050185-Special Meeting030
MINUTES
City Commission, Sanford, Florida May I at 4: 45 P. M. 19 85
The City Commission of the City of Sanford, Florida, met in Special Meeting in the
City Manager's Conference Room in the City Hall in the City of Sanford, Florida, at 4:45
o'clock P. M. on May 1, 1985.
Present:
Mayor-Commissioner Bettye D. Smith
Commissioner John Y. Mercer
Commissioner Milton E. Smith
Commissioner David T. Farr
Commissioner Bob Thomas
City Attorney William L. Colbert
City Manager Frank A. Faison
Deputy City Clerk Rosa M. Rotundo
Absent: City Clerk H. N. Tatum, Jr.
The meeting was called to order by the Chairman, who announced the purpose of the
meeting was to consider the adoption of a resolution to authorize the Mayor and Deputy City
Clerk to execute a subordination agreement for Monroe Motels, Inc.
William C. Hutchison, Jr., Attorney representing Monroe Motels, Inc., appeared to
support the agreement.
The City Attorney reported the resolution and Subordination of Lease to Mortgage
are in proper form.
On motion of Commission Farr, seconded by Commissioner Mercer and carried,
Resolution No. 1406 was adopted. Said resolution being in words and figures as follows:
RESOLUTION NO. 1406
A RESOLUTION OF THE CITY OF SANFORD, FLORIDA,
AUTHORIZING THE SUBORDINATION OF ITS LEASE
DATED APRIL 14, 1967, AS AMENDED, TO A
MORTGAGE TO BE HELD BY GREAT SOUTHERN FEDERAL
SAVINGS AND LOAN ASSOCIATION.
WHEREAS, the City of Sanford, Florida, as lessor,
entered into a lease with Monroe Motels, Inc., dated April 14,
1967, as amended for the purpose of constructing a motel, having
a Holiday Inn franchise; and
WHEREAS, said lease provided for the City of Sanford,
Florida, to subordinate its interest for money utilized for motel
construction; and
WHEREAS,
December 13, 1982,
by modification of lease agreement dated
the City of Sanford, Florida, agreed to
subordinate its interest to improvements to the property in the
event refinancing occurred, provided such refinancing was spent
on permanent improvements to structures, expansion or capital
outlay for furnishings, fixtures and equipment necessary for the
operation and maintenance of the premises and provided such
construction be according to the plans and specifications as
approved by the City of Sanford, Florida; and
WHEREAS, expansion has occurred according to plans and
specifications approved by the City of Sanford, Florida, and
MINUTES
City Commission, Sanford, Florida
Mavi at 4:45 P. M. 1985
Seminole Isle Properties, a Florida general partnership, has
represented to the City of Sanford, Florida, that it has spent
the sum of $954,500.00 upon permanent improvements to structures
:as provided for in the modification of lease as described above;
'and
WHEREAS, Seminole Isle Properties has requested the
City of Sanford, Florida, to execute a subordination of lease to
mortgage (copy attached hereto as Exhibit "A" and incorporated
herein by reference).
NOW, THEREFORE, BE IT RESOLVED BY THE PEOPLE OF THE
CITY OF SANFORD, FLORIDA:
SECTION 1: The Mayor of the City of Sanford, Florida,
is authorized and directed to execute on behalf of the City of
Sanford, Florida, a subordination of lease to mortgage in a form
in substantial compliance with Exhibit "A" referred to above.
Deputy
SECTION 2: The /City Clerk of the City of Sanford,
Florida, is authorized and directed to attest to the document and
place the City's seal thereon.
SECTION 3: The City of Sanford, Florida, represents,
declares and warrants that th~s approval is in compliance with
the provisions of City Charter of the City of Sanford, Florida,
the laws of the State of Florida, and the provisions of the lease
dated April 14, 1967.
PASSED AND ADOPTED this 1st day of May, A. D. 1985.
ATTEST:
As[t~e~ity\Commission of the
Ci~/ of ~anqord, Florida.
