Front Royal Land Auction Recoups $1.65 Million from Failed ITFederal Data Center Project Debt
A 30-acre parcel at the former Avtex Superfund site in Front Royal, Virginia, previously intended for an unrealized ITFederal data center, was auctioned for $1.65 million. The auction aimed to partially settle a $10 million debt owed by the Front Royal-Warren County Economic Development Authority. A legal challenge to the auction's legality was unsuccessful.
A 30-acre parcel, including a 9,768 square-foot office building, at the former Avtex Superfund site in Front Royal, Virginia, was successfully auctioned on August 12 for $1,650,000. The purchaser was Jim Weber, representing Segmental Wall Specialists, though he did not disclose specific plans for the property. This auction aimed to partially settle a $10-million debt incurred by the Front Royal-Warren County Economic Development Authority (FR-WC EDA) through a loan from First Bank & Trust.
The debt originated from a loan intended to facilitate the now-unrealized ITFederal mega-development, a data center project planned for the site. The loan and associated financial activities occurred during the period leading up to the FR-WC EDA's "financial scandal." The property, located in Warren County, is zoned MCD (Mixed-Use Corridor District), offering flexibility for various developments including corporate campuses, light industrial, and mixed-use.
Despite the auction proceeding, ITFederal and its principal, Truc 'Curt' Tran, had reportedly ceased loan payments to the EDA. Tran had indicated a legal challenge regarding the auction's legality, which is believed to have been filed in court shortly before the auction. However, the successful completion of the auction suggests that any such legal challenge was ultimately unsuccessful.