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Home My WebLink AboutR-89-0355J-89-353 3/30/89 RESOLUTION NO. 8,43-3 S, A RESOLUTION ALLOCATING AN AMOUNT NOT TO EXCEED $t05,000 TO TROPICAL CLEAR BLUE LAUNDRY SYSTEMS, INC. FOR THE PURPOSE OF ITS ACQUIRING AND MANAGING A SHORT STOP OF FLORIDA, INC. FAST FOOD FRANCHISE AT 5400 N.W. 7TH AVENUE, WITH FUNDS BEING ALLOCATED FROM THE FOURTEENTH (14TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR ECONOMIC DEVELOPMENT/PHYSICAL IMPROVEMENT PROJECTS POOL FUND; AUTHORIZING EXECUTION OF AN AGREEMENT WITH SAID FIRM IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH TERMS OF SAID LOAN AS STATED HEREIN. WHEREAS, the City Commission is committed to the economic development and the expansion of Trade and Commerce in the City of Miami; and WHEREAS, Resolution No. 88-384 established the Economic Development/Physical Improvement Project Pool Program under the Fourteenth (14th) Year Community Development Block Grant fund; and WHEREAS, the total projected cost of this project is $210,000, which includes acquisition, site development, franchise fee and ownership; and WHEREAS, the City is providing a loan of one—half (1/2) or $105,000 for said project to Tropical Clear Blue Laundry Systems, Inc.; and WHEREAS, the terms of the City's loan are a., follows: City's al.locr_ted amount of $105,000. The terms for said loan will be a deferral of princip-al and interest during year one (1); interest only deferral during; year t%ro ( 2 ) ; loan will be at three percent (3Z) amortized over a fifteen (15) year period wi.tti deferral amount to balloon at the end of said note. The approximate monthly payment due to the City will be $711.25; and WHEREAS, the remaining terms of the City loan areas follows: 1) The City shall have a second interest position (behind Short Stop of South Florida, Inc.) on the equipment and building located at 5400 N.W. 7th Avenue. CITY CojriMISSION MEETING OF 0 APR 13 1989 j;esuLuT1w! NQ_ aa�r� 2) Davis -Bacon wages will be applicable in the assembly and attachment of the prefabricated building to the aforementioned business sire. 3) If the v,ost of the project. exceeds $210,000, then t11e City and Barnett T;nnk of South Florida, N.A. v!11.1 share the cnst on a 50/50 basis. 4) The Ci. ty of. MI ami. and Barnett Banl of South Florida, N.A. will_ disburse In&n proceeds equally on each request made and approved. 5) The City of 17i.ami shall. be named as an additional insured and/or Loan payee on all required insurance policies. Tropical Clear Blue Laundry Systems, Inc. will maintain insurance rated by A. li. Best's as to A+ Classification V as to Financial Size. 6) The City of Miami will be notified within 30 days of default and Barnett Ban1c of: South Florida, N.A. will. allow the City of Miami 150 days to exercise a repurchase agreement. 7) A properly executed Landlord's Waiver shall be provided prior to closing; 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. An amount not to exceed $105,000 is hereby allocated in the form of a loan to Tropical Clear Blue Laundry Systems, Inc. for the purpose of its acquiring and managing a Short Stop of Miami, Florida, with funds therefor buy hereby allocated from the Fourteenth (14th) Year Community Development Block Grant funds for Economic Development/Physical Improvement Projects Pool Fund. Section 3. The City Manager is hereby authorized to execute ar, agreement, in a form acceptable to the City Attorney, with the terms of said loan a reement. as set forth herein, with ., :id firm, said agreement to be in substantial accordance with this attached memorandum and with such other conditions as may have been imposed by the City Commission at the time of its consideration of the herein resolution. Section 4. No City funds shall be released until a joint closing has been held with all the parties involved in the herein venture. Section 5. This Resolution shall become effective immediately upon its adoption, pursuant to law. PASSED AND ADOPTED this 13th day of ATTEST: MfTTY HIRAI CITY CLERK COMMUNITY DEVELOPMENT REVIEW AND APPROVAL: ANK ASTAfNEDA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT 11 Apri 1 1988. XAVI R L. SU REZ AYOR FINANCE DEPARTMENT REVIEW AND APPROVAL: " CARLOS QAA, DIRECTOR DEPARTMENTICIF FINANCE BUDGET REVIEW AND APPROVAL: I Lloc MAN KAR;SURAN DIRECT DEP `RTjtNT OF BUDGET PREPARED AND APPROVED BY: ROBERT F . CLERK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORH AND CORRECTNESS: JO E ERN NDEZ Cl ATTORNEY /Igjd -3- 89- J . . CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Cesar H. Odio City Manager eyfl� DATE: APR a 4 1999 FILE: SUBJECT: Tropical Clear Laundry System, Inc. REFERENCES: ENCLOSURES: RECOMMENDATION It is recommended that the City Commission approve the attached resolution, authorizing the allocation of $105,000 to Tropical Clear Blue Laundry Systems, Inc. and the execution of a contract agreement