2022-02-03 Support Agreement Staunton River Plastics RESOLUTION#2022-02-03
RESOLUTION OF THE BOARD OF SUPERVISORS OF PITTSYLVANIA COUNTY,
VIRGINIA APPROVING SUPPORT AGREEMENT
WHEREAS, the Board of Supervisors of Pittsylvania County, Virginia (the "Board of
Supervisors")has determined that it is in the best interests of the County of Pittsylvania,Virginia
(the "County") to lend its assistance to the Industrial Development Authority of Pittsylvania
County, Virginia (the "Authority") in the issuance of the Authority's promissory note in the
original principal amount of up to $1,020,000.00 due and payable in full in approximately seven
(7) years (the "Note") for the acquisition of certain construction materials (the"Equipment") to
be used by Staunton River Plastics, LLC, a Virginia corporation (the "Company") at the
Company's commercial and industrial manufacturing facility located in the County, by the
pledging of the County's moral obligation to pay amounts due on the Note that are not paid when
due by the Authority; and
WHEREAS,the proceeds of the Note and the loan evidenced thereby(the"Loan") are to
be used (i) to pay costs of the Equipment and (ii) to pay the costs of issuance of the Note, all to
accomplish certain purposes of the Virginia Industrial Development and Revenue Bond Act (the
"Act"); and
WHEREAS,there has been presented to the Board of Supervisors a plan for the financing
of the Equipment involving the issuance of the Note by the Authority and the pledge of the moral
obligation of the County, which would not create debt of the County for purposes of the Virginia
Constitution and would promote industry and increase commerce in the County and the
Commonwealth of Virginia; and
WHEREAS, the Authority has received a proposal from the Virginia Small Business
Financing Authority("VSBFA")for purchase of the Note,pursuant to a Loan Agreement between
the Authority and VSBFA providing for the purchase of the Note and the loan of the monies from
the sale of the Note to pay the cost of the Equipment(the"Loan Agreement"),payment of which
Note is secured by a lien on and security interest in the Equipment (the "Authority Interest in
the Equipment") granted pursuant to a Security Agreement and Assignment of Lease between
the Authority and VSBFA assigning to VSBFA leases and rental payments received from the
Authority's lease of the Equipment to the Company (the "Assignment"), and in connection
therewith, VSBFA has requested a moral obligation support agreement be entered into between
the Authority and the County; and
WHEREAS, there has been presented to this meeting a draft of a Support Agreement
between the County and the Authority to undertake a non-binding obligation to appropriate from
time to time monies in connection with payments due on the Note(the"Support Agreement");
NOW, THEREFORE,BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF PITTSYLVANIA COUNTY,VIRGINIA:
1. The following plan for financing the Equipment is hereby approved. The Authority
will be requested to issue the Note in the maximum amount of $1,020,000.00 and to use the
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proceeds therefrom to finance costs of the Equipment and pay costs of issuance. The Authority
will sell the Note to VSBFA and agree to repay the same pursuant to the Loan Agreement. The
obligation of the County to make any payments under the Support Agreement will be subject to
the Board of Supervisors making appropriations for such purpose from time to time. It is expected
that the Note will be secured by the Assignment,the Loan Agreement,and the Support Agreement.
It is hereby found and determined that the above-described plan is in the public interest,will benefit
the inhabitants of the County,will increase commerce and will promote the safety,health,welfare,
convenience and prosperity of the County and its citizens.
2. The Chairman or Vice Chairman of the Board of Supervisors, either of whom may
act, is hereby authorized and directed to execute and deliver the Support Agreement. The
Chairman or Vice-Chairman of the Board of Supervisors, either of whom may act, is hereby
authorized and directed to acknowledge and consent,as necessary,to the provisions of the Support
Agreement and any other agreements, instruments, certificates or other documents required to be
executed by the County in connection with the issuance of the Note, and to designate and confirm
the final provisions and other terms of the Note.
3. The Support Agreement shall be in substantially the form submitted to this meeting,
which is hereby approved, with such completions, omissions, insertions, and changes as may be
approved by the officer executing it,his execution to constitute conclusive evidence of his approval
of any such completions, omissions, insertions and changes.
4. The Board of Supervisors, while recognizing that it is not empowered to make any
binding commitment to make appropriations beyond the current fiscal year,hereby states its intent
to make annual appropriations in future fiscal years in amounts sufficient to make all payments
due under the Note pursuant to the Support Agreement to the extent such payments are not made
when due by the Authority and hereby recommends that future Boards of Supervisors do likewise
during the term of the Note.
5. All other acts of the Chairman or Vice-Chairman of the Board and other officers of
the County that are in conformity with the purposes and intent of this resolution and in furtherance
of the plan of financing, the issuance and sale of the Note and the financing of the Equipment are
hereby approved, ratified and confirmed.
6. Nothing in this Resolution or the Support Agreement, the Note or any related
documents shall constitute a debt or a pledge of the faith and credit or the taxing power of the
County with respect to any sums which are or may become payable under the Support Agreement.
All obligations of the County and the Board of Supervisors under the Support Agreement are
subject to and dependent upon annual appropriation of funds by the Board of Supervisors, and the
Board of Supervisors shall have no legally binding obligation under this resolution or in the
Support Agreement to make any such appropriation or the payments provided for in the Support
Agreement, the Support Agreement being a statement only of the present intent of the Board of
Supervisors.
7. This resolution shall take effect immediately.
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PASSED AND ADOPTED this \S day of 2022.
Cha
Board o upervisor
County o Pittsylania, Virginia �,�, '. j�
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Board of Supervisors r Nor,
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County of Pittsylvania, Virginia
The Resolution set forth above was adopted during an open meeting at a regular meeting of the
Board of Supervisors of the County of Pittsylvania, Virginia, held on ce_ \5 ,
2022, all in accordance with law,by the following votes:
AYES: —1
NAYS: 0
ABSENT: 0
ABSTENTIONS:0
Clerk &((474)
Board of Supervisors
County of Pittsylvania, Virginia
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