Special Call Community Redevelopment Agency Meeting

Lake Park Town Commission, Florida Special Call Community Redevelopment Agency Meeting Minutes Wednesday, November 02, 2022 at 6:30 PM Commission Chamber, Town Hall, 535 Park Avenue, Lake Park, FL 33403 Michael O’Rourke — Chair Kimberly Glas-Castro — Vice-Chair John Linden — Agency Member Roger Michaud — Agency Member Mary Beth Taylor — Agency Member Henry K. Stark — Agency Member John O. D’Agostino — Executive Director Thomas J. Baird, Esq. — Agency Attorney Vivian Mendez, MMC — Agency Clerk PLEASE TAKE NOTICE AND BE ADVISED, that if any interested person desires to appeal any decision of the Town Commission, with respect to any matter considered at this meeting, such interested person will need a record of the proceedings, and for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Persons with disabilities requiring accommodations in order to participate in the meeting should contact the Town Clerk’s office by calling 881-3311 at least 48 hours in advance to request accommodations. CALL TO ORDER/ROLL CALL PRESENT Vice-Chair Kimberly Glas-Castro Board Member John Linden Board Member Roger Michaud Board Member Henry Stark Board Member Mary-Beth Taylor Chair Michael O'Rourke - arrived at 7:40 P.M. PLEDGE OF ALLEGIANCE SPECIAL PRESENTATION/REPORT: None Special Call Community Redevelopment Agency Meeting November 02, 2022 Page 1 PUBLIC COMMENT: This time is provided for addressing items that do not appear on the Agenda. Please complete a comment card and provide it to the Agency Clerk so speakers may be announced. Please remember comments are limited to a TOTAL of three minutes. CONSENT AGENDA: 1. October 5, 2022 Community Redevelopment Agency Meeting Minutes Motion made to approve the Consent Agenda by Board Member Michaud, Seconded by Board Member Linden. Voting Yea: Vice-Chair Glas-Castro, Board Member Stark, Board Member Taylor NEW BUSINESS: 2. A RESOLUTION 75-11-22 OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE TOWN OF LAKE PARK, FLORIDA, AUTHORIZING AND DIRECTING THE CHAIRMAN TO SIGN A GRANT AGREEMENT WITH OCEANA LOGISTICS INTERNATIONAL, INC., KISS KITCHENS LLC, AND FLORIDA CANNING COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE. Executive Director D'Agostino explained the item. Amy Angelo President of Oceana Coffee presented to the Community Redevelopment Agency (see Exhibit "A"). Board Member Linden clarified the CRA would contribute $1 Million Dollars over a five-year period; he questioned the anticipated amount of the Palm Beach County Housing and Urban Development (HUD) Loan. Charles Lesnick of Kiss Kitchens, LLC., explained the project totaled approximately $7.5 Million, and funding was anticipated via loans and personal capital. He announced the following HUD approvals for funding: Oceana Coffee ($200k), Florida Canning Company ($180K), and Kiss Kitchens ($950K). Ms. Sherry Howard, Deputy Director of Department of Housing and Economic Development, (Virtual Attendee) explained that Community Development Block Grant Dollars backed/supported HUD Section 108 Loans. She explained the underwriting process was rigorous and the project had been approved by Palm Beach County and HUD. Mr. Lesnick announced the funding would be awarded and available per the approval of the CRA Board. He announced that HUD approved the funding based upon projections, presentations, job creation, and the benefit to the community. He announced the anticipated loans and requirements of the Small Business Administration.  Attorney Baird announced the following funding and sources: $1.33 Million (Palm Beach County), $1 Million (Town of Lake Park CRA-Grant). Ms. Angelo announced a loan was anticipated from the Bank of Belle Glade but that she did not have the exact figure. Mr. Leonard Schwartz, Developer, (Virtual Attendee) provided comments regarding the site plan. Board Member Linden questioned if the Bank of Belle Glade was provided a Business Plan. Ms. Angelo answered, "Yes" and explained their collaboration with the Bank of Belle Glade over the last two years. Board Member Michaud questioned the probability of failure of one of the three entities. Mr. Lesnick explained in an unforeseeable situation, an entity could sell their interest to a successor company. Ms. Meri Weymer, Palm Beach County Representative, (Virtual Attendee) clarified the costs of construction had significantly increased, which increased the overall amount of the loans. Vice-Chair Glas-Castro questioned if the original site plan was inclusive of Florida Canning and Kiss Kitchens. Ms. Angelo announced the three entities were a part of the original site plan. Vice- Chair Glas-Castro announced the following employee projections: Oceana Coffee (10 Employees), Florida Canning (10 Employees), Kiss Kitchens (36 Employees); she commented there would not be enough parking spaces to accommodate 56 employees if there were only 36 parking spaces available. Ms. Angelo explained the parking spaces would not be utilized at the same time and the job projections were over 10 years. She announced that 10 employees would not be at work at the same time (e.g. shift changes). Vice-Chair Glas-Castro expressed disappointment and commented the original site plan was for Oceana Coffee. Mr. Emilio