HomeMy WebLinkAbout2004-15TOWN OF PULASHI, VIRGINIA
RESOLUTION 2004-15
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
& OLD AEP BUILDING TO EXPAND THE COMMERCIAL RENTAL. SPACE IN
SAID BUILDINGS.
WHEREAS, the Pulaski Town Council is committed to the revitalization of the Town's
historical downtown business district; and,
WHEREAS, "Owners" have requested financial assistance in the amount of $210,000
from the Town for the renovations of existing commercial buildings at 58 N. Washington
Avenue, Pulaski, VA and the old AEP building at 34 First Street, N.E. respectively; and
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; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Pulaski,
Virginia, sitting in regular session on April 19, 2004, that;
Section 1. The amount of`$210 000 from the Urban Develo ment Action ant re a ent
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Funds, be and hereby is appropriated for expenditure, to be loaned directly to
"Owners" for the renovation, and operation of the existing commercial buildings
at 58 N. Washington Avenue and 34 First Street, NE, Pulaski, V A.
Section 2. Said Loans are contingent upon "Owners" securing and receiving $420,000 in
loans from First National Bank, Christiansburg.
Section 3. Additional security shall be required as follows:
1. 10% of Purchase Price of Building ($700,000) 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 building at 58 N. Washington
Avenue and 34 First Street, NE, Pulaski, V A.
3. First Deed of Trust to be shared on a pro-rata basis with First National Bank,
Christiansburg on property at 58 N. Washington Avenue and 34 First Street,
NE in proportion to the funds loaned.
4. Assignment of Life Insurance by Kevin J. Dresser to the Town in a minimum
amount of'$210,000 upon the life of Kevin Dresser during the period of this
loan to cover any current balance owed as of the date of death of insured.
5. A corporate resolution from Hawkeye East Enterprises, Inc. authorizing and
accepting the lien on this loan.
6. Personal Guarantee of Kevin J. Dresser and Penny A. Dresser.
7. Loan shall be for twenty (20) years at 5% interest per annum.
Section 4. The Town Attorney is hereby authorized to draft, approve and/or execute
appropriate loan documents not inconsistent with the terms of this resolution and
fees for said work shall be payable by Owner.
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. Resolution 2002-36 shall be null and void with the passage of this resolution as to
58 N. Washington Avenue and 34 First Street, NE, Pulaski, V A due to a new
purchase agreement between the parties dated March 13, 2004.
Section 7. This resolution is effective upon adoption and is hereby adopted this 19th day of
April, 2004, by recorded vote of the Town Council of the Town of Pulaski, as
follows:
Betty H. Steger -Aye John Bolen -Aye
Pauline G. Mitchell -Aye Jeffrey S. Worrell -Aye
Kenneth M. Fleenor -Aye James M. Neblett, Jr. -Aye
E. G. Black, Jr. -Aye
Town of Pulaski, Virginia
By: ~ ~ /~
Charles W. Stewart, Jr. Mayor
Attested:
Patricia Cruise, Clerk of Council
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