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Home My WebLink AboutOMNI-CRA-R-03-0025ITEM 11 RESOLUTION NO. OMNI/CRA R- 0 3 - 25 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A LOAN AGREEMENT WITH SAX ON THE BEACH ON THE TERMS DESCRIBED IN EXHIBIT `A' WITH LOAN FUNDS TO BE PROVIDED FROM OMNI TAX INCREMENT TRUST FUND ACCOUNT NUMBER 686001.590320, AND WITH THE FURTHER PROVISION THAT EVENTS TO BE PROVIDED BY SAX ON THE BEACH IN EXCHANGE FOR POSSIBLE FORGIVENESS OF THE LOAN MUST BE ACKNOWLEDGED AND APPROVED BY THE EXECUTIVE DIRECTOR PRIOR TO THE DATE OF THE EVENT. WHEREAS, the success or failure of new businesses within the redevelopment area has a direct impact on further economic development within the redevelopment area; and WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency, ("CRA") in accordance with its redevelopment plan, wishes to encourage and foster economic growth by assisting new businesses in the redevelopment area. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted and incorporated herein as if fully set forth in this Section. Section 2. The Board of Directors hereby authorizes the Executive Director to enter into a loan agreement with Sax on the Beach on the terms described in Exhibit "A", from funds to be provided from the Omni Tax Increment Trust Fund, with the provision that the events to be ONM/CRA 03- 25 provided by Sax on the Beach in exchange for possible forgiveness of the loan must be acknowledged and approved by the CRA's Executive Director prior to the date of the event. Section 3. This Resolution shall be effective upon its adoption. PASSED AND ADOPTED this 3 1 " day of March, 2003. ARTHUR E. TEELE, JR., CHAIRMAN ATTEST: PRISCILLA A. T OMP ON, 'CLERK OF THE BOARD :O VILARELLO COUNSEL NOTE: Expenditure authorized by this resolution is funded by CRA OMNI TIF in the amount of $34,500.00, Account Code No. 686001.590320.6.690 — Promotional Activities. (See Attached Financial Information Form) Frank K. Rollason Executive Director Community Redevelopment Agency OMNI/CRA Page 2of2 03- ' 25 ITEM 11 EXHIBIT "A" CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY LOAN TERMS For Sax on the Beach Borrower: WHE Enterprises d/b/a Sax on the Beach Project location: Omni CRA-1756 North Bayshore Drive Board authorization: November 16, 2002 by Omni Resolution R02-92 Loan amount: $34,500 Loan type: Forgivable after three years subject to WHE Enterprises (Sax on the Beach) meeting requirements detailed in the section identifying -the responsibility of Sax on the Beach. Interest rate: One year London Inter Bank Offered Rate (LIBOR) as published in.the Wall Street Journal on the business day preceding the closing of the loan. Term: Three (3) years Purpose: Construction related business expansion Collateral: To be provided Sax on the Beach's responsibility: 1) Hire two full time (or four part-time) positions and maintaining said jobs for a minimum period of three (3) years. The persons hired must be residents of the Omni or SEOPW CRA district. The CRA will require a letter of commitment at the time of closing if the positions vacant; OR Host/sponsor a jazz weekend at Margaret Pace Park within one year of the loan disbursement. 2) Provide a commitment letter for the hiring of the positions complete required forms upon hiring the person(s) for the positions identified in the commitment letter. 3) Complete the job tracking form 4) Sign a promissory note 5) Cooperate with the CRA in conducting site visits including the interviewing of person(s) hired as a result of the loan. ® 6) Notifying the CRA in writing of any changes in ownership or'transfer of major asset during the term of the loan. The notification must occur thirty days prior to the completion of the transaction. OMNI/CRA 03. 25 • CRA's responsibility 1) Monitor the positions identified by Sax on the Beach. 2) Provide technical assistance in the event that Sax on the Beach chooses to host a Jazz weekend at Margaret Pace Park. 3) Conduct periodic inspection and conduct interviews as necessary. 