TO: CRA Board of Commissioners
FROM: Kim N. Phan, Esq.
THROUGH: Renée A. Jadusingh, Executive Director
DATE: October 20, 2021
HATCHER CONSTRUCTION AND DEVELOPMENT, INC. LOAN COMMITMENT LETTER AND THIRD AMENDMENT TO THE GROUND LEASE AGREEMENT - 20 AND 26 NW 6th AVENUE
Recommended Action:
Approve the Loan Commitment Letter providing a $1.4 million dollar loan to Hatcher Construction and Development, Inc., for the purpose of constructing two separate 2-story commercial buildings on CRA owned land located at 20 and 26 NW 6th Avenue.
Ratify the Third Amendment to the Ground Lease Agreement with Hatcher Construction and Development, Inc. to extend the Site Plan Analysis period from September 16, 2021 to December 14, 2021.
Background:
On June 11, 2019, the CRA Board approved a Ground Lease with Hatcher Construction & Development, Inc. (“Hatcher”) to construct a two-story 6,000 SF office building on two (2) adjacent, vacant CRA-owned parcels located at 20 and 26 NW 6th Avenue (“Properties”). The Ground Lease was executed on July 18, 2019.
In February 2020, Hatcher submitted a Conditional Use and Class V Site Plan applications to the City of Delray Beach (“City”) for the development of the Properties. The development proposal consists of the following: construction of two separate 2-story, 3,556 SF commercial buildings for a total of 7,112 SF of office/retail/commercial space. The first floor of each building will have the flexibility to accommodate office/retail/commercial with office space on the second floor of each building. The applications are currently going through the City’s permitting review process.
Loan Commitment Letter
The attached Loan Commitment Letter provides that Hatcher will receive a $1.4 million loan from the CRA to bridge their private financing gap. The loan would be repaid in seven (7) years with interest. Interest will accrue on the loan at three percent (3%) per annum. The collateral for the loan will be the improvements to...
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