CITY COUNCIL AGENDA ITEM
Memo Date: April 7, 2021
Agenda Date: April 13, 2021
Prepared By: Angela Essing, Economic Development Manager
Through: Nancy Bunt, Community Services Director
Requested Action: Authorize the City Manager to finalize and execute a forgivable loan Agreement with Medearis Foods Inc. dba Cocoa Save A Lot at 1208 Dixon Blvd. utilizing American Rescue Plan Act funding. Approve staff to perform all necessary budget actions related to this agenda item.
BACKGROUND:
A community staple for the last 26 years, Save A Lot has been providing groceries to the residents of Cocoa. The Medearis family has owned the store for the last thirteen years. They have provided a needed neighborhood convenience and have employed as many as 16 throughout the best of years. Prior to closing on March 31, 2021, they had 12 employees of which 11 were Cocoa residents. With the closing of the Save A Lot and the Harvey's Market the Dixon Boulevard neighborhood has become a food desert. Finding affordable, fresh food will be difficult as the next closest grocery store is Aldi's and Wal Mart, both of which are several miles away.
With 12% of the residents of Cocoa not having transportation, this store is an immense asset and convenient to all the neighborhoods between Cambridge Elementary and Endeavour Elementary, especially Cocoa Hills.
The store closed on March 31, 2021 due to trouble with the supply chain resulting in cash flow exhaustion brought on by and sustained throughout the current COVID-19 pandemic. The loan is available due to the City receiving an estimated $4.38 M in funding from the American Rescue Plan Act (H.R. 1319). The American Rescue Plan allows Cities to provide aid to impacted industries and allows the City to provide grants to eligible employers that have eligible workers that perform essential tasks.
The City has designed the agreement to fund Save A Lot at $450,000 with a five-year forgivable loan (20% per year). The funds will be allo...
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