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Home My WebLink About2008-07-14 08-243 ORDERItem No, 08 243 Date: July 14, 2008 Item/Subject: ORDER, Authorizing the City Manager to Execute a Consent Agreement for Leasehold Mortgage — Spectacular Events— 395 Griffin Road Responsible Deparatnem: Legal The City of Bangor Is me owner of certain real estate at 395 Griffin Road and leases the same to Stephen P. Amy, Sr. and Jane E. Arey, d/b/a Spectacular Events Tenant). Merrill Merchants Bank is making a commercial loan to the Tenant with a sacunly interest in the Tenants buildings, equipment and the lease with the City of Bangor and is requesting the City's consent, a standard commercial practice. This Order will authorize the Ismwtlon of a Consent Agreement for Leasehold Mortgage consenting to the granting of a Leasehold Mortgage by Stephen P. Arey, Sr. and Jane E. Arey. d/b/a Spectacular Events to Merrill Merchants Bank. Because of time constraints by the Lender and the Tenant and the cancellation of the most recent Business and Economic Deyelopment Committee meeting this request has not been to committee. However, It is a routine request that the Council deals with any time a tenant of City property is involved in financing or refinancing. Staff recommends approval X Passage _ First Reading Referral pepartnent Head Managees Comments: / City Manager Associated Infamwtion: U Budget Approval: Finance Director Legal Approval: by Solicitor X Passage _ First Reading Referral rf�jg Assigned to Councilor Pa r July 14, 2008 iq'Z4 ED CITY OF BANGOR (TBTLE.) ORDER, Authoraing the City Manager to Execute a Consent Agreement for Leasehold Mortgage — Spectecular Events — 395 Griffin Road WHEREAS, The City of Bangor is the owner of certain real estate at 395 Griffin Road and leases the same to Stephen P. Am, Sr. and Jane E. key, d/b/a Spectawlar E rents (Tenant); and WHEREAS, Merrill Merchants Bank is making a commerdal loan to the Tenant with a security interest in the Tenanfs buildings, equipment and the lease with the CM of Bangor and is requesting the CINs consent, a standard commercial practice. BY the city coumlafthe Qty Of8a - ORDERED, That the City Manager, Edward A. Barrett, is hereby authorireq on behalf of the City of Bangor, to exarute a Consent Agreement for Leasehold Mortgage consenting W the granting of a Leasehold Mortgage by Stephen P. Arey, Sr. and Jane E. Arey. d/b/a Spectacular Events to Merrill Merchants Bank. Said Agreement shall be in substantially the same form as attached hereto and in a final form as approved by me Qty Solicitor or Assistant Cdy Solicitor. IN CixF:.wMCIG July 16, 2008 Neti®: Node and Seconded. #N-243 for Paaeage Passed 0 R D R R 08P01x Cxxi IT ec Aaxmrfnsen xAg eery t uagfor x Co Etecute s tmeenx Agreement for ', laLonAnld Nor[eeee - goeC[eculni 8ve¢cs - 395 Grlff3n Raced 08 243 CONCENT AGREEMENT FOR LEASEHOLD MORTGAGE THIS CONSENT AGREEMENT (this "Agreement') is made this day of July, 2008 by and among MERRILL MERCHANTS BANK a. Maine banking fi sdm for having its principal place of business in Reagan, Maine ("Leasehold Mottpagee'), CITY OF BANGOR a Maine municipal coryormon having its principal place of bananas as in Bangor, Maine ("Landlord'), and STEPHEN P. ARTY, SR. and JANE E. AREY, d err SPECTACULAR EVENTS CENTER, with a mailing address of 66 LaSalle Drive, Bangor, Maine 04401 CTe ssnf) who agree as tbllows: WITNESSETH WHEREAS, Landlord is Ne owner of cettaia real property situates at 395 Griffin Road, Bangor, Penobscot County, Maine (Ne "Remises"), which was leased to Kathy Harvey as Lessee as documented in a Memorandum of Lease recorded an March 17,1998 and recorded in Book 6625, Page 183 of the Penobscot County Registry of Deeds, as assigned to Stephen P. Amy, Sr. and Jane E. Amy dated November 24, 1999 and recorded in Book 7243, Page 105 of the Penobscot County Registry of Dmds (the "Lease'); and WHEREAS, Leasehold Mortgagee has made a commercial loan to Tenant (the "Loan") secured by (1) a leasehold mortgage dated June , 2008, In be recorded in the Penobscot County Registry of Deeds (the "Leasehold Mortgage") upon Tewnfa interest in and to the Lease, and (2) a security interest (are "Bank Security Interest) in the buildings, hangers, improvements, inventory, amounts