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HomeMy WebLinkAboutR-95-0584J'-95-565 6/28/95 RESOLUTION NO.9 5 5 8 4 A RESOLUTION AUTHORIZING THE CITY MANAGER TO CONVERT THE $135,000 LOAN MADE BY THE CITY OF MIAMI TO PEOPLE'S DRUG STORE, INC. AND GUARANTEED BY GEORGE AND GLORIA LEWIS FOR THE CONSTRUCTION OF PEOPLE'S DRUG STORE, INTO A GRANT, THEREBY FORGIVING THE OBLIGATION TO REPAY THE LOAN AMOUNT; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO EVIDENCE THIS RESOLUTION. WHEREAS, the City Commission is desirous of promoting and encouraging economic development in the City's neighborhood target areas; and WHEREAS, the City Commission has provided financial assistance to businesses within neighborhood target areas through the Community Development Block Grant Program; and WHEREAS, People's Drug Store, Inc., located in the Overtown neighborhood of the City, requested and obtained tinanciai assistance in the form of a loan in the amount of $135,000.00 for the expansion of its restaurant and pharmacy (the "Loan"); and WHEREAS, the Loan is evidenced by a Loan Agreement dated September 27, 1991, executed by People's Drug Store, Inc., as Borrower, and George P. Lewis and Gloria B. Lewis, as Guarantors; and CM COMMSSION MEETING or J U L 13 1995 Resolution No. WHEREAS, due to unforeseen circumstances including, but not limited to, Hurricane Andrew, price and code changes resulting therefrom, vandalism, delays in completing construction of the project, family hardship, dilution of investment, and health deterioration, the repayment of the Loan would lead to the financial collapse of the business; and WHEREAS, the successful completion of this project would not only provide better and increased services, but will serve as a catalyst for further revitalization of the City of Miami's Overtown Target Area; and WHEREAS, the City Commission adopted Motion 95-410 at its meeting of May 25, 1995, expressing its desire to mitigate Borrower's and Guarantors, undue financial burden in order to make the project financially feasible; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized to convert the $135,000.00 loan to People's Drug Store, Inc., for the construction of People's Drug Store, into a grant, thereby forgiving the obligation to repay. z 95- 584 403S. i Section 3. The City Manager is hereby further authorized) to execute the necessary documents, in a form acceptable to the City Attorney, to evidence this Resolution. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 13th day of July , 1995. STE HEN P. C RK, MAYOR ATTEST WALTER J. F CITY CLERK NEW REVIEW PPROV , FRANK �eAST 'D , DIRECTOR NET FINANCIAL AND BUDGETARY REVIEW: MANOHAR S. A ASSISTANT C AGER PREPARED AND APPROVED BY: APPROVED AS TO FORM AND f CO ECTNESS. 1007 OLG IRWIS A NN 0 a I ASS ANT Y CITY/AT Y W125:csk:ORS The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including, but not limited to those prescribed by applicable City Charter and Code provisions. - 95- 584 n. CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 73 Honorable Mayor and ro : Members the City Commission DATE : JUN 2 9 1995 FILE SUBJECT : Peoples Drug Store, Inc. FROM: Cesar H. Odro REFERENCES: City Commission Agenda City Manager July 13, 1995 ENCLOSURES: RECOMMENDATION It is respectfully recommended that the City Commission adopt the attached resolution, authorizing the City Manager to convert the $135,000.00 loan to George P. and Gloria B. Lewis, for the construction of Peoples Drug Store into a grant, thereby forgiving the obligation to repay. BACKGROUND Pursuant to Resolutions 91-425, and 92-509 adopted by the City Commission at meetings of June 20, 1991, and July 16, 1992 respectively, the City Manager was authorized to provide a loan in the amount of $135,000.00 at 6% interest to Mr. and Mrs. George P. Lewis, to assist in the construction of Peoples Drug Store and Bar B-Q Restaurant, a pioneer business located in the