HomeMy WebLinkAboutAgenda Report - October 20, 1999 E-1209�IFOtx�`Q'
CITY OF LODI COUNCIL• •
AGENDA TITLE: Addendum to Lodi Boys and Girls Club City Lease to Accommodate
F&M Bank Financing
MEETING DATE: October 20, 1999
SUBMITTED BY: Randall A. Hays, City Attorney
RECOMMENDED ACTION: That the City Council approve the Resolution amending the
lease between the City of Lodi and the Lodi Boys & Girls Club.
BACKGROUND INFORMATION: The Lodi Boys & Girls Club is working toward restructuring the
Club's debt. They are working with the Farmers & Merchants Bank to accomplish this. In order for the
Bank to proceed, certain concessions by the City are necessary relative to the lease between the City
and the Lodi Boys & Girls Club. Based upon direction received from the City Council, the attached
Lease Addendum has been prepared to effectuate the direction given. Affirmative action by the Council
on this matter will allow the restructuring of the Lodi Boys & Girls Club debt to be finalized by F&M
Bank.
FUNDING: Not Applicable.
APPROVED:
H. D. FLYNN
City Manager
Lease Addendum No. 2
(Consent to Debt)
This lease addendum, entered into this 20" day of October, 1999, by and between the City
of Lodi, a municipal corporation (City) and the Lodi Boys and Girls Club, Inc., a California Non -
Profit Corporation (Club) shall be as follows:
WHEREAS, City and Club entered into an unrecorded lease of City -owned land on
December 15, 1993 to allow for the construction and operation of a recreational facility by Club on
said land; and
WHEREAS, a Memorandum of Lease between Club and City was recorded in July of 1996;
and
WHEREAS, Club is seeking to refinance some outstanding debt through Farmers and
Merchants Bank of Central California (Bank); and
WHEREAS, pursuant to paragraph 13 of the lease, consent of City is required in order to
encumber, mortgage, hypothecate or pledge the premises or improvements as security for any
debt; and
WHEREAS, City is willing to give such consent based upon certain conditions.
NOW, THEREFORE, BE IT AGREED AS FOLLOWS:
City consents to the loan from Bank to Club in the amount of $350,000.00 based upon the
following conditions:
Consent is for this loan only;
2. The Weybret Trust must make payments on the loan on behalf of the Club to the
maximum amount available from the trust;
3. In the event of default by Club which results in Club being unable to continue to
occupy the premises and improvements pursuant to the lease, City shall forebear
from declaring an abandonment or cessation of use under the lease. City will
instead, in coordination with Bank and the Weybret Trust, seek a new tenant for the
premises and improvements. Said new tenant must be a qualified 501(c)(3) tax
exempt non-profit organization and occupy the facilities within 90 days of cessation
of occupancy by Club. City shall make interest -only payments on the referenced
loan for 90 days following cessation of occupancy of Club. If no tenant is in place
as described above, City shall, at its own option, either assume the loan or pay off
the balance owing on the loan_ In either case, City shall then have sole ownership
and control of the improvements;
4. To the extent this consent conflicts with the lease this consent shall control;
otherwise the provisions of the lease are effective and unchanged;
5. Club shall make the terms of this consent part of and incorporate them into the loan
requirements for the loan from Bank.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first
mentioned above.
City of Lodi, a municipal corporation
H. DIXON FLYNN
City Manager
Attest:
ALICE M. REIMCHE
City Clerk
Approved as to Form:
RANDALL A. HAYS
City Attorney
E
Lodi Boys and Girls Club, Inc.
A California Non -Profit Corporation
RICHARD J. JONES
President, CEO
RESOLUTION NO. 99-158
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE ADDENDUM NO. 2 TO LODI
BOYS AND GIRLS CLUB CITY LEASE TO ACCOMMODATE
FARMERS & MERCHANTS BANK FINANCING
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City
Manager to execute Lease Addendum No. 2 to the Lodi Boys and Girls Club City Lease
to accommodate Farmers and Merchants Bank financing.
Dated: October 20, 1999
hereby certify that Resolution No. 99-158 was passed and adopted by the Lodi
City Council in a regular meeting held October 20, 1999 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Nakanishi and Pennino
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Mann and Land (Mayor)
ALICE M. REI HE
City Clerk
99-158