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EDA to sue Town of Front Royal

18 September 2020 Front Royal/Warren County News


At a special board meeting Thursday, the Front Royal-Warren County Economic Development Authority (EDA) Board of Directors unanimously approved a resolution to sue the Town of Front Royal.

The EDA is suing the town for the recovery of nearly $9 million in principal and interest on the loans the EDA obtained on behalf of the town to build the new Front Royal Police Station.

The EDA said in a news release that negotiations have been initiated multiple times over the last year to get the Front Royal Town Council to honor its obligations to pay for the police station. The EDA noted that despite promises to secure financing, Town Council has not paid any principal or interest on the loan. As a result of the town’s failure to pay, the EDA and Warren County have been paying monthly construction loans.

“We urge the town council to take immediate action to secure a loan to cover the costs it has incurred on the police station and other projects it has run through EDA,” said the Board of Directors in a news release. “While litigation appears to be the only recourse for the EDA, litigation will only hurt town taxpayers who must fund those costs.”

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