economically disadvantaged Overtown target area. As evidenced by the attached documents, this project, which started more than four (4) years ago, has become a victim of forces through no fault of Mr. Lewis. NET concurs with Assistant City Manager, Herbert J. Bailey's memo of May 30, 1995, that undue hardship has been placed upon Mr. and Mrs. Lewis stemming from unforeseen circumstances such as Hurricane Andrew's related price/code changes, construction problems, vandalism, and problems with contractors and inspections. In addition, Motion 94-410 at meeting of May 25, 1995, expresses the desire of the City Commission to alleviate Mr. and Mrs. Lewis financial burden, concurring with Mr. Bailey's recommendation that the Community Development portion of loan be converted into a grant, thus, making the project economically feasible. The successful completion of this project would not only provide better and increased services, but will serve as a catalyst for further revitalization of the City of Miami's Overtown target area. Failure to approve the attached Resolution will result in excessive debt to be carried by the Lewis family and lead to the financial collapse of the business. sr .CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM To : Frank Castaneda DATE : May 30, 1995 FILE Director NET Offices SUBJECT George Lewis FROM: Herbert J. Bailey J� REFERENCES: Assistant City Manager ENCLOSURES: As evidenced by the attached material, it is our opinion that undo hardship has been placed upon Mr. Lewis and his family in reference to completing his drugstore/restaurant in Overtown. This project started more than four (4) years ago has become a victim of forces through no fault of Mr. Lewis, and resulted in an exorbitant amount of cost, family hardship, dilution of his investment and probable deterioration of his health. In addition, problems caused by Hurricane _ Andrew caused prices/codes to change as well as the inability of the contractor to complete work and inexcusable delays in regards to the Building Inspections Department. _ Mr. Lewis has requested that the C.D. portion of his loan be converted to a grant. It is also being recommended that any payments made since the date of inception be given as a credit against his other loans with Miami Capital in order to alleviate any additional hardship. In reference to the balance of his loan, the Community Redevelopment Agency will refinance the remaining loans from Miami Capital through the Section 108 Funds we are using for Overtown Please analyze this transaction and let me know as soon as possible so we can proceed with the preparation of the 108 drawdown. HJB/ep 95- ;a r George P.Lewis People's Drug Miami Fl. 33138 May 9, 1995 Dear Mr. Bailey: My wife and I would like you to help us try to obtain a grant for some of the hardships we have encountered since 1988. We had a dream of opening a new and improved drugstore and restaurant. This would not only provide better pharmaceutical services but would also create honest jobs for the community. We found out our old drugstore had become obsolete in many ways. Foremost, our drugstore did not supply medicare/medicad service which is widely used in this community. Our goal in constructing a new building would be one that was attractive, comfortable, and efficient. Through various meetings that were held, the turn key price was six hundred thousand. Allen Morris, the construction company, managed to bring it down to four hundred thousand. Two hundred and fifty thousand was obtained from Centrust to match the loan from Miami Capital Development Company Inc. As years past, the construction began to slow down to a halt. The bills began to accumulate. Every month Miami Capital has received a check from my wife and I of interest in the amount of one thousand three hundred fifty-four dollars and seventeen cents for three years. So far this has added up to forty eight thousand seven