Ordinance No. 11,726ORDINANCE NO. 11,726
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
REPEALING ORDINANCE NO. 11,665, PASSED ON JUNE 23, 2011, 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 AND 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; AUTHORIZING AN 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) AND
AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE THE CONSENT
OF LANDLORD UNDER TERMS AND CONDITIONS ACCEPTABLE TO THE
MAYOR; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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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,
Structure and its interest in the Lease to Bayland
consent pursuant to Section 19.01 of the Lease; and
2004, Angel Brothers Enterprises, LTD, sold the
Island Development, L.C. ( "BID ") with the City's
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, on June 23, 2011, the City Council of the City of Baytown, after considering BID's
request, consented to 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:
1. 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;
3. 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; and
WHEREAS, BID now regiesu that tile City Council of the oy or Baytown approve: as consent
document and a deed or Imst pertaining to the leaschold estate and tile t".ricumbrance, and
INIIEREAt Me City Council or the Chy of Illylown, after considering BID's request, is
amenabk to such an enct-unbrance provided the siume conttlins a right of first refusal; NOW
'HIEREFORE,
131,,, FFORDAINIA) BY 141F CATY COUNCH. OF "C CITY Ol" BAY'I'0WN,TF.'XAS:
SCOW 1: 11lat all matters and facts set forth in the recitals hereinabove are round to be true
and are appmved by the Q, Council of the CJty ofBaytown, Texas.
Section 2: That thC City Council OfthC City OfBaylown, Tcxas licreby repeals Ordinance
56. 14661 passed on June 23. 201 1, consenting to the encumbrance of the leaschold estate of Bayland
Ishrid, Development, L.C., at Bayland Island in an amount not to exceed THR[it".' I FAGI ITY-
FIVE '171K)11SANI) AND 'NO/100 DOLLARS ($38510010) tinder certain terms an(] conditions and
authorizing the City Waga to negMiate and execute the cmisov of bridlord tinder lernis anti cculdRions
accepalble to die City Manager and the City Attorney,
Section 3: 11al the City CouncH of the City of Baytown, Texas, here by consents to
allowing the leasehold estate to he encumbered in an amount not to exceed *ri,mi'','f.. HUNDR[1)
EIGHTY-FIVE. TIK)USAND A14D NO/100 DOLLARS ($385000.00) and authorizing the Mayor to
negotime and exemac die consent tinder terms and condUmis acceNable to the Mayor; provided (lie same
comams as rigilt or first, rcfbsal f1ir the benefit ol'the City ofBaylown.
Section 4: ']'his ordinance shall take en, WWI% Mvin and alter its passage by the
City Council of' tile (.'ity of' Baytown.
INTRODUCATED, RI:,*,AD and PASSED by the affirma6ve vot 1, the (Atv Council of (lie City of
Baytown this the 8"' day ol'Septcinber, 2011. 71 '
�r) A.
S`rl,� PHF,�N 1-1. DONCARLOS, Mayor
VAV,wv Council Ordinances\201 1', Septet nher &,t ons'ci it2 Lcasehol d I-, tic mift'aticc N1 a) ordoc