Front Royal Town Council approves $8.4M loan for FRPD headquarters
Based on a tax-exempt fixed rate of 1.87%, the loan saves citizens of Front Royal over $1 million from what the previous Town Council nearly settled on, according to a news release from the Town. In addition, the loan has no origination cost or fees.
According to a news release, the Town began direct negotiations with United Bank on Aug. 25 after the Warren County Board of Supervisors failed to formally respond to a letter of intent dated Aug. 3. The letter of intent outlined the basic terms and conditions of an understanding under which the Town and County would not only reorganize the EDA, but address the pending litigation filed by the Town against the EDA.
Front Royal Interim Town Manager Matthew Tederick noted the process has been difficult and the “Town has been flying blind without any real reliable guidance.” Tederick said since the EDA has not had an official audit in two years, it was “simply impossible without audited financials for the Town to accept the accuracy of any figures or invoices related to the police department headquarters, Leach Run Parkway or any projects handled by the EDA while Jennifer McDonald was executive director.”
The loan amount of $8,483,011.15 consists of costs incurred during the construction of the police headquarters and October’s principal and interest payment of the EDA’s loan, which will be added to the debt the EDA owes the town.
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News_one front royal police department loan, 8.4 million dollar loan, front royal police department headquarters, tax-exempt fixed rate, no origination cost or fees, interim town manager, Matthew Tederick, Front Royal Warren County EDA, United Bank, leach run parkway, Warren County Board of Supervisors, Jennifer McDonald, FRPD