hundred and fifty dollars and twelve cents. This construction loan cannot be used for tax purposes because of the long time period between 88-95. We've had all kinds of business obstacles as to why the building had not been completed between the City of Miami and the Allen Morris Construction Company. The city didn't give Allen Morris the proper go-ahead to finish the building. Therefore, this caused the first contract to be void. A second contract had to be written which meant more money, another obstacle. With a new sub- contracting group chosen by Allen Morris Construction Company and by them changing their assistant construction manager this prolonged the delay of the building. These led to more internal problems. These problems have led to two strokes that I have suffered due to the stress and problems of the building. My wife has been ill too from the compounding of obstacles concerning the building. The construction manager said it would take at least fifty thousand.for completion of the building. Time dragged along for another year and another fifty thousand had to be borrowed again to finish the building. To be truthful Mr. 1000 BRICKELL AVENUE 3rd FLOOR MIAMI, 3/22/95 Herb Baily Assistant City Manager City of Miami 3500 Pan American Dr. Miami, FL 33133 } THE AMN MORRIS CONSTRUCTION . COMPANY )16014 1 i 00;5) S6-L 1000 FAX (305) 373.3241 Re: The People's BBQ at 360 NW 8th St. in Miami. Dear Mr. Baily, As I'm sure you are aware we have been spending extensive hours in the last six months attempting to complete the construction of the above mentioned project. The problems that we have encountered in dealing with the Miami Planning and Zoning Department are well known to you. In addition many of the delays in the completion of this project can be traced to the serious deficiency in the plans used during construction. The City's initial refusal to obtain and subsequent foot -dragging in acquiring as -built drawings incorporating the many changes made through necessity and at the owner's request has been a serious stumbling block as well. In attempting to complete the People's BBQ we have incurred tremendous expense trying to accommodate the Building Department by doing work not specified on the plans. The City has also with held the final payment due to us for the reason that we have been unable to obtain data to comply with the Davis -Bacon Act.I'm certain that you will concur with the fact that many of the sub -contractors have abandoned the job and full compliance with the Davis -Bacon Act has been an impossible feat. All of that being said we submit the following itemized request for payment on services rendered not initially in our contract. (continued) 95- 584 11W41''r; lh Debt Service Debt Service Year Interest ( Principal Total Payments Balance 1995 $ 34,889.20 $ - $ 34,889.20 _Loan $400,000.00 1996 $ 34,889.20 $ - $ 34,889.20 $400,000.00 1997 $ 34,889.20 ; $ - $ 34,889.20 $400,000.00 1998 $ 34,889.20 i $ 12,000.00 $ 46,889.20 $388,000.00 1999 $ 33,911,20 1 $ 12,000.00 $ 45,911.20 $376,000.00 2000 $ 32,924.80 $ 12,000.00 $ 44,924.80 $364,000.00 2001 $ 31,936.00 $ 12,000.00 $ 43,936.00 $352,000.00 2002 $ 30,943.60 j $ 20,000.00 $ 50,943.60 $332,000.00 2003 $ 29,295.60 $ 20,000.00 $ 49,295.60 $312,000.0 2004 $ 27,617.60 $ 20,000.00 $ 47,617.60 $292,000,00 2005 $ 25,923.60 $ 20,000.00 $ 45,923.60 $272,000.00 2006 $ 24,209.60 $ 20,000.00 $ 44,209.60 $252,000.00 2007 $ 22,475.60 $ 40,000,00 $ 62,475.60 $212,000.00 2008 $ 18,967.60 $ 40,000.00 $ 58,967.60 $172,000.00 2009 $ 15,423.60 $ 40,000.00 $ 55,423.60 $132,000.00 2010 $ 11,859.60 $ 40,000.00 $ 51,859.60 $92,000.00 2011 $ 8,287.60 $ 40,000.00 $ 48,287.60 $52,000.00 2012 $ 4,695.60 $ 52,000.00 $ 56.695.60 $0.00 $ 458,028.40 $ 400,000.60 $ 858,028.40 401 11t c4 conshuctlon ROmodellng Renovation Restototlon consulting services ME AUN MORRIS CONSTRUCTION , COMPANY 1000 BRICKELL AVENUE 3rd FLOOR MIAMI, FLC)R -381q Y3Fd� 358 1000 FAX (305) 373 3241 Mr. Herb Baily Assistant City Manager City of Miami Pan American Dr. Miami, FL 33131 Re: Our meeting on 4/14/95 discussing the People's BBQ. _ Dear Mr. Baily: I find it somewhat odd to be once again discussing the same matters that we have gone over in countless meetings and correspondence regarding the above -mentioned project. However for the benefit of everyone involved in the meeting I will restate our requests for completing this project. In the entire time that I have been involved in attempting to get Mr. George Lewis moved into his new place of business we have asked for these same items to be resolved. Let me initially state that I have never dealt with a building department that did not make it known in writing what was required to pass any particular inspection. That having been said we respectfully request that all items required to be completed for completion of mechanical and.fire inspections be forwarded to us in writing. This request is being made to end the confusion and back and forth bickering that has accompanied our attempts to finalize the mechanical permits. We have encountered a constantly changing list of mechanical corrections to be made at the BBQ. It is simply a waste of everyone's time to guess at what will be required for completion of all mechanical inspections. Our second request is that we have a completed set of as built drawings that are acceptable to the City of Miami. We cannot proceed any further with electrical or building inspections without an approved set of as built pians. After these items are addressed, we will, in conjunction with the City of Miami, determine which of the items to be completed are changes to the contract and which constitute deficiencies on our part. We have been and continue to be accepting of any responsibility for all items that are deficiencies on our part. Any items deemed to be changes will be written up as change orders and sent to Mr. Lewis for his approval. On any changes we will need applicable Architectural and/or Engineering details for how to address those changes. Any design work must be completed by the proper parties authorized to do that segment of the work. (Continued) 584 /f RIB KING: Now 94, still playing tennis, still running People's Pharmacy next. •doortothe founder George Lewis Sr. works each day at 402 NW Eighth St. The Lewis family saw the expansion of People's . Barbecue as a continuing commitment, :dating tram Red tape puts rib legerid's expansion: on back burner, ®y fiEOFFAEY TOMB Herald Staff Writer He is the Bocuse of barbecue, Miami's soul. provider, protector of a.secret. It s in his sauce,.the color of terra cotta, the lightness of 'souffle, made 30 gallons a batch and- gone . up 'in .smoke every two nights. . .' Oak coals are fired every after- noon at 4 p.m., except Monday. Blue smoke from the old 1pit pours up ,the. chimney, enticing motorists a block away on Inter - state 95, luring fans as they enter or leave nearby Nliari1i'Are.na. . Writer.. Calvin.;Trillin,• who once made 'Kansas` City fibs famous, is a bare-bones.noyice!+t until he eats one of George Lewis X's dry -cooked, suc2 ulent ribs. = Drooling customers "•wait! in line on Fridays and Saturdays at his,I0-stool People's Barbecue' a'' „- Lewisfamily.workofculinaryart !•• for 35.years. Doors stay open until 2:30 a.m. �ust to satisfy,a mix of Overtown ocals, , cops, .firefighters, late-`^ shift• workers, even a few Dol- phins and Heat players: And with each order he sells — 1. millions of ribs dating from 1960 when JFK was new.— Lewis Jr. always says the same thing:, "If TRADITION CONTINUES: George'Lewis J�; tt3ncis to meat in, the pit at the PLEASESEE BARBECUE, 2a original People's Barbeque� while customers awelt their•orders at the counter. ^� �. 