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HomeMy WebLinkAbout1988-01-25 88-98 ORDER88-98 Introduced by Councilor Sawyer, January 25, 1988 CITY OF BANGOR (TITLE.) Mrber,_._Nathgrizlm_Eyacgcion:gf.Zgraemapt becweaB..Rivar my Opera. Rouse, Bangor Savings Bank, and City of Bangor By the City caumn of the Oita ofBanyw: ORDERED, THAT WHEREAS, River City Opera House, Inc. conveyed the Opera House property, so- called, to Bangor Savings Bank by mortgage deed as security for a certain loan and W RRfnS, River City Opera House, Inc. conveyed said Opera Haase property to Bangor Savings Bank by a second mortgage deed as security for a second certain loan; and WERRv3, River City Opera Rouse, Inc. canceled said Opera House property to the City of Bangor by'a third mortgage deed as security for a third certain Iran; and WD:RRAS, all of the three said mortgages are in default; and WSERRAS, Ra gor Savings Bank has expressed its interest to commence foreclosure proceedings' unless an alternative resolution is agreed upon to satisfy the above -referenced indebtedness; and WIERPIS, it is in the best interest of the City of Bangor to pursue such an alternative resolution and avoid foreclosure proceedings, -- - HCW, THEREFORE, By the City Council of the City of Bangor be it ORDERED, THAT the City Manager is hereby authorized and diracted, on behalf of the City of Bangor, to enter into an agreement, in a form substantially similar to Exhibit A attached hereto subject to final approval by the City Solicitor, with River City Opera House, Inc. and Bangor Savings Bank. In City C cil January 25,198 Refered to Finance. ¢mnittme consider m t Meeting . TTtle, Authorizing IDmcutim of Agreement ........................... hz[vree River City Opera House, Bangor ...................................... Savings BAnk and "ity cf Bangor 8 Introduced and fil Ca Clerk IN CITY COUNCIL February 8, 1988 Referred back to Finance Committee Consider next xegulgr meeting. 431" CLERK In City Council February 22,1988 Passed itr Cle fil '88 JA041 V4:13 y t' M WiYCLERK C MHEREAS, River City Opera House, Inc., conveyed by Mortgage Deed to Bangor Savings Bank premises situate at 131 Main Street in Bangor, County of Pembsm[, State of Maine (a copy of the description contained in the Mortgage Deed beico attached hereto and labeled Exhibit A), as security for a loan in the principal amount of Two Hundred Thousand ($200,000.00) Wllazs with interest at the rate of 12% per annum payable in 180 nmnths, said Mortgage Deed being recorded in the Penobscot Registry of Weds in Volume 3793, Page 340; and HIERERE, River City Opera House, Inc. (hereinafter called "rortgagor•1 also conveyed by Mortgage Dse3 the same ptanises set forth in Exhibit A to Bangor Savings Bank as security for anadditionalloan in the principal amornmt of Sixteen Thousand Pout Hundred Fifty ($16,450.00) Dollars payable in 120 accchs at an interest rate of 68 par annum, said Mortgage Deed being recorded in said Registry in Volume 3793, Page 358; and WHEREAS, the Mortgagor also conveyed by a third mortgage the same promises set forth in Exhibit A to the City of Bangor (bereirefter called 'City') as security for a loan in the principal amount of One Hundred Eighteen Thousand Five Hundred ($118,500.00) Dollars with interest thereon at the rate of 68 per annum, said n tgage being recorded in said Registry of Heads in Volume 3794, Page 2; and EXHIBIT A H®NAS, the said mortgages given to Bangor Savings Bank (hereinafter called "Mortgagee") are in default, all as more fully set forth on Exhibit B, EXHIBIT A attached hereto and made a part hereof, and the Mortgagee has stated that it intends to initiate foreclosure proomflMs unless a resolution to satisfy said indebtedness may be attained; and VrAEpFlv9, the City is desirous that the properties, subject to the mortgages, be maintained without further expense, such as the cost of foreclosure; and 4dMERPAS, Mortgagor has further represented that there are no other claims of record or mechanic's liens, recorded or unrecorded, affecting said premises set forth in 0 hibit A and that it is willing to convey its entire interest to said Mortgagee; and I03ERE45, the City is willing to discharge its mortgage provided it has an opportunity to redeem