HomeMy WebLinkAboutOMNI-CRA-M-03-00130 • ITEM 9
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
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To: Chairman Arthur E. Teele, Jr. and Date: February 10, 2003 File:
Members of the CRA Board
Subject: Request for Assistance
Gili's Cafe& Bakery
30 NE 14'h Street
Miami, FL.
From: �Fr K. Rollason References:
CRA Executive Director
Enclosures: Resolution, Loan. Terms,
Documentation
REQUEST.
Mr. Gil Terem, Co -Owner of Gili's Cafe has requested assistance in the amount of $107,400 for Gili's
Cafe & Bakery of a total projected expenditure of $253,250 for the build out of the cafe. The request
included amounts for equipment in various categories; interior design and decoration; personnel;
liability insurance premium; supplies; security; impact fees and others.
10 This venture is the first of its type within the Park West area along 14t' Street. The space within which
the bakery will operate represents 1,400 square feet of a total of 5,400 square feet, not including the
garden area. The lease term of the bakery is from January 1, 2003 to January 1, 2005 with one two-year
option to extend.
RECOMMENDATION:
After a review of Mr. Terem's submission and meeting with him regarding his request for assistance in
the amount of $107,400, I respectfully recommended that the CRA provide $72,500 in assistance in the
following structure:
$47,500 grant for equipment through the equipment loan program
$15,000 of grant for impact fees
$10,000 loan (loan terms attached)
ke
ONM/CRA
03- 13
Page 2 Item 9
Recommendation Gili's Cafe & Bakery
February 24, 2003 CRA Board Agenda
As to portion of the request that relates to the garden and landscaping, the CRA will attempt to
coordinate with the Florida International University's "Roots in the City" program run by Dr. Marvin
Dunn at the university. A report of the meetings/negotiations and separate recommendation will follow.
In -kind and technical assistance was awarded at the Board meeting of December 16, 2002. CRA staff
has been in contact with Mr. Terem to coordinate efforts to meet his objectives.
Mr. Terem will be advised of all the criteria related to each of the programs from which the awards are
derived. Loan and grant agreements will be drafted and subject to certain terms including but not
limited to:
1) Job creation and retention
2) Liability insurance requirements
3) Periodic reporting
4) Impact of lease agreement on the term of the awards
®MINI/CIIA
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. LOAN/LINE OF CREDIT POLICY OUTLINE:
Eligibility:
Loans from the CRA will be provided to private for -profit businesses located or to -be -located
within the boundaries of the redevelopment agencies. Loans will be on a first come first served basis
based on its relationship with the mission and objectives of the existing Redevelopment Plan within the
respective CRA.
Loans are subject approval by Board of Directors of the CRA, for each CRA, after a review and
recommendation to be conducted by CRA staff. The total amounts of loans awarded will be subject the
annual budgeted amounts authorized within each redevelopment area for a given fiscal year.
Loan/Line of Credit:
Upper Limit 25% of project amount not to. exceed $55,000
Lower Limit $10,000
Equity requirements:
Leverage ration of 3:1 i.e. CRA will finance up to 25% of project costs up to stated limits.
Business and/or property owners, as appropriate, will be required to contribute at least 75% of project
10 costs in the form of cash, property and/or equipment.
Term:
Construction over 20 years for property that is owner by the borrower
1) Construction over the remaining life of existing lease for lessee with specific approval for
property owner for the performance of the improvement(s) to the property. Additionally
setting requesting from said owners that the CRA place requirements that there will be no
substantial changes in the lease agreement resulting from the upgrade/betterment to the
detriment of the lessee.
Interest rate/Finance Charges:
Fixed Municipal Market Data for Rates "Low" rate with a cap of 4.0% (Source MMD) -
copy of the December 6th 2002 data sheet is attached. For instances where
interest only is being paid for a specific period, average interest rates will apply
for that period only, for subsequent periods the actual "Low" for that period will
apply for the remaining life of the loan.
Collateral:
Property and/or equipment whose fair market value is equivalent to or higher than the value of the
improvements will be required. Property and equipment should not experience substantial depreciation
over the life of the loan.
i
®MNI/CIA
Municipal Marke9ata - December 6, 2002
[ Municipals On -Line ]
On Thursday, initial claims provided a temporary jolt to bonds, falling. to
. 355K. The weeks of down trending data is seasonal but it did raise concerns
about tomorrow forecasts on Nov employment data. At the open, treasuries gave
up the gains of the past several sessions. The tsy 10yr traded to 4.25% before
the market stabilized. But, it was concerns that Bush would not accept Iraq's
denial of owning weapons of mass destruction that raised the probability of war
and proved to be the demise of an early Dow rally. The Dow would close off
114pts (8623). Treasuries would rebound sharply before settling with gains of
2-4bps on the day. Munis reacted little to the initial dip in treasuries but
managed to show an average of 2-4bp gains as buying continues to improve and
.....munis remain relatively cheap to treasuries. Aggressive bidding on (MBIA)
$243min FBE's underscored that point, re -offered through the AAA curve in many
spots. Its January maturities provided additional incentive for buyer
participation in anticipation of the year-end roll. Currently, we are tracking
where the roll through 2010 would resemble from day to day on. Given
the steepness of the curve, early dated paper still remains a great value.
