The URL can be used to link to this page

Home My WebLink About1993-10-25 93-483 ORDERCOUNCIL ACTION 9}483 Item No. Date October 25. 1993 Item/Subject: Authorizing Execution of Consent to Collateral Assignment of Lease -- Erin, Inc. Responsible Department: Legal Erin, Inc. is granting a mortgage to The Bank of Hartford, Inc. and in connection with the mortgage loan has been requested to collaterally assign its lease with the City of Bangor dated August 9, 1973 relating to air space over Emerson Street. The City's consent is required in connection with the assignment. I have reviewed the proposed assignment and consent documents and have no objections to them. However, the City Finance Director has advised that he has no record of receipt of the $150 annual rental due to the City under provisions of the lease. Accordingly, I recommend approval of the attached item, which authorizes execution of the consent to assignment upon payment in full of the rental arrears. Department ' /IYl LHM ea Manager's Comments :-g G n.�//u/,fd Marl p' a'/ City Manager Associated Information: Order, Consent to Collateral Assignment, Tenant's Assignment of Lease Interest, 1973 Lease with M 6 R Budget Approval: Finance Director City Sclfcitor Intro cad For Cpw�f- Passage First Reading Referral Page — of Awiped m Councilor Soucy Octaber 25, 1993 CITY OF BANGOR �p A tho 1ng Execution of Consent to Collateral RIREJ VIYYD£Xr.............1 ........... r .. _.. ....__. Assignment of Lease -- Erin, Inc. By Me City Cauu4 of a Croy of Munow. THAT Edward Barrett, City Manager, is hereby authorized to execute a Consent to Collateral Assignment of Lease, in a form approved by the City Solicitor, in connection with a mortgage from Erin, Inc. to The Bank of Hartford, Inc. collaterally assigning Erin, Inc.'s lease from the City of Bangor dated August 8, 1973 and recorded in Volume 2455, Page 108, Penobscot Registry of Beads, relating to certain airspace over portions of Emerson Street in the City of Bangor. The execution of such Assignment is subject to prior payment to the City of Bangor of all amounts due as rent under said lease currently remaining unpaid. 0 CRY Councxc October 25, 1993 Pa / CITY 10 h� (_ 98-483 DPDER I Title, i Authoii¢ia� Execution of Consent to Collateral Aeaigdmeex'of'Eesee - srin, mc. ...................................... Aeeipedro (J EOWCilman 9}483 CONSENT TO COLLATERAL ASSIGNMENT OF LEASE THIS AGREEMENT is made this day of October, 1993 by. and between the CITY OF BANGOR, a mTipal corporation with a place of business in Bangor, Maine, and THE BARK OF HARTFORD, INC., a Connecticut corporation with a place of business in Hartford, Connecticut ("the Bank"). The City of Bangor is the Lessor under an August 9, 1973 Lease with M & E, Inc. (now Erin, Inc., the survivor by a corporate merger with M & E, Inc.) of air space over Emerson Street in Bangor, recorded in Penobscot County Registry of needs Book 2455, Page 108. Erin, Inc. is granting a mortgage to The Bank of Hartford of its hotel premises at 500 Main Street, Bangor, Maine. The Bank of Hartford has also requested Erin, Inc. to assign, as security for the obligations owed by Erin, Erin's rights as tenant under the Lease. The City of Bangor hereby consents to Erin, Inc.'s assignment of its interest under the Lease to secure payment of $2,900,000.00. owed by'Erin, Inc. to the Bank, and further agrees that it will mail to the Bank at the following address: 108 Farmington Avenue Hartford, CT 05105 copies of any notices it gives to Erin, Inc. under the Lease, for o. long as The Bank of Hartford, Inc. holds a mortgage on the Main street, Bangor, Maine premises. This Agreement is executed as a sealed instrument and shall be governed by Maine law. WITNESS: THE CITY OF BANGOR capacity: THE BANE OF HARTFORD, INC. By: Robert �Edelson Vice President