HomeMy WebLinkAbout99-05•
Ordinance 99-5
UDAG Loan to the Friends of the Theatre, Ltd.
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Adopted: April 6, 1999
Effective: April 6, 1999
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ORDINANCE 99-5
UDAG LOAN TO THE FRIENDS OF THE PULASKI THEATRE, LTD
In order to promote the Town of Pulaski and increase the cultural and educational
opportunities of its citizens, the Town Council has agreed to loan the Friends of the Pulaski
Theatre, Ltd. $150,000 towazd the hard costs of the renovation of the Pulaski Theatre. This loan
is subject to the following conditions:
1. The Town shall loan these funds from its UDAG fund and not from general fund
monies.
2. The interest rate on this loan shall be below prime. The repayment of this loan shall
be secured by a first deed of trust lien on the "Old Southwest Times Building," and being that
property conveyed from Dr. Nathaniel R Tuck and Barbara Z. Tuck, husband and wife, to the
Friends of the Pulaski Theatre, LTD, by deed dated Jtme 19, 1998 and recorded in the Clerk's
Office of the Circuit Court of Pulaski Couaty in Deed Book 620, page 820. The Town shall be
listed as mortgagce on the hazard insurance policy insuring this property.
• 3. The Town agrees to defer principal and interest payments on this loan so long as the
Town feels that the Friends are successfully anal demonstratively progressing toward renovation
of the Theatre and creation of their program within a reasonable period of time.
4. The Town may forgive this loan in the firture if the Town in its discretion decides that
the Friends have completed their fundraising and renovation, opcncd the threatre and related
builidings, and begun operating as a cultural and educational center.
5. The Town shall by an appropriate written agreement lease the former Edmonds
Printing building to the Friends, with permission to the Friends to improve this building so it may
be used as a staging area. If the Friends aze successful, as outlined in paragaph 4 above, the
Town may donate this building to the Friends. Any such deed of conveyance shall contain a right
of reversion allowing the Town to regain ownership of this building if the Friends do not
succeed.
b. Council authorizes the Town Manager to negotiate the precise terms of the loan and
lease authorized in this ordinance.
7. This loan is contingent upon the Friends receiving a co~emporaneous matching loan
in the amount of $150,000 from First American Bank or some other lender.
This ordinance is effective upon adoption and is adopted by recorded vote of the Town
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Council of the Town of Pulaski, Virginia, on the 6th
follows:
day of April
1999, as
James M. Neblett Aye W, g~ Hale No
Lane R Penn ~_ Joseph L. Weddle ~~
Jeffrey S. Worrell A ~~ PauEine G. Mitchell ~_
Bettye H. Steger eve Charles W. Stewart, Jr. A~,p
TOWN OF PULASKI, VIRGINIA
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Job~n A. Jo on, Mayor
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Attest:
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Clerk of CouncIl
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I, Patricia Pendergrast, Clerk of Council of the Town of Pulaski, Virginia do hereby
certify that the foregoing Ordinance No. 99-5, UDAG loan to the Friends of the Pulaski
Theatre, Ltd. is a true and correct copy of the Ordinance set out and adopted by the
recorded vote of the Town Council on the 6~' day of April, 1999.
Patricia Pendergrast, Cler Council
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