EDA in Focus
Supervisors explore budget carryover process and new software prior to light meeting agenda – THEN there was the closed session
A Tuesday evening, October 18, work session of the Warren County Board of Supervisors began with Finance Director Matt Robertson’s explanation of his recommendation for a change in how annual budget carryover funds can be handled. The recommendation comes on the heels of some confusion expressed by supervisors in how carryover funds are handled by various departments, particularly in the county public schools budget. However, it did seem that once a Supervisors-School Board Liaison Committee was established to run thru the school system’s budget proposals or requests prior to supervisor meetings, things went smoother in the last weeks of the FY-2022/23 budget process.
But from whichever angle you approach the issue, Robertson hopes the recommended adjustments will answer any questions and pin down a process this board has approved for future carryover funding transfers between fiscal year budgets for departmental and outside agency operational uses. Robertson’s October 18th work session presentation relates directly to the necessity of a public hearing and subsequent board approval of a pending transfer of $2.05 million from the County’s Fiscal Year-2021/22 budget to its current FY-2022/23 budget. Robertson explained those funds were part of a $3.3-million surplus of revenues over expenditures in the FY-2021/22 County budget year.
County Finance Director Matt Robertson explains the proposed budget carryover and use proposal authorization to be put into play next week.
As Robertson told the board, state codes require that budget amendments exceeding 1% of the total projected expenditures in the currently approved budget year require a public hearing allowing citizen input prior to final board action. That public hearing is targeted for October 25.
The balance of the work session was a briefing on use of the County’s new software and the laptop computers supervisors and staff have to access that software.
Other than board and staff reports, the regular meeting convened at 7 p.m. consisted of a seven-item Consent Agenda and an Executive/Closed Session. The Consent Agenda, which included authorization to advertise the above-cited October 25th public hearing on the $2.05-million budget-year transfer, was approved as presented by a unanimous vote. That Special Meeting is slated to begin at 6 p.m. at the Warren County Government Center (WCGC) main meeting room.
“New and exciting information”
When Board Chair Cheryl Cullers asked if the scheduled Closed Session remained necessary, County Administrator Ed Daley responded, “Yes, we (staff) have new and exciting information to present to you.”
‘New and exciting information’ on FR-WC EDA legal affairs was promised by County Administrator Ed Daley, below, when Board Chair Cheryl Cullers, above center, asked if the scheduled Executive/Closed Session was still necessary. But the rest of us will just have to wait to find out exactly HOW ‘new and exciting’ it really was.
The Closed Session topics were: “… the provision of legal advice” regarding the FR-WC EDA and all its various litigations, including its civil suits “vs. Jennifer McDonald et al.” and the dueling civil litigations between “the Town of Front Royal vs. the EDA, et al.” and “the EDA vs. the Town of Front Royal, and other potential claims and litigation relating to other possible liabilities of the EDA, the recovery of EDA funds and assets, and the outstanding indebtedness of the EDA.”
As has been reported by Royal Examiner, in four civil asset-recovery cases tried in July, juries awarded the FR-WC EDA a total of about $14 million. July civil case defendants included Truc “Curt” Tran and ITFederal, Donald Poe and Earth Right Energy, William Lambert, and April Petty. Coupled with an out-of-court civil “no-fault” settlement with former FR-WC EDA Executive Director Jennifer McDonald in which the EDA was awarded an estimated $9 million in real estate assets, among other settlements, the now unilaterally County-directed FR-WC EDA has been awarded, on paper thus far, approximately $23 million of the estimated $26-million allegedly misdirected to personal gain by McDonald and co-conspirators named in the EDA civil litigations related to the 2014/15 to 2018 FR-WC EDA financial scandal. There are several more civil trials looming. Attorneys for the six above-named civil case defendants (including the companies) have all filed motions to overturn the civil case jury verdicts as unsubstantiated by technicalities within civil code law.
On the “outstanding indebtedness” side, as mentioned during the joint Front Royal Town Council/Front Royal EDA (FREDA) meeting on Monday, United Bank has a $10-million claim against the FR-WC EDA. However, questioned about that claim on Wednesday, FR-WC EDA Board of Directors Chairman Jeff Browne explained that there has been no litigation between the FR-WC EDA and any of the three banks it has dealt with in recent years. So, any bank claim has been a mutually agreed upon one involving bank financing of EDA-overseen projects undertaken on behalf of the Town and County governments in recent years.
