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HomeMy WebLinkAbout1995-07-24 95-350 ORDERCOUNCIL ACTION Date: 7/24/95 Item No.: 95-350 Item/Subject Agreement of Lessor Recognition. Responsible Department: Community and Economic Development Commentary: See attached memo. Departlent Head Manager's Comments: Associated Information: fib, OAA" - Budge Approval: City Manager Finance Director City Solicitor VU Introduced For X Passage First Reading Page 1 of 2 Referral 95-350 Ae®gned to Co mda Popper July 24, 1995 CITY OF BANGOR (TRE) M�� Authorizing the City Manager to execute an 'Agreement of Lessor Recognition" in a form approved by the City Solicitor By Me City Cm Ml of CRY ofBanpw: OSDEMDo MT WHEREAS, the City of Bangor ("Lessor") is the owner of an airport commonly known as "Bangor International Airporte, formerly known as Dow Air Force Base, located in the City of Bangor, County of Penobscot, State of Maine; and WHEREAS, by a Lease Agreement ("Lease"), between Sheldon Hartstone and Barry Hartstone as Trustees of Financial Realty Trust ("Sublessor"), a trust created under Declaration of Trust dated November 7, 1975, recorded in Penobscot Registry of Deeds Vol. 2607, Page 6, and the City of Bangor dated November 15, 1982, agreed to the lease by the Lessor of a certain lot or parcel of land situated at 250 Colin Road in the City of Bangor, Maine; and WHEREAS, the Lease was subleased by the Sublessor to Koala Inns, Inc. in an agreement dated November 15, 1982, and ended October 3, 1986 (the "Sublease") with the acknowledgement and consent of the Lessor; and WHEREAS, the Lease and the Sublease were originally signed to TPG -K Inns Associates by Assignmentdated October 3, 1986,.and subsequently assigned to 128 Motel Corporation (the "Lessee") by assignment dated December 31, 1990; and WHEREAS, the Leasee wishes to aasign the sublease to Hotel Equities, Inc., a Maine corporation with a place of business at 98 Davis Avenue, Auburn; Maine (the "Assignee'0; and WHEREAS, the Assignee has applied to the Androscoggin Savings Back (the "Bank") for the extension of as c red loan in the amount of One Million Three Hundred Sixty-TwoThousand Five Hundred Dollars ($1,362,500.00) and to the Eastern Maine Development Corporation ("BMOC") for the extension of a secured loan in the amount of Six Hundred Twenty Thousand Dollars ,($620,000.00), (the "Indebtedness") 95-350 WHEREAS, the Indebtedness will be secured and evidenced by a number of documents, including a Leasehold Mortgage and Security Agreement of first priority from Assignee to the Sank and a Leasehold Mortgage and Security Agreement of second priority from the Assignee to EMDC; and WHEREAS, the Saris and EMIT require certain assurances from the Lessor as a precondition to the creation of the Indebtedness. 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 of Lessor Recognition" regarding a lease between Sheldon Mutterers and Barry Hartstone as Trustees of Financial Realty Trust, and subsequently subleased and assigned, and the City of Bangor dated November 15, 1952, in a form approved by the City Solicitor. w�sgxuxirox.aw n/xs/ssl In City Council July 24,1995 Passed City C ex 95-350 0RDEN Title, Authorizing the City Manager to execute an Agreement of Lessor Recognition in a form approved by theCity .SOLA dfor Amoved lA � �V � Councilman 95-350 Memorandum To: Members of the City Council From: Stephen A. Bolduc, Executive Manager Date: July 24, 1995 AQJ� Subject: Agreement of Lessor Recognition' regarding a lease Sheldon Hairston and Barry Hartstone as Trustees of Financial Realty Trust and the City of Bangor dated November 15, 1982. Issue The City of Bangor leased a parcel of land at 250 Odlin Rd. to Sheldon Hailstone and Barry Horsham as Trustees of Financial Realty Trust on November 15, 1982. Subsequently the lease has been subleased and assigned to Koala Inns, Inc., TFG-K Inns Associates and 128 Motel Corporation. Motel 128 Corporation, a wholly owned subsidiary of BayBank Middlesex, wishes to assign the sublease to Hotel Equities, Inc. of Auburn, Maine. Hotel Equities, Inc. is obtaining financing for the acquisition from Androscoggin Savings Bank and Eastern Maine Development Corporation. Those lenders are requesting certain assurances regarding the lease and are working with the City Solicitor regarding the drafting of a mutually acceptable document. Recommendation Staff recommend approval of the agreement.