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)