[ Municipal Yield Curves as of 12/05/2002 ]
[
General Obligations
]
[ "AAA" Coupon
Range ]
"AAA"
PRE RE
INSURED
"AA"
"A"
"BAA"
"LOW"
"HIGH"
1
2003
1.28
1.28
1.31
1.31
1.53
1.85
2.50
3.55
2
2004
1.66
1.66
1.74
1.72
1.89
2.31
3.00
4.50
3
2005
2.01
2.01
2.10
2.08
2.35
2.81
3.50
5.00
4
2006
2.37
2.37
2.46
2.45
2.76
3.21
3.60
5.00
5,2007,
2.73
2.73"
2.84
2.83
3.14
.3,68
3.75.
5.00
6
2008
3.05
3.05
3.16
3.15
3.43
4.03
3.85
5.00
7
2009
3.29
3.29
3.42
3.39
3.71
4.29
4.05
5.00
8
2010
3.52
3.52
3.65
3.62
3.97
4.52
4.15
5.25
9
2011
3.71
3.84
3.81
4.16
4.72
4.25
5.25
10
2012
3.81.
3.94
3.91
4.26
4:82 `.
4.35
5.25
11
2013
3.94
4.06
4.04
4.39
4.94
4.50
5.40
12
2014
4.07
4.18
4.17
4.49
5.04
4.35
5.15
13
2015
4.19
4.30
4.29
4.59
5.14
4.20
4.80
14
2016
4.29
4.40
4.39
4.69
5.24
4.25
4.85
15.,2017
..4.39
4.49
4.49
4.78
5.33
4..35
16
2018
4.47
4.57
4.57
4.86
5.41
4.45
4.90
17
2019
4.55
4.65
4.65
4.94
5.48
4.50
4.90
18
2020
4.63
4.73
4.72
5.00
5.56
4.60
4.90
19
2021
4.71
4.81
4.80
5.04
5.63
4.70
4.90
0
2022
'4.79
4.89
4.88'
.5.06
5.68
4..75
4r90
21
2023
4.83
4.93
4.92
5.08
5.71
4.75
4.90
22
2024
4.85
4.95
4.94
5.11
5.74
4.75
4.90
23
2025
4.87
4.97
4.96
5.13
5.75
4.75
4.90
24
2026
4.88
4.96
4.97
5.14
5.76
4.75
4.95
25
2027
4.89
4.99.
4.9.8:.
5..15
5.77
.4.75..
4.95
26
2028
4.90
5.00
4.99
5.16
5.78
4.75
4.95
27
2029
4.91
5.01
5.00
5.17
5.79
4.75
4.95
28
2030
4.92
5.02
5.01
5.18
5.80
4.75
4.95
29
2031
4.93
5.02
5.01
5.18
5.80
4.75
4.95
30
2032.
4.93
5.02.
5.01
5.18
5.80
4.75
4.95
[ Municipal Market Data -Line: Summary ]
12/05/02 12/04/02 12/03/02 12/02/02 il/29102
Active $: Index(14916)^ [156.706] [156.218] [155.296] [154.909] [155.1031
30-day Vis Supply(14919) 7857 MIL 8192 MIL 8368 MIL 7578 MIL 4270 MIL
'AAA' Slope (1 vs 30 yr) 365 BP 365 BP 366 BP 368 BP 368 BP
'AAA' % Treas: 30-yr 99.1% 98.6% 98.6% 99.4% 99.4%
®MIW CRA ..
y'V 'L, St
AhL
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SEOPW AND OMNI/CRA
CITY CLERK'S REPORT
MEETING DATE: December 16, 2002 Page No. 5
ITEMS 13 A RESOLUTION OF THE BOARD OF THE OMNUCRA RESOLUTION 02-97
DIRECTORS OF THE OMNI COMMUNITY (MODIFIED)
REDEVELOPMENT AGENCY AUTHORIZING THE MOVED: WINTON
EXECUTIVE DIRECTOR TO PROVIDE IN -KIND SECONDED: REGALADO
TECHNICAL ASSISTANCE TO SANDWICH BAR ABSENT: SANCHEZ,
L.L.0 IN PREPARING AND EXPEDITING AN GONZALEZ
APPLICATION TO THE CITY OF MIAMI ZONING
AND PUBLIC WORKS DEPARTMENT FOR
WAIVER OF THE CITY' S OUTDOOR DINING
REGULATION FOR GILI'S CAFE & BAKERY,
LOCATED IN THE OMNI REDEVELOPMENT
0 AREA AT 30 NE 14TH STREET.
Modification: Include "appropriate agencies of the
city".
