HomeMy WebLinkAbout2006-13TOWN OF PULASKI, VIRGINIA
RESOLUTION 2006-13
• RESOLUTION AUTHORIZING A UDAG LOAN TO MAGNOX
WHEREAS, the Town Council of the Town of Pulaski, Virginia has determined it is consistent with
the general health, safety and welfare to encourage the retention of existing businesses within the Town of
Pulaski; and
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Pulaski, Virginia that a
UDAG loan be made to Magnox, its successors, assigns and/or subsidiaries and/or Tim Hopkins under the
following terms and conditions:
$250,000.00 in loan monies not to exceed a 5 year period for Magnox, its successors and
assigns, and/or subsidiaries, at the rate of 6% annual interest on the unpaid balance.
Principal shall be retried in equal monthly payments at the end of years 3, 4, and 5. In the
years 1 and 2 interest only payments shall be made monthly. Release of said funds by
SunTrust now deposited with SunTrust shall be required as a guarantee; and
2. A repayment of all current debt owed to the Town of Pulaski by Magnox be received on or
before any funds are released to Magnox; and
3. A Promissory Note, Deed of Trust on the Real Estate, and Security Agreement for personal
property assets giving the Town of Pulaski a 3`d priority as to each and/or lien status shall be
executed by Magnox in favor of the Town of Pulaski and the acceptance and execution of
said documents; and
• 4. All legal fees of the Town Attorney shall be paid by Magnox before or at the time of closing;
and
5. Magnox shall meet all environmental laws, Federal, State and or Local and shall meet all
environmental material discharge limits including those of Peppers Ferry Waste Water
Treatment Authority, now under study, prior to the release of any loan funds; and
6. Such other terms and conditions as may be acceptable to the Town Manager and Economic
Development Director.
This resolution is effective upon passage.
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
By:
Charles L. Wade, Mayor
ATTESTED:
• Pa ricia Cruise, Clerk of Council '