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HomeMy WebLinkAbout1999-12-27 00-60 ORDERCOUNCIL ACTION _ Data: December 27 1999 Item No. 00-60 Item/subject: Authorizing Approval of an Agreement and Consent of Landloml to Leasehold Mortgage and to Collateral Assignment of Sublease Reeponeible Department: Community 6 Economic Development Jerry D. Conn wishes to refinance a loan through First National Bank of Bar Harbor which requires that Mr. Conn grant a leasehold mortgage and a collateral assignment of sublease of the lot leased from the City of Bangor. The lease agreement between the City of Bangor and Mr. Conn for Lot 9 and a portion of Lot 8 in the B W Commercial / industrial park, 361 Griffin Rd. establishes certain provisions for obtaining financing related to the lot. This request for the Consent of the City of Bangor to the leasehold mortgage and a collateral assignment of sublease complies with the lease provisions. The term of the lease with Jerry D. Conn continues to July, 2006 with Iwo options to renew the lease for ten years each. Staff recommends approval. Department tread manager -s ro®enter Recommend approval. Associated Information: Order Budget Approval: Finance Director M40 0 Introduced For % Paceage F First Reading P Referral Page 1 of 1 AAign¢d W Councilm aeldacci D ce ei 27, 1999 CITY OF BANGOR (MLE.) Order, Authorizing Approval of an Agreement and Consent of landlord to Leasehold Mortgage and to Collateral Assignment of Lease WHEREAS, the Cfty of Bangor is the owner of an airport commonly known as Bangor International Airport, formerly known as Dow Air Force Base, located In the City or Bangor, County of Penobscot, State of Maine; and WHEREAS, by Indenture of Lease dated July 28, 1976, and amended July 14, 1987, Beacon Cadillac Oldsmobile & Jeep, 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, by "Landlords Consent and Agreement bb Leasehold Mortgage" dated July 3, 1991, the Lease was assigned by Beacon Catlillac Oldsmobile & Jeep to Jerry D. Conn and in tum subleased by Mr. Conn to Beacon Cadillac Oldsmobile & Jeep with the adoowledgement and consent of the City of Bangor; and WHEREAS, by "Sublease Agreement" data March 30, 1999 Jerry D. Conn subleased Lot 9 in the BIA Commercial / Industrial Park subdivision to Hogan Road Motors with the acknowledgement and consent of the City of Bangor; and WHEREAS, Key Bank of Maine Is the holder of a leasehold mortgage on the Premises and an assignee (under an Instrument of collateral assignment) of the Sublease, which leasehold mortgage and collateral assignment was authorized pursuant to Council Order 95- 319 passed on July 10, 1995, said leasehold mortgage and collateral assignment having been given as security o Key Bank in connection WiM a certain loan made to Mr. Conn by Key Bank; and WHEREAS, Mr. Conn desires to refinance, in part or in whole, the Key Bank loan Mrough First National Bank of Bar Hamar; and WHEREAS, In connection with the contemplated First National Bank Loan, First National Bank has required Mr. Conn to grant to First National Bank a leasehold mortgage on the Premises and collateral assignment of the Sublease, with the right of re -assignment and any extensions and renewals thereof. IN CM COUNCIL December 27, 1999 ¢P�amemeddOy L� Title. AutWrirfmg Approval of an Agreement and Comment of Landlord to Leasehold Mortgage amd to Collateral Aasigment of Lease NOW, THEREFORE, BE IT ORDERED BY THE CRY COUNCIL OF THE CRY OF BANGOR THAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute an "Agreement and Consent of Landlord to Leasehold Mortgage and Collateral Assignment of Sublease", in a form approved by the City Solicitor or Assistant City Solicitor, regarding an existing lease between Beacon Cadillac Oldsmobile B Jeep and the City of Bangor dated July 28, 1976, and amended July 14, 1987, which Agreement and Consent of Landlord will include an acknowledgement of notice and consent and agreement to the following: 1. A leasehold mortgage on the Premises by Jerry D. Conn to First National Bank. 2. A collateral assignment of the Sublease by Jerry D. Conn to First National Bank. 3. Any assignment or reassignment and any extensions or renewals, within the terms and conditions of the Lease and the Sublease, which First National Bank my elect to make, at some future date, of Its right as leasehold mortgagee of the Premises and as assignee of the collateral assignment of the Sublease. 4. The leasehold mortgage, the conditional assignment of Sublease, and the obligations secured thereby shall be deemed to be "Far the purpose of obtaining construction and permanent loan financing for the mid buildings, structures and improvements" as such phrase is used in Article XX of, and elsewhere In, the Lease, whether or not such obligations actually arse from or are related to such purposed, and that First National Bank shall have the right granted or permitted to be granted to a holder of a mortgage, assignment of transfer of the leasehold Interest granted in the lease for the purpose of obtaining such financing. S. Any other temps, agreements and provisions which the City Manager may deem appropriate in and consistent with effectuating the foregoing.