Ordinance No. 11,665ORDINANCE NO. 11,665
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
CONSENTING TO THE ENCUMBRANCE OF THE LEASEHOLD ESTATE OF
BAYLAND ISLAND DEVELOPMENT, L.C., AT BAYLAND ISLAND IN AN
AMOUNT NOT TO EXCEED THREE HUNDRED EIGHTY -FIVE THOUSAND AND
NO /100 DOLLARS ($385,000.00) UNDER CERTAIN TERMS AND CONDITIONS;
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE
CONSENT OF LANDLORD UNDER TERMS AND CONDITIONS ACCEPTABLE
TO THE CITY MANAGER AND THE CITY ATTORNEY; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
WHEREAS, on the 12`h day of February, 2004, the City Council of the City of Baytown
authorized the sale of the existing building, previously used as a restaurant facility at Bayland Island (the
"Structure ") and accompanying ground lease (the "Lease ") to Angel Brothers Enterprises, LTD; and
WHEREAS, on the 12`h day of August, 2004, Angel Brothers Enterprises, LTD, sold the
Structure and its interest in the Lease to Bayland Island Development, L.C. ( "BID ") with the City's
consent pursuant to Section 19.01; and
WHEREAS, Section 15.01 of the Lease states, in part, "[BID] shall not have the right to
mortgage and encumber its leasehold estate "; and
WHEREAS, BID has requested that the City allow the leasehold estate be encumbered by an
amount not to exceed THREE HUNDRED EIGHTY -FIVE THOUSAND AND NO /100 DOLLARS
($385,000.00) (the "Encumbrance "); and
WHEREAS, the City Council of the City of Baytown, after considering BID's request, is
amenable to allowing the leasehold estate to be encumbered as requested; provided, that the City's
consent to the Encumbrance granted herein shall be pursuant to terms and conditions acceptable to the
City Manager and the City Attorney and shall not be deemed:
a release, waiver or discharge of BID from the terms, conditions or other obligations of
BID under the Lease;
2. a modification or subordination of any of the terms, conditions or provisions of the Lease
or of the obligations of BID under the Lease;
to impose any liability on the City for repayment of the Encumbrance secured by the
property subject to the Lease; or
4. a waiver of the right to refuse future encumbrances of the property subject to the Lease
pursuant to Section 15.01 of the same; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That all matters and facts set forth in the recitals hereinabove are found to be true
and are approved by the City Council of the City of Baytown, Texas.
Section 2: That the City Council of the City of Baytown, Texas, hereby consents to
allowing the leasehold estate to be encumbered in an amount not to exceed THREE HUNDRED
EIGHTY-FIVF1 THOUSAND AND NO/100 DOLLARS ($385,000.00); provided, that the City's consent
to the Encumbrance granted herein shall be pursuant to terms and conditions acceptable to the City
Manager and tile City Attorney and shall not be c1ccined:
a release, waiver or discharge of BID From the terms, conditions or other obligations of
BID under the Lease;
as modification or subordination of any of the terms, conditions or provisions ofthe Lease
or of the obligations of Bit) under the Lease;
3. to impose any liability, oil the City for repayment of' the LEICUmbrance secured by- the
property subject to the Lease; or
4. a waiver of tile right to, refuse flitUre encumbrances of the property subJect to (lie Lease
pursuant to Section 15.01 ol'the same
Section 3: That Provided Bit) is not in default under the Lease, the City Council of the City
of Baytown, Texas, hereby authorizes the City Nianager to negotiate and execute as consent to the
encumbrance of the leaschold estate under terms and conditions deemed acceptable to the City Attorney
and the City Manager.
Section 4: ']'his ordinance shall take effect inimediately
City Council of the City of Baytown.
INTRODUCED, READ and IIASSE,'D by the affirinative
Baytown this the 23"' day of'June, 2011.
APPROVED AS,ro r:mm:
JTMIORAMIREZ, SR., CiloWtorney
OMAN
and after its passage by the
of tile City Council of the City of'
DONCARLOS, Mayor
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