HomeMy WebLinkAbout05-08-86~,.
(7~.~~.+o May 8, 1986
Minutes of the special meeting of the Pulaski Town Council held May 8, 1986,
at 12:00 p.m., in the Council Chambers in the Municipal Building.
There were present: Mayor Gary C. Hancock, Presiding
Councilmembers: John A. Johnston, Robert N. Glenn, James M. Neblett,
C. E. Boyd, Jr., James R. Neighbors, Ira S. Crawford,
Mary Lou Copenhaver, Glen K. Aust
Also present: Frank Terwilliger, Town Attorney
D. E. McKeever, Town Manager
Anne Burgess, Assistant to the Town Manager
Ruth A. Harrell, Clerk
Visitors: -
The invocation was given by Councilman Johnston.
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 12:00 noon on the $th day of May, 19$6, for the purpose
of discussing a legal matter, and any other business that may legally
come before Council.
WITNESS our signatures this 8th da.y of May, 1986.
The purpose of the special session was go discuss a legal matter.
Councilman Neblett made a motion to go into Executive Session under 2.1-
344 (A6) to discuss a legal matter, seconded by Councilman Crawford and carried.
At 12:04 p.m. Council went into Executive Session.
At 12:39 p.m. Council returned to Special Session, on motion made by
Councilman Neighbors, seconded by Councilman Glenn and carried.
Councilman Crawford made a motion that this Council adopt the ordinance
dated May 8, 1986, authorizing the conditional pledge of certain federal funds
for the benefit of Magnox, Inc., seconded by Councilman Glenn and carried on
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the following recorded vote:
May 8, 1986 "~-"~~
John A. Johnston - Aye James R. Neighbors - Aye
Robert N. Glenn - Aye Ira S. Crawford - Aye
James M. Neblett - Aye Mary Lou Copenhaver -Aye
C. E. Boyd, Jr. - Aye Glen K. Aust - Aye
ORDINANCE
AUTHORIZING THE CONDITIONAL PLEDGE OF
CERTAIN FEDERAL FUNDS FOR THE BENEFIT OF
M.4GNOX, INC.
WHEREAS, there exists in the Town of Pulaski, Virginia, a unique facility for
the development, manufacture, and sale of high quality magnetic oxides
used in computer, audio recording, and video recording industries; and
WHEREAS, the parent company of said facility, Hercules, Inc., did recently indicate
its plans to close down said facility, whereby over 120 employees residing
in Pulaski County, Virginia, would lose their employement; and,
WHEREAS, a small group of executives and other employees of Hercules, Inc. did
form a corporation to continue the operation of the Town of Pulaski
facility, and to continue the production of high quality magnetic oxides
for the world market; and,
WHEREAS, said Company has been incorporated as Magnox, Inc.; and,
WHEREAS, to finance the purchase and continued operation of said manufacturing
facility, Magnox, Inc. has contacted various lenders to obtain favorable
terms and conditions for the needed financing; and,
WHEREAS, Sovran Bank, N.A., has submitted proposal to the Company, which the
Company deems to be in its best interests; and,
WHEREAS, the proposals by Sovran Bank, N.A., to the Company were conditioned
upon the Company receiving certain loans and grants through the governing
bodies of the County of Pulaski and the Town of Pulaski, which governing
bodies have acted or are acting thereon, and,
WHEREAS, said proposals were further condoned upon the issuance of certain
Industrial Revenue Bonds, which bonds are in the processing of being
issued; and,
WHEREAS, notwithstanding the above, the proposal has further been conditioned
upon Sovran Bank, N.A., receiving from the Town of Pulaski, Virginia,
a pledge of certain project proceeds from an Urban Development Action
Grant Project, under which the Town is a beneficiary of and holder
of a certain Note from Pulaski Furniture Company, Incorporated to
guarantee conditionally the repayment of Sovran`s committment; and
WHEREAS, without the limited guarantee of said federal funds, the financing
package would be jeopardized and could result in a closure of said
manufacturing facility, with the loss of 120 or more jobs; and,
WHEREAS, no other lender has at this time proposed more favorable terms and
conditions to Magnox, Inc.; and,
WHEREAS, it is deemed in the best interests of the citizens of the Town of
Pulaski that said facility remain open and remain a valuable asset
to the Town of Pulaski, Virginia;
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Pulaski,
Virginia., sitting in special session on May 8, 1986, that the limited,
conditional pledge of the aforesaid project proceeds be, and hereby
is, APPROVED: and, that the Town Manager is hereby authorized and
directed to execute a letter of intent to Sovran Bank, N.A., in the
form attached hereto as Exhibit A.
PROVIDED, HOWEVER, that this commitment is expressly made subject to the terms
and conditions set forth in Exhibit A; and,
PROVIDED, HOWEVER, that in no event will this commitment be deemed to be a.
general obligation of the Town of Pulaski, or obligate the Town of
Pulaski to any party except as expressly set forth in said letter of
intent.
THIS ORDIN.~INCE is effective upon adoption and is adopted this 8th day of May,
1986, by recorded vote of the Council.
8~;~2 May 8, 1986
Councilman Aust stated that this decision showed that Council was doing
everything they could for the upbuilding and employment for the Town of Pulaski..
At 12:40 p.m. on motion made by Councilman Neblett, seconded by Councilman
Neighbors, and carried, Council adjourned.
APPROVED:
(i
Mayor
ATTEST:
Clerk of Council
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