Among those bank-financed projects was the ITFederal one in town, for which the Town Council authorized provision of a four-month, $10-million “bridge” loan at the request of then EDA Executive Director McDonald. McDonald explained to the then mayor and council, circa 2017/18, that the bank wanted such a gesture to assure that “the community was behind the project” before it agreed to the loan. From information Royal Examiner later obtained by Freedom of Information Act (FOIA) request, concerns about a lack of ITFederal assets to accomplish what it presented may have created the bank’s hesitancy to authorize a $10-million loan for the project. As this reporter recalls, Tran and ITFederal listed assets of about $2,130,000 in its loan application. However, $2.1 million of that number was the publicly estimated value of the 30-acre Royal Phoenix parcel the EDA Board had “sold” to ITFederal for one dollar, ostensibly to “jump start” development at the federally overseen “brownfield” and former Superfund environmental reclamation site.
Another EDA-bank financed project was the $7-million-plus construction loan for the new Front Royal Police Headquarters, across Kendrick Lane from the FR-WC EDA office complex and the Royal Phoenix Business Park, where a lonely, unoccupied building marks the site of the aborted ITFederal project.
Artists rendering of the proposed initial ITFederal bldg. on its 30-acre Avtex lot parcel. Below the finished product with no Town occupancy permit, alone and abandoned as a final resolution of the July civil liability case verdict, and a defense motion to overturn that verdict is awaited.
But as to any “new and exciting information” regarding any of these situations, it is known only to those supervisors and staff behind the closed doors of Tuesday evening’s Executive Session. And they, not even that fly on the WCGC wall I’ve been trying to catch, are talking.
So, while we can’t offer video of that Executive/Closed Session discussion of new developments on the FR-WC EDA legal front, see the two-pronged work session and subsequent regular meeting open session discussions in the County video.
Community Events
Front Royal-Warren County EDA gears up for its Open-Door Business Session: An opportunity to shape Warren County’s future
In an effort to foster regional economic growth, the Front Royal-Warren County Economic Development Authority (EDA) has announced its next Open-Door Business Session. The event is scheduled for Thursday, June 1, from 10:00 am to 12:00 pm at the Warren County Community Center, located at 538 Villa Ave, Front Royal, VA 22630. This event is a part of the EDA’s continuous initiative to strengthen Warren County’s workforce development and enhance the economic prosperity of the region.
The two-hour session will be packed with presentations, open discussions, and plenty of networking opportunities. The main focus of the event will be the exploration of Warren County’s workforce development prospects, overcoming related challenges, and celebrating its successes in economic development. Participants will have a chance to engage in meaningful discussions and network with key players influencing Warren County’s economic landscape.
While pre-registration for the session is not compulsory, the organizers have encouraged interested parties to RSVP by Tuesday, May 30, ensuring they don’t miss out on this influential meeting. Those interested can register via the provided link.
The Front Royal-Warren County EDA is known for its commitment to fostering an environment conducive to economic growth. Hosting these Open-Door Business Sessions, they provide a platform where individuals, businesses, and community members can discuss and strategize on various economic development issues, paving the way for a more prosperous Warren County.
Don’t miss this opportunity to engage with the local community, network with important stakeholders, and directly contribute to the future of Warren County’s economy.
For more information on the event and registration details, visit the REGISTRATION LINK.
EDA in Focus
Front Royal-Warren County EDA holds productive monthly meeting with updates on financial statements and new business
The Front Royal Warren County Economic Development Authority held its monthly meeting on Friday, April 28, 2023, and all seven board members, legal counsel, and the County Director of Economic Development were present. Board Member Bruce Townshend participated remotely. The meeting started with committee reports, and Board Chair Scott Jenkins provided updates on recent meetings and the Avtex Conservancy Property progress.
The Treasurer, Jim Wolfe, and the Director of Economic Development, Joe Petty, gave an update on the EDA financial statements, and Mr. Wolfe provided a review of the recent kick-off meeting for the Small Business Loan Committee and proposed next steps for the committee. The next Open-Door Business Session, which is rescheduled to June 1, will focus on the workforce, with more details to come.
Under new business, Mr. Petty provided an update on the draft EDA & County MOU, which updates the existing fiscal agent agreement to include current and future operational support between the two organizations. The board then held a closed session to discuss the potential disposition of real property to business prospects and legal consultation on active litigation.
Following the closed session, the board approved two motions. The first granted permission for Laurel Ridge Community College to temporarily utilize the parking lot on Kendrick Lane for their CDL class from May 15 to June 30. The second motion asked the County to perform appraisals on EDA-owned properties at 1321 Happy Creek Road and Stephens Industrial Park.
The next regular monthly board meeting will be held on Friday, May 19, 2023, at 8:30 am, at the Warren County Government Center. The meeting was a productive one with important updates on committee reports, financial statements, and new business. The board’s approval of motions to grant permission for Laurel Ridge Community College and perform appraisals on EDA-owned properties demonstrate the board’s commitment to improving economic development in the area. The upcoming Open-Door Business Session in June will also provide opportunities for members of the community to learn about the board’s efforts to improve workforce development.
