HomeMy WebLinkAbout4. Request for Reimbursement by El Toro for Facade Improvement Loan.
CITY OF SHAKOPEE
Memorandum
CASE NO.: NA
TO: Economic Development Authority
Mark McNeill, Executive Director
FROM: R. Michael Leek, Community Development Director
SUBJECT: Request for Reimbursement of Facade Improvement Loan for EI Toro
Restaurant
MEETING DATE: April 21, 2009
INTRODUCTION:
On September 16,2008, the EDA approved a fayade improvement loan for EI Toro Restaurant,
located at 1120 First Avenue East. Since that approval, the owner has submitted and been approved
for a building permit for the proposed improvements, and recently, was issued a certificate of
occupancy for the completion of the project. Therefore, the applicant is requesting reimbursement
for the improvements to the EI Toro Restaurant, consistent with the Repayment Agreement for the
Shakopee Downtown Fayade Improvement Program.
DISCUSSION:
The improvements approved by the EDA as part of this project included construction of a mansard
roof, repairs to the plywood and supports on the tower, and painting of the front and back of the
tower. These improvements totaled $33,608.00, with the amount of the approved loan not to exceed
$16,804.00.
ALTERNATIVES:
1. Offer and pass a motion directing staff to reimburse EI Toro Restaurant, 1120 First Avenue, an
amount of $16,804.00, consistent with the loan agreement for this fayade improvement.
2. Table the request for additional information.
ACTION REQUESTED:
Offer and pass a motion directing staff to reimburse EI Toro Restaurant, 1120 First Avenue, an
amount of $16,804.00, consistent with the loan agreement for this fayade improvement.
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R. Michael Leek
Community Development Director
H:\CC\2009\04-21 \EDA EI Toro reimbursement.docx 1
CITY OF SHAKOPEE
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I CERTIFY THAT THIS IS A JUST AND
CORRECT CLAIM AGAINST THE CITY OF
SHAKOPEE AND THAT NO PART OFTHIS
CLAIM HAS HERETOFORE BEEN PAID.
CLAIMANT
AUTHORIZATION
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VENDOR #
31M 2.22-82
it E C"[.~ \j E KE .\'Ifl': ~',1 ,) ~, (,J ~ ~
-
Invoice -~.
Last Name: Gomez .
First Name: Marcus- EI Toro JURGENSEN ENTERPRISES IN C.
Address: 1120 1st ave E C 0 NT RA C TI N G
city Shakopee
State MN JEI Contracting
6806 Farciy Lane
Prior Lake, MN
Zip Code 55379 USA
55372
Phone: 612-636-4199
Uc# 20592745
cobbleandcover.com
Mansard Mansard Construction 260 Inl ft: tower,west, south and east side 230 $35.00 $8,050.00
Lower Tile Villa Tile on Main Level of restaurant 11 $1 ,500.00 $16,500.00
Tower Tile Villa TIle on Tower of restaurant 2 $2,000.00 $4,000.00
- --......- -"'-'..--.._.~- .
TowerR& R Repair and Replace Tower Plywood 4 $225.00 $900.00
Painting Paint Tower: front, back and sides 1 $4,158.00 $4,158.00
Signs Additions and new locations of signs 2 $4,575.00 $9,150.00
Permit Permit for construction 1 $653.88 $653.88
U'__" ~....,. .-- ..'. ---.._......-...-. "'_...-~"--
Comments: Sub-total $43A11.88
Construction Completed 3-27-09
Final Inspection Passed: 3-27-09
Amount paid in full: 3-27-09
Grand Total $43,411.88
Internal Use Only
Repayment Agreement
Shakopee Downtown Fa~ade Improvement Program
~
THIS AGREEMENT, made and entered into this \q day of I...Afl-o~ ,2009 by and
between Marcus Gomez Properties I LLC, a Minnesota Limited Liability Company (hereinafter
referred to as "Owner"), and the Economic Development Authority for the City of Shakopee,
having its principal office at 129 Holmes St. South, Shakopee, Minnesota 55379 (hereinafter
referred to as "Lender").
WHEREAS, on the 16th day of September, 2008, hereinafter referred to as the "effective date."
The Lender agreed to grant to Owner a Deferred Payment Loan, hereinafter referred as "Deferred
Loan," relating to the real estate hereinafter described, in the amount of $16,804.00.
NOW THEREFORE, in consideration of the said Deferred Loan, the parties do hereby agree as
follows:
1. That Owner promises to use the proceeds of the Deferred Loan for the purposes of
purchasing and installing 230 lineal feet of mansard roofing, accented with DECRA's Villa
Tile, repairs to the plywood and supports on the tower, and painting of the front and back
of building and to the tower, for his building located at 1120 First Avenue East in the City
of Shakopee, Minnesota.
2. That if Owner sells, transfers or otherwise conveys the real estate hereinafter described,
within a period of five (Q) years from the effective date of the Deferred Loan (to wit,
September 16, 2013), Owner will pay to Lender a pro rated share of the Deferred Loan
equal to twenty percent (20%) of the amount of the Deferred Loan for each year prior to
September 16,2013 that the sale occurs. For example, if Owner sells the real estate
hereinafter described in March, 2011, Owner must pay Lender fifty percent (50%) of the
amount of the Deferred Loan.
That any such repayment shall be made to the Lender no later than the 30th day following
such sale, transfer or other conveyance, or on such later date or dates as the Lender, in
its sole discretion, may designate.
3. That as security for Owner's obligation of repayment, and subject to the terms and
conditions of this Agreement, Owner hereby grants and Lender shall and hereby does
have, a lien on the real estate hereinafter described as the full amount necessary to
satisfy said repayment obligation and the cost including reasonable attorney's fees, of
collecting the same. The real estate subject to said lien is situated in Scott County,
Minnesota, is located at 1120 First Avenue West, Shakopee, MN and is legally described
as:
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Lots 1 , 2, 8, 9 and 10. and oart of vacated al/ev, Block 30, EAST SHAKOPEE, Scott
Countv. Minnesota, accordina to the olat on file and of record in the Office of the Reaister of
Deeds in and for said countv and state,
4. Promptly after the date of any sale, transfer or other conveyance of the above-described
real estate (or, in the event of a sale by contract for deed at least ten (10) days prior to
such date of sale), Owner or his/her heirs, executors, or representatives, shall give the
Lender notice thereof.
5. In the event Owner or his/her heirs, executors or representatives shall fail or refuse to
make a required repayment within said limited period, the Lender may, with or without
notice of Owner, foreclose said lien in the same manner as an action for the foreclosure
of mortgages upon said real estate, as by statute provided.
6. Said lien shall terminate and shall be of no further force or effect in the event the Lender
has not, on or before September 16, 2013 commenced an action in the aforesaid manner
to foreclose the same.
7. This Agreement shall run with the aforesaid real estate and shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, executors,
representatives, successors and assigns.
8. If this agreement is executed by a contract for deed vendor or a mortgagee of the
property, as one of the Owners, such execution shall be deemed for the purpose of
establishing and continuing the existence of the indebtedness described herein and the
lien granted herein. However, in the event of default of the terms hereof, neither the
Lender nor its assignees shall take any action against such contract for deed vendor
except such as may be necessary in order to subject to the satisfaction of said
indebtedness the property described herein.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above.
Marcus Gomez Properties I LLC Economic Development Authority for the City of
Shakopee
By~4 h By
Its j)~ ~.t- President
By
Executive Director
STATE OF MINNESOTA )
) 5S
COUNTY OF SCOTT )
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The foregoing instrument was acknowledged before me this ':;J ~ day of . )Y7t2/u:~
2009, by Marcus Gomez, President of Marcus Gomez Properties I LLC, a Minnesota Limited
Liability Company, on behalf of the Company.
Q!Lh?ZZ1bm, .~/iU/I;J
No(ary Public .
My Commission Expires: /-,3)-:J () J 0
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ,
2009,by , President of the Economic Development Authority of the
City of Shakopee, Minnesota, on behalf of the Economic Development Authority.
Notary Public
My Commission Expires:
STATE OF MINNESOTA )
) ss
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this day of ,
2009, by , Executive Director of the Economic Development Authority
of the City of Shakopee, Minnesota, on behalf of the Economic Development Authority.
Notary Public
My Commission Expires:
This instrument is exempt from registration tax under Section 287.06 of Minnesota Statutes.
Drafted by:
City of Shako pee
129 South Holmes Street
Shakopee, MN 55379
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