The Black Business Capital Financing Corp. (BBCFC) organized Carver Theatre Developers, LLC (the Developer) to develop 1.27 acres of property located at 701 W. Church Street. The Developer owned the vacant land and recently sold it to the CRA for $2,000,000. The Developer intended to develop the land into a mixed-use development, but due to the downturn in the economy, the development stalled and was not completed. To assist with the project, the Developer entered into an Economic Development Incentive Agreement with the City and CRA (City Parties) in 2008 pursuant to which the City and CRA provided $878,000 to the Developer.
Because no development has occurred on the property, BBCFC acknowledges and agrees that the funds are due to be repaid to the City Parties and the Incentive Agreement is to be terminated pursuant to the Carver Theatre Repayment Agreement attached. The City and CRA are willing to agree to the proposed repayment schedule provided that the Black Business Investment Fund of Central Florida, Inc. (BBIF) guarantee the repayment and there is an agreed mechanism to deduct payments from future funding that may be provided in the event that BBCFC fails to timely make the payments required.
Beginning on September 25, 2015 and continuing on each September 25, BBCFC shall make twenty (20) equal consecutive annual payments to the City in the amount of $43,900. In the event each annual payment is not paid in full each year on or before the due date, BBIF authorizes the City to deduct the unpaid portion of the annual payment due for that year plus a 3% late fee from any grant payments or other funding awarded by the City to BBIF.