HomeMy WebLinkAbout94-26RESOLUTION NO.94-26
• Resolution Authorizing a Loan Not To Exceed $39,600 In Urban Development
Action Grant Repayment Funds To Assist Michael Dowell and Patricia Gooch In
The Acquisition and Renovation of an Existing Commercial Building At 69 West
Main Street to Open a Framing and Retail Store, Design Studio, Workshop and to
Renovate the Second Floor For Residential Use
WHEREAS, Michael Dowell and Patricia Gooch, husband and wife, desire to purchase the existing
commercial building at 69 West Main Street in the Town of Pulaski for the purpose of opening
Casimir Company, a retail store with custom framing, a design studio and workshop and to
renovate the second floor for residential use; and
WHEREAS, according to the UDAG application and business plan, the project's budget
includes:
Acquisition and Renovation $78,000 (89%)
Equipment and Inventory $11,000 (11%)
TOTAL PROJECT $99,000
WHEREAS, Mr. Dowell and Ms. Gooch have requested financial assistance in the amount not to
exceed $39,600 from the Town for the purchase and renovation of 69 West Main Street and
equipment and inventory, which is less than 45 percent of the total project costs; and
• WHEREAS, the acquisition, renovation and equipment and inventory costs will be shared equally
between the Town and Signet Bank, however, in no case shall the Town's loan exceed $39,600;
and
WHEREAS, Mr. Dowell and Ms. Gooch are required to provide a minimum of 10 percent of the
total acquisition, renovation and equipment and inventory costs; and
WHEREAS, after renovation, Charles Rhett calculated the appraised market value of the subject
building at $99,000, which will be used as collateral for the Town and Signet Bank; 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 September 20, 1994, that:
Sect'o .The amount not to exceed $39,600 from the Urban Development Action Grant
Repayment Funds, be, and hereby is, appropriated for expenditure, to be loaned to Michael Dowell
and Patricia Gooch for the purchase, repair and renovation of the existing commercial building at
69 West Main Street and to provide equipment and inventory;
• Section .Said loans are contingent upon Mr. Dowell and Ms. Gooch receiving a loan equal to at
least $39,600, in related financing from Signet Bank and contingent upon the Town having a
shared first deed of trust on 69 West Main Street and Mr. Dowell's and Ms. Gooch's personal
• guarantees of the loan;
Section 3. The loan in the amount not to exceed $39,6(?0 for the purchase and renovation of 69
West Main Street, shall bear an interest rate of 5.11 percent per annum and shall be for a term
not to exceed 15 years. According to the UDAG guidelines, the Town's interest rate of 5.11 percent
is two-thirds of the prime lending rate, which is currently 7.75 percent.
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 20th day of September 1994 as Follows:
John Johnston Aye John W. Stone Aye
Bettye H. Steger ~e W. Edgar Hale ~e
Roy H. D'Ardenne, Jr. AYe W.H. Schrader, Jr. ~e
Alma H. Holston Aye Elbert G. Black Aye
TOWI~LOE PULASKL VIRGINIA
By.
Andrew L. Graham, Mayor
Attest:
Ruth A. Harrell, Clerk of Council
b:ardgooch
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