Levalo, One A- Architect, suggested referral to the original site plan application; he explained the application was inclusive of Oceana Coffee, Florida Canning and Kiss Kitchens. He explained the entities were shown on the drawings, the parking tabulations, and the site plan approval was based on the different utilizations. He explained the different utilizations were separated by fire, parking, means of egress, and drive-thru requirements. Special Call Community Redevelopment Agency Meeting November 02, 2022 Page 3 Board Member Michaud asked for clarification of the construction timeline Attorney Baird read Section 3 of the Redevelopment Grant Agreement as follows: "Condition Precedent. On or before November 2, 2022, the Lake Park Group shall submit to the CRA sufficient information, which in the reasonable discretion of the CRA Commission demonstrates that the total construction cost for the Project shall exceed Six Million Dollars ($6,000,000.00)". Community Development Director Nadia DiTommaso explained the construction cost breakdown was included in the agenda packet; however, the information was provided in June 2022. Additionally, the information provided in June 2022 was higher than $6 Million Dollars. Chair O'Rourke apologized for his tardiness. He questioned if the agreement was inclusive of a claw back provision. Executive Director John D'Agostino explained the agreement was inclusive of a personal guarantee provision. Attorney Baird referred to paragraph 12 of the Redevelopment Grant Agreement. Mr. Lesnick announced the Federal Bureau of Investigations, Palm Beach County, Small Business Administration and the Bank of Belle Glade have vetted the necessary financials. Leonard Schwartz and Niamh Kilcoyne (Virtual Attendees) commented in support of approval of Resolution 75-11-22. Mr. Lesnick reiterated the importance and urgency of approval (e.g. inflation rates); without the approval of the grant, the project is not viable and the entities are locked into rates with the Bank of Belle Glade and liable to increase. The Board requested additional information on the business plans associated with the three entities; further explanations on their loan(s) breakdown and evidence of financial stability; information on the loan guarantees discussed; and all additional information related to the economic impacts associated with the business investment growth and additional economic growth factors to substantiate the request. The item was postponed to the Special Call Community Redevelopment Agency Meeting scheduled for November 16, 2022. Motion made to postponed Resolution 75-11-22 to the November 16, 2022 Meeting by Board Member Michaud, Seconded by Board Member Taylor. Voting Yea: Chair O'Rourke, Vice-Chair Glas-Castro, Board Member Linden, Board Member Stark. EXECUTIVE DIRECTOR REPORT: None AGENCY MEMBER REQUESTS: None ADJOURNMENT: 8:30 P.M. FUTURE MEETING DATE: The next scheduled Special Call Community Redevelopment Agency Meeting will be conducted on November 16, 2022. Special Call Community Redevelopment Agency Meeting November 02, 2022 Page 5  Item 2. CRA Agenda Request Form Meeting Date: August 3, 2022 Agenda Item No. Agenda Title: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE TOWN OF LAKE PARK, FLORIDA, AUTHORIZING AND DIRECTING THE CHAIRMAN TO SIGN A GRANT AGREEMENT WITH OCEANA LOGISTICS INTERNATIONAL, INC., KISS KITCHENS LLC, AND FLORIDA CANNING COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE. [ ] SPECIAL PRESENTATION/REPORT [ ] CONSENT AGENDA [ ] OLD BUSINESS [X] NEW BUSINESS: Resolution [ ] DISCUSSION FOR FUTURE ACTION [ ] OTHER: General Business Approved by Executive Director: Date: Nadia Di Tommaso, Community Development Director Originating Department: Costs: $ 200K per fiscal year Attachments: for 5 years (total $1M) & Legal -Resolution __-11-22 Review Town Manager/Community Funding Source: -Proposed Redevelopment Grant Agreement Development CRA-Grants-Business Development / Legal #108 -Oceana Presentation and Acct. # 110-55-552-520-82111 Notes; Cost Breakdown Comparison and Resolution [ ] Finance ________________ 82-12-21 approving project Background and Summary Oceana Logistics International (i.e. Oceana Coffee) is an established business in Palm Beach County who recently received site plan approval by the Town to build their corporate 7  Item 2. roasting house facility, retail center and commercial food (ghost) kitchens at 1301 10th Street (development order enclosed). They have partnered with two additional entities, Kiss Kitchens LLC and Florida Canning Company to carry out their vision and Oceana Coffee is a partner in all of the companies. Collectively, they are referred to as the Lake Park Group. In light of the supply chain issues and increases in material and labor costs, the project’s originally anticipated construction cost of approximately $5M has now been updated to $7-$8M (estimated cost breakdown is enclosed). Enclosed is a presentation from the Lake Park Group that includes additional details on their anticipated operation and partnership. A detailed presentation to the CRA Board will be provided by the Lake Park Group as part of this request. The CRA Redevelopment Grant is proposing to grant the Lake Park Group $200,000 per year, for a period of five years (total of $1M) to assist with construction costs and ensure the project is able to adhere to their development order. One of the CRA Master Plan’s Redevelopment Goals and Initiatives is to support small businesses so as to promote their growth and have them establish Lake Park as a hub for entrepreneurship. The Plan encourages the provision of economic incentives to further the CRA’s redevelopment goals. This project will serve as a catalyst redevelopment project and as such, is consistent with the CRA Master Plan. Recommended Motion: I move to APPROVE Resolution __-11-22. 