HomeMy WebLinkAbout99-24•
RESOLUTION N0.99-24
Resolution Authorizing a Loan Not To Exceed $112,500 In Urban Development
Action Grant Repayment Funds To Assist Horton-Howell Properties, Inc. In The
Purchase Of Commercial Real Estate and Building Construction To Be Located
On Rt. 99, E. Main Street, In Pulaski, Virginia, To Allow For The Continued
Operation and Expansion of Pulaski Appliance And Emmanuel Bookstore.
WHEREAS, Horton-Howell Properties, Inc. have applied for a UDAG loan, in the
amount of $112,500 for the purchase of real estate and building construction, to be leased
to Pulaski Appliance and Emmanuel Bookstore, to be located on Rt. 99, E. Main Street,
in the Town of Pulaski; and
WHEREAS, according to the UDAG application, the project's budget includes:
Expense UDAG First National Bank Owner Equity Total
Land & Building $112,500 $112,500 $25,000 $250,000
Total $112,500 $112,500 $25,000 $250,000
Furthermore, Horton-Howell Properties, Inc. will contribute a minimum of $25,000 in
equity; and
• WHEREAS, Horton-Howell Properties, Inc. must comply with this budget, which is a
part of this resolution; and
WHEREAS, due to the expressed need for the continuation and expansion of Pulaski
Appliance and Emmanuel Bookstore in the Town and the desire to be located on Rt. 99,
E. Main Street, Town Council is providing Horton-Howell Properties, Inc. credit for the
Owner's investment of 10 percent and the Bank's participation of 45 percent of the total
project cost; and
WHEREAS, the Town has available certain Urban Development Action Grant
Repayment Funds, repaid by other UDAG recipients, and these funds have been
segregated and designed for specified activities including economic development and
downtown revitalization;
NOW THEREFORE, be it RESOLVED by the Town Council of the Town of Pulaski,
Virginia, sitting in regular session on June 1, 1999, that:
Section 1. The amount not to exceed $112,500 from the Urban Development Action
Grant Repayment Funds, be, and hereby is, appropriated for expenditure, to be loaned to
Horton-Howell Properties, Inc. for the purchase of real estate and building construction,
to be leased to Pulaski Appliance and Emmanuel Bookstore, to be located on Rt. 99, E.
• Main Street in the Town of Pulaski.
RESOLUTION NO.99-24 CONTINUED
Section 2. Said loans are contingent upon the town having a shared first deed of trust on
the property being purchased including all building improvements and assignment of
leases and rents. The borrowed amount will not exceed 90 percent of the appraised value
or cost of the land and building, whichever is less.
Section 3. Said loans are to be fully guaranteed by Steven D. Horton, Mark A. Horton,
Charles R. Howell and Carolyn L. Howell, joint and several.
Section 4. The loan shall bear an interest rate oftwo-thirds of the Wall Street Journal
prime lending rate at the time of permanent loan closing. The term of the loan shall not
exceed 20 years. The Town of Pulaski will not participate in the construction loan.
Section 5. The disbursements must substantially be in conformance with the
aforementioned expense allocation and in no case may a category amount be exceeded
without the prior approval of Town Council.
Section 6. In addition to the terms previously mentioned, the Borrower agrees to invest a
minimum of $25,000 and obtain a construction and permanent loan commitment from
First National Bank - Christiansburg in an amount sufficient to complete the land
purchase and building construction.
• Section 7. The Town Manager and Town Attorney are hereby authorized to draft,
approve and/or execute appropriate loan documents not inconsistent with the terms of this
resolution. Such documentation may include appropriate provisions for the protection of
the Town, including but not limited to reservation of the right of the Town to withhold
payment or accelerate the maturity of indebtedness for good cause shown.
Section 8. Nothing contained herein shall be deemed a pledge of the full faith and credit
of the Town, nor shall it create a general obligation of the Town, nor shall any monies be
loaned form the General fund of the Town.
Section 9. This resolution is effective upon adoption and is adopted by recorded vote of
the Town Council of the Town of Pulaski, Virginia, on this 1~` day of June, 1999 as
follows:
James M. Neblett Aye W. Edgar Hale Aye
Lane R. Penn ~- Joseph L. Weddle s e n t
Jeffrey S. Worrell Absent Pauline G. Mitchell Aye
Bettye H. Steger AYe Charles W. Stewart, Jr. Aye
•
•
RESOLUTION 99-24 CONTINUED
TO lO PtJI.,A INI
By:
ohn A. Johnsto ayor
r~
Attes
L <~
Patricia Pendergr Clerk of Co
•