HomeMy WebLinkAbout94-21RESOLUTION NO. 94-21 _
RESOLUTION AUTHORIZING A LOAN NOT TO EXCEED $225,000 IN
• URBAN DEVELOPMENT ACTION GRANT REPAYMENT FUNDS TO
ASSIST DAVID WINE IN THE ACQUISITION AND RENOVATION OF AN
EXISTING COMMERCIAL BUII.DING AT 58 NORTH WASHINGTON FOR
THE PURPOSE OF CONSOLIDATING THE OPERATIONS OF ADVANCED
HEALTH CARE, INC. AND HOME PHARMACY, INC.
WHEREAS, John David Wine has purchased one downtown building at 58 North
Washington Avenue in the Town of Pulaski to combine the corporate offices, Pulaski
retail store, distribution center, repair center and Home Pharmacy, Inc. to the subject
site; and
WHEREAS, the distribution center and repair center and seven employees will be
relocated from Pulaski County to the Town;
WHEREAS, Mr. Wine will employ a total of 29 employees and has plans to hire
additional employees in 1994 as a result of the growth of Advanced Health Care
Services, Inc. and Home Pharmacy, Inc.;
WHEREAS, Mr. Wine has requested financial assistance in the amount not to exceed
$225,000 from the Town for the purchase and renovation of 58 North Washington
Avenue (Tax Map.No. 072-140-0000-158 and 159) ;and
• WHEREAS, the acquisition and renovation costs will be shared equally between the
Town and Signet Bank, however, in no case shall the Town's loan exceed $225,000; and
WHEREAS, Mr. Wine will fund all acquisition and renovation costs over $450,000 and
will be funding 100 percent of the costs for miscellaneous equipment which totals
approximately $78,000 and represents more than 10 percent of the acquisition and
renovation costs.
WHEREAS, in addition the items 100 percent funded by Mr. Wine, he will relocate
approximately $1.3 million in furniture, fixtures and equipment and 8 vehicles, which
will be subject to machinery and equipment tax and personal property tax by the Town;
WHEREAS, after renovation, the approximate appraised value of the subject building
will be $560,000; 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 Town Council of the Town of Pulaski,
• Virginia, sitting in regular session on July 19, 1994, that:
Section 1. The amount not to exceed $225,000 from the Urban Development Action
Grant Repayment Funds, be, and hereby is, appropriated for expenditure, to be loaned to
Mr. James David Wine for the purchase, repair and renovation of the existing
• commercial building at 58 North Washington;
Section 2. Said loans are contingent upon Mr. Wine securing and receiving a loan equal
to 50 percent of the acquisition and renovation costs or $225,000, which is less, in
related financing from Signet Bank and contingent upon the Town having a shared first
deed of trust on 58 North Washington;
Section 3. The loan in the amount not to exceed $225,000 for the purchase and
renovation of 58 North Washington Avenue, shall bear an interest rate of five percent
(5.00 %) per annum and shall be for a term not to exceed 15 years.
Section 4. The Town Manager and Town Attorney are hereby authorized to draft,
approve, and/or execute appropriate loan documents not inconsistent with the terms of
this resolution.
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
loan from the General Fund of the Town.
Section 6. This ordinance is effective upon adoption and is adopted by recorded vote of
the Town Council of the Town of Pulaski, Virginia, on this 19th day of July 1994 as
follows:
• John Johnston Absent John W. Stone Aye
Bettye H. Steger Ave W. Edgar Hale Aye
Roy H. D'Ardenne, Jr. Aye W.H. Schrader, Jr. Aye
Alma H. Holston Aye Elbert G. Black Aye
TOWN OF PULASK , VIRG NIA
By:
Andrew L. Graham, Mayor
Attest: ~ ''
J~~~(~c .
Ruth A. Harrell, Clerk of Council
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