HomeMy WebLinkAbout1991-05-29 91-226 ORDERCOUNCIL ACTION
Item No. 91-226
Date Nay 22, 1991
Item/Subject: Authorising the execution of an 'Agreement Bad
Consent of Landlord to Leasehold Mortgage" regarding an existing
lease between Beacon Cadillac, Oldsmobile 6 Jeep and the City of
Bangor dated July 28, 1976 and amended July 14, 1987.
Department: Community and BCOnemlic Development
Commentary:
The City Council approved the assignment of the lease to Jerry D.
Conn and the sublease of the land to Beacon Cadillac, Oldsmobile
A Jeep on Nay 13, 1991 pursuant to Council Order No. 91-195. The
"Agreement and Consent of Landlord to Leasehold Mortgage" will
acknowledge the following:
1. A leasehold mortgage to be given by Jerry D. Conn to General
Motors Acceptance Corporation
2. A collateral assignment by Jerry D. Conn to GMAC of the
sublease that will be running from Mr. Conn to Beacon.
3. A collateral assignment by Beacon to GMAC of its rights under
the sublease between Mr. Conn and Beacon.
4. Any assignment, within the terms and conditions of the lease,
which GMAC may elect to make, at some future date, of its rights
as leasehold mortgagee and conditional assignee.
Jerry D. Conn, the recent assignee of a land lease with the City
at Bangor International Airport, isseeking financing with the
General Motors Acceptance Corp. Acondition of that financing is
that the City consent to the leasehold mortgage, the collateral
assignment of a sublease from Mr. Conn to Beacon Cadillac,
Oldsmobile s Jeep, collateral assignment by Beacon to GMAC of its
rights under the sublease between Mr. Conn and Beacon, and any
assignment, within the terms and conditions of the lease, which
GMAC may elect to make, at some future date, of its rights a
leasehold mortgagee and conditional assignee. In the event of a
default the lease would be assigned to General Motors Acceptance
Corp., and they would be able to subsequently reassign the lease:
The terms of the lease require that the City be made aware and
agree to the collateral assignments. Mr. Corm has complied with
the terms in the lease regarding assignment and subletting.
General Motors Acceptance Corp. will agree as a collateral
assignee to honor all obligations of the leasee.
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Manager's Comments:
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City Manager
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_First Reading Page 2_ of 2
Referral
91-226
MMawd[m Commear Bragg, May 29, 1991
CITY OF BANGOR
(TITLE) @rb9r1 ..._Auchgrizius-the city. Manager t.a...execute..an ............
"Agxe nt ana_,conseut...p.P..Landiord toLeasehold Mortgage" __..
By eke City Cossets of City ofBax4 .-
ORDERED,
THAT the City Manager is hereby authorized and
directed, on behalf of the City of Bangor, toexecute a
••Agreement Bud Consent of Landlord to Leasehold mortgage -
regarding an existing lease between Beacon Cadillac, Oldsmobile A
Jeep antl the City of Bangor dated July 28, 1976 and amended July
14, 1987. The City Council approved the assignment of the lease
to Jerry D. Conn and the sublease of the land to Beacon Cadillac,
Oldsmobile B Jeep on May 13, 1991 pursuant to Council Order No.
91-195. The "Agreement and Consent of Landlord to Leasehold
Mortgage" will acknowledge the following:
1. A leasehold mortgage to be given by Jerry D. Conn to General
Motors Acceptance Corporation ("UMC-).
2. A collateral assignment by Jerry D. Corm to GMAC of the
sublease that will be running from Mr. Conn to Beacon.
3. A collateral assignment by Beacon to GMAC of its rights under
the sublease between Mr. Conn and Beacon.
4. My assignment, within the terms and conditions of the lease,
which GMAC may elect to make, at some future date, of its rights
as leasehold mortgagee and conditional assignee.
In City Council May 29, 1991
Passed
v�_
City Clerk
91-226
ORDER
Title,
Authorizing the City Manager to b Aute
to Leasehold Mortgage
....../ ...............................
�+/ Councilman
91-226
eno
To: Coswunity 6 Economic Development Committee
From: Stephen A. Bolduc, B Development Officer,
Dept. of Cosmmnity a is Development
Date: May 20, 1991
Subject: Consent to Conditional Assignment of Jerry D. Conn lease
This a request for your approval of a 'Agreament and Consent of
Landlord" acknowledging the conditional assignment of a land
lease from Jerry D. Conn to General Motors Acceptance Corp.
Jerry D. Conn, the recent assignee of a land lease with the City
at Bangor international Airport, is seeking financing with the
General Motors Acceptance Corp. A condition of that financing is
that in the event of a default the lease would be assigned to
General Motors Acceptance Corp., and that they would be able to
subsequently reassign the lease.
The terms of the lease require that the City be made aware and
agree to the conditional assignment. General Motors Acceptance
Corp. will agree as a conditional assignee to honor all
obligations of the current leaseholder.