8  Item 2. RESOLUTION NO. : __-11-22 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE TOWN OF LAKE PARK, FLORIDA, AUTHORIZING AND DIRECTING THE CHAIRMAN TO SIGN A GRANT AGREEMENT WITH OCEANA LOGISTICS INTERNATIONAL, INC., KISS KITCHENS LLC, AND FLORIDA CANNING COMPANY LLC; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the CRA has such powers and authority as have been conferred upon it by Chapter 163, Part III, of the Florida Statutes; and WHEREAS, the CRA has the authority pursuant to Chapter 163, Part III, Fla. Stat., to provide financial incentives in the form of grants to property owners within the CRA provided the property owner is redeveloping its property and increasing its valuation; and WHEREAS, Oceana, Kiss Kitchens, and Florida Canning Company (hereinafter collectively the three corporate entities shall be referred to as the “Lake Park Group”) are seeking a redevelopment grant (“Grant”) from the CRA in the amount of One Million Dollars ($1,000,000.00) to be used for a redevelopment project (“the Project”) for the property located at 1301 10th Street, Lake Park, Florida (“the Property"); and WHEREAS, the Property is currently owned by CIDC Lake Park LLC (“CIDC”); and WHEREAS, the Lake Park Group is operating the businesses known as Oceana Coffee, Kiss Kitchens, and Florida Canning Company, pursuant to a site plan approved by Resolution 82-12-21 (“the Development Order”), attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, CIDC intends to assign all of its right, title and interest in the Property to the Lake Park Group; and WHEREAS, the receipt of the Grant is expressly conditioned upon the Lake Park Group’s compliance with all the obligations that are required for the Project pursuant to the Development Order; and WHEREAS, the CRA’s Executive Director has recommended that the CRA’s Board of Commissioners (“the Commission”) provide the Grant to the Lake Park Group in furtherance of the redevelopment in accordance with the Development Order and an increased valuation of the Property; and for the Project to serve as the revitalization anchor of the 10th Street area of the CRA; and WHEREAS, the Commission is willing to make the Grant available to the Lake Park Group based upon the terms set forth in this Agreement; and WHEREAS, the Grant is contingent on the terms of this Agreement and the Lake Park Group’s redevelopment of the Property in accordance with the Development Order. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE TOWN OF LAKE PARK COMMUNITY REDEVELOPMENT AGENCY: Section 1. The foregoing recitals are incorporated herein. Section 2. The Commission hereby directs and authorizes the Chairman of the Commission to execute the Redevelopment Grant Agreement with the Lake Park Group, a copy of which is attached hereto and made a part hereof. Section 3. This Resolution shall become effective upon its execution. 9 Oceana Coffee 1301 10th Street, Lake Park, FL SD- Estimate Date: June 6, 2022 Owner: Amy & Scott Angelo / Oceana Coffee CM: The Morganti Group, Inc. Architect: One A Architecture DRAFT 7 SF: 24,434 *SF Pricing Date *SF Pricing Date *SF Pricing Date *SF Pricing Date *SF Pricing Date Original "5/20/22" $/SF One A VE, *Amy's Text Roof Top & VE Metal Bldg 20,960 20,960 24,434 24,434 24,434 24,434 SD- Estimate *7/23/2021 *4/29/2022 *4/29/2022 *5/20/2022 *5/20/2022 5/20/2022 Estimated 7/23/2021 4/29/2022 4/29/2022 5/20/2022 6/6/2022 5/20/2022 Division Description Quantity Unit CPTD Estimate Today's $/SF SD Estimate SD Estimate SD Estimate $/SF SD Estimate 010000 General Requirements 1.00 ls $ 15,200 $ 18,529 $ 21,600 $ 21,600 $ 21,600 $ 0.88 $ 21,600 020000 Demolition, SEE DIVISION 31 1.00 ls Div 31 $ - $ - $ - $ - $ - 030000 Concrete 1.00 ls $ 453,872 $ 1,382,078 $ 1,611,150 $ 1,611,150 $ 1,611,150 $ 65.94 $ 966,690 040000 Masonry 1.00 ls $ 31,278 $ 273,975 $ 319,385 $ 319,385 $ 319,385 $ 13.07 $ 15,969 *Delete Roof Top Features $ (87,850) $ - 050000 Metals & Railings 1.00 ls $ 459,064 $ 784,906 $ 915,000 $ 915,000 $ 915,000 $ 37.45 $ 686,250 Roof Top- Glass Railing (10th, Ave N), 129 LF $ 103,200 $ 4.22 Roof Top- CMU Railing (Alley), 56 LF $ 11,200 $ 0.46 060000 Carpentry, Casework, Millwork 1.00 ls $ 18,069 $ - $ - 070000 Thermal and Moisture Protection 1.00 ls $ 192,706 $ 324,522 $ 378,309 $ 378,309 $ 378,309 $ 15.48 $ - Roof Top- Landscaping $ 16,250 $ 0.67 Roof Top- Deck Pavers System $ 173,800 $ 7.11 Roof Top- Covered Area $ 62,775 $ 2.57 080000 Doors & Windows 1.00 ls $ 255,878 $ 357,607 $ 416,878 $ 416,878 $ 416,878 $ 17.06 $ 416,878 *Minimize Windows on 1st Floor 25% of original $ (167,906) $ (167,906) $ (6.87) $ (167,906) 090000 