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HomeMy WebLinkAbout09-26-908816 September 26, 1990 Minutes of the special meeting of the Pulaski Town Council held September 26, 1990, at 4:00 p.m. in the Council Chambers in the Municipal Building. There were present: Vice Mayor James R. Neighbors, presiding Council Members: Charles D. Crispin, Mary Lou Copenhaver, Andrew L. Graham, Alma H. Holston, Robert N. Glenn Also Present: Frank Terwilliger, Town Attorney Don E. Holycross, Town Manager Robert J. Lyons, Asst. to the Town Manager Ruth A. Harrell, Clerk Visitors: Dee Ann Lindsey and Paul Dellinger - News Media Mr. and Mrs. Claud Kirkland The Invocation was given by Councilman Crispin. ORDINANCE - Vice Mayor Neighbors stated the purpose of this special meeting was P.ENFRO to consider an Ordinance related to the closing on the Renfro property on Bob White Blvd. Mr. Terwilliger stated this ordinance would authorize the execution by the Mayor and Town Manager of documents, particularly the deed of trust, which was before Council. This is the Renfro project on Bob White Blvd. Under our agreement, we have a commitment to lease this property to Renfro for a period of 59 months, starting with the time t project is completed. Council has concurred in the issuance of Industrial Development Bonds issued by Pulaski County Industrial Development Authority. Bonds are being secured by a letter of credit from Sovran Bank. Sovran Bank, in turn, will have a lien on the entire project which would necessitate the Town giving them the lien on the real estate. Mr. Terwilliger stated that in accordance with our original agreement, we are committing $300,000 to buy the property and this was the extent of the Town's obligation, from UDAG funding. Reading from Section 30, Mr. Terwilliger stated the Bond Trustee, the Credit Institution and Issuer acknowledge that the obligations hereunder shall be nonrecourse as to the Town. In the event of a foreclosure or deed in lieu of foreclosure hereunder, the liability of the Town shall be limited to the value of the Land, and the Bond Trustee and the Credit Institution shall not look to the Town for the collection of any deficiency due. The lease agreement calls for Renfro to pay rent to the IDA and also pays a separate rent to the Town. Councilman Glenn made a motion that reading of the ordinance be waived, seconded by Councilwoman Holston and carried. September 26, 1990 8817 Councilman Glenn made a motion that ordinance be adopted, seconded by Councilwoman Holston and carried on the following recorded vote: ORDINANCE Charles D. Crispin - Aye Andrew L. Graham - Aye ADOPTED J. R. Schrader, Jr. - Absent W. H. Schrader, Jr. - Absent Mary Lou Copenhaver - Aye Alma H. Holston - Aye James R. Neighbors - Aye Robert N. Glenn - Aye ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PULASKI, VIRGINIA WHEREAS, pursuant to a Lease Agreement dated December 10, 1989, (the "Lease") among the Town of Pulaski, Virginia (the "Town"), the Industrial Development Authority of Pulaski County, Virginia (the "Issuer") and Renfro Corporation, a North Carolina corporation (the "Lessee"), the Town will lease to the Lessee a parcel of land owned by the Town (the Land"); WHEREAS, THE Issuer will issue its $2,700,000 Floating Rate Demand Revenue Bond (Bob White Boulevard Project) Series 1990 dated September 1, 1990 (the "Bond") to finance the construction and equipping of a manufacturing facility (the "Project") on the Land, which Project will also be leased to the Lessee pursuant to the Lease; WHEREAS, to secure the Bond and the Issuer's corresponding obligations under a Letter of Credit Reimbursement Agreement dated as of September 1, 1990 (the "Reimbursement Agreement) between the Issuer and Sovran Bank, N.A. (the "Credit Institution"), the Town and Issuer wishR to grant a lien on and security interest in the Land and the Project; NOW, THEREFORE, BE IT ENACTED BY THE TOWN COUNCIL OF THE TOWN OF PULASKI, VIRGINIA: 1. The Town agrees to grant a lien on the Land to secure the Bond and the Issuer's obligations under the Reimbursement Agreement pursuant to Credit Line Deed of Trust dated as of September 1, 1990 (the "Deed of Trust") between the Town and the Issuer, as grantors, the individual trustees named therein, Sovran Bank, N.A., as Trustee, and the Credit Institution. 2. The Deed of Trust is hereby approved in substantially the form submitted to this meeting, with such changes, insertions or omissions (including, without limitation, changes of the dates thereof} as may be approved by the Mayor or the Town Manager, whose approval shall be evidenced conclusively by the execution and delivery of the Deed of Trust. 3. The execution, delivery and performance by the Town of the Deed of Trust are authorized. 4. The Mayor and the Town Manager of the Town are each authorized to execute the Deed of Trust on behalf of the Town, and, if required, the Clerk of the Town Council is authorized to affix the seal of the Town to the Deed of Trust and to attest such seal. Each officer of the Town is authorized to execute and deliver on behalf of the Town such instruments, documents or certificates, and to do and perform such things and acts, as he or she shall deem necessary or appropriate to . carry out the transactions authorized by this Ordinance or contemplated 8818 September 26, 1990 by the Deed of Trust or such instruments, documents or certificates. All of the foregoing, previously done or performed by the officers of the Town, including the execution of the Lease, are in all respects approved, ratified and confirmed. 5. All other acts of the officers of the Town that are in conformity with the purposes and intent of this Ordinance, whether such acts occurred before or occur after the enactment of this Ordinance, are hereby ratified, approved and confirmed. 6. This Ordinance shall take effect immediately upon its enactment. ENACTED: September 26, 1990 At 4:28 p.m., Councilwoman Holston made a motion that Council adjourn, seconded by Councilman Crispin and carried. APPROVED: K ~-- VICE YO Attest: ~• C erk of Council WAIVER OF NOTICE OF SPECIAL MEETING We, the undersigned, duly elected members of the Council of the Town of Pulaski, Virginia, hereby waive notice of a Special Meeting of said Council at 4:00 p.m. on the 26th day of September, 1990, for the purpose of considering adoption of resolution related to the closing on Renf property. WITNESS, our signatures.-. this 26th day of September, 1990.