FOR VALUE AND CONSIDERATION RECEIVED, Erin, Inc., a Maine corporation with a place of business at 500 Main Street Bangor, Raine (hereinafter "Erin") hereby grants, transfers and assigns to The Bank of Hartford, Inc., a Connecticut bank with a place of business at 105 Farmington Ave. Hartford, Connecticut (hereinafter "the Bank") all of Erin's right, title, and interest in and to a certain lease between the City of,Bangor, Maine and M S E, Inc., Erin's predecessor in interest, Hated August 9, 1973 and recorded n the Penobscot Registry of Deeds in Book 2455, Page 108, whereby the City of Bangor leases air space over a portion of Emerson Street in said City of Bangor, Maine to the lessee under that lease for use and occupancy by passageways, overpasses, covered walkways and marquees between buildings and improvements on each side of Emerson Street (hereinafter the "Lease") which assignment shall be on the following terms and conditions: 1. This Assignment is made to secure payment of Two Million Nine Hundred Thousand Dollars ($2,900,000) of the outstanding balance owed pursuant to a Certain Commercial Promissory Nate in the original principal amount of Seven Million Two Hundred Thousand Dollars ($7,200,000) dated April 28, 1988 from Erin and Larry N. Mahaney ("Mahaney") in favor of the Bank's predecessor in interest Maine Savings Bank, its successors and assigns, (the"Note") which Note is now owned and held by the Bank, as said Note may be modified, amended, extended, renewed or substituted, plus all interest, costs and charges and to secure performance of all obligations of Erin and Larry KMahaney under a certain Mortgage and Security Agreement, a Collateral Assignment of Leases and Rents, a Security Agreement, and a Note and Deed of Trust and Security Agreement Modification Agreement all Hated September 30, 1993, and a Commitment Letter between Erin and the book dated July 12,1993, as amended (all said collateral documents and the Commitment letter being referred to hereinafter as the "Loan Documents"). 2. So long as Erin and Mahaney do not default in their obligations under the Note, the Loan Documents or this Assignment (hereinafter the "Obligations") then Erin may exercise all of its rights under the Lease. 3. In the event of a default in the Obligations Ey Erin o Mahaney then the Bank may exercise all of its remedies and rights under this Assignment, the Note and the Loan Documents, including without limitation, dispossessing Erin of its rights under the Lease or foreclosing upon and taking absolute title to Erin's rights and interests under the Lease by any means available by law at the time of such a default including foreclosure by statutory 9Y483 -- power of sale. The Bank may exercise all such remedies cumulatively or in any such order as it shall choose in its sale discretion. The Bank's forebearance in the exercise of any such right or remedy shall not constitute a waiver of any default or of any of its rights or remedies. 4. The Bank shall not be obligated to perform any of the lessee's obligations under the lease unless and until the Bank dispossesses Erin and succeeds to all of Erin's interests under the Lease: that event shall be established by written notice from the Bank to Erin and the City of Bangor or its successor in interest. 5. The Banc shall be entitled to exercise its rights and remedies under the Mote, the Loan Documents and this Assignment by foreclosure and sale of Erin's interests in the Lease and upon such foreclosure and sale may assign Erin's 'rights under the Lease to a third party buyer or successor. Upon any such sale or reassignment by the Bank, the Bank shall automatically be released from any and - all obligations under the Lease. 