thereto, in a form acceptable to the City Attorney, with the City of Miami, for the purpose of purchasing and operating a Short Stop International Fast Food Franchise. BACKGROUND The Department of Community Development (DCD) has analyzed the need to provide funding to Tropical Clear Blue Laundry Systems, Inc. for the purpose of acquiring and managing a Short Stop International Fast Food Franchise, to be located at the Southwest corner of Northwest 54th Street and Northwest 7th Avenue. The projected cost of the project is $210,000. Approximately $105,000 trill come as a Loan fr.onl the City's Coramuttity Development Block; Grant Fund previ.ouc1y appropriated by Resolution No. 87-411. The remaining $105,000 proposedly come from Harnett Bank; of South Florida, N.A. in the form of v loan and whose terms are as follows: Borrower: Tropical Clear Blue Laundry Systems, Inc. Interest Rate: Floating Barnett Banks, Inc. Prime plus 2%, adjusted on days of change. Fees: 1/2% Bank fee, (in addition to all proceeding cost). Maturity: 3 years from date of note, but no later than April 30, 1992 Terms: Principal payment of $611.11 plus accrued interest monthly, with a 3 year balloon. �� Honorable Mayor and Members of the City Commission Page 2 Collateral: A first security interest on all corporate assets including, but not limited to, inventory and equipment, products and proceeds. In addition, attached (Exhibit A) is a copy of the proposed expression of intent to issue a loan commitment from Barnett Bank of South Florida, N.A. The terms of the City's loan will be: City's allocated amount of $105,000. The terms for said loan will be a deferral of principal and interest .during year one (1); interest only deferral during year two _(2); loan will be at three percent (3%) amortized over a fifteen (15) year period with deferral amount to balloon at the end of said note. The approximate monthly payment due to the City will be $711.25 Further, the City's loan will also be contingent on the following: 1) The City shall have a second interest position (behind Short Stop of South Florida, Inc.) on the equipment and building located at 5400 N.W. 7th Avenue. 2) Davis -Bacon wages will be applicable in the assembly and attachment of the prefabricated building to the aforementioned business site. 3) If the cost of the project exceeds $210,000, then the City and Burnett Bant: of South Florida, N.A. will share the cost orx a. 50/50 basis. 4) The City of Miami and Barnett Banc: of South Florida, N.A. will disburse loan proceeds equally on each request made and approved. 5) The City of Miami shall be named as an additional insured and/or loan payee on all required insurance policies including those required by Barnett Bank of South Florida, N.A. Tropical Clear Blue Laundry Systems, Inc. will maintain insurance rated by A. M. Best's as to A+ Classification V as to Financial Size. 6) The City of Miami will be notified within 30 days of default and Barnett Bank of South Florida, N.A. will allow the City of Miami 150 days to exercise a repurchase agreement. 89- ti Honorable Mayor and Members of the City Commission Page 3 7) A properly executed Landlord's waiver shall be provided prior to closing. It should be noted that the principals of Tropical Clear Blue Laundry Systems, Inc. have no personal equity invested in this project. In addition, the City's loan will be totally un— collaterized. However, due to the site location and the area characteristics to support this type of business endeavor and the support of the private sector, the administration recommends said project with the aforementioned terms being in effect. /gjd 11 Ell TROPICAL CLEAR BLUE LAUNDRY SYSTEMS, INC. FACT SHEET BUSINESS NAME: ** Tropical Clear Blue Laundry Systems, Inc. BUSINESS ADDRESS: 1490 N.W. Third Avenue, Miami, Florida 33136 TELEPHONE NO.: (305) 576-1840 PRINCIPALS: Robert L. Williams - Secretary/Treasurer /Director Alvin J. Robinson - Vice-President/Director (Reside in Miami) Robert L. Sanders - President/Director (Each principal owns 33 1/3% of company shares) FRANCHISE: Short Stop of Florida, Inc. PROPOSED LOCATION: 5400 N.W. 7th Avenue, Miami, Florida 33127 PROJECTED COST: $210,000 CITY OF MIAMI: *** $105,000 - @3% - 15 years - Principal and interest deferred in year one (1), interest only deferred in year two (2); deferral amounts balloon at end of note. BARNETT BANK: **** $105,000 COLLATERAL: * Equipuent (second position) 1 ST YEAR. DEFERRAL AMOUNT: $8,701.32 2ND YEAR DEFERRAL AMOUNT: $3,136.08 PROPOSED MANAGERS: Ilean Sanders Sara Williams * City's loan will not be secured by any collateral ** The principal's will not be investing any equity *** The City's loan amount is $105,000; the monthly loan payment will be approximately $725. Annual payment will be $8,701.32 **** The Bank-s loran amount is $105.00; the monthly loan payment will be approximately $611 and will balloon at the end of three (3) years