Back when Stonewall Jackson Resort and Stonewall Jackson Lake State Park were being developed, the authority loaned the state Division of Natural Resources $5.2 million for park improvements.
As previously reported, recent audits have noted that the bonds issued to help finance the resort have been in default since 2006. (Stonewall Jackson Resort continues to operate.)
"Although these bonds do not represent a liability for the authority or the state of West Virginia," the default "does inject uncertainty on the future repayment of the authority's direct loan," the audit said.
Asked what event could occur or what milestone would result in the authority writing off the loan, Warner said, "The authority has voluntarily written down $1 million of the loan each of the last three years. It is reduced by $3 million on our books at this point.
"Our writing off for our financial reporting doesn't mean we couldn't collect it" if the resort's financial situation improves, Warner said.
Another portion of the audit discusses the West Virginia Enterprise Advancement Corp., an affiliate of the authority that was established by the Legislature 10 years ago.
It was created at the request of then-Gov. Bob Wise to take $25 million from state general revenue to invest in venture capital companies.
The venture capital companies, in turn, invested in startups and other enterprises that posed high risks and potential high rates of return.
Last year's audit showed that the venture capital program had lost $20.8 million. This year's report estimates the program's losses at $18.9 million. Some remaining investments still have a chance to make money.
The most recent report estimates that $4 million investments in Anthem Capital, Toucan Capital Fund II and Walker Investment Fund each now have a fair market value of zero.
A $4 million investment in Mountaineer Capital is estimated to be worth $2.1 million. A $4 million investment in Adena Ventures has an estimated fair market value of $1 million.
Also, a $3.5 million investment in Novitas has an estimated fair market value of $1.8 million and a $622,580 investment in Innova is now estimated to be worth $329,000.
Questions about the financial report or requests for additional information should be addressed to the West Virginia Economic Development Authority at NorthGate Business Park, 160 Association Drive, Charleston, WV 25311.
Contact writer George Hohmann at busin...@dailymail.com or 304-348-4836.