HomeMy WebLinkAbout96-21ORDINANCE No. 96-21
Approving Transfer of Real Estate to the Industrial
Development Authority of Pulaski County and Approving
a UDAG Loan of $500,000 for Renfro Expansion
ADOPTED: May 29, 1996
EFFECTIVE: May 29, 1996
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• Ordinance No. 96-21
ORDINANCE APPROVING TRANSFER OF REAL ESTATE
TO THE INDUSTRIAL DEVELOPMENT AUTHORITY OF PULASKI COUNTY
AND
APPROVING A UDAG LOAN OF x500,000.00 FOR RENFRO EXPANSION
WHEREAS, the Town of Pulaski and the County of Pulaski, through the Pulaski
County Industrial Development Authority (the IDA), joined together in a cooperative
effort in 1989 to acquire and develop an industrial site on Route 611 in the Town of
Pulaski for the use of Renfro Corporation; and,
WHEREAS, Renfro Corporation far exceeded all job creation goals and now
desires to expand its facilities and create 250 additional jobs at the same site; and,
WHEREAS, the Town and the IDA have agreed to assist Renfro by restructuring
the existing industrial financing and expanding the Route 611 facility;
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of
Pulaski, Virginia, sitting in Special Session on May 29, 1996, that:
1. The Town Manager is authorized to execute, on behalf of the Town, a Special
• Warranty Deed transferring the Route 611 job site to the IDA, reserving to the
Town the 60 foot right of way previously set out in project documents, easements
for all utilities, and a right of way for possible future widening of Route 611;
2. The Town Finance Director is authorized to accept the sum of $304,337.20
from the IDA, representing reimbursement of the Town's earlier expenditures,
and is directed to redeposit them in the UDAG fund so as to maintain their
separate character from Town general funds;
3. The Town Finance Director is authorized to disburse from UDAG funds, to
the IDA, the sum of five hundred thousand dollars ($500,000.00) as a loan for its
use in expanding the facilities at the Route 611 site, as part of a closing whereby
the IDA executes a loan agreement and deed of trust giving the Town and ICA
an essentially shared third priority lien on the site. Said loan, to be repaid solely
from project revenues, is to be interest free for nine months during construction
and thereafter bear interest at the rate of 7.5%, amortized over fifteen (15) years
but due in full in sixty-nine (69) months, with an interest credit of 0.03% for each
additional job created by Renfro and a one year extension to the IDA if Renfro
does not exercise its option to buy the property.
4. Renfro is authorized to apply all Additional Rent due under the existing
• Renfro lease (approximately $50,000.00) to relocating utility lines and
stormwater drainage control, and the Town Finance Director is authorized to
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make appropriate entries on the Town's records to reflect that fact. Renfro may,
at its option, pay said Additional Rent and be reimbursed by the To~svn or, may
apply said monies directly.
5. The Town Council concurs with the actions of the Industrial Development
Authority of Pulaski County in arranging for $4,400,000.00 in financing from
NationsBank, $700,000.00 from the Virginia Economic Development Revolving
Loan Fund, and a $500,000.00 committment from Pulaski County through the
1DA, and reaffirms that said IDA is authorized and encouraged to undertake
these actions in the Town of Pulaski.
6. The Town Manager is authorized to execute any and alf documents
reasonably necessary to carry out the Town Council's committment to assist
Renfro Corporation in expanding its operations in the Town of Pulaski, Virginia
within the general parameters set forth herein, to allow it to receive industrial
financing in cooperation with the Industrial Development Authority of Pulaski
County.
This Ordinance is effective as of May 29, 1996, and is adopted by duly recorded
vote of the Town Council on May 29, 1996 as follows:
John A. Johnston Aye
• Lane R. Penn Aye
Roy H. D'Ardenne, Jr. Aye
W. H. Schrader, Jr. Aye
W. Edgar Hale Ave
E. G. Black, Jr. Aye
Alma Holston Aye
Bettye H. Steger Ave
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By ~ ~--.
ANDREW L. GRAHAM, Mayor
ATTEST:
Ru h Harrell
Clerk of Council
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I, Ruth A. Harrell, Clerk of the Council of the Town of Pulaski, Virginia, do hereby certify
that the foregoing Ordinance No. 96-21 Approving Transfer of Real Estate to the Industrial
Development Authority of Pulaski County and Approving a UDAG Loan of $500,000 for Renfro
Expansion is a true and correct copy of the Ordinance set out and adopted by the recorded vote
of the Town Council on May 29, 1996.
Ruth A. Harrell, Clerk of Council
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