HomeMy WebLinkAbout92-27
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TOWN OF PULASKI, VIRGINIA
RE8OLIITION NO. 92-27
COMMITTING TO A LOAN OF $38,245 IN IIRBAN DEVELOPMENT ACTION GRANT
REPAYMENT FIINDS TO ASSIST E. SARGENT HOOPES, III IN THE ACQIIISITION
OF AN EBIBTING COMMERCIAL BIIILDING IN THE DOI~PNTOWN AREA FOR THE
PIIRPOSE OF ESTABLISHING AN ANTIQOE/COLLECTIBLES MALL
WHEREAS, the Pulaski Town Council is committed to the revitaliza-
tion of the Town's historic downtown business district; and,
WHEREAS, E. Sargent Hoopes, III has decided to purchase one
downtown building and to lease two other storefronts for the
purpose of establishing an antique/collectibles mall; and
WHEREAS, Mr. Hoopes has also decided to lease a fourth storefront
in the downtown to provide an attractive eating establishment for
antique/collectibles customers and the general public; and,
WHEREAS, Mr. Hoopes has requested financial assistance in the
approximate amount of $33,750 from the Town for the purchase and
renovation of an existing commercial building at 80 West Main
• Street; and,
WHEREAS, the Town's financing would be leveraged by an equal
commitment from NationsBank and a lob investment by the prospective
buyer; and,
WHEREAS, in addition to the financing for the purchase of the
building, Mr. Hoopes has also applied for financial assistance from
the Western Virginia Revolving Loan Fund (WVRLF) and NationsBank
for leasehold improvements at 70 and 76 West Main Street, for
inventory acquisition, and for working capital; and,
WHEREAS, the requested financial assistance from WVRLF in the
amount of $19,980 could involve a local match from the Town of
Pulaski in the amount of $4,495; and,
WHEREAS, Mr. Hoopes has estimated that up to fourteen new jobs
involved with the sale of antiques/collectibles would be created by
the proposed project over the next two years; and,
WHEREAS, the Town has available certain Urban Development Action
Grant Repayment funds, being repaid by Pulaski Furniture
Corporation and Magnox-Pulaski, Inc., 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, Virginia, sitting in regular session on October 27, 1992
• that:
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Section 1. The amount of $38,745 from the Urban Development Action
Grant Repayment Funds, be, and hereby are, appropriated for
expenditure, to be loaned to E. Sargent Hoopes, III. Of that
amount, $33,750 shall be loaned directly to Mr. Hoopes for the
purchase, repair, and renovation of the existing commercial
building at 80 West Main Street; and $4,495 shall serve as the
local match for $19,980 in WVRLF funds to be loaned to Mr. Hoopes
for working capital if such local match shall be required of the
Town.
Section 2. Said loans are contingent upon Mr. Hoopes securing and
receiving $87,750 in related financing from NationsBank and/or
WVRLF and contingent upon the Town having a shared first lien on 80
West Main Street.
Section 3. The loan in the amount of $33,750, for the purchase of
the building at 80 West Main Street, shall bear an interest rate of
five percent (5~) per annum and shall be for a term not to exceed
fifteen years. Funds, if any, loaned through WVRLF shall bear an
interest rate equivalent to the interest rate established by the
WVRLF and shall have a term not to exceed the term of the loan from
the WVRLF.
Section 4. The Town Manager and the Town Attorney are hereby
• authorized 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
hereby adopted this 27th day of October, 1992, by recorded vote of
the Town Council of the Town of Pulaski, as follows:
Charles D. Crispin Aye Andrew L. Graham Aye
J. R. Schrader, Jr. Ave Elbert G. Black, Jr. Aye
Roy H. D'Ardenne, Jr. ~e Alma H. Holston ~
W. H. Schrader, Jr. Ave Robert N. Glenn Ave
TOWN OF PULASKI, VIRGINIA
By:
Gary C. Han occ, Mayor
Attest:
lc . ..~~,c~u.~c,_._.
Ru A. Harre , C er o Counci