Finishes- Flooring, Drywall, Paint, ACT, Stucco 1.00 ls $ 764,130 $ 391,728 $ 456,655 $ 456,655 $ 456,655 $ 18.69 $ 456,655 100000 Specialties 1.00 ls $ 25,387 $ 21,778 $ 25,387 $ 25,387 $ 25,387 $ 1.04 $ 25,387 110000 Food Service & Bar Equipment 1.00 ls $ - $ - $ - 120000 Furnishings 1.00 ls $ - $ - $ - *Metal Building $ - $ 816,000 *Metal Building Design $ - $ 90,000 140000 Elevators (Origin- Qty 1) (Rev- Qty 2) 1.00 ls $ 76,103 $ 161,957 $ 188,800 $ 188,800 $ 188,800 $ 7.73 $ 188,800 *Install only (1) Elevator $ (90,000) $ (90,000) $ (3.68) $ (90,000) 210000 Fire Sprinklers 1.00 ls $ 72,329 $ 64,337 $ 75,000 $ 75,000 $ 75,000 $ 3.07 $ 75,000 220000 Plumbing 1.00 ls $ 324,871 $ 247,052 $ 288,000 $ 288,000 $ 288,000 $ 11.79 $ 288,000 230000 HVAC, estimated 60-65 Tons 1.00 ls $ 581,796 $ 539,055 $ 628,400 $ 628,400 $ 628,400 $ 25.72 $ 628,400 260000 Electrical 1.00 ls $ 665,571 $ 551,579 $ 643,000 $ 643,000 $ 643,000 $ 26.32 $ 643,000 310000 Site work & Utilities 1.00 ls $ 291,058 $ 265,142 $ 309,088 $ 309,088 $ 309,088 $ 12.65 $ 309,088 320000 Landscaping & Irrigation 1.00 ls $ 21,909 $ 21,446 $ 25,000 $ 25,000 $ 25,000 $ 1.02 $ 25,000 330000 Underground Utilities - SEE Div 31 1.00 ls $ - $ - $ - $ - $ - $ - Subtotal: Division 1-33 $ 4,249,221 $ 5,405,690 $ 6,301,653 $ 5,955,896 $ 6,410,971 $ 262.00 $ 5,394,811 General Conditions 1.00 ls $ 57,210 $ 57,210 $ 57,210 $ 57,210 $ 57,210 $ 2.34 $ 57,210 Staff 1.00 ls $ 250,056 $ 250,056 $ 250,056 $ 250,056 $ 250,056 $ 10.23 $ 250,056 Fee 5.00% % $ 258,500 $ 322,677 $ 372,398 $ 358,085 $ 378,464 $ 15.49 $ 322,073 Subtotal $ 4,814,987 $ 6,035,633 $ 6,981,317 $ 6,621,247 $ 7,096,701 $ 290.00 $ 6,024,150 Construction Contingency (Owners) 0.0200 % $ 103,399 $ 129,071 $ 148,959 $ 143,234 $ 151,386 $ 6.20 $ 128,829 General Liability Insurance 0.0120 ls $ 62,040 $ 77,442 $ 89,375 $ 85,940 $ 90,831 $ 3.72 $ 77,298 Builder's Risk Insurance 0.0090 ls $ 46,530 $ 58,082 $ 67,032 $ 64,455 $ 68,124 $ 2.79 $ 57,973 Payment and Performance Bonds 0.0080 ls $ 41,360 $ 51,628 $ 59,584 $ 57,294 $ 60,554 $ 2.48 $ 51,532 Subtotal $ 5,068,316 $ 6,351,856 $ 7,346,267 $ 6,972,170 $ 7,467,596 $ 305 $ 6,339,782 Budget: Permit Fee $ 86,684 $ 86,684 $ 86,684 $ 86,684 $ 86,684 $ 3.55 $ 86,684 Budget: Testing $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 0.61 $ 15,000 TOTAL ESTIMATE: $ 5,170,000 $ 6,453,540 $ 7,447,951 $ 7,073,854 $ 7,569,280 $ 309.16 $ 6,441,466 $/SF: $ 246.66 $ 307.90 $ 304.82 $ 289.51 $ 309.78 $ 263.63 Item 2. 11 Item 2. 12 Item 2. 13 Item 2. 14 Item 2. 15 Item 2. 16  Item 2. Tuesday, October 25, 2022 Lake Park CRA Presentation Slide 1 - Good evening, thank you for the opportunity to present our project to the CRA and the public. - I am Amy Angelo, owner and founder of Oceana Co ee, along with my husband Scott Angelo. We are both also partners in the other businesses presented in this project. - We are grateful and honored to be considered for such a generous grant from the Town of Lake Park CRA. This grant will make this project possible and will e ect tremendous growth for our business, and the Town of Lake Park. Slide 2 - In a brief overview, we will cover the following…..Overview of the project Slide 3 - This project brings a unique opportunity to have 3 collaborative businesses under one roof that will support each other and the local community with jobs and business opportunities. - Oceana Co ee - Kiss Kitchens - Florida Canning 1 17 ff ff ff  Item 2. Slide 4 Oceana Co ee is Palm Beach County’s rst and only award winning specialty co ee roaster established here in Palm Beach County in 2009. A start up born from pure passion, this company sprang from a pure desperate need for great co ee and a popcorn popper on the back porch, moving quickly to the garage, then our rst location on Old Dixie Hwy in Tequesta. Slide 5 KISS Kitchens is a start up business and the rst of it’s kind here in Palm Beach County. Kiss Kitchens will o er professional, commercial kitchen space by the hour in a state of the art facility. What make KISS kitchens unique and rst of it’s kind, are the small spaces that can be rented annually by local food entrepreneurs. This will allow for local food businesses to test a concept, in their own small kitchen, for a much lower entry fee and ultimately scale to a larger business. Also, unique to this site is the logistics area and extra storage capacity for businesses to utilize/rent on an as needed basis. This will allow businesses to scale faster and at a much lower cost than building their own warehouse and storage facility to ll large purchase orders when they come in. Oceana Co ee knows this dilemma rst hand and these experiences of having to turn down large po’s because of lack of infrastructure. This facility will help facilitate growth and foster small businesses to greater success than we have seen in the past. Slide 6 Ghost Kitchens are food businesses that operate out of a shared facility like the one we are building, utilizing pick up and delivery as their main pathway to the consumer. Customers can order through apps on their phone or utilize delivery companies to order and have their meals delivered. This concept has become very popular during the pandemic and people have realized the convenience and sometimes cost savings of these meal delivery and meal prep services. At KISS kitchens we have 3 larger kitchens that can be utilized on an hourly basis through a membership format that will allow for many more businesses to utilize the space and become a true culinary hub in Lake Park. These kitchens will be utilized by caterers, healthy food prep companies, meal delivery services, and various take out concepts. 