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Home My WebLink AboutR-92-0509J-92-548 7/8/92 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'S DRUG STORE, INC., AND THE CITY OF MIAMI FOR THE PURPOSE OF PROVIDING ADDITIONAL LOAN FUNDS TO COVER FINAL CONSTRUCTION COSTS ASSOCIATED WITH THE CONSTRUCTION AND DEVELOPMENT PHASE OF THE PROJECT FOR PEOPLE'S DRUG STORE, INC.; ALLOCATING FUNDS THEREFOR, IN All AMOUNT OF $35,000, 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 eoonomio 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, Ino., represents a major development in the Overtown target area; and WHEREAS, the projeot is a 5,400 square foot faoility, featuring a family -style restaurant and neighborhood retail pharmaoy; and WHEREAS, the projeot is approximately 75% oomplete; and. WHEREAS, due to arohiteotural delays, oonstruotion on the projeot was impeded for approximately 90 days; and ATTACHMENTS) CONTAINED CITY COMMISSION MEETING OF J 1.1 L 1 6 1992 Resolution 140. 92-- 509 WHEREAS, due to unforeseen delays, projected hard costs have increased; and WHEREAS, additional loan funds for the People's Drug Store, Inc., project will be used to cover construction expenses; and WHEREAS, said loan funds will be committed under the terms of the original contract agreement between the City and People's Drug Store, Inc., and said funds shall be secured by real property which is the personal residence of the property owners; 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 Commission is hereby authorized"' to execute an amendment to an existing agreement, in substantially the attached form, and the promissory note and mortgage agreement, in a form aooeptable to the City Attorney, between People's Drug Store, Inc., and the City of Miami for the purpose of providing additional loan funds to cover final construction costs associated with the construction and development phase of the project for People's Drug Store, Inc., with funds therefor 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. - 2 - 92- 509 hereby allooated in an amount of $35,000.00 from the Community Development Block Grant Fund. Seotion 3. This Resolution shall beoome effective immediately upon its adoption. PASSED AND ADOPTED this 16th day of ATTEST MATTY HIRAI, CITY CLERK IEW: FRA14K CASTMEDA, DIRECTOR DEP RTMENT OF COMMUNITY DEVELOPMENT FINANCIAL REVIEW: CARLOS . GARCIA, DIRECTOR DEPARTMENT OF FINANCE BUDGETARY REVIEW: MANOHAR S. ASSISTANT PREPARED AND APPROVED BY: CARMEN L. LBO ASSISTANT CITY ATTORNEY CLL:ra:bss:M3068 Jul XAVIER L. , 1992. AREL, MAYOR APPROVED AS TO FORM AND CORRECTNESS: MOVE 0044 �1 3 - - 92- 509 AMENDMENT #1 PEOPLES DRUG STORE, INC, An amendment to the agreement dated , 1,9 between the City of Miami, herein after referred to as the "LENDER" and George P. Lewis, Jr. and Gloria B. Lewis, in their individual capacities (the "Guarantors"), Peoples Drug Store, Inc. a Florida for -profit corporation, referred to as "BORROWER". WHEREAS, the City Commission passed Resolution No. 91-425 approving the allocation of $100,000 to BORROWER as a low - interest loan at six percent (6%) per annum amortized over fifteen (15) years to assist in the financing of the Improvements, and authorizing and directing the City Manager to execute a contract with BORROWER. WHEREAS, the City Manager executed an agreement with Guarantor's/BORROWER on September 27, 1991, in accordance with the aforementioned Resolution, and WHEREAS, Article V Section 5.2 of said agreement states "Principal and interest payments shall commence six (6) months after completion of the Project or at such time as BORROWER receives the Certificate of Occupancy or six (6) months after execution of the Loan Agreement, whichever date occurs first. From the time of commencement of principal payments, principal and interest payments on the Loan shall be made in equal monthly installments at a rate of six percent (6%) per annum in accordance with a fifteen (15) year amortization schedule". 92.7 509 WHEREAS, it is anticipated that the completion date of said project will be August, 1992. WHEREAS, Article V Section 5.1 shall be amended to provide an additional $35,000 from Community Development Block Grant Funds for the completion of the People's Drug Store, Inc. project. THEREFORE, in mutual consideration of the covenants made = herein and the Agreement of which this is an amendment, the parties hereto understand and agree as follows: Section 1. "Principal and interest payments shall commence six (6) months after BORROWER receives the Certificate of " Occupancy of fifteen months after execution of this Loan Agreement, whichever date occurs first"... Section 2. The Loan to BORROWER shall be in an principal amount not to exceed $135,000 to assist in the financing of the project in accordance with the terms and conditions set forth. Section 3. It is further understood that all terms and conditions outlined under the original Agreement will remain in full force and effect without modification except as herein stated. Section 4. This Amendment shall become effective immediately upon its adoption. In Witness Whereof, the parties hereto have caused this instrument to be executed by the respective official thereunto duly authorized. 92- 509 V4 WITNESS our hands and seals on this , 199. ATTEST: MAI`TY-H IRA CITY CLERK WITNESS: day of CITY OF MIAMI, a municipal Corporation of the State of Florida: BY: CITY MANAUER CONTRACTOR: George P. and Gloria Lewis, individually and as owners of People's Drug Store, Inc. eorge P. Lewls (iloria Lewls APPROVED AS TO FORM AND CORRECTNESS: A. QUINN JUNL5, Iii CITY ATTORNEY -} I - -r 92- 509 CITY F MIAMI, C O M , FLORIDA 13 INTER -OFFICE MEMORANDUM TO The Honorable Mayor and Members of the City Commission PROM: Cesar H- Od o t+� City Manage RECOMMENDATION DATE � V :. y J JFILF SUBJECT PEOPLE'S DRUGSTORE Commission Agenda REFERENCES . July 1.6, 1992 ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached Resolution authorizing the execution of an amendment, in a form acceptable to the City Attorney, between the City of Miami and People's Drugstore, Inc., for the purpose of providing additional loan funds in the amount of $35,000 and modifying the terms of the payment due date. BACKGROUND The Department of Community Development (DCD) has analyzed the need to obligate additional funding in the amount of thirty-five thousand dollars ($35,000) to People's Drugstore, Inc. to cover hard costs critical to the completion of the project. People's Drugstore, Inc. represents a major commercial development in the Overtown target area that is black -owned. People's Drugstore, Inc. is a Bar-B-que Restaurant and a neighborhood drugstore that has been a part of the Overtown community for more than twenty-five years. Due to architectural delays, construction on the project was impeded for approximately ninety (90) days. As a result, certain construction and/or development fees have increased or could not be waived. The project is approximately 85% complete, however, 92- 509 the requested funds are needed to complete the project. The funds requested will be used accordingly: Impact fees $18,000 Utility Connection Fees 3,500 Laird Fill G,500 Capital Equipment/Inst. 7,000 The total cost of this project is approximately $506,524.06 of which the project has received financing from Miami Capital Development, Inc. of $250,000, the City of Miami - $100,000 and the project owner (Mr. and Mrs. George Lewis) - $156,524.06. The completion of this project will create eight new permanent, full-time jobs and retain a total of six (6) employees. The employees will all be from the local target area. Attachments Resolution Amendment 9?- 509