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Posted on: October 6, 2020

THE FRONT ROYAL TOWN COUNCIL APPROVES $8.4 MILLION LOAN FOR POLICE DEPARTMENT HEADQUARTERS

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 for
the Front Royal Police Department headquarters. Based on a tax-exempt fixed rate of 1.87%, the loan saves
Front 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 the
EDA, on August 25, 2020 after the Warren County Board of Supervisors failed to formally respond to a Letter of
Intent dated August 3, 2020. The Letter of Intent outlined the basic terms and conditions of an understanding
under which the Town and the County would not only reorganize the EDA but address the pending litigation
filed by the Town against the EDA.


Matthew Tederick, Front Royal’s Interim Town Manager stated, “ For nearly two years, the Town has repeatedly
taken the position that it would pay the costs associated with the construction of the Police Department
Headquarters lawfully approved by Town Council. This was explained to the EDA and the County Board of
Supervisors 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, the
EDA has not had an official audit for two years now. It is 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 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 Police
Department and October’s principal and interest payment for the EDA’s loan, which will be added to the debt
the EDA owes the Town. The bottom line is that the Town has received fantastic terms, saving the Town
taxpayers well over $1 million, and has resolved an issue that has been plaguing the community for almost two
years 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 well
over a year they stood firm for the taxpayers of Front Royal, demanding not only justice for those who stole
taxpayer dollars but refused to pay unauthorized EDA expenditures. Lastly, on behalf of the Front Royal Town
Council I would like to thank United Bank who spent countless hours working with the Town and ultimately
demonstrating great flexibility in these fantastic loan terms.”

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