HomeMy WebLinkAbout94-01•
TOWN OF PULASRI, VIRGINIA
RESOLIITION NO. 94-1
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AUTHORIZING A LOAN OF $12,500 IN URBAN DEVELOPMENT ACTION GRANT
REPAYMENT FUNDS TO ASSIST CHARLES G. AND JOYCE D. TRAVIS FOR
WORKING CAPITAL FOR THEIR ORIENTAL RUG AND ACCESSORIES CENTER AT 84
WEST MAIN STREET
WHEREAS, the Pulaski Town Council is committed to the revitaliza-
tion of the Town's historic downtown business district; and,
WHEREAS, Charles G. and Joyce D. Travis have purchased one downtown
building for the purpose of establishing a fine quality handmade
oriental rugs and accessories store and have requested a working
capital loan of $12,500;
WHEREAS, Charles G. and Joyce D. Travis received financial
assistance in the amount of $29,250 from the Town for the purchase
and renovation of an existing commercial building at 84 West Main
Street (Tax Map No. 072-051-B022-028A); and,
WHEREAS, the Town's financing for purchase and renovation was
matched by an equal commitment from NationsBank and a 10%
investment by the prospective buyer; and,
WHEREAS, Charles G. and Joyce D. Travis established an oriental rug
and accessories store as scheduled;
WHEREAS, the Town has available certain Urban Development Action
Grant Repayment funds, being repaid by Pulaski Furniture
Corporation and Magnox-Pulaski, Inc., and these funds have been
segregated and designated for specified activities including
economic development and downtown revitalization.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of
Pulaski, Virginia, sitting in regular session on January 18, 1994
that:
Section 1. The amount of $12,500 from the Urban Development Action
Grant Repayment Funds, be, and hereby is, appropriated for
expenditure, to be loaned directly to Charles G. and Joyce D.
Travis for working capital for the oriental rug and accessories
store 84 West Main Street;
Section 2. Said loans are contingent upon Charles G. and Joyce D.
Travis securing and receiving $12,500 in related financing from
NationsBank and contingent upon the Town having a shared first lien
on the inventory, proceeds, and receivables and a shared second
lien to 84 West Main Street.
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Section 3. Charles G. and Joxce D. Travis shall maintain a minimum
inventory of $25,000 at their store at 84 West Main Street for a
substantial portion of the term of loan even though the inventory
may or may not have been purchased with UDAG funds.
Section 4. The loan in the amount of $12,500, for the working
capital for the store at 84 West Main Street, shall bear an
interest rate of five percent (5%~ per annum and shall be for a
term not to exceed seven years.
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. Nothing contained herein shall be deemed a pledge of
the full faith or credit of the Town, nor shall it create a general
obligation of the Town, nor shall any monies be loaned- from the
General Fund of the Town.
Section 7. This resolution is effective upon adoption and is
hereby adopted this 18th day of January, 1994, by recorded vote of
the Town Council of the Town of Pulaski, as follows:
Charles D. Crispin No Andrew L. Graham Awe
J. R. Schrader, Jr. Aye Elbert G. Black, Jr. Awe
Roy H. D'Ardenne, Jr. ~e Alma H. Holston A~~
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W.H. Schrader ~ Robert N. Glenn ~~P
TOWN OF PULASKI, VIRGINIA
B ~~
Y
Gary Hancoc , Mayor
Attest:
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Ru A. Harre , C er o Counci
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