HomeMy WebLinkAbout2005-06-13 05-217 ORDER------COUNCIL
Item No 0i
Date: lune 13. 2005
Item/Subject ORDER, Authorizing to Cl Manager to Execute an "Agreement and
Consent of Landlord to Assignment of tease, Leasehold and
Fee Mortgage, Conditlonal of Assignment of Lease (Tenant's
Interest) and to Collateral Assignment of Leases and Rents"
Responsible Department Community & Economic Development
Issue
Jerry D. Conn requests the City of Bangor's consent to the assignment of the lease for Lot 9 in the BIA
Commercial l Industrial Park, 361 Griffin Rd. to QV Realty Trust.
Background
Jerry D. Conn is selling a building at 361 Griffin Rd. to QV Ready Trust The lease agreement between
the City of Bangor and Mr. Conn for Lot 9 requires the consent of the City of Bangor to the assignment.
The term of the lease continues to July 2006 with three (3) options of ten (10) yeas each to extend the
Ieaseto2036. The rent is $1,576.63 per month trough 2006.
The Business and Economic Development Committee requested more imomlalion on QV Realty Trusts
intended use of the builtling. The buyer intlicales that they intend to operate an "automotive sales and
services agency' as stipulated in the lease agreement and that their immediate plans are to sell pre-
owned trucks and that they would look for a new dealership.
Recommendation
The Business and Economic Development Committee recommended approval of to consent to to
assignment of the lease.
Stall recommends approval of the consent to the assignment of the lease.
Department Head
Managers Comments:
Ciry Manager
Associated Itlform rtion:
Finance Director
i passage
_ First Reading Page _ of _
Referral
0s -2v
- Assigrrd to Councilor Stone Jose 13, 2005
CITY OF BANGOR
(TITLE.) Order, Authoming the City Manager to Execute an "Agreement and Consent of
Landlord to Assignment of Lease, Leasehold and Fee Mortgage, COMibunal of Assignment of
Lease (Tenant's Interest) and to Collateral Assignment of Leases and Rents."
WHEREAS, the City of Bangor is the owner of certain real estate located at or near 361 Gnffin
Road in Bangor, Maine (the "Premiss"); and
WHEREAS, the City of Bangor leased the Premises to Beacon Cadillac Oldsmobile &Jeep
("Beacon") under its former name of Beacon Motor Company, pursuant to the terms
of an Indenture of Lease dated July 28, 1976, as such Indenture of Lease may have
been amended from tlme to time (the Indenture of Lease as so amended Is
hereinafter referred to as the "Lease"); and
WHEREAS, the Lease was assigned by Beacon to Jerry D. Conn (-Mr. Conn") and in tum
subleased by Mr. Conn to Hogan Road Motors with the acknowledgment and
consent of the City of Bangor; and
WHEREAS, Mr. Conn proposes to assign the Lease to QV Realty Tnnt and to sell the
improvements located on the Premiss to QV Realty Trost; and
WHEREAS, in connection with the contemplated assignment and sale to QV Realty Trust, Mr.
Conn has required QV Realty Tent to grant to Mr. Conn a leasehold and fee
mortgage on the Premises and the improvements thereon, a conditional assignment
of the Tenants interest in the lease, and a collateral assignment of lasses; and rents,
with the right of rerassignment and any extensions and renewals thereof;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COONM OF THE CITY OF BANGOR THAT,
Me City Manager Is hereby authorized and directed, on behalf of the City of Bangor, M execute
an "Agreement and Consent of Landlord M Assignment of Lease, Leasehold and Fee Mortgage,
Conditional Assignmrent of Lease (Tenant's Interest), and Collateral Assignment of Leases and
Rents" with respect to the Premises ("Agreement and Consent of Landlord"), which Agreement
and Consent of Landlord will include an acknowledgment of notice and consent and agreement
to the following in a form approved by the Oty Solknor or Assistant City SolidMr:
1. An assignment of all of the Lessee's interest in the Lease by Mr. Conn to QV
Realty Trust.
2. A leasehold and fee mortgage on the Premises by QV Realty Trust to Mr. Conn.
3. A conditional assignment of the Lease C ora nt's Interest) to Mr. Conn by QV
Realty Trust.
Ol
4. A collateral assignment of the leases and rents by QV Realty Trust to Mr. Minn.
5. Any assignment orreassignment and any extensions or renewals, within the
tams and conditions of the Lease and any subleases, which Mr. Cann may elect
to make at some future data, of his rights as leasehold mortgagee of the
Premises, as the conditional assignee of the tenants Interest in the Lease, and
as assignee of the collateral assignment of any subleases.
6. The Leasehold and P Mortgage, the Conditional Assignment of Lease (Tenants
Interest), the Collateral Assignment of Leases and Rents, and the obligations
secured thereby shall be deemed to be "for the purpose of obtaining
construction and permanent can financing far the said buildings, structures and
improvements" as such phrase is used in Article V of, and elsewhere in, the
Lease, whether or not such obligations actually arise from or are related to such
purposes, and that Mr. Conn shall have the rights granted or permitted to be
granted to a holder of a mortgage, assignment or transfer of the leasehold
interest granted in the Lease for the purpose of obtaining such financing.
IB CI10
dune 133 2005. 2005
Hotiuv Node avd Secovded
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�TITIp Av[horfzi g the City Nemger is
iecatiYe m '�AVee nt and C eat of
Lmdlord to "Sig nt of Leen, Leasehold ;
evd Yee Nortvge. Cw ltiunal of AsSi t,
Of Lewes (Tenant's Interest) and to
Collateral yslg t of Lames and Herta' i