HomeMy WebLinkAbout92-06RESOLUTION NO. 92-6
i COMMITTING TO A LOAN OF S1b0,000 IN ORBAN DEVELOPMENT ACTION
GRANT (UDAG~ REPAYMENT FUNDS TO ASSIST HANOVER INVESTMENT
PROPERTIES IN THE PURCHASE AND RENOVATION OF THE JOHNSTON MOBILE
HOME PARK
WHEREAS, the Town of Pulaski has a need for quality mobile home
lots within the community; and,
WHEREAS, Hanover Investment Properties has requested financial
assistance from the Town for the purchase and renovation of the
Johnston Mobile Home Park; and,
WHEREAS, in addition to the purchase, the money would be used for
new water lines, new sewer lines, new streets, underground
electricity, landscaping, and other related improvements to the
mobile home park; and,
WHEREAS, the proposed project would provide clean, safe mobile
home spaces for low and moderate income households; and,
WHEREAS, the Town's financing would be leveraged by an equal
commitment from a local lending institution and a 10$ investment
by the prospective buyer; and,
• WHEREAS, Hanover Investment Properties has a solid reputation
from the development of the Abbey Court Mobile Home Park located
between Dublin and Radford, Virginia; and,
WHEREAS, the Town has available certain Urban Development Action
Grant Repayment funds, being repaid by Pulaski Furniture
Corporation and Magnox, Pulaski, Incorporated, and these funds
have been segregated and designated for specified activities
including economic development, public improvements, and housing
rehabilitation.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of
Pulaski, Virginia, sitting in Regular Session on May 6, 1992,
that:
Section 1. $160,000 of the Urban Development Action Grant
Repayment Funds be, and hereby are, appropriated for expenditure,
to be loaned to Hanover Investment Properties, Michael E. Boyer,
President.
Section 2. Said loan is contingent upon Hanover investment
Properties securing and receiving at least $160,000 in related
financing from First National Bank of Christiansburg; and upon
Hanover Investment Properties contributing at least $35,555 in
equity financing toward the mobile home park project.
•
U
Section 3. Said loan shall bear an interest rate of five percent
(5$) per annum and shall be for a term not to exceed fifteen
years.
Section 4. The Town Manager and the Town Attorney are hereby
authorised to draft, approve, and/or execute appropriate loan
documents not inconsistent with the terms of this resolution.
Section 5. This resolution is effective upon adoption and is
adopted by recorded vote of the Town Council of the Town of
Pulaski, Virginia, on this 6th day of.ap~~, 1992.
/rl~y
Charles D. Crispin
J. R. Schrader, Jr.
Mary Lou Copenhaver
James M. Neblett
Attest:
Ru h A. Harrell
Clerk of Council
Ave Andrew L . Graham A, ve _
.Ave W. H. Schrader, Jr. A_~
Ave Alma H. Holston A~„_
Absent Robert N . G1 enn A~ e
TOWN OF LASKI, VIRGINIA
B 4' '
Y'
Gar C. Hancock, Mayor