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HomeMy WebLinkAbout97-02• RESOLiJT[ON N0.97-2 Resolution Authorizing a Loan Not To Exceed $42,500 In Urban Development Action Grant ([1DAG) Repayment Funds To Assist Thomas C. Wallace and Ima C. Wallace of We Copy, LLC In The Expansion of We Copy's Printing Services and the Establishment of a Full Service Office Supply Center. WHEREAS, Thomas C. Wallace and Ima C. Wallace of We Copy, LLC have applied for a UDAG loan, in the amount of $42,500 for the expansion of We Copy's printing services and the establishment of a full service office supply center located at 67 West Main Street in the Town of Pulaski; and WHEREAS, according to the UDAG application, the project's budget includes: Expense UDAG Community Total National Bank Equipment $22,500 $22,500 $45,000 Office Supply Inventory $10,000 $10,000 $20,000 Delivery Vehicle $6,500 $6,500 $13,000 Building Upgrades $3,500 $3,500 $7,000 Total $42,500 $42,b00 $85,000 Furthermore, Thomas C. Wallace and Ima C. Wallace of We Copy, LLC will contribute a minimum of $30,000; and • WHEREAS, Thomas C. Wallace and Ima C. Wallace of We Copy, LLC must comply with this budget, which is part of this resolution; and WHEREAS, We Copy, LLC has proven, in a short period of time, its commitment to the community to provide professional and reliable copying, printing and office supply services; and WHEREAS, due to the expressed need for a copying, printing and office supply services, Town Council is providing Thomas C. Wallace and Ima C. Wallace of We Copy, LLC credit for the owner's in~restan,eut of 26 Derr-ent and the Bank's participation of 37 percent of the total project cost; and WHEREAS, the Town has available~ertain-Urban Development Action Grant Repayment Funds, 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 B.ESOLVFD by the. Town Council of the Town of Pulaski, Virginia, sitting in regular session on January 21, 1997, that: Section 1. The amount not to exceed $42,500 from the Urban Development Action Grant Repayment Funds, be, and hereby is, appropriated for expenditure, to be loaned to Thomas C. Wallace and Ima C. Wallace of We Copy, LLC for the expansion of We Copy's printing services and the zstahiisiiment of a foil savicE office supply center ioeated at fi 9 Nest Main Street in the Town of Pulaski. Section 2. Said loans are nontingent upon ~ltvmas C. iWaiiace and lma C. Wallace ~f iTdeCopy, LLC securing a loan from Community National Bank in the amount of $42,500 and upon the Town having a shared first deed of trust on one parcel of land with improvements in the Town • of Pulaski and two parcels of land with improvements in the Massie Magisterial District, Pulaski County and rights to all equipment, business inventory, accounts receivable, fixtures and general intangibles now owned or hereafter acquired. The deed of trusts and security agreement will equally secure this loan and the Community National Bank loan. Section 3. The loan shall bear an interest rate of two-thirds of the prime lending rate at the time of loan closing. The term for shall not exceed 7 year. in periodic monthly payments. Section 4. The disbursements must substantially be in conformance with the attached budget. Section 5. In addition to the terms previously mentioned, the borrower agrees to invest a minimum of $30,000 and obtain a loan from Community National Bank for the sum of $42,500. Section 6. Furthermore, an appraisal from a licensed independent appraiser will be required to establish the value of the real estate used for collateral. Section 7. The Town Manager and Town Attorney are hereby authorized to draft, approve, and/or execute appropriate loan documents not inconsistent with the terms of this resolution. Such documentation may include appropriate provisions for the protection of Town, including but not limited to reservation of the right of the Town to withhold payment or accelerate the maturity of indebtedness for good cause shown. • Section 8. Nothing contained herein shall be deemed a pledge of the full faith and credit of the Town, nor shall it create a general obligation of the Town, nor shall any monies be loan from the General Fund of the Town. Section 9. This ordinance is effective upon adoption and is adopted by recorded vote of the Town Council of the Town of Pulaski, Virginia, on this 21st day