032
MINUTES
City Commission, Sanford, Florida
May 3_ at 4:~5 P. M. 19 83_
SUBORDINATION OF LFASE TO MOR1XT~GE
WHEREAS, the City of Sanford, Florida, as Lessor, entered into a lease
with FDnroe ~.~te. ls, Inc., as Lessee, dated April 14, 1967, as amended, said
lease being recorded in Official Records Book 611, Page 554, Public Records of
S~ninole County, Florida, leasing unto Lessee the followSng described property
to wit:
Lot 2, Sanford Riverfront Project, according to
plat thereof recorded in plat book 14, page 88,
Public Records of Seminole County, Florida;
for the purposes of constructing thereon a motel having a Holiday Inn fran-
chise; said lease in addition gave unto Lessee the option to lease the follc~-
ing additional property, to wit:
Lot 3, Sanford Riverfront Project, according to
plat thereof recorded in plat book 14, page 88,
Public Records of SemdJ~le County, Florida;
WHEREAS, the interest, of said Lessee have been transferred and assigned
unto Seminole Isle Properties, a Florida general partnership and the option on
said Lot 3, as above described, exercised by said Seminole Isle Properties;
and
WHEREAS, the City of Sanford, Florida, as Lessor heretofore has subor-
dinated its interest in the property covered by said lease agreement to a
mortgage lien held by Great Southern Federal Savings and Loan Association in
the sum of One Million Six Hundred Thousand Thirty Dollars ($1,630,000.00),
said subordination and said mortgage relating only to Lot 2 of Sanford
Riverfront Project, as above described; and
¥.%~REAS, Seminole Isle Properties, as Lessee and Great Southern Federal
Savings and Loan Association have represented unto City of Sanford, Florida,
as Lessor that there has been an additional expenditure of funds in the four,
of structural capital improvements and other additions of equiFment and
improv~raents required by Holiday Inns of America, Inc. to both Lots 2 and 3 as
above described in sums in excess of Nine Hundred Fifty Four Thousand Five
Hundred Dollars ($954,500.00), a po~-tion of which have heretofore been funded
by North Carolina National Bank with the interest of Lessor subordinated
thereto; and
~155{EAS, the City of Sanford, Florida, as Lessor has been requested to
subordinate its interest in said Lots 2 and 3 of Sanford Riverfront Project,
according to plat thereof recorded in plat book 14, page 88, Public P~cords of
S~ninole County, Florida to an additional loan made by Great Southern Federal
Savings and Loan Association to Seminole Isle Properties in the sum of Nine
Hundred Fifty Four Thousand Five Hundred Dollars ($954,500.00), said loan
being for the purposes of paying off interim construction loans to North
Carolina National Bank and for the payment of the other sums advanced for
improvelaents, as aforesaid;
MINUTES 0 3 3
City CommiSsion, Sanford, Florida .~Viay i at 4: 4 5 P. M.
NOW THZ]hFl~ORE, in consideration of the sum of Ten Dollars ($10.00) and
other good and valhable consideration, as well as the representations con-
tained herein and in consideration of the continued operation of said property
by S~ino/e Isle Properties and as an inducement to Great Southern Federal
Savings and Lo~n Association in making the said additional loan to SeJninole
Isle Properties in the sum of Nine Hundred Fifty Four Thousand Five Hundred
Dollars ($954,500.00), the City of Sanford, Florida, does hereby agree that
all its right, title and interest in and to the above described property, as
owner and as Lessor, as aforesaid, shall be and is hereby made inferior and
subordir.~te to a mortgage lien to Great Southern Federal Savings and Loan
Association against the above described property and recorded in Official
Records Book ........ , Page ~, Public Records of of Seminole County, Florida
together with a security agreement covering furniture and fixtures of even
date there%;ith, the said c~ligations executed by Seminole Isle Properties and
given to secure a prcmissory note in the sum of Nine Hundred Fifty Four
Thousand Five Hundred Dollars ($954,500.00). The said City of Sanford,
Florida acknowledges that this subordination agreement fully subordinates any
and all interest to the City of Sanford in and to the rights and claim-q of
Great Southern Federal Savings and Loan AsSociation, its successors or assigns
as a result of the aforesaid mortgage lien and security lien. This subordina-
tion is conditioned upon the following representations of Seminole Isle
Properties and Great Southern Federal .Savings and Loan ;~qsociation:
1. Great Southern Federal Savings and Loan Association by accep-
tance of this subordination, agrees that it will give the City of Sanford
written notioe of any default under said note and mortgage, and the City may
cure such default and thereafter perform under said note end mortgage as
written without acceleration. Said mortgagee does further covenant and agree
that notwithstanding other provisions of the note and mortgage the City of
Sanford shall have thirty (30) days after written notice in which to cure such
defaults before acceleration can occur.
2. That all of the aforesaid sum of Nine Hundred Fifty Four Thou-
sand Five Hundred Dollars ($954,500.00) has been applied to improvements upon
the land described in said mortgage l'ien as defined heretofore in documents
betwt=en City of SanfOrd, Florida and Seminole Isle Properties, Inc.. This
subordination shall not be effective as to any of the aforesaid sums which by
inadvertence or otherwise shall not have been spent or applied as improvements
to these structures located on the said above described property or as im-
provements as required by the franchisor Holiday Inns of America, Inc..
The City of Sanford, Florida by execution hereof does hereby represent
and warrant that this subordination has been approved and adopted by appropri-
ate resolution in accordance with the provisions of the City of Charter of the
1985_
034 "TM ',:
MINUTES
City Commission, Sanford, Florida
May I at 4:45
City of Sanford, Florida and the execution hereof by the Mayor and attestation
Deputy
by the/City Clerk does conclusively evidence the binding act of the City.
IN WITNESS WHEreOF th~ s subordination has been duly executed by the City
De. uty
of Sanford, Florida through and by its Mayor and attested by its/~ty Clerk
this 1st day of ....May . , 1985.
Witnesscs:
City of Sanford, Florida
B~ttYe ~. S~ith, May_or
Rosa M. Rotundo, Deputy City Clerk
There being no further business, the meeting was adjourned.
ATTEST:
js