HomeMy WebLinkAboutResolution - 2533 - Consent Agreement Subordination Landloord Lien - WTA Inc Lease To Republic Bank - 03_12_1987Resolution #2533
March 12, 1987
Agenda Item #19
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RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock a Consent
Agreement subordinating Landlord's Lien on WTA, Inc. lease to RepublicBank
Lubbock, attached herewith, which shall be spread upon the minutes of the
Council and as spread upon the minutes of this Council shall constitute and
be a part of this Resolution as if fully copied herein in detail.
Passed by the City Council this 12th day of March , 1987.
B. C. McMINN, MAYOR
ATTEST:
Ranett(e Boyd, City Secretary v
APPROVED AS TO CONTENT:
Marvin Coffee, Dir r o Aviation
APPROVED AS TO FORM:
Mic ele Hart, Assistant City Attorney
MEMO
TO: Jim Bertram, Assistant City Manager
FROM: Marvin Coffee, Director of Aviation
SUBJECT: Agenda Comments - March 12, 1987 Council Meeting
DATE: February 23, 1987
ITEM IV.I Consider consent to waive Landlords Lein on WTA, Inc. property
at Lubbock International Airport
WTA, Inc. has a Fixed Base Operators agreement with the City of
Lubbock and owns a hangar financed through Republicbank Lubbock,
N.A. located on 76,927 sq. ft. of leased land at Lubbock Inter-
national Airport.
Lubbock National Bank in the original security interest and
lien by WTA, Inc. was approved by Lubbock City Council on
March 25, 1982 Resolution No. 1060.
In February 1985 WTA, Inc. executed another note for $293,972.63
in renewal and extensions of the unpaid balance of the $400,000
loan. The Bank now known as Republicbank Lubbock, N.A. requests
the City to consider granting another consent to waive landlords
lien on WTA, Inc. property.
The Airport Board at their February 18, 1987 Meeting recommends
to City Council approval of the consent to waive landlords lien
on WTA, Inc. property at Lubbock International Airport.
Marvin Coffee, i
Director of Aviation
Resolution #2533
March-12, 1987
t i Agenda Item #19
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
CONSENT AND AGREEMENT
This Agreement made and entered into by and between the CITY
OF LUBBOCK ("CITY") and REPUBLICBANK LUBBOCK, N.A. ("RBL"), as
follows:
WHEREAS, the CITY is the owner of a tract of land situated
at Lubbock International Airport, and
WHEREAS, on December 11, 1980, under Resolution 673, the
CITY by its representatives entered into a Fixed Base Operator
Agreement, as Lessor, with JOHN G. CHRISTMANN, JR., RAYMOND S.
TAPP and GENE MURRELL, a General Partnership, doing business
under the tradename CTM HANGARS, whereby a tract of land situated
at the Lubbock Regional Airport was leased to the Lessee, which
tract contains 76,927 square feet as disclosed by the legal
description shown in Exhibit "A" attached hereto and made a part
hereof, reference being made to said Agreement for all pertinent
purposes, and
WHEREAS, by written Assignment dated August 24, 1981, CTM
HANGARS conveyed such Lease, Contract and Agreement to WTA, INC.,
a Texa8 corporation, which was duly accepted by the said WTA,
INC., under terms whereby the Assignee agreed to perform all of
the obligations, covenants and conditions thereof and which
assignment and acceptance thereof were duly approved by the City
Council of the City of Lubbock on August 27, 1981, by Resolution
896, and
WHEREAS, WTA, INC., is indebted to REPUBLICBANK LUBBOCK,
N.A., formerly the Lubbock National Bank, as evidenced by a
certain Real Estate Lien Note dated February 1, 1985, in the
original principal sum of $293,972.63, said note being in renewal
and extension of the unpaid balance on a promissory note dated
February 27, 1982, in the original principal sum of $400,000.00,
