against him in the Lewisburg Way transaction. In fact, a related legal matter involving Tran was another of the Closed Session items. The agenda packet motion into Closed Session on that topic said this:

“Motion to convene in closed session pursuant to Virginia Code section 2.2-3711(A)(7) to consult with legal counsel regarding probable litigation relating to the collection of judgments against Curt Tran and IT Federal, where such consultation in open meeting would adversely affect the negotiating or litigating posture of the EDA.”

The other pre-scheduled Closed Session topic was a now familiar one related to settling EDA “financial scandal” debts with involved banks and the Town of Front Royal. The Town was, at that time, circa 2014-2018, a joint partner with Warren County on EDA operations as the “financial scandal” evolved. As Royal Examiner readers will recall, then EDA Executive Director Jennifer McDonald is now imprisoned on over 30 criminal convictions in federal court in Harrisonburg related to the unauthorized movement of EDA assets to the personal gain of her and others. It appears that Tran and his ITFederal company are believed by the EDA and its involved “financial scandal” legal team from Sands Anderson to have received a $10-million dollar developmental loan from a bank through the EDA for a portion of the former Avtex Superfund site under false pretenses.

The Closed Session motion on the FR-WC EDA’s ongoing efforts to settle its debts to the banks that made loans to the EDA to forward to Avtex redevelopment clients reads this way:

“Discussions Relating to Proposed Settlement Between United Bank, FB&T (First Bank & Trust), the Town of Front Royal, and the EDA Motion to convene in closed session pursuant to Virginia Code section 2.2-3711(A)(8) to consult with legal counsel regarding ongoing negotiations relating to the proposed Term Sheet to resolve matters between United Bank, FB&T, the Town of Front Royal, and the EDA and pursuant to Virginia Code section 2.2-3711(A)(7) to consult with legal counsel regarding probable litigation relating to same, where such consultation in open meeting would adversely affect the negotiating or litigating posture of the EDA.”

And so it goes on the County side of the EDA effort to resolve its financial situation related to the 2014-2018 “EDA financial scandal” and continue work towards fostering positive economic development in the Warren County/Front Royal community.