Warren County Report

April 2, 2010

EDA approves pending solar field lease at Avtex

Economic development cited as key in 40-acre lease-sale proposal

By Roger Bianchini

Is a small, rural Virginia town poised t take a lead position in a U.S. move toward increasing reliance on solar power-and bring the troubled 70-year story of what was the nation's largest environmental disaster Superfund site to a happy and green ending?

On March26, the Front Royal -Warren County Economic Development unanimously approved the terms of lease and purchase agreement on approximately 40 acres (in two phases) of what is envisioned as a 150-acre business park on reclaimed land at the Royal Phoenix site in the Town of Front Royal, some 67 miles west of Washington D.C.  The lease is tentative pending approval by the U.S. Environmental Protection Agency and FMC Corporation.

EPA is the overseer of over $26 million in federally funded cleanup of the site, which covers a total of some 467 acres, or about 10 percent of the land in the small, rural, northwestern Virginia Town of about 13,000.  FMC is a federally-mandated cleanup partner and the lone surviving of three owners of the former rayon and synthetic fibers manufacturing plant opened in 1940 by American Viscose Corporation, a subsidiary of a British manufacturing company preparing for war.

After 49 years as its community's major employer and economic engine, and a major material contributor to the Allied effort in World War II, the then Avtex Fibers plant was closed down in 1989 by Virginia Attorney General Mary Sue Terry for ongoing violations of the state's water control standards.

In June of 2009 principals of SolAVerde Inc. proposed development of what could eventually be a 100 to 150 megawatt solar field on one or more sites in Front Royal.  But negotiations stalled as an initially envisioned $ 211 million private sector start-up investment morphed into a request by SolAVerde partners for an up- front $18 million investment on a 14-year pre-purchase of solar power from the project by the town.

But with other investment options being explored, including a potential, private sector partnership between SolAVerde/Standard Energy and AMP-Ohio (American Municipal Power), things appear to be regaining momentum.  AMP-Ohio is a municipal energy consortium Front Royal joined three years ago.

Former Front Royal Mayor James Eastham, now a town appointee to the EDA board of directors, made the March 26 motion to approve a lease-purchase agreement on 40.6 acres of the 150-acres Royal Phoenix business park.

Afterwards he said, " The EDA doesn't want to be an impediment in the process of this proposed use of the entire 150-acre business park side of Royal Phoenix.  The EDA is about creating jobs and this is a step in that direction."

Long-time EDA board member William "Billy" Biggs, who seconded Eastham's motion approving the lease-purchase arrangement on the EDA side and whose Old Virginia Plant adjacent to the leased acreage has been discussed as a potential site for the solar panel manufacturing operation, was more pointed.  "This is about jobs, tax base and not throwing up roadblocks to progress," Biggs said.  He declined to elaborate on any potential roadblocks he saw to the process.

While the remaining acreage at the business park has yet to be released, the EDA and 19th Virginia District U. S. representative Frank Wolf are poised to seek a fast track and eased restrictions on uses at the site at a planned March 29 meeting at EDA headquarters at Royal Phoenix adjacent to the involved 26 acres where the first solar field would be developed.  The existing limitations on site uses in covenants created by seven stakeholders, including the town, county, EDA, FMC, Lord Fairfax Water & Soil Authority, and EPA at the remediation process's outset a decade ago, are not an issue for the proposed solar use.  However they are for the EDA's hoped for leasing of space to James Madison University for a satellite campus in the old Avtex Administration Building complex where the EDA is located.

Several hours after the EDA vote approving a pending lease-purchase of the property, this reporter sat down with Front Royal Vice-Mayor Bret Hrbek( Mayor Tewalt was out of town) to discuss the implications of that vote and the status of the solar proposal for Front Royal.