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HomeMy WebLinkAbout2008-04-28 08-148 ORDERItem No, 08 148 Date: All W, 2008 Item/Subject: Order, Authorizing Agreements with New Castle Hotel Corporation and WNC Bangor CompaM LLC m Intend the Term of Parking Agreement, Approve Assignment and Assumption of Lease Agreement and Parking Agreement, and Approve Landlord's Consent m Leasehold Mortgage -- Sheraton Four Points Hotel. Responsible Departmam: Legal Commentary: The New Castle Hotel Corporation leases property at Bangor International Airport for the operation of the Sheraton Pour Points Hotel and for parking for the hotel. On January 14, 2008 by Council Order 08-062, the City Quncll authorized an amendment to the ground lease to extend the term amil recalculate the rent As part of New Castle's plan to Invest an additional eight million dollars in the hotel. New Castle wishes to extend the term of the Parking Agreement to be consistent wM the extended tens of the ground lease. New Castle is joining with Widewatens Group m form a new Corporation, WNC Bangor Company LLC, m renovate the hotel. WNC Bangor Company LLC will obtain financing for the renovations. Whenever new entities become Involved in ownership of leased City land or when new financing is im mNed, vanous consents are required from the City including approval of assumption of lease agreements by new entities and consent to new finances to mortgage leasehold interest. New Castle Hotel Corporation and WNC Bangor Company LLC are requesting that the ay of Bangor execute the requested parking lease extension and approve the documents necessary W obtain the new financing necessary for the renovations. ,-Q I� T Department Head Manager's Comments: This has been reviewetl and is recommended by the Transportation and Infrastructure Committee. CM Manager Associated Information: Finance Director Legal Approval: Cm Solicitor X Passage _ First Reading Referral M 5' Assigned to Cotwcilor D'Errico April 28, 2008 ,.„.- ~ CITY OF BANGOR (TITLE.) MAer, Authorizing AgreemerMs with New Castle Hotel Corporation and WNC Bangor Company LLC to Extend the Term of Parking Agreement, Approve Assignment and Assumption of lease Agreement and Parking Agreement, and Approve Landlere's Cogent to Leasehold Mortgage — Sheraton Four Points Hotel. WHEREAS, the New Castle Hotel Corporation leases property at Bangor International Airport for Me operation of the Sheraton Four Points Hotel and for parking for the hotel; and WHEREAS, the New Castle Hotel Corporation has committed to invest an additional eight million dollars in renovations to Me hotel; and WHEREAS, on January 14, 2006 by Council Order 08-067, the City Coundl authorized an amendment to the ground lease to "M the term and recalculate the rent; and WHEREAS, the City of Bangor and New Castle Hotel Corporation also have a Parking Agreement; and WHEREAS, the New Castle House Oorporztlon wishes to extend the term of the Parking Agreement to be consistent with the exrendM tens of the ground lease; and WHEREAS, New Caste Hotel Corporation is joining with Wridewaters Group to form a new Corporation, WNC Bangor Company LLC, to do the renovations; and WHEREAS, WNC Bangor Companry LLC veil obtain financing to do the renovatlons; and WHEREAS, New Castle Hotel Corporatbn and WNC Bangor Company LLC are requesting that the Ory of Bangor execute documents necessary to extent the term of tine Parking Agreement approve the assignments to WNC Bangor Company LLC, and approve documents necessary W obtain financing for the renovations; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CRY OF BANGOR THAT The CIN Manager, Edward A Barret, Is autlmrized, on behalf of the Oly of Bangor, to execute the following documents: Landlord's Consent (ground lease), Landlord's Consent (parking agreement), Amendment of City of Bangor and New Castle Hotel Corporation Parking Agreement, Assignment of Lease, Assignment of Parking 4greemen4 and Memorandum of Lease and Memorandum of Parking Agreement Said documents shall be in a final fonn as approved by the City Solicitor or Assistant City Solidtor. IN Un CMCIL April 28. 2008 1 k 0-148 ARnRR pxrie)as R VtNew Castle Betel carpaFi'enaa .m we A¢vgar Agre� p ¢ Approve Asslent andAlssumptdan and Appro¢e landlord's Consent to Lemsebold Awi vdwcunamar V trc(t"