West Main Street Extension Funding

Funding for West Main Street is in question. Due to the recent EDA problems, the Town of Front Royal may be holding the bag. Town Engineer Robert Brown briefed the Council at the April 15th work session.

Here’s the background:

• 2016 – At the suggestion of the EDA, the town agreed to build the first phase of the Main Street extension as an access road to the IT Federal lot and applied for an Economic Development Access Grant through VDOT. The grant, in the amount of $650,000 was awarded on the basis of IT Federal’s proposed $40 million-dollar investment and their creation of 600 jobs. The estimated cost of construction for the first phase of Main Street was approximately $800,000. In exchange for the Town also constructing the sewer pump station to serve the northern end of the Royal Phoenix site, IT Federal agreed to pay the Town $150,000, essentially covering the remaining cost of the road construction.
• 2018 – Bids for the construction of Main Street came in higher than estimated, with the low bid coming in at nearly $1.1 million. Subtracting the expected funding from VDOT and contribution from IT Federal, the Town expected to pay approximately $300,000 toward the construction of the roadway.
• 2019 – Given the current uncertainty around IT Federal’s construction plans and their public statements which seem to indicate a drastic reduction in their proposed investment, it is equally uncertain whether the Town will qualify for any reimbursement from VDOT or receive compensation from IT Federal.

Royal Examiner’s camera was there. Watch the discussion: