PROMISSORY NOTE (4)CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY
PROMISSORY NOTE
THIS AGREEMENT, entered into this ?2 day of icAy , 2019, by and
between the Community Redevelopment Agency of the City of Clearwater, Florida
(hereafter "CRA"), whose address is P.O. Box 4748, Clearwater, Florida 33758-4748, a
public body corporate and politic of the State of Florida and Mainstreet Clearwater
Development, LLC, a Florida limited liability company whose address is 420 Cleveland
St., Clearwater, FL 33755 (hereinafter "Borrower").
WITNESSETH
WHEREAS, the CRA has committed CRA funds to be applied for recruitment and
relocation to the Community Redevelopment Area ("CRA Redevelopment Incentive
Funding"); and
WHEREAS, the types of incentives contemplated by this program include financial
incentives to retain and attract businesses Downtown; and
WHEREAS, the CRA adopted the Food and Drink Property Owner Grant Program on
October 29, 2018 to provide limited financial support to downtown commercial property
owners to renovate their buildings to attract food and drink establishment tenants that are
open on nights and weekends in the CRA; and
WHEREAS, the Borrower is the owner of 412 Cleveland St., Clearwater, FL 33755
("the Property") and wishes to renovate its building to attract food and drink establishment
tenants that are open on nights and weekends in the CRA; and
WHEREAS, the Borrower has secured a tenant under an eight (8) year Lease
Agreement and certifies that this tenant intends to use the Property as a proposed
restaurant use opened nights and weekends in the CRA for a minimum of Wednesdays
through Saturdays from 5:00 p.m. to 10:00 p.m.; and
WHEREAS, the Borrower and the CRA have entered into a Loan -to -Grant Agreement
dated 22- ` ("the Agreement") providing for disbursement of CRA
Redevelopment Incentive Funding to the Borrower under the Food and Drink property
Owner Grant program;
NOW THEREFORE, in consideration of the premises, the mutual covenants, and
promises contained herein, and other good and valuable consideration, the Borrower and
the CRA agree and covenant each with the other as follows:
A. GENERALLY
The foregoing recitals are true and correct and are incorporated in and form a part
of this Promissory Note.
B. BORROWER'S PROMISE TO PAY
For value received, the undersigned ("Borrower") promises to pay the sum of 50%
of eligible improvement costs not to exceed $238,110.41 in U.S. dollars to the order of
the lender. The lender is the Community Redevelopment Agency of the City of
Clearwater, organized and existing under the laws of the State of Florida and located at
600 Cleveland St., Suite 600, Clearwater, Florida 33755.
C. INTEREST/FORGIVENESS
Funds shall be provided in the form of zero percent (0%) interest loan -to -grant to
the Borrower, which, barring a default by the Borrower, the City will forgive at a rate of
twenty percent (20%) per year over the five-year loan -to -grant term so long as Borrower
maintains a tenant at 412 Cleveland St., Clearwater, FL 33755 that operates a food or
drink business at that location which is open a minimum of Wednesday through Saturdays
from 5:00 p.m. until 10:00 p.m. Provided, however, that if the Borrower has a change of
tenant during the loan period, the loan period will be extended by six months or until the
Borrower secures a new, eligible tenant, whichever is less.
D. PAYMENT
The Borrower agrees to repay the City the loan balance if it fails to perform any of
the covenants or agreements contained in the Agreement, this Promissory Note, or the
Mortgage which secures this Promissory Note.
E. DEFAULT BY BORROWER
This loan may be terminated in its entirety or disbursement of loan funds may be
withheld for the following, which shall constitute a default under this Promissory Note and
the Loan -to -Grant Agreement: (a) failure to obtain a Final Certificate of Occupancy within
one (1) year of the execution of this Note, (b) failure to open the proposed restaurant for
business within one (1) year of the execution of this Note; (c) failure to maintain the
Property as a food or drink establishment opened a minimum of Wednesdays through
Saturdays from 5:00 p.m. to 10:00 p.m. in the CRA as described in the Agreement; or (d)
sale, vacation, or other transfer of the Property by the Borrower.
F. MISCELLANEOUS PROVISIONS
Execution of this Promissory Note by the Borrower is a representation that the
Borrower is competent, familiar with the terms of the Loan -to -Grant Agreement and the
Mortgage which secures this Promissory Note, and fully intends to honor the agreement.
This Note shall be governed by the laws of the State of Florida, and venue shall
be in Pinellas County.
Should any section or part of any section of this Promissory Note be rendered void,
invalid, or unenforceable by any court of law, for any reason, such a determination shall
not render void, invalid, or unenforceable any other section or any part of any section in
this Note.
This Note is non -assignable by the Borrower.
G. COPY RECEIVED
Borrower hereby acknowledges receipt of a copy of this instrument.
IN WITNESS WHEREOF, the Borrower and the CRA have executed or caused these
presents to be executed by its respective authorized representatives to be effective as of
the day and year first above written.
In the presence of:
BORROWER:
Witness
STATE OF FLORIDA )
COUNTY OF PINELLAS )
The foregoing instrument was ac
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Date
Date
nowledged before me this moo? day of
, who is personally known to me or produced
as identification.
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Print/Type Name:
Notary Public
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