Subject: 20563/Cavalier Project/Grants/Funds
Date: Thu, 13 Apr 1995 13:30:49 -0500


                
                
                              RESOLUTION NO. 20563
                
                
                
                 A RESOLUTION INDICATING THE COMMITMENT OF THE
                 CITY OF CHATTANOOGA TO APPROPRIATE THE SUM OF
                 SIX HUNDRED THOUSAND AND NO/100 DOLLARS
                 ($600,000.00) FOR THE PURPOSE OF MAKING A
                 GRANT OR LOAN TO SOUTHEAST LOCAL DEVELOPMENT
                 CORPORATION FOR THE RENOVATION OF FACILITIES
                 TO BE OWNED BY SOUTHEAST LOCAL DEVELOPMENT
                 CORPORATION AND AUTHORIZING THE MAYOR TO
                 EXECUTE ALL DOCUMENTS NECESSARY FOR THE
                 EXECUTION OF THIS RESOLUTION, CONTINGENT UPON
                 CERTAIN CONDITIONS AS STATED HEREIN.
                
                
                         ______________________________
                
                
                
       	    WHEREAS, The Cavalier Acquisition Corporation desires to
       expand and modernize their manufacturing facility in Chattanooga
       to create additional investment and 150 jobs; and
       	    WHEREAS, The Economic Development Administration and the
       Appalachian Regional Commission have matching grant funds
       available to assist with projects of this nature; and
       	    WHEREAS, The Cavalier Acquisition Corporation is committed 
to
       turning over ownership of their plant and land to the Southeast
       Local Development Corporation with all taxes, interest and
       penalties paid to create the public ownership necessary for
       investment of potential grant funds; and
       	    WHEREAS, The company will also invest an additional
       $1,450,000 in private funds through a private bank loan; and
       	    WHEREAS, The proposed renovation will result in the
       development of a 14 acre inner-city industrial property with
       surplus building sites for future economic development; and
       	    WHEREAS, The proposed EDA and ARC grant funds require
       matching funds; and
       	    WHEREAS, The City of Chattanooga's share of local matching
       funds is $600,000.00;
       	    BE IT HEREBY RESOLVED BY THE CHATTANOOGA CITY COUNCIL that
       the City of Chattanooga agrees to appropriate $600,000.00 and
       contribute or loan said amount to the Southeast Local Development 

       Corporation contingent upon the same type of participation by
       Hamilton County, approval of the application submitted to the
       Economic Development Administration and the Appalachian Regional
       Commission and the approval by a private lender of the necessary
       bank loan.  These funds are to be used to match grant funds
       necessary for the successful clean up, renovation and
       modernization of the industrial site.
       	    BE IT FURTHER RESOLVED that the Mayor is authorized to
       execute documents and enter into agreements necessary for the
       successful execution of this resolution.
      
      
       ADOPTED:	 April 18, 1995
      
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