ITEM 14 A RESOLUTION OF THE BOARD OF THE OMNI/CRA R-02-98
DIRECTORS OF THE OMNI COMMUNITY (MODIFIED)
REDEVELOPMENT AGENCY AUTHORIZING THE MOVED: REGALADO
EXECUTIVE DIRECTOR TO PROVIDE IN -KIND SECONDED: WINTON
ASSISTANCE IN PROMOTING GILI'S CAFE & ABSENT: SANCHEZ,
BAKERY AND COORDINATING AN OFFICIAL GONZALEZ
GROUND BREAKING CEREMONY WITH CITY
OFFICIALS UPON COMPLETION OF THE
RENOVATION PROJECT.
Modification: Request Executive Director to assign a
point person to work with the coordinators of the
opening ceremony and address any needs.
®M W/CRA
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Gili's Cafe & Bakery
Business Address: 30 NE 14TH. St. ( Omni ) Miami FL. 33129
Owners Gil Terem - 757 ne 77 tern. Miami 133138 Tel .305-8045793
: Eran Ramati 7904 Wesr Dr. Miami Fl. 33141 Tel. 786-4433503
OMNI/CRA
03- 13
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Table of Consents
Gili's Cafe & Bakery
Illustration of future business
Photos of improved property- facade
Photos of Build Out- The Cafe
Description of the business
Location
Marketing plan
Management
Financial management plan
Summary
The decision to open Cafe bar in the Downtown Area of Miami was made to joine the
efforts of the City of Miami and The C.R.A. in its plan to redevelop the downtown area
and turn it into a vibrant, and bustling neighborhoods.
Both owners have been involved in similar projects around the world and would like to
be part of this goal in the downtown area
Gil Terem has been working in the downtown area since 1999 both in the Park West and
Omni areas. During this time he brought many national and foreign investors and worked
with them to invest in the area, for a total investment of over $ 20 million dollars.
The proposed Cafe will help to keep the downtown become a neighborhood of cafes
restaurants and galleries that will attract customers during and after business hours, and
between shows, games and other attractions in the area.
As of today the Omni area has only began developing and most of the infrastructure does
not exist. We are willing to take the risk and invest our time, money and talent to be part
of the dream; we would like the C.R.A. to assist us by providing available funds to
support us in this pioneering project.
The building was purchased about two years ago and was renovated to its current
condition:
New electrical and plumbing system were installed, the concrete that blocked the
windows Pared doors was removed, and a new storefront was installed. Total plastering and
paint were applied to the building. The total cost of renovations to date was $71,000-.
Work on the Cafe has already started and is ongoing. We hope to open for business on
December 2002.
The total initial investment of this project is $253,250-(see attached break down).
We would like to ask the C.R.A. to help us with $107,400- to build this Cafe.
30 NE 14St. Miami FL. 33127 Tel: 305- 8045793 Fax: 305-7570604.
E-Mail Terema(cr�,bellsouth.net OMM/CRA
03- 13
: A
0.. 0
Gili's Cafe &Bakery
Description of the business
Sandwich Bar L.LC. is a limited liability company d.b.a. as Gili's - Cafe & Bakery and
registered in the State of Florida. The owners of the company are; Gil Terem and Eran
Ramati, each own 50% of its shares.
In order to open the Cafd we will need to issue a Certificate of Use from the City of
Miami and an occupational license.
The type of business we are in is manufacturing. The Cafd will prepare and sell:
* Fresh made salads (12 types)
* Fresh sandwiches
* Baked goods, bagels, muffins, and pastries
* Fruits smoothies
* Hot and cold drinks
The business is a new and based on existing businesses in the U.S. and abroad. The
business is unique in the preparation and serving of the food and drinks and will draw
many customers from the area.
The food is fresh, and will be made on the spot, in front of the customer. The prices are
moderate.
The Cafes will be open from I0:00a.m. To 10:00 p.m. Mon thru Thurs. And I0:00a.m. to
5:00 a.m. Fri. thru Sun.
At the present, the area of the Omni area does not have any food establishments that can
provide food and drink to the growing numbers of tenants and business people who are
moving to the area.
The Cafd will offer "Big Time Productions" personnel, The Jackson Memorial Hospital,
Low offices, construction workers and artists, the opportunity to eat and drink in the
Omni area, instead of having to order catering service from Miami Beach.
In addition, we will provide the clients of the clubs and bars at the Omni and Park West, a
place to eat and sober up before they hit the highway.
