Warren County supervisors said Tuesday they want to block the Front Royal-Warren County Economic Development Authority from allowing the EDA’s former executive director to buy back her home.

The EDA took ownership of property at 158 Faith Way, the home of Jennifer McDonald and her husband, Samuel North, on Feb. 5. The EDA took the property as part of a court-ordered civil settlement after McDonald was accused of funneling millions in EDA money through banks and other agencies to conduct unauthorized real estate transactions and other schemes.

The EDA board of directors voted at its March 22 meeting to authorize the transfer of the property back to McDonald and North in exchange for $350,000. The EDA has sold off many of its properties in recent years, including those McDonald purchased with authority money, in an effort to recoup $21 million the agency claims in a civil suit to have lost as a result of her and others’ actions.

EDA board Chairman Jd Walter said by phone Wednesday that he couldn’t comment on the status of the transaction. Walter explained that the transaction is not a “sale.” As part of the judgment, the EDA can take the property but rather than force McDonald and North to leave the residence the EDA can, and did, accept an offer from the couple to convey the deed back to them in exchange for $350,000. Any liens on the property remain, Walter said.

Board of Supervisors Chairwoman Cheryl L. Cullers, Vice Chairman Jerome K. “Jay” Butler and supervisors Vicky L. Cook, Richard A. Jamieson and John W. Stanmeyer said at the work session that the sale took them by surprise, and they would not have sold the property for that price.

“That came as quite a surprise to all of us on the Board of Supervisors and, to say the least, none of us were very happy about it, so I’ve been working with staff today and conversations and I am optimistic that we have derailed that sale and, because that is not something that this Board of Supervisors wanted,” Cullers said, partly reading from a statement. “It is not our intention to give somebody who stole from the people of this community back (the property) and for a lower price than what that property is worth.”

Cullers reiterated her optimism that the property would remain under the county’s ownership. She added that she hopes once the matter is “ironed out,” the property will be sold at fair-market value. Warren County online records show the property was last assessed at $506,700.

Cullers said she read online comments posted with a news article from The Northern Virginia Daily announcing the transaction and apologized that the sale occurred and “disrupted so many people.”

“We were as upset as you are over it ...” Cullers said before giving other supervisors the chance to comment.

Stanmeyer echoed Cullers’ disappointment at the EDA’s action and said he hoped the county could stop the sale.

“We definitely don’t want to let (McDonald) off the hook on this,” Stanmeyer said.

Butler said he felt the same way.

“Until Jennifer McDonald has paid restitution to the county and to the community, you know, I do not support anything that would be, you know, in favor of her at this point and especially the sale of this property,” Butler said. “Just like you said, it came as a surprise to me and it’s definitely something I would have said ‘no’.”

Jamieson said he, too, would not support the sale.

“This is someone who was convicted of crimes of embezzling money from the community,” Jamieson said.

County Administrator Edwin Daley said the county has received approximately $1.5 million of the $9 million judgment against McDonald.

“So she owes $7.5 million yet somebody thinks it’s OK to sell her a house back to her that we took away from her for $350,000,” Jamieson said. “If she even has $350,000, it should be ours. That’s how I feel about that.

“It’s flabbergasting to me,” Jamieson said. “I completely disagree with (the sale) and my request to Chairman Cullers was to reel it back in no matter what.”

Unless there has been a closing on the sale, the transfer is not complete, Jamieson said.

“[I]f she wants to sue us for breach of contract then ... let her scoop up some more money and try to do that,” Jamieson said.

Cook said she supported her fellow supervisors and that she, too, was surprised when she learned of the sale. Cook called the $9 million judgment against McDonald a “cherry deal” considering the county is still paying on the debt. Cook said she hopes the county can stop the transaction.

Daley recommended to the supervisors that they contact and convey their sentiments to each member of the EDA board of directors because the county needs to act soon.

The EDA sued McDonald for $21 million they claimed she took from the authority without authorization for her benefit. The lawsuit filed in March 2019 accused McDonald of using the money to perpetrate schemes mostly involving unauthorized real estate transactions. The EDA lawsuit later included claims that North was involved in one of the schemes. The EDA reached a deal by which McDonald agreed she is liable to the authority for $9 million in exchange for the court dismissing her from the lawsuit.

Juries in separate civil trials in the summer and fall of 2022 found in favor of the authority for some of its claims against North and McDonald’s five remaining co-defendants. Juries awarded approximately $14 million total to the EDA. Some of the co-defendants have paid the EDA settled-upon amounts while four have appealed the jury verdicts to the Virginia Court of Appeals.

She faces sentencing on April 9 in federal court in Harrisonburg after being convicted on 30 counts of wire and bank fraud, money laundering and aggravated identity theft. Federal authorities accused McDonald of taking approximately $5.4 million from the EDA.