8.6 Consent to Mortgage of Leasehold Estate - Famdoc IRB CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
4:00 P.M.
7/11/~14
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 AGI~NDA:
City Attorney
ITEM:
NO. 6 BY: Oreg Bengtson BY: ~--~/~
Item
Resolution Number 94-4760, authorizing the Mayor to execute a Consent To
Mortgage of Leasehold Estate and Collateral Assignment of Lease.
Background ,.
' In 1984, the City issued industrial revenue bonds on behalf of Famdoc, Inc.,
for the purpose of expanding the clinic in which Salina Family Ph~rsicians is
~ located at 617 East Elm. As is customary when IRB's are issuedi the City
holds title to the real estate and the improvements financed through the
IRB's. The affected portion of the clinic is under a lease betweeh the City
as the "Landlord" and Famdoc, Inc., as the "Tenant", dated November 1, 1984,
(the "Lease") and a sublease to Salins Family Physicians, P.A., !also dated
November 1, 1984.
The Tenant wishes to finance the construction of a further expansion of the
clinic with conventional bank financing. As part of the security for the bank
financing the Tenant wishes to grant a leasehold mortgage and collateral
assignment of its interest in the Lease. The Lease anticipates the granting of
such a mortgage and collateral assignment, but requires the City's colasent.
The City's position as Landlord under the Lease is not adversely at~fected and
is actually enhanced by consenting to the leasehold'mortgage and fihe further
expansion of the clinic made possible through the private financing.
Recommendation
Adopt Resolution Number 94-4760.
COMMISSION ACTION
MOTION BY SECOND BY i
THAT: I