HomeMy WebLinkAboutCRA-R-15-0038 Cover MemoSEOPW Board of Commissioners Meeting
September 30, 2015
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Keon Hardemon
and Members of the CRA Board
Date: September 21, 2015 File: 15-01193
Subject: Resolution Authorizing a Loan to VSMD Food
Corp. and Second Lease Amendment.
From: Clarence E. Woods, Ill References:
Executive Director
Enclosures: Supporting Documentation; Legislation;
Attachments
BACKGROUND:
The attached Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community
Redevelopment Agency ("CRA") authorizes the execution of a loan agreement, by and between the CRA and
VSMD Food Corp. ("VSMD"), for a loan in an amount not to exceed $400,000 to assist with construction costs of
"Top Value Supermarket" at the Overtown Shopping Center, 1490 N.W. 3`d Avenue, Unit 101, Miami, Florida
("Premises"). This Resolution also authorizes the execution of a second lease amendment with VSMD.
The CRA owns the Overtown Shopping Center, at 1490 N.W. 3rd Avenue, Miami, Florida, and said property is
located within the N.W. 3`d Avenue Neighborhood Center. In order to attract and accommodate commercial
tenants, the CRA partially renovated and rehabilitated the Overtown Shopping Center and thereafter sought
proposals from persons interested in leasing commercial space therein.
On March 31, 2014, the Board of Commissioners, by Resolution No. CRA-R-14-0028, authorized the execution
of a commercial lease agreement by and between the CRA and VSMD wherein VSMD sought to open a grocery
store at the Premises. Due to an increase in construction costs since VSMD submitted its proposal in 2013,
VSMD requested a loan from the CRA in an amount not to exceed $400,000. If approved, the loan will be
amortized at a fixed rate of four percent (4%) for a period beginning September 1, 2015 through March 31, 2030
(Sunset date of the CRA).
Lastly, this Resolution authorizes the execution of a second lease amendment with VSMD to revise the lease
commencement date and correct the rent amounts due during the lease "Renewal Period".
JUSTIFICATION:
Section 2, Goals 5, at page 11, of the Southeast Overtown/Park West Community Redevelopment Agency Plan
("Plan") lists "[p]romotion and marketing of the community," as a stated redevelopment goal.
Principle 6, at page 15, of the Plan further lists the promotion of "local cultural events, institutions, and
businesses," as a stated redevelopment goal. Principle 6, at page 15 also provides that in order to "address and
improve the neighborhood economy and expand economic opportunities of present and future residents and
businesses[,] ... [it is necessary to] support and enhance existing businesses and ... attract new businesses that
provide needed services and economic opportunities ..."
The Plan at pages 62-63, identifies the N.W. 3`d Avenue Neighborhood Center as becoming a thriving mixed -
use area, which requires the CRA to "attract new businesses to N.W. 3'd Avenue in anticipation of [surrounding
residential development]."
FUNDING:
$400,000 allocated from SEOPW Tax Increment Fund, entitled "Other Grants and Aids" Account No.
10050.920101.883000.0000.00000.