HomeMy WebLinkAbout2009-21 TOWN OF PULASKI, VIRGINIA
RESOLUTION 2009-21
AUTHORIZING A LOAN IN URBAN DEVELOPMENT ACTION GRANT REPAYMENT FUNDS TO ASSIST THE FINE ARTS CENTER
FOR THE NEW RIVER VALLEY IN REMODELING THE FORMER RUTHERFORD BUILDING
WHEREAS, the Pulaski Town Council is committed to the revitalization of the Town's downtown business distf ict
and to promote and increase the cultural and educational opportunities of its citizens; and,
WHEREAS, the Fine Arts Center for the New River Valley has requested financial assistance to support the
expansion of their business to include 419 N. Washington Avenue, Pulaski, Virginia;
WHEREAS, the Town has available certain Urban Development Action Grant (UDAG) repayment funds, being
repaid by NanoChemonics, Inc. and others; 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 that a UDAG loan of
$25,000 shall be made to the Fine Arts for the New River Valley on the following terms and conditions:
1. The interest rate on the loan shall be at 5% for a fixed term of five years.
2. A Promissory Note shall be executed;
3. The amount of funds shall not exceed $25,000 from UDAG repayment funds;
4. The repayment of this loan shall be secured by a first deed of trust on the Fine Arts Center's 21 West Main
Street facility in Pulaski, Virginia, and the Town shall be listed as mortgagee on the hazard insurance of the
property;
5. The Town agrees to defer principal and interest payments on this loan as long as the Fine Arts Center provides
evidence of successful and demonstrative renovation of 419 N. Washington Avenue;
6. The Town may forgive this loan in the future if the Town determines that, in its discretion, the Fine Arts Center
has completed the renovation of 419 N. Washington Avenue, opened the building to the public, and is operating
as a cultural and educational center;
7. A security agreement will secure this loan and will be filed in the Pulaski County Clerk's Office.
8. The Town Manager and Town Attorney are hereby authorized to draft, approve, and execute appropriate loan
documents.
9. Nothing contained herein shall be deemed a pledge of the full faith and credit of the Town, nor shall it create: a
general obligation to the Town, nor shall any monies be loaned from the General Fund of the Town.
This resolution is effective upon adoption and is hereby adopted this 6th day of October 2009, by recorded vote of
the Town Council of the Town of Pulaski, as follows:
David L. Clark -Aye Joel B. Burchett, Jr. -Aye
Larry G. Clevinger, II -Aye Robert A. Bopp -Abstain
H.M. Kidd -Aye Morgan P. Welker -Aye
THE TOWN OF PULASKI, VIRGINIA
BY:
effrey S. Worrell, Mayor
ATTEST•
Patricia Cruise, Clerk of Council