HomeMy WebLinkAbout97-17• RESOLUTION N0.97-X7
Resolution Authorizing a Loan Not To Exceed $90,000 In Urban Development
Action Grant Repayment Funds To Assist Old Dominion Insurance Services
Incorporated\through ODISI Properties, LLC In The Purchase of Real Estate at X W~
Main Street, Pulaski, Virginia, to Allow for the Company's Continued Operation
and Expansion
WHEREAS, Old Dominion Insurance Services Incorporated through ODISI Properties, LLC
has applied for a UDAG loan, in the amount of $90,000 for the purchase of real estate at 1
Main Street for their business located in the Town of Pulaski; and
WHEREAS, according to the UDAG application, the project's budget includes:
Expense UDAG Community Total
National Bank
Building $81,000 $81,000 $162,000
Improvements $9,000 $9,000 $18,000
Total $90,000 $90,000 $180,000
Furthermore, Old Dominion Insurance Services Incorporated through ODISI Properties, LLC
• will contribute a minimum of $20,000; and
WHEREAS, Old Dominion Insurance Services Incorporated through ODISI Properties, LLC
must comply with this budget, which is part of this resolution; and
WHEREAS, due to the expressed need for the continuation and expansion of Old Dominion
Insurance Services Incorporated in the Town and the desire to have the building at 1 Main
Street in use, Town Council is providing Old Dominion Insurance Services Incorporated
through ODISI Properties, LLC credit far the owner's investment of 10 percent and the Bank's
participation of 45 percent of the. total project cost; and
WHEREAS, the Town has available certain 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 RESOLVED by the Town Council of the Town of Pulaski, Virginia,
sitting in regular session on June 17, 1997, that:
Section 1. The amount not to exceed $90,000 from the Urban Development Action Grant
Repayment Funds, be, and hereby is, appropriated for expenditure, to be loaned to Old Dominion
Insurance Services Incorporated through ODISI Properties, LLC for the purchase of real estate at
1 Main Street for their business located in the Town of Pulaski.
• Section 2. Said loans are contingent upon the Town having a shared first deed of trust on the
property being purchased and all fixtures now owned or hereafter acquired. The deed of trust and
security agreement will equally secure this loan and the Community National Bank loan.
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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 the real estate shall not exceed 15 years.
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.
Section 5. In addition to the terms previously mentioned, the borrower agrees to invest a
minimum of $20,000 and obtain a loan from Community National Bank for the sum of
$90,000.
Section 6. 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, ificluding 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 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 resolution is effective upon adoption and is adopted by recorded vote of the Town
Council of the Town of Pulaski, Virginia, on this 17th. day of June 1997 as follows:
• James M. Neblett Ate- W. Edgar Hale Aye
Lane R. Penn Ave Joseph L. Weddle ~e
Bettye H. Steger Absenti Pauline G. Mitchell Aye
Charles W. Stewart Aye Gerald E. Bolen ~e
TO F P KI VIR INIA
By: w
hn A. Jo on, Mayor
Attest:
fit.
Ru A. Haxrell, Clerk of Coun '
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