HomeMy WebLinkAbout2005-08• TOWN OF PULASKI, VIRGINIA
RESOLUTION 2005-08
AUTHORIZING A LOAN IN URBAN DEVELOPMENT ACTION GRANT
REPAYMENT FUNDS TO ASSIST OLD VIRGINIA TEXTILES MUSEUM IN THE
REMODELING OF THE PULASKI PLAZA BUILDING AND TO EXPAND THE
COMMERCIAL RENTAL SPACE IN SAID BUILDINGS
WHEREAS, the Pulaski Town Council is committed to the revitalization of the Town's
downtown business district; and,
WHEREAS, Old Virginia Textiles Museum and Robert W. Harman (Hereafter referred
to as "Weavers") have requested financial assistance in the amount of $50,000 from the Town
for the renovations of existing commercial buildings at Pulaski Plaza, Pulaski, VA; and
WHEREAS, the Town has available certain Urban Development Action Grant (UDAG)
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 Town Council of the Town of Pulaski,
Virginia that a forgivable UDAG Loan in the amount of $ 50,000 shall be granted to Old
Virginia Textiles on the following terms and conditions:
• 1. That the existing and future looms that Robert W. Harman owns serve as
collateral for the loan grant and that appropriate documents giving the Town of
Pulaski a lien be executed; and
2. That the Town of Pulaski receives a business plan that meets the approval of the
Town staff and Town Council; and
That the physical layout of the building space utilized by Old Virginia Textiles be
approved by the Town staff and Town Council; and
4. That the Old Virginia Textiles Museum receive 501 C-3 status; and
That the Old Virginia Textiles Museum open by July 2, 2005 and continues to
operate until at least July 2, 2007; and
6. That should the terms and conditions not be met by July 2, 2007 that the full
$50,000 shall be repaid with 6.0 % interest in equal monthly payments of $848.33
per month beginning on July 2, 2007 and ending on July 2, 2012, but that should
all of the terms be met then the loan shall convey to anon-repayable grant in the
sole discretion of the Town Council of the Town of Pulaski, Virginia; and
C,
• 7. $2,500 shall be advanced to Old Virginia Textiles and Robert W. Harman
immediately upon executing a promissory note and subsequent distributions shall
occur on March 15, April 15 and May 15 of 2005 if in the discretion of the
Economic Development Director and the Town Building Inspector each phase has
been substantially completed per the attached Exhibit "A" made a part hereof; and
8. Should cessation of full-time work by Robert W. Harman occur, the Town of
Pulaski will have first option to operate the Museum without any purchase price
from Robert W. Harman and/or Old Virginia Textiles Museum and/or their
successors and assigns; and
BE IT FURTHER RESOLVED that the amount of $50,000 from the UDAG Repayment
Funds, be and hereby is appropriated for expenditure, to be loaned directly to "Weavers" for the
renovation, and operation of the existing commercial buildings at Pulaski Business Plaza,
Pulaski, VA in accordance with all the terms of this resolution; and,
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 "Weavers" if the terms of the grant are not fulfilled by July 2, 2007 and otherwise
will be waived; and,
. 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.
This resolution is effective upon adoption and is hereby adopted this 1St day of March
2005, by recorded vote of the Town Council of the Town of Pulaski, as follows:
Bettye H. Steger -Aye Joel B. Burchett, Jr. -Aye
John T. Bolen -Aye Jeffrey S. Worrell -Aye
Lane R. Penn -Aye Daniel Talbert, Jr. -Aye
Town of Pulaski, Virginia
J
By:
les L. Wade, ayor
ATTESTED:
Patricia Cruise, Clerk of Council