2 18 ff fi fi fi ff fi ff fi fi ff ff  Item 2. Slide 7 Florida Canning is a micro canning line that will allow for canning of specialty co ee beverages as well as other craft beverages that can be imagined and canned. Florida Canning will o er white label canning service, meaning that any business can bring their approved liquids to be canned for sale to the public. Lake Park could develop their own brand of water to sell with a label designed that displays the unique qualities of Lake Park, as an example. Florida canning will take the burden of the heavy lifting away from small co ee companies, tea companies, breweries and distilleries that may not have the capital to purchase their own canning line. Florida canning will also handle the labeling, lling, and palletizing of product, ultimately storing this product on site until pick up is scheduled. This kind of service does not exist currently in our South Florida market. Slide 8 Economic Growth Slide 9 | 5 year numbers The economic impacts of this project can be measured according to the number of jobs that will be created locally, the construction costs associated with this project, and the projected outcomes of the revenues generated by these new and expanded businesses. Additional economic impact is realized by these new and expanded businesses spending their money locally for goods and services provided by other businesses in Palm Beach County. Palm Beach County itself is positioned as one of the lenders in this project. These numbers are derived from software used by the county to evaluate lending opportunities. 3 19 ff fi ff ff  Item 2. Slide 10 | 10 year numbers This slide further extrapolates the impact of the continuing job growth in Palm Beach County centered in Lake Park as a result of this project. Slide 11 The Numbers explained- where did these numbers come from Slide 12 www.remi.com Remi is an economic modeling software employed by the county. “The next generation of economic modeling that builds con dence in your policy recommendations and examines the economic future of your region.” Slide 13 Key factors that support this growth: -The nature of local dollars being spent locally -Jobs created- what kind of jobs are we creating? SLIDE 14 & 15 -Increased revenue= sales tax dollars SLIDE 16 -Property value at the improved site SLIDE 17 & 18 -Positive impact to the community-stable jobs and increase of population visiting Lake Park for the new goods and services on a daily basis as well as new employees commuting and looking to call Lake Park home in our residential neighborhoods. This has the potential to increase the demand for residential properties in Lake Park, ultimately positively impacting home values and the tax base in Lake Park with property taxes. SLIDE 19 4 20 fi  Item 2. Slide 20 Local partners making this comprehensive project possible…. Slide 21 Closing remarks and gratitude for the support of this project and generous opportunity of grant funds provided by the Lake Park CRA. 5 21  Item 2. REDEVELOPMENT GRANT AGREEMENT THIS REDEVELOPMENT GRANT AGREEMENT (“Agreement”) is made this __ day of October, 2022, by and between the Town of Lake Park Community Redevelopment Agency ("CRA"), having an address at 535 Park Avenue, Lake Park, Florida 33403, and Oceana Logistics International, Inc. (“Oceana”) having an address at 221 Old Dixie Hwy, Suite 1, Tequesta, FL 33469, Kiss Kitchens LLC, having an address at 15375 Blue Fish Circle, Lakewood Ranch, FL 34202 (“Kiss Kitchens”), and, Florida Canning Company, LLC, having an address at 15375 Blue Fish Circle, Lakewood Ranch, FL 34202 (“Florida Canning Company”) RECITALS WHEREAS, the CRA has such powers and authority as have been conferred upon it by Chapter 163, Part III, of the Florida Statutes; and WHEREAS, the CRA has the authority pursuant to Chapter 163, Part III, Fla. Stat., to provide financial incentives in the form of grants to property owners within the CRA provided the property owner is redeveloping its property and increasing its valuation; and WHEREAS, Oceana, Kiss Kitchens, and Florida Canning Company (hereinafter collectively the three corporate entities shall be referred to as the “Lake Park Group”) are seeking a redevelopment grant (“Grant”) from the CRA in the amount of One Million Dollars ($1,000,000.00) to be used for a redevelopment project (“the Project”) for the property located at 1301 10th Street, Lake Park, Florida (“the Property"); and WHEREAS, the Property is currently owned by CIDC Lake Park LLC (“CIDC”); and WHEREAS, the Lake Park Group is operating the businesses known as Oceana Coffee, Kiss Kitchens, and Florida Canning Company, pursuant to a site plan approved by Resolution 82-12-21 (“the Development Order”), attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, CIDC intends to assign all of its right, title and interest in the Property to the Lake Park Group; and