Loading...
2358 COS Agreement-Grant - GTG Forever LLCPrepared by: David Hall, Esquire ' G7 Stenstrom, McIntosh, Colbert & Whigham, P.A. 300 International Parkway, Suite 100 Lake Mary, Florida 32746 407)322-2171 Return to: Tom Tomerlin, Executive Director Community Redevelopment Agency City of Sanford 300 North Park Avenue Sanford, Florida 32771 407) 688-5015 CITY OF SANFORD LOAN SUBSIDY AGREEMENT AND GRANT OF LIENHOLD INTEREST RELATING TO GTG FOREVER, LLC THIS LOAN SUBSIDY AGREEMENT AND GRANT OF LIENHOLD INTEREST hereinafter referred to as the "Agreement") is entered into this day of , 2021 by GTG FOREVER, LLC, a Florida limited liability company, (hereinafter referred to as the "OWNER") whose address is 711 Ashgrove Terrace, Sanford, FL 32771, and the CITY OF SANFORD, a Florida municipal corporation, (hereinafter referred to as the CITY") whose address is 300 North Park Avenue, Sanford, Florida 32771. This Agreement is for the benefit of the OWNER relative to the following described real property located at 215 Magnolia Avenue, Sanford, FL 32771 hereinafter referred to as the "PROPERTY") and the CITY shall have the rights hereinafter set forth as to the Property situate and being in Seminole County, Florida and legally described as: The South 47 Feet of Lot 11, Block 4, Tier 2, TRAFFORD'S MAP OF THE TOWN OF SANFORD, according to the map or plat thereof as recorded in Plat Book 1, Pages 56 through 64, inclusive, of the Public Records of Seminole County, Florida Tax Parcel Identification Number 25-19-30-5AG-0402-0110. Page 1 The CITY hereby subsidizes the financing of the new construction efforts relative to the redevelopment of the Property, as briefly described in Exhibit "A" hereto (the Project"), in the sum of up to, but no greater than, ONE HUNDRED THOUSAND DOLLARS (U.S.) ($100,000.00), as part of a total project and loan that approximates ONE MILLION SIX HUNDRED THOUSAND DOLLARS ($1,600,000.00), said project involving construction work on the Property. This subsidization is being made under the following terms and conditions: 1. The actual amount awarded by the CITY to the OWNER shall be less the charges incurred by the CITY for any draw inspections required by the CITY and all recording fees that are associated with this matter and incurred by the CITY of whatsoever type or nature. 2. The purpose of this Agreement is to implement a program of the CITY, as set forth in Ordinance Number 2009-4162, as codified in the City of Sanford City Code at Section 2-369, which has been legislatively developed to encourage the renovation and productive use of property located in the Sanford Lake Monroe Waterfront and Downtown Sanford Community Redevelopment Area within the City Limits of the City of Sanford and to assist business owners such as the OWNER to redevelop properties located within the City of Sanford for the benefit of the public. 3. The CITY's grant to the OWNER, as set forth herein, will provide a subsidy to the OWNER to effectively reduce the interest rate on the OWNER's financing which is necessary for funding the building construction, renovations/rehabilitation occurring on the Property. im" 4. The OWNER has obtained financing for the Property in order to assist in the funding and implementation of the construction, renovation, and improvements on the Property. The OWNER covenants and agrees that the status of title of the Property is such that the CITY will have first and priority position as to any and all lienhold interests except as to the indebtedness of the OWNER to the Primary Lender ; upon request, CITY will execute a subordination agreement of its lienhold interest in the Property to the mortgage given by OWNER in favor of the Primary Lender. 5. The OWNER covenants and agrees that any financing from the CITY or otherwise, shall be used, or has been used, solely relating to the renovation and improvement of the Property and exclusively used for the purposes set forth in the OWNER's grant application filed with the CITY relative to the Property which is deemed to be incorporated into this Agreement by this reference thereto. 6. The OWNER and the CITY agree that, in order to secure the use of the public funds as set forth herein, the CITY shall have a lienhold interest relative to the Property upon the recording of this Agreement in the Official Records (Land Records) of Seminole County, Florida at the expense of the OWNER (to include, but not be limited to, the payment of the documentary stamp tax). 7. The OWNER and the CITY agree that the amounts set forth above as the CITY's financial supplementation of the construction, renovation/rehabilitation financing shall be reduced annually, consistent with the terms of this Agreement, such that credits shall occur and be implemented by equal amounts of reduction of the OWNER's indebtedness to the CITY, for a period of ten (10) years and, during such Page 3 period of time, the CITY shall hold a declining balance lien upon the Property. The declining balance calculation is 1/10th of the grant amount reduced annually on the anniversary of the date of issuance of the Certificate of Occupancy for the Project. The OWNER and CITY agree that upon the issuance of the certificate of occupancy for the Project, an amendment to this Agreement, in recordable form, will be prepared by the CITY and executed by both the CITY and the OWNER to provide for the addition of an amortization schedule, as referenced above, to this Agreement. 