ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, November 22, 1996 TAG: 9611220027
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
DATELINE: PULASKI
SOURCE: PAUL DELLINGER STAFF WRITER
Downtown Pulaski's revival has been helped by a federally financed fund that allows the town to loan start-up money to new businesses.
But a few of those start-ups have flopped, and now the town is trying to recover its loans to them.
Pulaski Town Council authorized Town Attorney Frank Terwilliger to pursue the collection of two outstanding loans, following a closed session Tuesday night.
One of the businesses was among the first to move into downtown Pulaski several years ago, when the town's Main Street program started scoring successes in landing new enterprises.
An antiques center opened on Main Street by Sarge Hoopes, a North Carolina man, tried several managers and different blends of merchandise while it was operating. Currently, it is closed and its telephone disconnected.
Terwilliger said Hoopes has continued making payments on his loan, but is not up to date with them. He was authorized to act jointly with NationsBank, which also made a loan to the business, if it seemed advantageous to do so. Foreclosure on the property is one option being considered.
The other business was Ellery's Blues & More, a restaurant and entertainment center on Washington Avenue which had been operated by George Penn of Pulaski. Penn has filed bankruptcy and the town wanted to protect its interests.
Roughly half of the town's $30,000 loan has been recovered. Now it is trying to collect the remaining $15,000, plus about $3,000 in interest.
The fund from which these and other business loans have been made is the town's Urban Development Action Grant, obtained under a federal program years ago to assist with a business expansion. When that business repaid the loan provided by the grant funds, the town was allowed to keep the money and earmark it for economic development.
Many loans have been made from the UDAG fund over the years. When they have been repaid, the money has gone back into it. But failure to repay loans from the UDAG fund could erode it.
In other business, council approved an agreement with Magnox Pulaski Inc. allowing the industry to discharge about 130,000 gallons a day of industrial wastewater into the town's sewage system. The agreement will create a significant savings for Magnox. That will help it stay competitive in making magnetic tapes and other products.
Council renewed a cable franchise agreement with Adelphia Cable, which is planning to add new viewer options such as C-SPAN and ESPN-2. The new agreement will run from the start of 1997 to Jan. 31, 2002. That coincides with Pulaski County's agreement so they would expire at the same time.
Pulaski County has also adopted a resolution supporting state approval for widening another half-mile of Virginia 99 (East Main Street) in the town to four lanes.
Council's Public Operations Committee has received a traffic study from Kellerco, of Tysons Corners, evaluating traffic circulation and suggesting consideration of changing a one-way section of Main Street near the center of town to two-way traffic. The committee will discuss the feasibility of such a change at its next meeting.
LENGTH: Medium: 62 linesby CNB