WHEREAS, the receipt of the Grant is expressly conditioned upon the Lake Park Group’s compliance with all the obligations that are required for the Project pursuant to the Development Order; and WHEREAS, the CRA’s Executive Director has recommended that the CRA’s Board of Commissioners (“the Commission”) provide the Grant to the Lake Park Group in furtherance of the redevelopment in accordance with the Development Order and an increased valuation of the Property; and for the Project to serve as the revitalization anchor of the 10th Street area of the CRA; and WHEREAS, the Commission is willing to make the Grant available to the Lake Park Group based upon the terms set forth in this Agreement; and 1 22  Item 2. WHEREAS, the Grant is contingent on the terms of this Agreement and the Lake Park Group’s redevelopment of the Property in accordance with the Development Order. NOW THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 1. Recitals. The recitals above are incorporated herein as if stated again. 2. Grant. The Town of Lake Park Community Redevelopment Agency (the “CRA”) agrees to provide the Lake Park Group with a Grant in the amount of One Million Dollars ($1,000,000.00) payable in equal increments of Two Hundred Thousand Dollars ($200,000.00) on or before November 16 of each of Five (5) consecutive years, with the initial payment to be made on or before November 16, 2022, and the final disbursement made on or before November 16, 2026. The Grant is contingent upon the Lake Park Group’s redevelopment of the Property consistent with the Development Order rendered by the Town Commission. 3. Condition Precedent. On or before November 2, 2022, the Lake Park Group shall submit to the CRA sufficient information, which in the reasonable discretion of the CRA Commission demonstrates that the total construction cost for the Project shall exceed Six Million Dollars ($6,000,000.00). 4. Initiation of Construction and Completion. The Completion of the redevelopment Project shall be in compliance with the Development Order. Construction must commence within 18 months of Development Order approval, or February 1, 2023, and a certificate of completion or occupancy must be achieved within 18 months of when construction is initiated, or by August 1, 2024. Notwithstanding the foregoing, the Lake Park Group shall not be held liable or responsible, nor be in breach of this Agreement, for any failure or delay in the substantial completion of the Project or any other term of this Agreement if such failure or delay is the result of a force majeure as defined in paragraph 20. 5. Use of Funds. The funds from the Grant shall be used by the Lake Park Group, or its successors and assigns in accordance with paragraph 13, if approved by the CRA for development of the Project as approved in the Development Order for the Property. A copy of the Development Order is included herein as Exhibit “A” and incorporated by reference herein and as a term of the Grant. 6. Entitlement To Grant Funds Contingent Upon Initiation and Completion of Construction. In order to be entitled to retain the initial Two Hundred Thousand Dollar ($200,000.00) installment of the Grant, to be paid on or before November 16, 2022, and any installment thereafter, the Lake Park Group shall initiate construction no later than February 1, 2023 (except in the event of force majeure as defined in paragraph 20 below), and shall complete construction, as evidenced by the receipt of a certificate of completion or occupancy no later than August 1, 2024 (except for events of force majeure as defined in paragraph 20 below). The failure to initiate, continue, or substantially complete construction on or before these dates shall constitute a breach of the Agreement and shall immediately render the 2 23  Item 2. CRA’s obligations to provide any further installments null and void. Furthermore, the Lake Park Group agrees to return to the CRA any funds provided to it that have not already been deployed into the Project in the event it does not comply with these dates. 7. Subordination. The CRA acknowledges that the Grant Funds provided shall be on terms that are subordinate to both the Lake Park Group’s previously obtained SBA loan and any commercially obtained construction loan or other funding utilized to undertake and construct the Project and the terms and conditions and such fulfillment of the terms contained herein shall not interfere with the obligations of the Lake Park Group with respect to these loans. 8. Term of Operation. In order to be excused from the repayment of the funds from the Grant the Lake Park Group, and/or its successors and assigns shall continuously operate the businesses known as Oceana Coffee and/or Kiss Kitchens and Florida Canning, and any affiliated companies, absent force majeure, from the date of the execution of this Agreement for ten consecutive (10) years, or until October 1, 2032. If at any time during such 10-year term of operation, any or all of the entities comprising the Lake Park Group should cease operating its business(es) on the Property, it shall be in breach of this Agreement and the funds granted herein shall be returned to the CRA upon the CRA’s reasonable demand. 