95584 �htix1�T WHEREAS, it Is anticipated that the completion date of said Project wII1 be August, 1993. WHEREAS,. Art.IcIa V Section 5.1 s h a I I be amended to pr.ovIdo an" additlonal $35,000 from Community Development 91ock Grant Funds for th'e completion of the Improvements. THEREFORE, IN MUTUAL CONSIOERAT'10N OF THE COVENANtS MADE herein and In the Agreement Of which this is an Amendment, the part les hereto understand and agree as fol lows: Sect 1 on 1 . "Pr i nc i pa 1 an interest payments sha 1 I commence after BORROWER receives Certificate of Occupancy or nine (9) months after 'execution of th►s Amendment, which ever event occurs fi rst .p Section 2. The Loan to BORROWER shaI I be in a principal amount not to exceed $133,000 to assist In the financing of the Improvements in accordance with the terms end conditions set forth In the Agreement and 'this Amendment. Section 3. It is further understood that a I I terms and conditions outlined under the original Agreement wiII remain In fu`1I fora® and effect without modification except as herein stated.: Sect I on 4. Th l s Amendment sha I I become effect Ive immediately upon its adoption. IN WITNESS WHEREOF, the perties hereto have caused this instrument to be executed by the respective official thereunto duly authorized. l7 95- 584 441PA11 92�a�e 9 2 -- 509 RESOLUTION NO. A RESOLUTION, WITH ATTACHMENTS. AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, AND THE PROMISSORY NOTE AND MORTGAGE AGREEMENT, IN A FORM ACCEPTABLE' TO THE CITY ATTORNEY, BETWEEN PEOPLE'8 DRUG STORE, INC.`, AND THE CITY OF HIAMI POR THE PURPOSE OF PROVIDING ADDITIONAL LOAN FUNDS TO COVER .FINAL CONSTRUCTION COSTS ASSOCIATED WITH - THE CONSTRUCTION AND DEVELOPMENT PHASE OF THE PROcYECT FOR PEOPLE'S DRUG STORE, INC.; ALLOCATING FUNDS THEREFOR, IN AN AMOUNT OF $30,600. FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND. WHEREAS, the City Commission is oommitted to eoonomio development and the expansion of trade and oommeroe; and WHEREAS, the promotion of economic revitalization in the neighborhoods of the City of Miami is an important part of the City's eoonomio development strategy; and WHEREAS, the People's Drug Store, Inc., represents a major development In the Overtown.target area; and WHEREAS, the project is a 5,400 square foot faoility, featuring a family -style restaurant and neighborhood retail. pharmaoy; and WHEREAS , the project Is approximately 76% oomplete ; and WHEREAS, due to architectural delays, oonstruotion on the projeot was impeded for approximately 90 days; and FATTACHMENT(S) 95-, 584 CITY COtr.WSSION 1110ETING OF J 1; L 1 6 1992 Pawfutran Uo. 92— 509 I- - b T WHEREAS, due to unforeseen delay's, projeoted hard costs have inoreased; and WHEREAS, additional loan funds for the People's Drug Store, Ino., projeot will be used to oover oonstruotion expenses; and WHEREAS, said loan funds will be oommitted under the terms of the original oontraot agreement between the City and People's Drug Store, Ino., and said funds shall be seoured by real property whi.oh is the personal residenoe of the property owners; NOW, THEREFOR$, BE IT RESOLVED BY THE. COMMISSION OF THE CITY OF MIAMI, FLORIDA; Seotion 1. The reoital.s and findings oontained In the Preamble to this Resolution are hereby adopted by ref erenoe thereto and incorporated herein' as if fully set forth in this Seotion. Seotion 2. The City Commission is hereby authorizedI/ to exeoute an amendment to an existing agreement, in substantially the attaohed form, and the promissory note and mortgage agreement, in a form aooeptable to the City Attorney, between People's Drug Store, Ino., and. the City of Miami for the purpose of providing additional. Loan funds to oover final oonstruotion oosts assoolated with the oonstruotion and development phase of the projeot for People's Drug Store, Ino.; with funds therefor The herein authorization is further subjeot to oomplianoe with all requirements that may be imposed by the. City Attorney, inoluding but not limited to those prescribed by applioable City Charter and Code provisions. 