EDA in Focus
Front Royal-Warren County Economic Development Authority launches USDA Rural Development Loan Program to boost small business growth
On Tuesday, April 25, 2023, the Front Royal-Warren County Economic Development Authority’s Small Business Loan Committee held an informational work session at the Warren County Government Center Caucus Room. The meeting aimed to introduce committee members to each other and to provide an overview of the USDA Rural Development Loan Programs. These programs offer low-interest (1 percent) loans to local lenders who then re-lend to businesses in rural communities in order to improve economic conditions and create jobs. The Loan Committee discussed the next steps during the meeting, including applications, outreach, and review processes.
To qualify for the program, intermediary lenders can be nonprofit corporations, public agencies, cooperatives, and federally-recognized tribes, while individuals, public or private organizations, or other legal entities can apply for intermediary loans as “ultimate recipients” provided they meet certain criteria, such as being U.S. citizens or permanent residents, not owing a delinquent debt to the U.S. Government, and not being able to obtain affordable commercial financing elsewhere. The project must also be located in an eligible rural area, and the applicant must have no influence, legal or financial interest in the work of the intermediary lender.
The Front Royal-Warren County EDA will administer a Revolving Loan Fund (RLF) to provide financial incentives for the expansion of existing local industries or commercial business ventures and for the attraction of new industries or commercial business ventures to Warren County. The RLF will be utilized to ensure that a maximum number of jobs will be created and retained, the local and regional industrial base is broadened, and the Warren County property tax base is broadened. In reviewing the employment impact of the proposed loan, priority will be given to those projects which create (and in some cases retain) jobs that pay a minimum of 1.5 times the federal minimum wage.
Eligible activities include site purchases of industrial land, relocation costs incurred in construction and occupancy of the facility, new construction or rehabilitation of existing buildings, machinery and equipment acquisitions, start-up operating costs, and working capital (capped at 25 percent of total project cost). Eligible applicants are industrial or manufacturing firms where goods are assembled, re-assembled, modified, manufactured, or produced at the job site, wholesale and distribution enterprises, and commercial enterprises that establish new businesses, expand existing businesses, create new jobs or save existing jobs.
Local businesses can benefit from this program as it offers low-interest loans to intermediary lenders who then re-lend to businesses in rural communities. This can help to improve economic conditions and create jobs, while the RLF provides financial incentives for the expansion of existing local industries or commercial business ventures and for the attraction of new industries or commercial business ventures to Warren County.
Watch the meeting on the exclusive Royal Examiner video.
EDA in Focus
Newly aligned County EDA Asset Committee views a path forward at Avtex site among other business recruitment options
The newly aligned County-overseen Front Royal-Warren County Economic Development Authority Asset Committee sat down to establish an overview of the work ahead at a committee meeting officially convened at 3:10 p.m. Thursday afternoon, April 20. Present were the full committee lineup of Jori Martin and new board and committee members Hayden Ashworth and Rob McDougall, along with Warren County Director of Economic Development Joe Petty. Martin chaired the meeting.
The full WC EDA Asset Committee, with new member Hayden Ashworth to acting Chairman Jori Martin’s left. The committee’s other new member Rob McDougall is at near right, with County Director of Economic Development Joe Petty to McDougall’s right. Royal Examiner Photos Roger Bianchini
Following a 20-minute open meeting during which jump-starting the long-dormant development of the 148-acre Avtex/Royal Phoenix business park site, along with development of the larger Conservancy Park area between the business park and Shenandoah River, was a primary topic of conversation, the board adjourned to Closed/Executive Session. The motion into closed session indicated behind-closed-door: “Discussion of disposition of publicly held real property … at Stephens Industrial Park, 1321 Happy Creek Rd., and 400 Kendrick Lane … and legal advice related thereto …”
As it was a committee meeting without the full board, no action or announcements out of closed session were anticipated. However, with concerns expressed by former EDA board Chairman Jeff Browne and former Asset Committee Chairman Greg Harold concerning possible pressure from the board of supervisors in an election year to unload EDA properties to what might not be the best long-term prospects in order to show some immediate EDA revenue recovery, it will be interesting to see how this topic proceeds toward full EDA board consideration and potential action. Browne and Harold’s terms, which expired February 28, were not renewed by the supervisors despite both applying for reappointment.
Dynamics of the two-pronged Avtex properties redevelopment included the possible transfer of ownership of the Conservancy Park property inside the town limits to the County to enable Parks & Recreation Department maintenance and oversight. Having the Town on board with plans for the Conservancy Park area which will connect various in-town locations to foot and non-motorized transportation trails was cited. Also how that transfer of ownership would impact the County financially, and its Parks & Rec Department work and personnel-wise, was broached.