9. Sale or Transfer of the Lake Park Group Businesses/Property. Should any or all of the entities comprising the Lake Park Group, elect to sell or transfer its or their ownership interests in the Property to any third party during the Term, it or they shall obtain the written consent of the CRA, which shall not be unreasonably withheld, provided the businesses continue to be operated consistent with the Development Order and this Agreement. The Lake Park Group shall provide the CRA with a written request of its intention to sell or transfer the Property and/or its businesses at least 90 days in advance of the proposed sale of its or their ownership interest in the Property. If the CRA approves of the sale or transfer of the Property and/or the business(es) located thereon, during the term, the successors or assigns to the Property shall become responsible for compliance with the terms of this Agreement. Notwithstanding the foregoing and supplementing such terms, it shall be unreasonable for the CRA to not grant its permission provided such sale or transfer is to a third party who uses its interest in the Property for the same use and purpose and is employing the same number of employees from the Town of Lake Park as the originating company(ies). 10. Lien. This Agreement shall be recorded in the property records of Palm Beach County and shall constitute a lien against the Property, enforceable by foreclosure or for an action for a money judgement. 11. Guarantees. The President and the AMBRs of the corporate entities comprising the Lake Park Group shall provide the CRA with a personal and corporate guarantee as that corporate entity’s collateral for the performance of the obligations under this Agreement and the Development Order. In the event the Lake Park Group is in breach of any of the terms of the Development Order or this Agreement the CRA shall be entitled to hold any of the corporate entities and their President, or AMBRs jointly and severely liable for the repayment of the Grant Funds as set forth herein. 3 24  Item 2. 12. Recovery of Grant funds. In addition to the guarantees in paragraph 11, and any exercise of its other remedies to recover the Grant Funds pursuant to paragraph 6 and 10, for breach of any of the terms of this Agreement, the CRA may also be entitled to recover the funds from the Grant paid during the Term in the event the Lake Park Group is not developing or has not completed the Project in accordance with the Development Order. 13. Assignment Subject To CRA’s Advanced Written Approval. This Agreement may only be assigned with the written approval of the CRA. Any other purported assignment shall be null and void. 14. Amendment. This Agreement shall not be revised, changed or amended except by a written amendment executed by both parties. 15. Governing Law/Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of Florida, without giving effect to choice of law rules. Venue shall be in the federal or state courts located in Palm Beach County, Florida. 16. Counterparts. This Agreement may be executed in duplicate counterparts or electronically by DocuSign or other recognized software program which when compiled and taken together shall constitute a single original instrument. 17. Severability. Any provision of this Agreement which is deemed by a court of competent jurisdiction shall, as to such jurisdiction, be ineffective shall be reworked and revised only to the extent of such prohibition or unenforceability and without invalidating the remainder of such provision or the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 18. Indemnification. Each Party hereto hereby agrees to indemnify and hold the other harmless and their elected or appointed officers, employees, agents, and consultants from and against any and all liability, expense, or damage of any kind or nature and from any suits or claims, including reasonable legal fees and expenses, on account of any matter, whether in suit or not, arising out of this Agreement. This provision is not intended to, nor does it waive the CRA’s rights of sovereign immunity pursuant to Fla. Stat. § 768.28. 19. Attorney Fees. In the event either party is required to enforce the terms of this Agreement, the prevailing party, following a full adjudication on the merits and the waiving or exhaustion of all appeals, shall be entitled to the reimbursement of its attorney fees. 20. Force Majeure. Neither party shall be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by force majeure, defined as Acts of God, a pandemic, supply chain for construction materials, labor strikes, riots, or wars or as otherwise stated herein. 21. Successors and Assigns. This Agreement and the terms herein shall inure to the benefit of and be legally binding upon the Lake Park Group’s successors and assigns. 