Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 20, 1994 TAG: 9401210005
SECTION: CURRENT PAGE: NRV-6 EDITION: NEW RIVER VALLEY
SOURCE: By PAUL DELLINGER STAFF WRITER
DATELINE: PULASKI LENGTH: Medium
The town will provide a working capital loan to Charles and Joyce Travis of $12,500, with another $12,500 coming from the bank, to be secured by the store inventory.
In October, the town and bank each agreed to a $29,250 loan to the enterprise, with the owners adding $2,925, for the couple to buy and renovate the future store property at 84 W. Main St.
The town's loan funds are from federal Urban Development Action Grant money originally loaned to and repaid by Pulaski Furniture Corp. and Magnox-Pulaski Inc. The UDAG money has been earmarked for job creation and economic development, and have been used for a number of other loans to some of the new businesses locating in downtown Pulaski over the past year.
Council approved the second loan Tuesday by 7-1 vote, with Councilman Don Crispin voting against it.
Crispin questioned how the town can know whether the store's inventory is of sufficient value to secure the loan. Town Attorney Frank Terwilliger said the town staff probably lacked the expertise to make that determination, but banks usually have qualified people to make such appraisals.
``We've been sort of piggy-backing their expertise,'' he said, in previous joint loans to other businesses.
The Travises have a successful Oriental rug and accessories store in Blowing Rock, N.C. The Pulaski venture will be their first expansion.
In other business Tuesday, council discussed water problems to be taken up at its next meeting Feb. 1.
Utilities Committee Chairman Andy Graham wanted to make additions to projects funded under a pending Farmers Home Administration loan to be sought by the end of the month. The additions included extensive work on water facilities serving Draper Mountain Estates and other areas of the town experiencing recent water problems.
Water pressure has been low in the Draper Mountain and Crestline Drive areas despite the Public Works Department cleaning its pump station, going to 24-hour operations at times, coordinating water use timing with high-volume industrial users, and having the Dublin and Newbern Fire Departments pump water into the storage tank serving Crestline.
Town employees were braving freezing temperatures even as council was meeting Tuesday night trying to fix a broken line on Washington Avenue (U.S. 11) in western Pulaski. The work will continue today.
``I think we can conclude, if this line is a major break, that this is the problem,'' Town Manager Tom Combiths said.
Council approved a substitute motion by Nick Glenn to table Graham's recommendation until the next meeting, when town officials are to present a revised list of water needs and costs. Mayor Gary Hancock said special meetings of the Utilities Committee and council might be necessary before the next regular council meeting to apply for the FmHA loan on time.
The application is to be submitted by Jan. 31, but must first be reviewed and approved by the New River Valley Planning District Commission at its Jan. 27 meeting.
The loan request as originally outlined was to have been $488,791, but that did not include the additional work urged by Graham.
It did include $63,000 to repair and modify seven pump stations; $13,400 for a Mashburn connection to Peppers Ferry Road; $50,000 to replace the Madison Avenue pump station; $54,400 for work on 4th Street SE; $56,175 for the Peakland Subdivision; $41,000 from Twin Oaks to Beth Scott on Peppers Ferry Road; $72,000 on Newbern Road and Bob White Boulevard; $54,100 on Virginia 611; $27,800, Pearce Place; and $12,400 for relocating raw water intake.
Assistant Town Manager Rob Lyons said FmHA would let the town change its project priorities after the loan is made. ``We've got flexibility with that,'' he said, ``kind of like a line of credit.''
Following an executive session, Hancock reported that work on the town-owned Train Station building will allow the Pulaski County Chamber of Commerce to move its offices there by the end of February or early March. The chamber has been housed in the Municipal Building.
The former depot, given to the town years ago by Norfolk Southern Corp., will also be used as a visitors center when renovations are complete. Funds were included in the state parks bond issue to extend New River Trail State Park several more miles into Pulaski to the end at the building.
by CNB