HomeMy WebLinkAbout96-28RESOLUTION NO.96-28
• Resolution Authorizing a Loan Not To Exceed $500,000 In Urban Development Action Grant
Repayment Funds To Assist Pulaski Furniture Corporation In The Purchase of Real Estate at 1201
East Main Street, Pulaski, Virginia, Including a New Roof and the Purchase of Machinery and Tools
to Allow for the Company's Expansion
WHEREAS, Pulaski Furniture Corporation has applied for a U~AG loan, in the amount of $500,000 for
the purchase of real estate at 1201 East Main Street to expand their import/export operations; and
WHEREAS, the project's budget includes:
Budget
Purchase of real estate
New Roof
Machinery and Tools
Total Project
Town's Portion
Amount Term
$975,000 10 years
$175,000 10 years
$350,000 10 years
$1,500,000
$500,000
WHEREAS, Nations Bank will loan Pulaski Furniture Corporation $500,000 and Pulaski Furniture
Corporation will contribute $500,000.
WHEREAS, Pulaski Furniture Corporation's acquisition of the real estate at 1201 East Main Street places
a prominent industrial building back into service and creates new job opportunities for residents.
• WHEREAS, the companies import/export operation is a perfect complement to our Foreign Trade Zone
efforts.
WHEREAS, the Town has available certain Urban Development Action Grant Funds, from repayments 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 Town Council of the Town of Pulaski, Virginia, sitting in
special session on August 2, 1996, that:
Section 1. The amount not to exceed $500,000 from the Urban Development Action Grant Repayment Funds,
be, and hereby is, appropriated for expenditure, to be loaned to Pulaski Furniture Corporation for the purchase
of real estate at 1201 East Main Street including a new roof and for machinery and tools.
Section 2. Said loans are contingent upon the Town having a first deed of trust on the property being
purchased.
Section 3. Due to the Pulaski Furniture Corporation's investment since 1993 of over $14 million in capital
investment and the creation of 260 jobs and the company's future investment of $3 million and 30 new
jobs, a credit of 2.5 percent is being applied to the two-thirds prime rate of 5.5 percent. Thus the lending
rate for this loan over the ten year period will be 3 percent.
• Section 4. The disbursements must substantially be in conformance with the attached budget and in no case
may a category amount be exceeded without the prior approval of Town Council.
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Section 5. In addition to the terms previously mentioned, the burrower agrees to invest a minimum of
$500,000 and obtain a loan from Nations Bank for the sum of $500,000 for this project.
Section 6. The Town Manager and Town Attorney are hereby authorized to draft, approve, and/or execute
appropriate loan documents not inconsistent with the teems of this resolution. Such documentation may
include appropriate provisions for the protection of Town, including but not limited to reservation of the right
of the Town ti~ withhold payment or accelerate the maturity of indebtedness for good cause shown.
Section 7. Nothing contained herein shall be deemed a pledge of the full faith and credit of the Town, nor
shall it create a general obligation of the Town, nor shall any monies be loan from the General Fund of the
Town.
Section 8. This ordinance is effective upon adoption and is adopted by recorded vote of the Town Council of
the Town of Pulaski, Virginia, on this 2ND day of August 1996 as follows:
John Johnston Aye
Lane R. Penn AYe
Bettye H. Steger Aye
W. H. Schrader, Jr. Absent
Attest:
Ruth A. Harrell, Clerk of Council
W. Edgar Hale A-~
James M. Neblett Aye
Pauline G. Mitchell Absent
Charles W. Stewart Ate!
TOWN O PU ASKI, VIR I IA
By:
Andrew L. Graham, Mayor
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