receivable, amounts, fixtures, equipment and/or other business assns uses, or to be used in the operation of Ne Tenant's business (said business eases being hereinafter refrie(Im as the "Collateral"); and WHEREAS, the granting of the Leasehold Mortgage an Leatthold Mortgages requires Ne curearat of Landlord under the Provisions of Ne Lease, and Landlord is willing to provide its consent to the granting of the L seashold man and subject to the Terms and Provisions of Nis Agreement; NOW THEREFORE, for valid consideration, the receipt and sufficiency of which is hereby acknowledged, Ne Amines hereto agree as Knows: I. Landlord hereby consents to Ne granting of Ne Leasehold Mortgage by Tenant to Leasehold Mortgagee upon and subject an Ne terms and conditions set fort N this Agreement, provided Rod nothing herein nor in the Leasehold Mortgage shall affect the obligations of Farm, in its successors or assigns, order the Provisions of the Faces. 2. Landlord hereby subordinates in favor of Leasehold Mortgagee any lien, claim, right title, or interest including, but not limited to, any landlord's lim or right m distress for rent, which Landlord may have or hseaner acquire as to my of the Collateral, whether Presently or hereafter installed N or afiithe to any portion of rhe Bangor Premiss. 3. Landlord hereby agrees that m the evert of my breach or default by Termt under the tams and commune of Ne Lease„ Landlord will not terminate the Lease or take my other enforcement action under the Lease unless Landlord shall have for given written notice Of such btmeh or default in Leasehold Mortgagee and Leasehold Mongags sball have failed to have caused such breach or dfauk to be cured within thirty (30) days after receipt of such writen notice, provided that in the event such breach or dfault is nor of a move that con be reasonably eget within said thirty (30) day Period Leashold 08 243 Mortgagee shall have failed in cummeace the curing of such breach or default within said period and to thereafter diligently prosecute Ne curing thereof to completion 4. Landlord further agrees that the Collateral shall at all times be deemed personal property and not real property, or futures or in any way part of the Premise. S. This Agreement may be modified or amended only by an agreement in writing signed by the patties hereto or their respective successors -in -interest. b. Lindland and Tenmt agree dent me Lease is in foil force and effect and fiat as of the date harm( neither Landlord] nor Tenant is in default of any of its respective obligations under the Lease. ]. This Agreement shall more bike benefit of and be binding upon the parties herem, their respective heirs, personal representatives, successors and assigns. 8. If my upon or provision of this Agreement or the application thereof to any person or rcumsmnce shad, b any eaeni, be invalid oruvenfomreable, the remainder of this Agreement, or the application of such ion or provision to persons or circumstances, other than those as to which it is held invalid or unenfomealth; shall not be aff ted thereby, and each term and provision of this Agreement shall be valid and enforced in the fulled extent permitted by law. 9. This Agreement shall be governed by and protracted in accordance win the laws of the Smteofbisine. M WITNESS WHEREOF, the patties hereto have caused this Agreement to be duly executed as of me day and year first above wriMn. WITNESS: MERRILL MERCHANTS BANK By: _ Name Its: CITY OF BANGOR By: Name. In Stephen P. Arey, Sr /me E. Any 08 243 STATE OF MAINE COUNTY OF PENOBSCOT, as. July , 2008 . Then personally appeared tae above-named in hiAw capacity as of Merrill Merchants BaNc and aclmowledged me foregoing instrument in be hisliber free act and dead in said capacity. Before me, Notary PubliclAttomeyat-Law STATE OF MAINE COUNTY OF PENOBSCOT, ss. July _� 2008 Then petmnally appeared the above-named in hisNer capacity as of City of Bangor and acknowledgcl rhe foregoing instrument to be hiadtcr free act and deed in said capacity. Before me. Notary Public/Attorney-at-Law STATE OF MAINE COUNTY OF PENOBSCOT, ss. July 2008 Than Personally appeared she above-named Stephen P. Amy, Sc and Jane E. Arey and acknowledged the foregoing instrument to be their free act and deed. Beforeme, Name: Notary PubliUAvomey-at-Law