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