4) Upon the completion of three, years of the hosting/sponsoring of a jazz weekend in Margaret Pace Park, the CRA Administration will make. a recommendation.to the Board to forgive the loan and interest accrued during the term of the loan. 5) In the event that the borrower deviates or violate the terms of the agreement the CRA will recommend that the Board demand full payment or on a pro rata basis. ®MTICRi 0.3 - 25 IA AGENDA FINANCIAL INFORMATION FORM CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY SEOPW CRA or 0MNI C (if applicable) CRA Board Meeting Date: March 31, 2003 CRA Section: Finance & Administration "Brief description of CRA Agenda Item: Loan Agreement with Sax On the Beach in the amount of $34,500.00. (Item 11 on 3/31 CRA Board A eg nda). Project Number (if applicable): 686001 YES, there are sufficient funds in Line Item: Index Code: 590320 Minor: 690 Amount: $34,500 ❑ NO (Complete the following source of funds information): Amount budgeted in the line item: $ Balance in the line item: $ Amount needed in the line item: $ Sufficient funds will be transferred from the following line items: ACTION I ACCOUNT NUMBER TOTAL Project No./Index/Minor Object From $ To $ From $ To $ Comments: Approved by: /� Date: CRA Executive Director/Designee N:/�. ��.M�� til'✓V:�'V�N� ��'��W �/\"i^l:/WvN'V/�.N �r ,1��V�/� �vW /��/��/`✓��%v �"/�/��V J��iV�/� APPROVALS Verifie b Verifie CRA Accounfing Section rye au.-"'Ve Y r/bsjET '71-1� Date: y �' ` /�_ CRA Finance Section Date: r / /CRA 03- 25 CRA Lgj U U -L 03/18/2003 16:33 FAX 3053724646 in r1 4 SE®PW AND OMNI/CRA CITE' CLERK'S REPORT MEETING DATE: November 25, 2002 Page No. 3 ITEM 7 Direction to Executive Director of the CRA: by Chairman Teele to protect and enhance Peoples Restaurant on N.W. 8"' Street during the construction of the Port of Miami Project. Chairman Teele further requested the appropriate administration members (City of Miami Planning and Public Works Departments) to briel' Board Member Regalado on the proposed tunnel project. ITEM 8 A MOTION GRANTING W.H.E. ENTERPRISES A OMNI/CRA MOTION 02-92 LOAN/CREDIT LINE IN AN AMOUNT NOT TO MOVED: REGALADO EXCEED S34,500 TO ASSIST WITH COSTS SECONDED: WINTON ASSOCIATED WITH THE EXPANSION OF SAX ON ABSENT: GONZALEZ, THE BEACH. LOCATED AT 1756 NORTH SANCHEZ BAYSHORL- DRTVE. WITH THE CONDITION THAT W.H.E. ENTERPRISES HOST ONE OR TWO JAZZ WEEKENDS AT MARGARET PACE PARK AND .ANOTHER DURING. SAID PARK'S OPENING CEREMONY SCHEDULED FOR DECEMBER 16, 2002, FURTHER STATING THAT THE LOAN/CREDIT BE GRANTED FOR ACTIVITIES TO BE APPROVED BY THE CRA BOARD, WITH A TIME LIMIT AND INTEREST RATE ESTABLISHED IN THE FORM OF A GRANT AGREEMENT TO BE BROUGHT BACK FOR BOARD ACTION AT THE DECEMBER CRA BOARD MEETING, WITH THE UNDERSTANDING THAT FUNDS WILL BE RELEASED WITHIN 5-10 DAYS AFTER THE DECEMBER CRA BOARD MEETING. E A,r,cn&d 12-02-()2 Ol'dINI / CRA 03- 25 ITEM 11 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To: Chairman Arthur E. Teele, Jr. and Members of the CRA Board _ From: r . Rollason CRA Executive Director RECOMMENDATION: Date: March 18, 2003 File: Subject: SAX Loan Terms References: Enclosures: Resolution, Loan Terms It is respectfully recommended that the CRA Board of Directors approve the proposed loan terms (attached Exhibit "A") for WHE Enterprises d/b/a Sax on the Beach; Further authorizing the Executive Director to enter into a loan agreement with Sax on the Beach on the terms as presented in Exhibit "A" with funds to be provided from the Omni Tax Increment Trust Fund.. Is JUSTIFICATIONBACKGROUND: Sax on the Beach, an eating and drinking establishment, located at 1756 North Bayshore Drive, directly in front of the recently constructed Margaret Pace Park, requested assistance to expand their business. They completed the expansion while the park was still under construction and was therefore impacted by the construction activity. On November 25, 2002 the proprietors of Sax on the Beach requested a loan in the amount of $40,000.00. The administration, based on the proposed CRA Business Loan Policy, made a recommendation of $34,500. Pursuant to Omni Motion M-02-92, passed by the Board of Directors during the November 25, 2002 meeting, a loan with conditions was awarded. The attached term sheet addresses those conditions in the context of the: policy. FUNDING SOURCE: ACCOUNT NUMBER OMNI TAX INCREMENT TRUST FUND 686001.590320 FKR/em OW IXR� Q 3