So, what are we working with on this end of town? – Two perspectives of the former federal Superfund/Avtex redevelopment site with the 240-acre Conservancy Park parcel to left between river and railroad tracks in above aerial photo, with planned 148-acre business park in upper right-center. The WC EDA is moving aggressively toward positive movement on both portions of the site. Below, graphic with color portion illustrating low-impact Conservancy Park development. Above that section is b&w rendering of potential development at the business park. Aerial Photos by Roger Bianchini Courtesy of CassAviation and Reggie Cassagnol
Martin also pointed out to her new colleagues that for the most part, related infrastructure at the Avtex site to support development was in place. “So, it would be being able to support these trade sectors that are listed, which is kind of right following the goals that we were looking at as we review the RFI (Request For Information),” Martin said regarding EDA marketing strategies moving forward. “I would suggest that we make it an agenda item for the main (EDA board) meeting, that we put it as a formal item on the agenda and focus on what’s been sent as the draft RFI. It has been reviewed by our attorney. And it has been reviewed by the prior EDA board. And what I’d look for from our next committee meeting that we could come out of that meeting and get a full board vote on support to move this RFI forward.
“And the process of that before it went out would be to get on the agenda for the Town and the County as well, so that they would review the RFI — they would have input into it as well. And then at that point, once all parties weigh in, we would at that point hopefully by June or July, send that RFI out to prospective companies that may want to get a vision plan and development plan for the Avtex site. That’s kind of what I’ve been working on before, the committee had been working on before you came on the board. And that’s where we are,” Martin said in bringing her new colleagues up to date on development prospects, particularly at the long-floundering former federal Superfund and Avtex property redevelopment site.
Aerial photo, pre-ITFederal construction, of the Royal Phoenix Business Park section of the property.
In addition to the “Avtex Redevelopment Site Review”, topics broached in open Asset Committee meeting prior to the closed session included “GO Virginia Grant Opportunities” and a “FR-WC EDA Property Overview”. Martin cited the EDA’s eligibility for grant opportunities due to meeting certain criteria, calling it a “wonderful opportunity” for redevelopment funding assistance at the former Avtex property site, and the recruitment of new business to the community there or elsewhere.
The now fully-manned, seven-member EDA Board of Directors will have its regular monthly meeting this coming Friday morning, April 28, at 8 a.m. at the Warren County Government Center.
EDA in Focus
Warren County Economic Development Authority’s regular meeting agenda revealed for April 28, 2023
The Warren County Government Center’s Caucus Room will be hosting a regular meeting of the Warren County Economic Development Authority on April 28, 2023, at 8:00 am. The meeting is set to commence with a call to order, followed by the adoption of the agenda and approval of the minutes from the previous meeting held on March 25, 2023.
The meeting will then proceed with reports from various committees, including the Executive Committee, Asset Committee, Finance Committee/Budget Update, Board Members Updates, and Warren County Director of Economic Development Update.
The meeting will also feature new business items that include an open-door business session for June, a County Payment Memo, and an EDA & County MOU. The closed session that will follow at 9:00 am will focus on four matters and two matters, where discussions will involve the disposition of publicly held real property and consultation with legal counsel pertaining to actual or probable litigation.
Any additional new business will be discussed before the meeting concludes with an adjournment at 10:00 am. Stay tuned for updates on the outcomes of the Warren County Economic Development Authority’s meeting.
EDA in Focus
FR-WC Economic Development Authority Small Business Loan Committee to hold first meeting: Learn about USDA Rural Development Loan Programs
The Front Royal-Warren County Economic Development Authority (FR-WC EDA) has announced that its Small Business Loan Committee will be holding its first meeting on Tuesday, April 25th, at 2:00 pm in the Warren County Government Center’s Caucus Room. The meeting will provide an opportunity for the committee to get acquainted with each other and learn about the USDA Rural Development Loan Programs. The agenda for the meeting and reference materials from previous years are available for those interested in attending online, and a Teams link will be provided for this purpose.
Some of the FR-WC EDA Board of Directors will also be present at the meeting, and they will be available for discussion and to answer any questions that attendees may have. This meeting is an excellent opportunity for small business owners in the Front Royal-Warren County area to learn about the available loan programs and how they can benefit from them.
The agenda for the meeting includes a call to order at 2:00 pm, followed by welcome and introductions. The committee will receive an overview of the existing loan program and hear from the USDA Rural Development at 2:30 pm. The meeting will then move on to discuss the next steps, including applications, outreach, and the review process. The meeting will conclude at 4:00 pm with a discussion of upcoming meetings.
Small businesses in the Front Royal-Warren County area are encouraged to attend the meeting, as it presents a unique opportunity to learn about the loan programs available to them. The FR-WC EDA is committed to promoting economic development in the area, and this meeting is just one way they are fulfilling that commitment.
Thank You to our Local Business Participants:
