WC EDA moves forward with bank refinancing, welcomes Joe Petty to directorship

The Board of Directors of the Front Royal and Warren County Economic Development Authority held a special meeting on February 4th, 2022, via Zoom. The meeting was authorized under Governor Northam’s executive mandate for the health emergency.

The Board adopted a resolution reapproving an agreement that:

• consolidates the First Bank of Strasburg loan into the existing First Bank and Trust loan and restructures the FB&T loan, and,
• extends the term and reduces the rate on the IT Federal loan while leaving the Town of Front Royal support arrangement unchanged.

The Warren County Board of Supervisors approved the agreement at the February 1st Board of Supervisors meeting.

In other business, James Wolfe, Treasurer updated the board on the final transfer of fiscal responsibility to Warren County. Mr. Wolfe updated the Board on the budget process for 2022/23. The draft budget will be approved by the EDA board and presented in April to the Board of Supervisors for review and approval.

Board members welcomed Joe Petty as the new Front Royal Warren County Economic Development Executive Director. Mr. Petty will continue his duties as the Interim Planning Director until his replacement is hired. Mr. Petty is a life-long resident of Warren County and brings many skills to the position.

Here is the resolution adopted.

RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA RELATING TO THE FIRST BANK AND TRUST COMPANY LOAN REFINANCING

WHEREAS, the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (the “Authority”) has previously accepted a Term Sheet dated August 19, 2021, (the “Term Sheet”) from First Bank and Trust Company (the “Lender”) with respect to proposed modifications to three existing Lender loans to the Authority as described therein (collectively, the “Loan Refinancing”);

WHEREAS, the Authority approved the Term Sheet originally at its August 27, 2021 meeting, and subsequently reapproved the same at its September 24, 2021 meeting and desires to reaffirm and approve the Term Sheet at this meeting;

WHEREAS, there have been modifications made to the documents relating to the Loan Refinancing since such prior approvals, copies of which have been presented to the Authority in substantially final form, including but not limited to the Loan Agreement, the Support Agreement and the Deed of Trust (collectively, along with related closing documents and certificates, the “Refinancing Documents”);

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE TOWN OF FRONT ROYAL AND THE COUNTY OF WARREN, VIRGINIA AS FOLLOWS:

1. It is hereby determined to be in the best interests of the Authority to proceed to consummate and settle the Loan Refinancing upon substantially the terms and conditions described in the Term Sheet and as reflected in the Refinancing Documents.

2. The Chairman or Vice-Chairman of the Authority (hereinafter the “Chairman”), either of whom may act, and the Secretary are hereby authorized and directed to execute and deliver such documents and take such actions as may be necessary or appropriate in order to consummate and settle the Loan Refinancing upon substantially the terms and conditions described in the Term Sheet, and as reflected in the Refinancing Documents.

3. The Secretary or any Assistant Secretary of the Authority, either of whom may act, is hereby authorized and directed to affix the seal of the Authority to such Refinancing Documents as may require a corporate seal and to attest to such seal.

4. All Refinancing Documents shall be prepared or reviewed and approved by the Authority’s outside counsel, and shall include such completions, insertions or changes not inconsistent with this Resolution as may be approved by the Chairman and Secretary of the Authority, in their sole discretion, in consultation which such counsel. The execution and delivery of the Refinancing Documents by the Chairman and Secretary of the Authority shall constitute conclusive evidence of their approval of such completions, insertions or changes.

5. The Chairman or Vice-Chairman and Secretary are authorized to sign an extension or extensions of the loan until the refinancing is completed.

6. This Resolution shall take effect immediately.

Warren County appoints Planning Director Joe Petty to direct its EDA from in house