22. Notices. All notices between the parties shall be in writing and be made by certified mail, return receipt requested or by hand delivery at the following addresses: 4 25  Item 2. Town of Lake Park: Community Redevelopment Agency Attn: Executive Director 535 Park Avenue Lake Park, Fl. 33403 Oceana Logistics International, Inc. Attn: Amy Angelo 221 Old Dixie Hwy, Suite 1 Tequesta, FL 33469 Kiss Kitchens LLC c/o Richard Kooris 15375 Blue Fish Circle Lakewood Ranch, FL 34202 Florida Canning Company LLC c/o Charles Lesnick 15375 Blue Fish Circle Lakewood Ranch, FL 34202 The parties hereto have duly executed this Agreement on the day and year first above written. [BALANCE OF PAGE LEFT INTENTIONALLY BLANK - SIGNATURES TO FOLLOW] 5 26  Item 2. TOWN OF LAKE PARK CRA By: ____________________________ Michael O’Rourke, Chairman OCEANA LOGISTICS INTERNATIONAL, INC. By: ________________________ Amy Angelo, President KISS KITCHENS LLC By: _______________________ Richard Kooris, AMBR Florida Canning Company LLC By: ________________________ Charles Lesnick, AMBR P:\DOCS\26508\00003\DOC\270392202.DOCX 6 27  Item 2. LAKE PARK, FL OCEANA COFFEE HEAQUARTERS KISS KITCHENS FLORIDA CANNING 28  Item 2. PROJECT HIGHLIGHTS Overview, What's happening at 1301 10th street? Local business expansion New business creation Economic growth : Property value increase-site improvement Positive impact to local tax base- Sales & Property Jobs | Careers | Businesses scaled for long term Positive impact to the community of Lake Park 29  Item 2. 1301 10TH STREET Our Philosophy Paving the way for future development here in Lake Park and setting new standards in design, as well as a community minded approach to development supporting local business and entrepreneurship. Oceana Coffee KISS Kitchens Florida Canning Expanding their A new symbiotic start up Bringing the culinary that will support other already successful arts to Lake Park in a beverage manufacturers in Palm Beach County the county as well as the big way! based business businesses located on-site. 30  Item 2. 1301 10th street will become the new headquarters for Oceana Coffee Award winning, certified W/SBE in Palm Beach county. Increased production and scaling of existing business that has been in operation since 2009. 31  Item 2. KISS KITCHENS Commercial kitchens that offer the space for all types of food businesses to get started or SCALE their existing business. 32  Item 2. WHY GHOST KITCHENS? 16 Micro Kitchens 3 Shared Hourly kitchens 33  Item 2. FLORIDA CANNING Canning solutions for : Locally made craft beer Locally made coffee beverages Wine Water A variety of other products! 34 Item 2. 35  250,000,000 Item 2. 206 M 200,000,000 5 YEAR ECONOMIC 150,000,000 IMPACT 300 100,000,000 Jobs The values are supplied by using REMI (Regional Economic Modeling, Inc.) REMI is an advanced model generator that simulates the effects of economic policy changes on the economy that is 50,000,000 utilized by Palm Beach County. REMI 22.8 M uses state-specific and national data to deliver a nuanced prediction of the 800K 8M varied, branching, and sometimes 0 unexpected effects of economic e g ct ar policies. lu in pa ye va ld g ui m .i l5 in B st ta ld ew on To ui N 36 B C  Item 2. 600,000,000 533 M 10 YEAR ECONOMIC 400,000,000 345 IMPACT Jobs The total economic impact over 10 years projects $533 mil added to the lcoal economy though jobs created 200,000,000 and economic activity which will be centered around Lake Park. 0 Total 10 year 37 Item 2. 38  Item 2. REMI.COM Palm Beach County has supplied the economic data information using software called REMI REMI uses state-specific and national data to deliver a nuanced prediction of the varied, branching, and sometimes unexpected effects of economic policies. 39  Item 2. KEY FACTORS THAT SUPPORT THIS ECONOMIC GROWTH 40  Item 2. JOB CREATION FULL TIME JOB STABILITY Local Jobs= Money paid locally, stays local and flows throughout the community. 41  Item 2. Oceana Coffee Florida Canning 10 10 JOB Kiss Kitchens 36 CREATION Full time new employees as a result of this project In total more than 200 jobs over 5 years New small businesses will be created bringing growth and prosperity to our local economy. Construction Temporary P/T 168 42  Item 2. INCREASED REVENUE Revenue generated by local businesses- Sales Tax LOCAL BUSINESS REVENUE = SALES TAX REVENUE 43  Item 2. $8 MILLION PROPERTY VALUES Site improvements at 1301 10th St. $800K 44  Item 2. PROPERTY VALUE Current building valued at approx $765,000 by the Palm Beach County Property Appraiser. Appraised value of completed project is $8Mil. Approx 2% of this property's estimated value will be added to the current tax base annually. As people continue to want to live, work, and play in Lake Park, the residential property market will flourish, additionally supporting the tax base in Lake Park. 45  Item 2. POSITVE IMPACT TO DAILY VISITORS & COMMUNITY NEW RESIDENTS Increased jobs in the community will presumably result in increased demand for residential property driving prices up. LOCAL POPULATION 46  Item 2. COMMUNITY PARTNERS Palm Beach Bank of Belle County Glade Assistance with Local to Palm Beach County since 1963, A local bank with structuring project local management and and providing HUD decision making. loan funds Morganti SBA Town of Lake Construction Park Florida First Capital Local, dedicated, Finance Corporation Grant and Vision professional, leader Providing SBA 504 from the Lake Park in the constuction funds for the project CRA industry 47  Item 2. JOIN US TO LIVE, WORK, & 1301 10th Street, Lake Park 561.339.2913 PLAY IN We look forward to continuing the vision of the LAKE PARK Lake Park CRA and facilitating bringing the culinary arts to your thriving performing arts district! 48