the presiees frau said Mortgagee as more fully set forth hereinafter; and VMMPHPS, Mortgagor aarees to provide to the City, within thirty (30) days of the date hereof, an audited itemized financial statarent of incam and expenses of River City opera tease, Inc. reflecting the operation of the Opera tease property fran the moan anent thereof to Decanter 31, 1988; and B.HERPAS, said Mortgagor agrees that any and all awards of damages and any other awards inuring to the benefit of said Mox'taagor, or any of its agents, for claims arising out of the operation of the Opera tense property, so called, shall he assigned to the Mortgages to be applied to the mortgage debt as set forth in Exhibit B. NOW, THBREP]PE, in consideration of the foregoing arc] in consideration of One Dollar IS1.00) and other valuable considerations, each to the other paid, the receipt whereof is hereby acknowledged, the parties hereto agree as follows: (1) Mortgagor does hereby agree to execute and convey to the Mortgages in lieu of foreclosure its entire interest in the premises, the structure, fixtures, equiprent and other personal property, as well as all rights under any, and all leases, all accounts receivable, all as described in a Mortgage and Security Agreement recorded in the Penobscot Registry of Deeds in Volute 3793, Page 340 and a DCC Financing Stateeent recorded in said Registry in Volare , Page 12) In consideration of its opportunity to redeem the premises, the City is willing end does hereby agree W execute a discharge of its mortgage, a copy, of which is attached berate, grovidsl it may redeem the pranises as hereinafter set forth; and (3) The Mortgagee agrees that it will accept the -conveyance from the Mortgagor, a copy of which is annexed hereto, and discharge from the City and in turn will cause the premises to be managed during its period of sole ownership end will entertain, camrencing Jure 1, 1988, offers to sell the premises, provided, however, that in the event of a bcna fide owner acceptable W said Mortgagee, all pertinent information shall be communicated to the City and the City shall have the right to meet the offer and acquire title W the promisee. Despite the foregoing, the City may, until July 15, 1988, acquire the Mortgagee's interest prior W conveyance to a WW patty, for the amounts set forth on Exhibit B. In the event a none fide offer is not received by the Nortga.3ee on or before July 15, 1988, then the Mortgagee may offer the premises to the iwblic in such mania as it deers appropriate, and in the avant a sale is made in excess Of the mount due on the mortgage, as set forth in F ibit B. than the Mortgagee, Upon closing of the transaction, shall pay any surplus obtained over and above the mount due, including interest and expenses of sale, to the City, and in the event an mount is realized that will fully satisfy the obligations of the Mortgagor to the City, such sums will be paid over to the Mortgagor. The Mortgagee does reserve the right to offer the property for sale at auction or in any other manner it dams aWropriate and does reserve the right, if it should desire, to finance the purchase of the premises. The foregoing shall constitute the entire agreement between the three (3) parties hereto, and the parties do hereby set Nair hands and seals and Cause their oxporate names and seals to be affixed this _ day of January, 1988. Witness B _ Title RN CITY MM �R, TW. BY Title CITY OF fl4NGOR BY Title Mortgage tasseled in Velure 3793, Page 340. Original amount $200,000 Current balance: $196,685.74 Tens: 180 months, at 128, monthly payment $2,400.00 Interest paid to: 11%1/86 (as of 12/11/87) Interest due to 12/11/87: $n,110.77 Wily interest: $65.5619 Mortgage recorded in Velure 3793, Page 358. Original am:mG $16,4W.00 Current balance: $14,892.32 Terms: 120 months, at 68, monthly payment $182.63 Interest paid to: 5%1/87 (a5 of 12/11/87) Interest due to 12/11/87: $585.05 Wily interest: $2.482 Bangor Savings Bank anticipates that it will Its required to advance recoverable furls for real estate taxes, iuutilities, arm intenance. Rentals received will first beapplied toward the foregoing ongoing expenses. The areunts net forth herein are sublect to reduction in mrdanre with the terms of the agreement.