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HomeMy WebLinkAbout04-05-91. _ -a_ - - -~~.-- 8920 April 5, 1991 Minutes of the special ~aeetinq of the Pulaski Town Council held April 5, 1991, at 7:30 a.m. in the Council Chambers in the Municipal Building. There were present: Mayor Gary C. Hancock, presiding Council Members: Charles D. Crispin, J. R. Schrader, Jr., Mary Lou Copenhaver, James R. Neighbors, Andrew L. Graham, W. H. Schrader, Jr., Alma H. Holston, Robert N. Glenn Also Present: Frank Terwilliger, Town Attorney Don E. Holycross, Town Manager Ruth A. Harrell Clerk Visitors: Dee Lindsey and Paul Dellinger, News Media The Pledge of Allegiance was led by Councilman Glenn. The Invocation was given by Councilman J. R. Schrader, Jr. After the roll call, Vice Mayor Neighbors advised the purpose of the special meeting was to discuss a legal matter in Executive Session. Councilman Glenn so moved that Council go into Executive Session on a legal matter under 2.1-344 A7, seconded by Councilwoman Copenhaver and carried on the following recorded vote: Charles D. Crispin - Aye Andrew L. Graham - Aye J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - Aye Mary Lou Copenhaver - Aye Alma H. Holston - Aye James R. Neighbors - Aye Robert N. Glenn . - Aye At 7:40 a.m., Council went into Executive Session. At 7:55 a.m., Mayor Hancock arrived at meeting. At 8:15 a.m. Council returned to special session and waived reading of the Certification Resolution on motion made by Councilwoman Copenhaver, seconded by Councilman W. H. Schrader and carried. Councilman J. R. Schrader so moved that Certification Resolution be adopted, seconded by Vice Mayor Neighbors and carried on the following recorded vote: CERTIFICATION. Charles D. Crispin - Aye Andrew L. Graham - Aye RESOLUTION J. R. Schrader, Jr. - Aye W. H. S chrader, Jr. - Aye ADOPTED Mary Lou Copenhaver - Aye Alma H. Holston - Aye James R. Neighbors - Aye Robert N. Glenn - Aye Gary C. Hancock - Aye April 5, 1991 8921 CERTIFICATION RESOLUTION Pulaski Town Council WHEREAS, the Pulaski Town Council has convened an executive aeeting on this date pursuant to an affirmation recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and, WHEREAS, S2.1-344.1 of the Code of Virginia requires a~ certification by this Pulaski Town Council that such executive aeeting was conducted in conformity with Virginia law; NOW, THEREFORE, BE IT RESOLVED that the Pulaski Town Council hereby certifies that, to the best of each aember's knowledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification resolution applies, and (iii only such. public business matters as were identified in the notion convening the executive meeting were heard, discussed or considered by the Pulaski Town Council. A resolution committing a loan of $17,500 in UDAG funds to assist Virginia Church Furniture, Inc. was then presented. Mayor Hancock and Councilman Glenn noted for the record that they did not participate in discussion/vote on this resolution. Councilman J. R. Schrader so moved that reading of resolution be waived, seconded by Vice Mayor Neighbors and carried. Councilwoman Holston so moved that resolution be adopted, seconded by Councilwoman Copenhaver and carried on the following recorded vote: VIRGINIA Charles D. Crispin - Aye Andrew L. Graham - Aye FURN. J. R. Schrader, Jr. - Aye W. H. Schrader, Jr. - Aye UDAG Mary Lau Copenhaver - Aye .Alma H. Holston -Aye LOAN James R. Neighbors - Aye Robert N. Glenn r Abstained Town of Pulaski, Virginia No. 91-10 RESOLUTION COMMITTING A LOAN OF $17,500 IN UDAG FUNDS TO ASSIST .VIRGINIA CHURCH~FURNITURE, INC. WHEREAS, Virginia Church Furniture, Inc., located in th"e Town of Pulaski, is a manufacturer of pews, pulpits, chairs, tables, and other church furniture; and, WHEREAS, said corporation has approached the Town of Pulaskf-for funds to assist in the expansion of its operations and employment; and, WHEREAS, a major competitor of Virginia Church Furniture recently decided to discontinue the manufacture of church furniture; and, WHEREAS, that competitor was the largest church furrllture company in the United States with annual sales of $12 million; and, WHEREAS, Virginia Church Furniture is preparing to absorb some of that abandoned market; and, WHEREAS, Virginia Church Furniture, has recently hired four 592, April 5, 1991 additional salespeople and expects them to add as much as $1,600,000 in sales volume per year; and, WHEREAS, in order to fill these orders, Virginia Church Furniture has requested permanent working capital, equipment financing, and fixed asset improvement financing from Sovran Bank, the Western Virginia Revolving Loan Fund, and the Town of Pulaski; and, WHEREAS, Virginia Church Furniture, which has a current local workforce of 22 employees, has predicted that with the requested financing 18 additional jobs will be created over the next 4 years; and, WHEREAS, the Town has available certain Urban Development action Grant funds being repaid by Pulaski Furniture Corporation and Magnox, Pulaski., Incorporated, and these funds have been segregated and designated for industrial development purposes. NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Pulaski, Virginia, sitting in Special Session on April 5, 1991, that, Section 1. $17,500 of the Urban Development action Grant funds be, and the same hereby are, appropriated for expenditure, to be loaned to Virginia Church Furniture. Of that amount, $12,500 shall be loaned through the Western Virginia Revolving Loan Fund and shall serve as the local match for $37,500 in Western Virginia Revolving Loan funds to be loaned to Virginia Church Furniture; and $5,000 shall be loaned directly to Virginia Church Furniture through a separate note. Section 2. Said loans are contingent upon Virginia Church Furniture~aecuring and. receiving $75,000 in related financing from Sovran Bank and $37,500 in related financing from the Western Virginia Revolving Loan Fund; and upon Virginia Church Furniture contributing $20,000 in equity toward the expansion project. Section 3. Said loans shall also be contingent upon an agreement by Virginia Church Furniture to keep its manufacturing facilities withi the Town of Pulaski during the term of said loans. Section 4. Said loans shall bear an interest rate equivalent to the interest rate established by the Western Virginia Revolving Loan Fund and shall have a term not to exceed the term of the loan from the Western Virginia Revolving Loan Fund. Section 5. The Town Manager and the Town Attorney are hereby authorized to draft, approve, and/or execute appropriate loan documents not i>nconsistent with the terms of this resolution. Section 6. This resolution is effective upon adoption and is adopted ~by recorded vote of the Town Council of the Town of Pulaski, Virginia on this 5th day of April, 1991. At 8:17 a.m. Councilman J. R. Schrader made a motion that Council adjourn, seconded by Vice Mayor Neighbors and carried. APPROVED: ~~ ~~ Mayor ATTEST: Clerk of Council