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United Bank Loan for Police Department Headquarters Saves Town Citizens Over One Million Dollars
Front Royal, VA— 10/6/20 — The Town of Front Royal Town Council has approved a loan with United Bank forthe Front Royal Police Department headquarters. Based on a tax-exempt fixed rate of 1.87%, the loan savesFront Royal citizens over one million dollars from what the previous Town Council nearly settled on.Additionally, the loan has no origination cost or fees, saving the Town taxpayers another $400,000 to $800,000.The Town started direct negotiations with United Bank, who holds the unsecured construction loan with theEDA, on August 25, 2020 after the Warren County Board of Supervisors failed to formally respond to a Letter ofIntent dated August 3, 2020. The Letter of Intent outlined the basic terms and conditions of an understandingunder which the Town and the County would not only reorganize the EDA but address the pending litigationfiled by the Town against the EDA.
Matthew Tederick, Front Royal’s Interim Town Manager stated, “ For nearly two years, the Town has repeatedlytaken the position that it would pay the costs associated with the construction of the Police DepartmentHeadquarters lawfully approved by Town Council. This was explained to the EDA and the County Board ofSupervisors countless times. Working through this process has been difficult and the Town has been flying blind,without any real reliable guidance. In the wake of Jennifer McDonald’s alleged embezzlement and theft, theEDA has not had an official audit for two years now. It is simply impossible without audited financials for theTown to accept the accuracy of any figures or invoices related to the Police Department Headquarters, LeachRun Parkway or any projects that were handled by the EDA while Jennifer McDonald was Executive Director.The loan amount of $8,483,001.15 consists of the actual costs incurred during the construction of the PoliceDepartment and October’s principal and interest payment for the EDA’s loan, which will be added to the debtthe EDA owes the Town. The bottom line is that the Town has received fantastic terms, saving the Towntaxpayers well over $1 million, and has resolved an issue that has been plaguing the community for almost twoyears and been made the subject of two separate lawsuits.”
Tederick concluded, “A tremendous amount of credit belongs to the current Front Royal Town Council. For wellover a year they stood firm for the taxpayers of Front Royal, demanding not only justice for those who stoletaxpayer dollars but refused to pay unauthorized EDA expenditures. Lastly, on behalf of the Front Royal TownCouncil I would like to thank United Bank who spent countless hours working with the Town and ultimatelydemonstrating great flexibility in these fantastic loan terms.”