6. Erin shall not, without prior written consent of the Bank, modify, amend or terminate the Lease. Erin further agrees to take all steps reasonably necessary to perform under the Lease and to maintain the Lease in good standing, including, without limitation, extending the Lease, exercising options under the Lease or maintaining improvements or permits required in connection with the Lease. 7. This Assignment shall be binding on and inure to the successors and assigns of Erin and the Banc. This Assignment shall not be amended or otherwise Modified except with the express written consent of the Banc. This Assignment shall be construed under and in accordance with the laws of the State of Maine. S. Erin agrees to obtain the written consent of the City of Bangor, Maine to the execution and delivery of this Assignment within a reasonable period from the date hereof but in no event later than one hundred twenty (120) days from the date hereof. Further, such consent by the City of Bangor shall provide that the City of Bangor shall give simultaneous written notice of any defaults by Erin under the Lease to the Bank at the address first noted above and that The Bank shall not be obligated to Core any such default but shall be given sixty (60) days to perform such a cure if it so decides. Further, the consent shall provide Net any such cure of a default by the Bank will not in and of itself constitute an assumption of the lessee's obligations under the Lease by the Bank. Signed and sealed on this _ day of 1993. Erin, Inc. Its State of Naive county of 93-483 Personally appeared the above named in his capacity a of Erin, Inc. and acknowledged the foregoing instrument to be his free act and deed and the free act and deed of Erin, Inc. Before me, Name: Title: esp. boh.2 1. WII ...lw•OIL,�... mdili ... lInn . tum .. nn'I"k, nu 11, no, ads m avn.."ll '+ ..wm.vm.nnm .. III, infuntIt W. f I III Vo ed. for dreardand old. header! bear of crown. Voodoo xn r area ^xm •e briery'ex mwe.mgoena• brand,Of domerliand in x:1.[ewer, ro•ammv•"w moA"" . o' red I'll day Of gddddr� A, D.o ex.a. Yi.AAAM end Poring ewlet' ...e mm of Coal broader Ifty vel.. MO.") In, 'he city, ". c ... ... be. "it dg� fromed, by III.. daybodardeq,ly beef bad .2 thim 'readded".. red •Wore m•we oWe u.".of f•...qua It., .....e a. air.. op", ". babLeadc.day Into by fare ford. Adahi. fairly (11) b, teand. re Portion ^W r • rt1fr"n radix w ended, Mo.. ex no m..< . ar,jen do N bond ed ordinary ••ged.e wd. W1241... yru It VI4 ded, do hodam Wn rymm by added xtribal for ., n. now me W24W film I� thent's., C-2, ft wanted .. e.... .added. dr, Variant do.delpearym m• rodom., n d pd, w moown. d not I i, ded res border fd If red 'at deary addraiddrej »w front wm� - mmw oro. ...�... by em beyond homw. ran. 0 . xe dand, of "alfdidel Internal I- dent day •m11 CWMIV fee. • rfro. a....'.ae. ng en ewe exibury.11� d bridled, rV trod m.....w ad.oportion r �.. .mm e .. .. mmr wrm In bedroom. to., cormIttee. add, "It. .. bar Varied ,dro,' for frw . been. urwy yew.a w o. w a ae m -".a differ w.ntal ow fflx e a be e 1..my.t to ths readily,Ireland. aboard ford..viy Indjoldrece. e w m e. . I meltable all Pere"Idn" release Indian old I, rare. door, red rna uwew :w ardiday fro mwm met Londonrecorded, by ..y.. e4 ddefendedWe h e2a�,.,aua - �.... m.m.own MI.aM.,M u ... ..Jay 460) May. Low.. heat"... Maintain. of a" fall. by baff. Main, PaMd Ell Alto . a "of h. loan Food EY EaMay, MOLI an' of My .� ..+MM. M"..w...u,..::..:m..mant .. ,,. an gunlyhow ybon . :ee0.11 ^vn I.M.goV"N"^`te^May aoo.evv e."etuuanm w aee u man..v.lMan,,pM. it..t .M=e.am • MM.e, me vuyu ee manwe by umm no, it. enemmn ee SOME, ea nme ee ue eaav a< eayvs mm we1 al an --U babliP-1 u uxv®sp t. nmw. 1 tal . ev.mue e w IM., ad atm. e WTwo 30, veeu... 4>. me«eto tmee.e allay' al Malayu ..a..