8. The OWNER accepts the funds set forth herein from the CITY for the purposes herein stated. The OWNER hereby grants unto the CITY, in accordance with the terms of this Agreement a lien on the Property. Should the OWNER sell or transfer title to the Property without completing the construction, renovations, improvements and subsequent maintenance of the Property to the satisfaction of the CITY, the OWNER shall repay said sums to the CITY upon demand of the CITY. 9. The CRA will disburse grant funds to the OWNER after the OWNER completes construction, receives a certificate of occupancy and satisfies all of the requirements for reimbursement per the grant criteria as follows: a. Cover letter requesting funds; b. Copies of invoices — all eligible/awarded costs; C. Receipts or Canceled Checks - all reimbursable costs; d. Final Lien Waiver — to the General Contractor and/or each provider of eligible costs as required; e. Certificate of Occupancy/Certificate of Completion; and f. Before and after photos. Page 4 10. The OWNER additionally covenants and agrees to the following terms and conditions: a. To ensure that the work for the project set forth in the specifications provided to the CITY and made a part hereof in a workmanlike manner and all work shall be accomplished in strict conformance with all applicable Federal, State, County and City codes, laws, regulations and ordinances. b. To commence the specified work within and complete the work WITHIN ONE CALENDAR YEAR OF THE CRA AWARD DATE, UNLESS OTHERWISE AMENDED BY THE PARTIES IN WRITING. C. To ensure that all work accomplished is bonded and guaranteed for a period of at least one (1) year after completion against defects in workmanship and materials. d. To hold the CITY harmless in the event of property damage, personal or physical injury occurring as a result of working on the project and in any way relating to the Property. e. To adhere to, and comply with, all terms and conditions of the grant program of the CITY under which funds have been paid to the OWNER which terms and conditions are incorporated herein by this reference thereto. Upon any sale or transfer of the Property, the OWNER shall immediately notify the CITY of such sale or transfer and to satisfy any outstanding obligation as provided herein to the CITY. 9. Upon expiration or satisfaction of the lien, the OWNER shall be entitled to request a satisfaction of the lien from the CITY. Recording of the satisfaction of lien shall be the responsibility of the OWNER. h. Any failure to notify the CITY of the sale or transfer of the Property or to maintain the Property in compliance with CITY codes and ordinances or to satisfy the conditions of this Agreement shall result in the total original principal amount becoming immediately due and payable. Page 5 Payments or correspondence required by this lien for the CITY, shall be directed to the CITY's Community Redevelopment Agency or its successor. In Witness Whereof, the said OWNER has signed and sealed these presents the day and year first above written. Attest/Witness: First Witness Signature LW -ftto j-.0, pepop'.) Printed Name of First Witness Second Witness Signature Printed Name of Second Witness STATE OF KENTUCKY COUNTY OF HARDIN Owner: GTG FOREVER, LLC, a Florida limited liability company By: Francine Clarke, Manager OF Acknowledgment The foregoing instrument was acknowledged before me by means of Ef physical presence or 0 online notarization, this c9U, day of 2021 by FRANCINE CLARKE as Manager of GTG FOREVER, LLC, a Florida limited liability company and the person described herein and who executed the foregoing instrument and who acknowledged executing the same in the presence of two subscribing witnesses freely and voluntarily under authority duly vested in her by GTG FOREVER, LLC, a Florida limited liability company, who Cl is personally known to me or who P" produced VL as identification. SEAL) otary) P66lic; State of KAtucky Printed Name Page 6 AGREEMENT BY THE CITY OF SANFORD In Witness Whereof, the City of Sanford has signed and sealed these presents the day and year first above written and a 12 E Approved As To Form il- and Leg c ile- I )cy: By: David W. Hall, Esquire Asst. City Attorney APPROVAL FOR FUNDING BY COMMUNITY REDEVELOPMENT AGENCY In Witness Whereof, the Community Redevelopment Agency of the City of Sanford has approved the funding set forth in this Agreement and certifies that the funding is consistent with the Community Redevelopment Plan and that funds may be awfully drawn from the Community Redevelopment Trust Fund. Attest: 0Tom "erlin, Ex6a4ive Director Approved: By; Cyrah;cu LY Cynthia Lindsay, Treasurer Page 7 CITY OF SANFORD COMMUNITY REDEVELOPMENT AGENCY By: Charles Davis, Chairperson Date: X1312 / EXHIBIT "A" Project Description)