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HomeMy WebLinkAbout1995-07-10 95-319 ORDERCOUNCIL ACTION Date: 7110/95 Item No.: 95-319 Item/Subject Agreement and Consent of Landlord! to Leasehold Mortgage and to Collateral Assignment of Sublease. Responsible Department: Community and Economic Development Department Head Manager's Comments: iu�er�O. City Manager Associated Information: Finance Director 1 �1 rMKIA Introduced For X Passage First Reading Page of Retinal COPY 95-319 AS AMENDED Aedpmd to Cammlm Tyler July 10, 1995 CITY OF BANGOR Q)TLEJ VV1I11��YYYY /A r A=ORIZING THE CITY MANAGER TO EXECUTE AN_ "AG REEMENT ............ AND CONSENT OF LANDLORD TO LEASEHOLD MORTGAGE AND TO COLLATERAL ASSIGNMENT OF SNELEASE" BETWEEN JERRY D. CONN AND KEY BANK OF MAINE. .........__... .._ ._.'.-__--- ........................ . .......... ___.. .......... Am W My COYSOH Of My Ofsa -- THAT WHEREAS, the City of Bangor ("Lessor") is the owner of an airport commonly known a "Bangor International Airport", formerly Known as Dow Air Force Base, located in the City of Bangor, County of Penobscot, State of Maine; and WHEREAS, by Indenture of Lease ("Lease"), dated July 28, 1976, and amended July 19, 1987, Beacon Cadillac Oldsmobile & Jeep ("Beacon"), under its former name of Beacon Motor Company, agreed to the lease by the Lessor of Lot 9 in the BIA Commercial / Industrial Park subdivision, Bangor International Airport; and WHEREAS, the Lease w signed by Beacon to Jerry D. Conn ("Mr. Con,"), who in turn subleased to Beacon (the "Sublease") with the acknowledgement and consent of the Lessor; and WHEREAS, the General Motors Acceptance Corporation ("GMAC") is the holder of a leasehold mortgage in the Premises and an assignee (under instrument of collateral assignment) of the Sublease, which leasehold mortgage and collateral assignment were authorized pursuant to Council Order 91-226 passed on May 29, 1991, said leasehold mortgage and collateral assignment having been given as security to GMAC in connection with a certain loan made to Mr. Conn by GMAC (the "GMACLoan");-and WHEREAS, Mr. Conn desires to refinance, 1n part or in whole, the GMAC loan through Key Back of Maine (the "Key Bank Loan"); and WHEREAS, in connection with the contemplated Key Bank Loan, Key Bank has required Mr. Conn to grant to Key Bank a leasehold mortgage on the Premises and a collateral assignment of the Sublease, with the right of re -assignment and any extensions and renewals thereof. ruin Fu n/10/9s SUBSTITUTE Coex AS AMENDED 93-319 NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized and directed, on behalf of the City of Bangor, to execute a "Agreement and Consent of Landlord to Leasehold Mortgage and to Collateral Assignment of Sublease" regarding an existing lease between Beacon Cadillac, Oldsmobile & Jeep and the City of Bangor dated July 28, 1976, and mended July 14, 1989. The "Agreement and Consent of Landlord to Leasehold Mortgage and to Collateral Assignment of Sublease" will acknowledge the following: 1. A leasehold mortgage on the Premises to be given by Jerry D. Conn to Key Bank. 2. A collateral assignment of the Sublease by Jerry D. Conn to Key Bank. 3. Any assignment or re -assignment and any extensions o renewals, within the terms and conditions of the Lease and the Sublease, which Key Bank may elect to make, at some future date, of its rights as leasehold mortgagee of the Premises and as assignee of the collateral assignment of the Sublease. 4. The leasehold mortgage, the conditional assignment of the Sublease, and the obligations Secured thereby shall be deemed to be "for the purpose of obtaining financing construction and permanent financing for the said buildings, structures and improvements" as such phrase is used in Article XX of, and elsewhere in, the Lease, whether or not such obligations actually arise from, or are related to such purposes, and that Key Bank shall have the rights granted r permitted to be granted to a holder of a mortgage, assignment o transfer of the leasehold interest granted in the Lease for the purpose of obtaining such financing. 