Location
The Cafd will be located at 30 NE 14" St. (off N. Miami Ave., next to the Bank
Building). The building has 5,400 sq. ft. with an additional 5,000 sq. ft. Garden. The Cafe
will share the Space with a Live Performance Lounge, and will use 1,400 sq. ft. of the
building with garden and outdoor cafe.
The location of the building is excellent; right on 10 St. between the Performing Arts
and the' Studios. It is close to the offices at 15'' St. and Clubs in the Entertainment Area.
It also located next to the 15'h St. Monorail and the Omni Bus Terminal.
2 30 NE 14St. Miami FL. 33127 Tel: 305- 8045793 Fax: 305-7570604
E-Mail Terem(aouth.net II�C1a;A
03- 13
Gill's Cafe & Bakery
F
The downtown area is in the process of redeveloping and reviving. A demographic shift
is accruing now. The Cafe will add to the revival of the Omni area, and will be one more
brick in the building process.
(0
The Marketing Plan
The future customers of the Cafe are divided into three main groups:
Day crowd for breakfast and lunch — new businesses in the area, film and studio crews,
office workers from the Miami Dade Teachers Union and other offices in the area.
Night and weekend visitors in the area — In Park West where, there are already four
nightclubs and two more are to be opened this year. These visitors need a place to hang
out before and after the clubs instead of hanging out in the streets. In addition the A.A
Arena is also attracting visitors. If they had a place to go, they would spend more time in
the area, instead of only parking their cars and leaving as soon as the show or game is
finished.
Pick-ups and deliveries to residential tenants — The Omni area, especially east of
Biscayne, has quite a few residential towers and many more projects coming soon.
Since there are no competitors at the moment, the need for a Cafe/ Restaurant business is
great, and the growth of such a business will be fast. The marketing of the Cafe will be
through signs and billboards in the area, newspapers and magazines. We will sponsor.
events in the surrounding a clubs and for the delivery market. A direct mail of to -go
menus will be printed and distributed in Omni/Park West and Overtown as well as
Wynwood.
The Manaaement
Gil Terem and Eran RamatL both restaurant and Cafe owners for 15 years, will manage
the Cafe. Mr. Terem owned and operated three restaurants in New York City and two
Cafes and Bars in Israel. Mr. Ramati has been a restaurant owner and operator in Tel
Aviv, Israel.
Both partners recognized the potential in the Miami market and are willing and able to
open and prosper in the area.
In addition, the Cafe will hire and train personnel from the area as counter people, service
and kitchen employees. We estimate a total team of 10 people.
3 30 NE 14St. Miami FL. 33127 Tel: 305- 8045793 Fax: 305-7570604
E-Mail Teremg_nabellsouth.net ommICRA
0 " 1 13
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0 0
Gili's Cafe &Bakery
Financial Management Plan
Investment in the property during the vear 2002 up to date:
Electrical system $12,000
Plumbing $18,500
Windows and Shutters $16,250
Roof $ 8,500
Plastering, paint $15,750
Total paid $71000
Start-up Budget
Garden and Landscaping
$ 17,000
Build out, interior design
$ 27,000
Personnel
$ 5,000
Legal/professional fees
$ 3,500
Occupancy
$ 3,600
Licenses/permits
$ 1,250
Equipment
$ 25,000
MInsurance
$ 600
Supplies
$ 5,500
Advertising / promotions
$ 9,500 .
Utilities
$ 450
Payroll Expenses
$ 1,750
Total
$100,150
�48
Proiected Operating Budget
Personnel and Security
$18,000
Insurance
$
1,800
Rent
$
3,600
Depreciation
$
3,200
Loan payment (Countrywide)
$
1,200
9 Advertising / promotions
$
3,000
Accounting
$
2,000
Miscellaneous expenses(i.e.Security,repairs)
$
2,000
Food and Hard Supplies
$40,500
Utilities
$
1,300
Taxes
$
3,500
Repair/ maintenance
$
2,000
Total
$82,100
Grand total
$253,250
4 30 NE 14St. Miami FL. 33127 Tel: 305- 8045793 Fax: 305-7570604
E-Mail Teremggabellsouth.net OMNI/CRA
03— 13
Gili's Cafe &Bakery
We would like the C.R.A. to assist us with the followings:
Garden and landscaping
grant
$ 17,000
Interior design and decoration
grant
$ 13,000
Personal total
grant
$ 13,000
Equipment
loan -
$25,000
Insurance Total
loan
$ 2,400
Supplies
loan
$ 5,500
Security start-up and operation
grant
$ 10,000
Opening party with city official
grant
$ 3,500
advertising promotion
grant
$ 3, 000
hookup and impact fees
grant
$15,000
Total grants and loans
$107,400
Please see attached invoices and estimates, more information is available
upon request.
5 30 NE 14St. Miami FL. 33127 Tel: 305- 8045793 Fax: 305-757060ibMy/CRA
E-Mail Teremg bellsouth.net 0 3 _ -13