of January 199? as follows: John A. Johnston AVe W. Edgar Hale Ave Lane R. Penn A h GPn r James Ivi.111eblett Aye Bettye H. Steger Aye Pauline G. Mitchell Aye W. H. Schrader, Jr. Abstain Charles W. Stewart Aye TOWN OF PULASKI, VIRGINIA~j By:~-:/~~~J ~ Andrew L. Graham, Mayor D '0 Attest: Ruth A. Harrell, Clerk of Council • ~NB COMMUNITY NATIONAL BANK January 16, 1997 Ms. Ima C. Wallace Mr. Thomas C. Wallace T/A We Copy, LLC P. O. Box 707 Pulaski, Virginia 24301 Dear Ima and Tom: I am pleased on behalfofGet~it3~ ~iati©nal-$ank to commit to you a loan of • $42,500.00 to buy copying equipment. This loan is to be made in conjunction with a loan in the same amount from the Town of Pulaski from their UDAG funds. The terms and conditions of this commitment are as follows: Borrowers: We Copy, LLC Ima C. Wallace Thomas ~. Wallace Lender and Loan Amount: Community National Bank, $42,500.00 Use of Proceeds: To purchase copying equipment. Interest Rate: The interest an this loan will be an adjustable rate of interest. ThE rate will adjust as the Wall-Street J~al Prime rate changes. The rate will be the Wall Street Journals published Prime Lending Rate plus two (2) percent. The initial rate will be determined at the time of closing and is currently 10.25%. Payment Amount: The payment amount on this loan will be determined by the rate of interest and will be established at closing and daily as the prime rate changes. The payment will be in the amount sufficient to amortize the loan fully in seven years from the original date of the i3ote. -At t13e car~er~t late the payment amount is $713.93. • 900 Memorial Drive Post Office Box 1060 Pulaski, Virginia 24301 (540"994-0831 • Collateral: This loan will be secured by a first deed of trust on one parcel of land with improvements in the Town of Pulaski, two parcels of land with improvements in the Massie Magisterial District, Pulaski County, and additional land and improvements (if necessary) to obtain an 80% loan to value plus all business inventory, equipment, accounts receivable, and general intangibles now owned or hereafter acquired. The collateral will equally secure the CNB loan and the UDAG loan which is being obtained simultaneously from the Town of Pulaski. Appraisal: An appraisal from a licensed independent appraiser will be required to establish the value of the real estate being used as collateral. The combined loan amount both the CNB and the UDAG loans should not exceed 80% of the appraised value. Fees: The Borrowers will pay to the Bank a one time origination fee of one (1) percent of the commitment amount ($425) upon loan closing. All other closing costs and/or charges required to close the loan and to evidence the collateral and properly document the terms and conditions will be paid by the Borrowers. These charges include but are not limited to an appraisal fee, attorney fees, title insurance premiums and recording fees. • Other Conditions: This loan will have a comprehensive loan agreement that describes the complete agreement between the Bank and the Borrowers. In addition to the specific terms included in this letter there will be requirements and/or restrictions that include but may not be limited to: I . Terms of the note, deed of trust, and. other security documents 2. Maintenance of the property 3. Casualty insurance including flood insurance if required 4. Inspection of property and records 5. Payment of taxes 6. Continuation of business, no change in ownership 7. Limits on withdrawals, capital spending, and creation of debt 8. Prompt payment of obligations including loan payments and taxes 9. Other terms and conditions deemed necessary by the Bank Conditional Nature of Commitment: This commitment is conditioned on the Borrowers acquiring a loan from the Town of Pulaski or similar program with terms and conditions satisfactory to the Bank. A further condition is that the Borrowers already have or will invest a minimum of 10% into the overall cost of this project and all costs related to this loan closing. • • For this commitment to be binding the Borrowers must sign below as indicated and return the original letter to the Bank by January 31, 1997. Community National Bank, ~~-~. e ~~ Clinton C. Ison Vice President Agreed and Accepted this /~ ~ day of 3anuary, 1997 By: ~ ~. Lt~ Ima C. Wallace By: ~. • homas C. Wallace LEELTRI.DOC •