HomeMy WebLinkAbout91-10No. 91-10
TOWN OF PULASKI, VIRGINIA
RESOLUTION COMMITTING A LOAN OF $17,500 IN UDAG FUNDS
TO ASSIST VIRGINIA CHURCH FURNITURE, INC.
WHEREAS, Virginia Church Furniture, Inc., located in the Town of
Pulaski, is a manufacturer of pews, pulpits, chairs, tables, and
other church furniture; and,
WHEREAS, said corporation has approached the Town of Pulaski for
funds to assist in the expansion of its operations and
employment; and,
WHEREAS, a major competitor of Virginia Church Furniture recently
decided to discontinue the manufacture of church furniture; and,
WHEREAS, that competitor was the largest church furniture company
in the United States with annual sales of $12 million; and,
WHEREAS, Virginia Church Furniture is preparing to absorb some of
that abandoned market; and,
WHEREAS, Virginia Church Furniture has recently hired four
additional salespeople and expects them to add as much as
$1,600,000 in sales volume per year; and,
WHEREAS, in order to fill these orders, Virginia Church Furniture
has requested permanent working capital, equipment financing, and
fixed asset improvement financing from Sovran Bank, the Western
Virginia Revolving Loan Fund, and the Town of Pulaski; and,
WHEREAS, Virginia Church Furniture, which has a current local
workforce of Z2 employees, has predicted that with the requested
financing 18 additional jobs will be created over the next ~
years; and,
WHEREAS, the Town has available certain Urban Development Action
Grant funds being repaid by Pulaski Furniture Corporation and
Magnox, Pulaski, Incorporated, and these funds have been
segregated and designated for industrial development purposes.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of
Pulaski, Virginia, sitting in Special Session on April 5, 1991,
that:
Section 1. $17,500 of the Urban Development Action Grant funds
be, and the same hereby are, appropriated for expenditure, to be
loaned to Virginia Church Furniture. Of that amount, $12,500
shall be loaned through the Western Virginia Revolving Loan Fund
and shall serve as the local match for $37,500 in western
Virginia Revolving Loan funds to be loaned to Virginia Church
Furniture; and $5,000 shall be loaned directly to Virginia
Church Furniture through a separate note.
Section 2. Said loans are contingent upon Virginia Church
Furniture securing and receiving 575,000 in related financing
from Sovran Bank and $37,500 in related financing from the
Western Virginia Revolving Loan Fund; and upon Virginia Church
Furniture contributing $20,000 in equity toward the expansion
project.
Section 3. Said loans shall also be contingent upon an agreement
by Virginia Church Furniture to keep its manufacturing facilities
within the Town of Pulaski during the term of said loans.
Section 4. Said loans shall bear an interest rate equivalent to
the interest rate established by the Western Virginia Revolving
Loan Fund and shall have a term not to exceed the term of the
loan from the Western Virginia Revolving Loan Fund.
Section 5. The Town Manager and the Town Attorney are hereby
authorized to draft, approve, and/or execute appropriate loan
documents not inconsistent with the terms of this resolution.
Section 6. This resolution is effective upon adoption and is
adopted by recorded vote of the Town Council of the Town of
Pulaski, Virginia, on this 5th day of April, 1991.
Charles D. Crispin
J. R. Schrader, Jr.
Mary Lou Copenhaver
James R. Neigi~bors
- Aye Andrew L. Graham - Aye
- Aye W. H. Schrader, Jr. -Aye
- Aye Alma H. Holsi:on - Aye
- Aye Robert i~1. G~~enn - Aye
TOWN OF PULASKI, VIRGINIA
By:
Gary C Hancock, Mayor
Attest:
uth A. Harrell
Clerk of Council