HomeMy WebLinkAbout2002-36TOWN OF PULASKI, VIRGINIA
RESOLUTION 2002-3b
AUTHORIZING A LOAN IN URBAN DEVELOPMENT ACTION GRANT REPAYMENT
FUNDS TO ASSIST HAWKEYE EAST ENTERPRISES, INC. (HEREAFTER REFERRED
TO AS OWNERS) IN THE PURCHASE OF THE AHCS & BB&T BUILDINGS
TO EXPAND THE COMMERCIAL RENTAL SPACE IN SAID BUILDINGS.
WHEREAS, the Pulaski Town Council is committed to the revitalization of the Towns historical
downtown business district; and,
WHEREAS, Owners have requested financial assistance in the amount of $210,000 and $207,000
from the Town for the renovations of an existing commercial building at 58 N. Washington
Avenue, Pulaski, VA and BB&T Building at the corner of Main Street and Washington Avenue in
Pulaski, VA respectively;
WHEREAS, the Town has available certain Urban Development Action grant repayment funds,
being repaid by Pulaski Furniture Corporation and others; and these funds have been segregated
and designated for specified activities including economic development and downtown
revitalization.
• NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Pulaski, Vir inia,
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sitting in regular session on October 1, 2002, that;
Section 1. The amount of $210,000 from the Urban Development Action grant
repayment Funds, be and hereby is appropriated for expenditure, to be
loaned directly to Owners for the renovation, and operation of the existing
commercial building at 58 N. Washington Avenue, Pulaski, VA.
Section 2. Said loans are contingent upon Owners securing and receiving $528,000 in
loans from First National Bank, Christiansburg.
Section 3. Additional security shall be required as follows:
First Deed of Trust on the property located at 34 First Street, NW,
Pulaski, VA, formerly known as AEP property.
2. Second Deed of Trust on property located at 91 W. Main Street,
Pulaski, VA, if said building is purchased by Owner.
10% of Purchase Price of Building ($820,000) to be paid by Owners.
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• 4. Assignment of all Rents and Leases to Town and First National Bank,
Christiansburg in proportion to funds loaned for buildings at 58 N.
Washington Avenue and 91 W. Main Street.
First Deed of Trust to be shared on a pro-rata basis with First
National Bank, Christiansburg on property at 58 N. Washington
Avenue in proportion to the funds loaned.
6. A corporate resolution from Hawkeye East Enterprises, Inc.
authorizing and accepting the lien on this loan.
7. Personal Guarantee of Kevin 7. Dresser and Penny A. Dresser.
Loan shall be for twenty (20) years at 5% interest per annum.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Pulaski, Virginia,
sitting in session on October 1, 2002, that;
Section 1. The amount of $207,000 from the Urban Development Action grant
repayment Funds, be and hereby is appropriated for expenditure, to be
loaned directly to Owners for the renovation, and operation of the existing
commercial building at the corner of Main Street and Washington Avenue in
• Pulaski, VA known as the BB&T Building.
Section 2. Said loans are contingent upon Owners securing and receiving $207,000 in
loans from First National Bank, Christiansburg.
Section 3. Additional security shall be required as follows:
10% of Purchase Price of Building ($460,000) to be paid by Owners.
2. Assignment of all Rents and Leases to Town and First National Bank,
Christiansburg in proportion to funds loaned for buildings at the
corner of Main Street and Washington Avenue in Pulaski, VA known
as the BB&T Building.
3. First Deed of Trust to be shared on a pro-rata basis with First
National Bank, Christiansburg on property at the corner of Main
Street and Washington Avenue in Pulaski, VA known as the BB&T
Building.
4. A corporate resolution from Hawkeye East Enterprises, Inc.
authorizing and accepting the lien on this loan.
5. Personal Guarantee of Kevin J. Dresser and Penny A. Dresser.
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6. Loan shall be for twenty (20) years at 5% interest per annum
Section 4. The Town Attorney is hereby authorized to draft, approve andlor execute
appropriate loan documents not inconsistent with the terms of this resolution.
Section 5. 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 from the General Fund of the Town.
Section 6. This resolution is effective upon adoption and is hereby adopted this 1st day
of October, 2002, by recorded vote of the Town Council of the Town of
Pulaski, as follows:
Bettye H. Steger -Aye Kenneth M. Fleenor - No
John Bolen - No James M. Neblett, Jr. -Aye
Pauline G. Mitchell - No E. G. Black, Jr. -Aye
Jeffrey S. Worrell -Aye
ATTESTED:
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Patricia Cruise, Clerk
Town of Pulaski, Virginia
By:
Charles W. Stewart, Jr.
Mayor
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