EDA gives ITFederal more time
FRONT ROYAL – ITFederal has received more time to build its planned facility at the old Avtex Fibers site.
The Front Royal-Warren County Economic Development Authority Board of Directors voted at its meeting Friday to extend ITFederal’s deadline in its deed of trust for another year and to reduce the scope of the first phase of its multimillion project.
EDA Executive Director Jennifer McDonald explained that the board decided to extend the time frame on the deed to take into account delays in the permitting process that kept the project from moving forward.
“Well, we had to extend that deadline because it took so long to get those permits so we were past their starting point,” McDonald said.
ITFederal broke ground on the project – a multimillion facility with up to 600 employees – in late October 2015. Efforts to obtain permits met with delays that pushed back construction. The project timeline started when the deed of trust began in September 2015, McDonald said. The EDA didn’t receive the last permit until December 2016, she added. A contractor recently hauled dirt from two county projects to the future site of ITFederal.
“So, in all fairness to ITFederal, we will extend that deadline,” McDonald said.
The board voted to extend the deed of trust to September 2020. ITFederal had until 2019 to make good on its investment. In the deed of trust, the EDA put restrictions on the property purchased by ITFederal that included a minimum investment. ITFederal also must build its project according to the approved site plan.
The 2020 deadline affects ITFederal’s “entire investment,” McDonald said. The investment amount will “come out later,” she added.
“There was never a $40 million investment in the deed of trust so that’s not what we voted on today,” McDonald said. “Each phase had an investment amount so what we voted on today was Phase I-A, extending that initial investment and project footprint for Phase I-A. Now the entire deed of trust had the deadline extended.”
ITFederal originally intended to invest $5 million in Phase I-A, McDonald said. Information on the revised investment total was not available Friday.
Contact staff writer Alex Bridges at 540-465-5137 ext. 125, or email@example.com