•.m.....I Myoom 1 .. a a. OR 0. into a My land, ,. in too, .. obt of M. em«..,.fall""Man ..i.' MM, e My w,a.r....,.v .. M ® . ...w..ssm. ... M Pay x..m,lan. at -....e .em If.1 m. . MtM.,.w ill paloof . ®n.eat myMyMM Orono" bfIt ."I OIL. I.... all ..itun call. �,zas Biu t. nton 'MOO, Lanitad xxnennv .e e`u cu "no "at ItM.ae®am e'e. uIla e manunxp me eyallyn of fanfold it a [ 11 x mm wett�Plan, by ene1 bill. ew ee. mban, ".o. "..e neem, Mete eene M,..I.« ue M mo a vee i obo . ILMEOL wwn,e�emvy 4raun..m o -m Alban, at I 24ay wc112 d of ". IN of 1.�. "I oftenafthadmint had i.e 1. ua�eueery n • fIf mul cin, o sums.• a." .• majamw It thent dead, 21, we amendment N on aid fords. .1 NaL dead 1. be. word mp _Sol ade. Still A nn.na•pn er exx en.ee [4.nwwr exuClnu. u•x pe.0 a FIRST: Ift .11 "If ft.and•r aeN. • x•. x w sau 04) feet Need :me It. of n i vIrelandsxmd ii.•n IN film dmn ue Seattle handeft in the amm it 0, tle -01 11- he indifthe t -in aide if. or d. I •emuse a •.:rr.vn�Nearly v' dx at 1xeer .mxrx. ,.Y 01 .5 Feet wr I'm or fea....lmit Ifteemaj ft feetimmediate IN afted, I..I Said stem" on dowderm .,a IN 'hom the fleetly ho, or W. strant; mande Nrd Saoe nie me I,y 1"aNexx0axm ...arta e..nwes eu Same ofarea.•., (� eu . Steel ,11 I'll aa.f"Iat. a 10.6 .. man 11 x•.w ax.x.Ion.Mn u IN Nearly Jim or mit iom nor fail mv IN a•x�W.ethad—domIf amid fanIn loatil.ftelly r line of47 failu.n.<methadone i—domeIf. emr4 "withs x left aided ]him' m a Met; If u. u. x.. only parallel with the merely a s.xeuum.unx.a than nam afuxu w wm, 0 wifiat"'• 'j ..uw_. may. ..14 n_. `, vuaewSamx wr„myva'e Aq .., n CITY OF BANGOR Inte[depaz t R tL Slip plead Naoe/R+p�t FbLwaN ---7,�em r CITY OF MAINE LEGAL DEPARTMENT Erlk M. &UMP A, QW aullciW Drum N. WRA89, Aso OW Solicitor William H. Hanson, Esq Rudman & Winchell 84 Harlow Street P. C. Box 1401 Bangor, NE 04402-1401 RE: Erin. Inc Dear Bill: November 10, 1993 Pursuant to your conversation with my secretary this morning, enclosed please find theoriginal "Consent to Collateral Assignment of Lease" from the City of Bangor to The Bank of Hartford, Inc. regarding Erin's interest in air space over Emerson Street. This Consent has been executed by Edward A. Barrett, City Manager, as authorized by the Bangor City Council at their recent meeting. I apologize for the delay in getting this document to you. Sincerelyr Erik M. Stumpfel City Solicitor EMS/tc Enclosure 0319 W3 mo^Nvq 10A 1I9 ptc qA SI h� f6 CONSENT TO COLLATERAL ASSIGNMENT OF LEASE November THIS AGREEMENT is made thisIng day of fk296e2, 1993 by and between the CITY OF BANGOR, a rpal corporation with a place of business in Bangor, Maine, and THE BANK OF HARTFORD, INC., a Connecticut corporation with a place of business in Hartford, Connecticut ('the Bank'). The City of Bangor is the Lessor under an August 9, 1973 Lease with M A E, Inc. (now Erin, Inc., the survivor by a corporate merger with M s E, Inc.) of air space over Emerson Street in Bangor, recorded in Penobscot County Registry of Deeds Book 2455, Page 108. Erin,. Inc. is granting a mortgage to The Bank of Hartford of its hotel premises at 500 Main Street, Bangor, Maine. The Bank of Hartford has also requested Erin, Inc. to assign, as security for the obligations owed by Erin, Erin's rights as tenant under the Lease. The City of Bangor hereby consents to Erin,. Inc.'s assignment of its interest under the Lease to secure payment of $2,900,000.00 owed by Erin, Inc. to the Bank, and further agrees that it will mail to the Bank at the following address: 108 Farmington Avenue Hartford, CT O6105 copies of any notices it gives to Erin, Inc. under the Lease, for o long as The Bank of Hartford, Inc. holds a mortgage on the Main Street, Bangor, Maine premises. This Agreement is executed as a sealed instrument and shall be governed by Maine law. WITNESS t^?- THE��- j 77 Ul By Name: Edward A. Barrett Capacity: City Manager THE BANK OF HARTFORD, INC. By: Robert Edelson Vice President