executed by WTA, INC., payable to the order of the Lubbock
ink, and said note being secured by a security interest
and Deed of Trust lien on the leasehold interest of WTA, INC.,
and all improvements thereon described in the attached Exhibit
"A", as more fully set out in a certain Deed of Trust executed by
WTA, INC., on February 1, 1985, recorded in Volume 925, Page 197,
of the Deed of Trust Records of Lubbock County, Texas, and
WHEREAS, the CITY, through its City Council, consented to
the granting of the security interest and lien by WTA, INC., to
the Lubbock National Bank, which was renewed and extended by the
Deed of Trust above described dated February 1, 1985, as set out
in a certain Consent and Agreement dated March 25, 1982, approved
by Resolution No. 1060 dated March 25, 1982, and
WHEREAS, REPUBLICBANK LUBBOCK, N.A., has requested a waiver
of the landlord's lien created by the Lease Agreement included in
the Fixed Base Operator Agreement dated December 11, 1980,
referred to above, and further, REPUBLICBANK LUBBOCK, N.A., has
requested that the CITY consent to the terms and conditions set
out in this Agreement relating to the leasehold interest of WTA,
INC., and the rights of REPUBLICBANK LUBBOCK, N.A., as
lienholder:
NOW, THEREFORE, pursuant to a Resolution of the City Council
of the City of Lubbock as of the date of this Agreement, the CITY
hereby consents and agrees as follows:
1. The CITY hereby agrees to subordinate its landlord's
lien on the improvements and personal property covered by the
security interest and lien of REPUBLICBANK LUBBOCK, N.A.,
securing all obligations of WTA, INC., to REPUBLICBANK LUBBOCK,
N.A., under the Deed of Trust dated February 1, 1985, and
recorded in Volume 925, Page 197 of the Deed of Trust Records of
Lubbock County, Texas, described above. It is agreed that the
lien rights of the CITY under its landlord's lien shall be and
remain subordinate to the lien claims and security interest of
REPUBLICBANK LUBBOCK, N.A., under said Deed of Trust and any
►d extension thereof.
2. It is agreed that the CITY shall, prior to exercising
any rights of termination under the Fixed Base Operator Agreement
dated December 11, 1980, arising out of any default or alleged
default of WTA, INC., give ten (10) days' written notice of such
default to REPUBLICBANK LUBBOCK, N.A., and REPUBLICBANK LUBBOCK,
N.A., shall, within such time, be entitled to cure such default.
3. It is agreed that, in the event REPUBLICBANK LUBBOCK,
N.A., should foreclose its Deed of Trust lien and security
interest described herein, then no transfer of the leasehold
interest which is the subject of this Agreement shall be
effective unless the City shall have consented to such transfer,
which consent shall not be unreasonably withheld.
EXECUTED this 12th day of March 1987
THE CITY OF LUBBOCK
c
By: - -
B. C. nn McMinn,/Mayor
ACCEPTED:
REPUBLICBANK LUBBOCK, N.A.
By:
ATTEST' Lyn da Jenki , Senior Vice President
CITY S$C_$ETARY, Witte Bbyd�
APPROVED AS TO FORM:
i
ASSISTANT CITY ATT NEY ____
Michele Hart
APPROVED AS TO CONTENT:
Mar�Gi
ffee
002
Lynnda Jenkins
PI RepublicBank Senior Vice Premdcnt
March 25, 1987
Mr. Marvin Coffee
Director of. Aviation
Rt. 3, Box 389
Lubbock, Texas 79401
Dear Mr. Coffee:
Thank you for the original and copy of the "Consent and Agreement" regarding
our financing for WTA,Inc. The fully executed copy is enclosed for your
records.
We are most appreciative of the Airport Board and City Council's favorable
action in this regard, which assists us in serving our customer's needs in
a timely manner.
Cordially,
Senior Vice re ident
LJ/kp
Enclosure
RepublicBank Lubbock • 416 Mai!, St,,vt II.t > N,x 12i • 1.o6i-ck. T. x,,: i-MOK! t,ur,t