5. Any other terms, agreements and provisions which the City Manager may deem appropriate in and consistent with effectuating the foregoing. moomne.aw 11/11/=s 95-319 Aedgnedb f such« Tyler July 18, 1995 o-- CITY OF BANGOR GIRL) Orb", AUTHORIZING THE CITY MANAGER. TO EXECUTE AN "AGREEMENT AND CONSENT OF LANDLORD TO LEASEHOLD MORTGAGE AND TO COLLATERAL ASSIGNMENT OF SUBLEASE" BETWEEN JERRY D. COME AND KEY BANK OF By CRY CoavW of W GUY ufBaM«: ORDERED, THAT WHEREAS, the City of Bangor ("Lessor") is the Oe ner of a airport commonly known a "Bangor International Airport",formerly known as Bow Air Force Base, located in the City of Bangor, County of Penobscot, state of Maine; and WHEREAS, by Indenture of Lease (^Lease^), dated July 29, 1976, and amended July 19, 1987, Beacon Cadillac Oldsmobile & Jeep ("Beacon")"under its former name of Beacon Motor Company, agreed to the lease by the Lessor ofLot 9 in the BIA Commercial / Industrial Park subdivision, Bangor International Airport; and WHEREAS, the Lease was assigned by Beacon to Jerry D. Conn ("Mr. Conn"), who in turn subleased to Beacon (the "Sublease") with the acknowledgement and consent of the Lessor; and WHEREAS, the General Motors Acceptance Corporation ("GMAC") is the holder of a leasehold mortgage in the Premises and n assignee (under instrument Of collateral assignment) of the Sublease, which leasehold mortgage and collateral assignment were authorized pursuant t0 Council Order 91-226 passed on May 29, 1991, said leasehold mortgage and collateral assignment having been given as security to GMAC in connection with a certain loan made to Mr. Conn by GMAC (the "GMAC Loan"); and WHEREAS, Mr. Conn desires to pay off the balance of the GMAC Loan by refinancing the balance of the GMAC Loan through Key Bank of Maine (the "Key Bank Loan"); and WHEREAS, in connection with the contemplated Key Bank Loan, Key Bank has required Mr. Conn to grant to Key Bank a leasehold mortgage on the Premises and a collateral assignment of the Sublease, with the right of re -assignment and any extensions and renewals thereof. m..cNew; MW (6/25/95 95-319 NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized and directed, on behalf of the City of Bangor, to execute an "Agreement and Consent of Landlord to Leasehold Mortgage and to Collateral Assignment of Sublease" regarding an existing lease between Beacon Cadillac, Oldsmobile & Jeep and the City of Bangor dated July 2E, 1976, and amended July 14, 1907. The "Agreement and Consent of Landlord to Leasehold Mortgage and to Collateral Assignment of Sublease" will acknowledge the following: 1. A leasehold mortgage on the Premises to be given by Jerry O. Conn to Key Back. 2. A collateral assignment of the Sublease by Jerry D. Conn to Key Bank. 3. Any assignment or re -assignment and any extensions o renewals, within the terms and conditions of the Lease and the Sublease, which Rey Bank may elect to make, at some future date, of its rights as leasehold mortgagee of the Premises and as assignee of the collateral assignment of the Sublease. 4. The leasehold mortgage, the conditional assignment of the Sublease, and the obligations secured thereby shall be deemed to be "for the purpose of obtaining financing construction and permanent financing for the said buildings, structures and improvements" a such phrase is used in Article xx of, and elsewhere in, the Leasee whether or not such obligations actually arise from, or are related to such purposes, and that Key Bank shall have the rights granted r permitted to be granted to a holder of a mortgage, assignment o transfer of the leasehold interest granted in the Lease for the purpose of obtaining such financing. 5. Any other terms, agreements and provisions which the City Manager may deem appropriate in and consistent with effectuating the foregoing. wxkcmm.M ,vnisn IM CITY COUNCIL July 10, 1995 Amended by Substitution and Pealed _ 95-319 ORDER Title, Authorizing the City Manager to Execute a "Agreement and Consent of Landlord to Leasehold Mortgage and e6d'o'o' Collai'eiW Akeigo ht'b£' Sbbledae" Between Jerry D. Conn and Key Bank of 6&a4a Assigned Be .V ..� ... .....unci.... Councilman 95-319 BANAIRCORPORATION THE GRORTNG FM Pow ADt'ANPAGE Partl�holeoh Zme58 Memorandum To: Members of the City Council From: Stephen A. Bolduc, Executive Manager Date: July 10, 1995 ISG 11 Subject: Agreement and Consent of Landlord to Leasehold Mortgage and to Collateral Assignment of Sublease between Jerry D. Conn and Key Bank of Maine. 11111u€ The City of Bangor leased a parcel of land at 361 Gruen Rd. to Beacon Motor Company in July, 1976. In 1991 the City Council approved the assignment of the lease to Jerry D. Conn and the sublease of the property to Beacon Cadillac Oldsmobile & Jeep. At that time the Council also gave its consent to Mr. Conn's collateral assignment of the sublease and leasehold mortgage with General Motors Acceptance Corporation (GMAC). Mr. Conn would like to discharge the mortgage with GMAC through a loan with Key Bank of Maine. Key Bank is requesting a leasehold mortgage on the premises and a collateral assignment of the sublease with the right of re -assignment in the event of a default and the right to any extensions and renewals of the lease. Recommendation Mr. Conn has met the conditions of the lease and staff recommend approval of the agreement. BANGOR, MANSE MW1 Wn 99F 9043 cW)915i FAC