92- 509 95- b46,1 h&voby allooated in an amount of $38,000.00 from the Community Development 81bok Grant Fund. Seotion 3. -This Resolution shall beoome efreotive immed$.ately upon its adoption. PASSED AND ADOPTED this -!6_th day of Jul ATTEST: XAVI£R UARE , MAYO$ MATTY KiRAI, CITY CLERK COMMUNITY DEV 1 NT REVIEW: FRAN CAS EDA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT FINANCIAL REVIEW: CARLOS . GARCIA, DIRECTOR DEPARTMENT OF FINANCE BUDGETARY REVIEW: MANOHAR S. S• ASSISTANT CITV A AGER PREPARED AND AP ROVRD BY: CAME9 L. LE0 A,S3I STANT CITY ATTORNEY CLL:2a:bss:M306$ - 3 - - APPROVED AS TO FORM AND CORRECTNESS: �1 - - Amel" A! QUINN Z 3ES , 11 CITY ATT r EY 92- 509 07'� 95- 584 414 J-91-445 6/7/91 RESOLUTION NO. J'.. 425 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT, IN A FORM ACCEPTABLE TO THE, CITY ATTORNEY, WITH PEOPLE'S DRUGSTORE, INC., TO PROVIDE A LOAN IN THE AMOUNT OF $100,000 AT••SIX - (64) PERCENT INTEREST RATE FOR A PERIOD OF FIFTEEN (15) YEARS, COLLATERALIZED BY LAND, FIXTURES AND EQUIPMENT] FOR THE PURPOSE OF EXPANDING THE PROPOSAD, LEWIS BARBECUE RESTAURANT AND PHARMACY LOCATED AT 402 NORTHWEST 8TK STREET, !. MIAMI, FLORIDA, IN THE OVERTOWN NEIGHBORHOOD, ALLOCATING FUNDS FOR SAID LOAN FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM MONIES. WHEREAS, the City Commission is desirous of promoting and encouraging economic development in the City's neighborhood targot areaej and WHEREAS, the City Commission has provided financial assistance to businesses within neighborhood target area through the Community Development Block Grant Programs and WHEREAS, People's Drugstore, Inc., located in the Overtown neighborhood of the City, has requested financial assistance in the amount of $100,000 for the expansion of its restaurant and pharmacy; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDAt Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully Bet forth in this Sectiod. Section 2. The A ty Manager is hereby authorized to enter into an agreementT/ in a form acceptable to the City Attorney, to provide a loan in the amount of $100 000 at six G9 e t a or r + r L ( ) p icon interest rate for a period of fifteen (15) years, collateralized _ by a mortgage on tht e personal residence of a principal owner of the subject corporation, second mortgage on the real estate located at 402 Northwest 8th Street, Miami, Florida and a land 1/ The herein authorization is further subject to compliance with all requirements that may be Imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. st J U-Pi— 1 :2--5►5 MON 1 3 1 2 P � 02 — _ s 776 do 6 �•�`��;��`�� �e�` DOCUMENT LOG FORM/CITY MANAGER $ S OF�r/ yy "I�r MAIIAGERS 0' OFFICE Name Of party( Ias) : PEOPLES DRUGSTORE,. INC. Document type; AMENDMENT NO. t Purpose: TO ASSIST IN THE FINANCING OF IMPROVEMENTS ON PEOPLES DRUGSTORE PROJECT Facility: Date(s): ONE YEAR FROM DATE OF EXECUTION Department: COMMUNITY DEVELOPMENT Contact person (questions): MIRANDA Y. ALOURY Telephone: 579-2461 Contact person (delivery): MIRANDA Y. ALBURY Telephone: 579-2461 A w r M rt is r rt r w it r N r r r* r w r r r r r* w r r r■ s w•■ w rt■• is r w r% r r i r r r w r w■ r r/ r w r w r r r r• s r r♦ r w it wfr EXPENSE/REVENUE $35,000.00 ACCOUNT(s)/PROJECT(s) Authorized by Resolution No. 92-509 ATTACHED) OR APPROVED BY: Budget 01 rector CIP Administrotor Community Development Director X All City requirements have been documents I (a•re) ready for exe Department 0 DEPARTMENT DIRECTOR OR DESIGNEE ACM/ADVISOR G rrkrrtrtrh:rrwrrrrrtrrrrrrt■r�■■■rrw■r•r DATE RocGlved by Manager's Of face: Signed by Manager: Attested by City Clerk: Returned to Department/Office: ORIGINAL TO CITY CLERK: ( qCNER� F DS) f j '•C l,P Ft D S r i r f lr=i+C:D. FUNDSI nj met a nd t h a cu t I on. �) irecto signed Initials 1 DA TEzu� DATE �Y r R r r w r r■• r► r r r• IF ■ r IF ■ R• r w w r r w r r■ fr o r r M frr / bX-3 95- 584