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File #: 210207.    Version: 1 Name:
Type: Discussion Item Status: Passed
File created: 7/22/2021 In control: City Commission
On agenda: 8/5/2021 Final action: 8/5/2021
Title: Southern Charm Kitchen Purchase Agreement (B)
Attachments: 1. 210207_A_Southern Charm-FARBAR Contract-City as Seller_2021.08.05.pdf, 2. 210207_B_Southern Charm Restaurant Appraisal_2021.08.05.pdf, 3. 210207_C_Lease, Option of Sale and Amendments 1-5 to Hawthorne Road Cafe - Southern Charm_2021.08.05.pdf, 4. 210207_D_ Southern Charm Kitchen Purchase Agreement Presentation_2021.08.05.pdf
Title
Southern Charm Kitchen Purchase Agreement (B)

Explanation
On June 9, 2008, the Gainesville Community Redevelopment Agency (CRA) closed on the properties located at 1712 SE Hawthorne Road and 1714 SE Hawthorne Road. The CRA approved the concept of a small restaurant or diner for this site and general scope of a Request for Proposal (RFP) to attract a business as a tenant.

The RFP was issued in June 2010 and one proposal was received for the site proposing a café/restaurant use. The proposer was Southern Charm Kitchen, proposed by Omar and Arpita Oselimo, the founders and owners of Reggae Shack Café located on University Avenue. Southern Charm is a restaurant café that is rooted in traditional southern cooking that takes classic dishes and traditional recipes and transforms them in a contemporary fashion to suit current tastes, local preferences, and available seasonal ingredients.

In September 2010, the Oselimo’s received the CRA’s first Grow Gainesville Fund, a SBA 7(a) loan to help towards the interior build-out, furniture and equipment, and operating expenses for the café space. The CRA then entered into a lease agreement with an option to purchase. In June 2020, Southern Charm Kitchen exercised their option to purchase and provided notice of their intent. The Gainesville Community Reinvestment Area (GCRA) ordered an appraisal on the property which came in at $215,000. The Oselimo's agreed to the price, and we are now at the point of execution of the agreement.

Since its opening in August of 2011, Southern Charm Kitchen has served as a catalyst for continued redevelopment along the Hawthorne Road corridor. The establishment today serves as one of the only sit-down family restaurants to exist on the east side.

Strategic Connection
Goal 3: A Great Place to Live & Experience and Goal 4: Resilient Local Economy

Fiscal Note
The purchase price for the property is $215,000. Proceeds from a sale will be returned to the Eastside Redevelo...

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