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HomeMy WebLinkAboutReso 06-15RESOLUTION NO.06-15 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CONSENTING TO THE ENCUMBRANCE, WITH A DEED OF TRUST, OF THE LEASE AGREEMENT FOR LEASE SITE 144/144W LOCATED AT 1287 EMBARCADERO BETWEEN THE CITY OF MORRO BAY AND MORRO BAY OYSTER COMPANY, LLC, AS ASSIGNEE. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay ("City") is the lessor of property known as Lease Site 144/144W located at 1287 Embarcadero; and WHEREAS, through an assignment and assumption agreement approved by City's City Council, Morro Bay Oyster Company, LLC is the current lessee of Lease Site 144/144W (the "Lease"); and WHEREAS, Morro Bay Oyster Company, LLC is financing the acquisition of the Lease and the resources necessary for capital for improvements and repairs required as part of the Lease (the "Financing"); and WHEREAS, Morro Bay Oyster Company, LLC's lender, Charles and Sandra Marciel, is requesting approval of a Deed of Trust to secure the Financing; and WHEREAS, the City Attorney has reviewed and approved the attached deed of trust. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the attached Deed of Trust for Lease Site 144/144W is hereby approved and the Mayor is hereby authorized to execute the deed of trust, as necessary. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27th day of January, 2015 on the following vote: AYES: Irons, Headding, Johnson, Makowetski, Smukler NOES: None ABSENT: None T J e L. Irons, Mayor ATTEST: Lo ana Swanson, City Clerk ESTOPPEL CERTIFICATE - LANDLORD This ESTOPPEL CERTIFICATE ("Certificate") dated as of January 13, 2015, executed by the CITY OF MORRO BAY, a municipal corporation ("Landlord") in favor of MORRO BAY OYSTER COMPANY, LLC, a California limited liability company ("Assignee") RECITALS A. CHARLES AND SANDRA MARCIEL dba M&M Refrigeration ("Tenant") and Assignee have entered into a Leasehold Purchase Agreement ("Agreement"), in which Tenant has agreed to assign and Assignee has agreed to assume all of Tenant's interest and obligations under that certain lease that commenced on July 1, 2012, between Tenant and Landlord (the "Lease") covering Lease Site 144/144W as delineated on Parcel Map of the City of Morro Bay, No. 68-30, which map was recorded on October 10, 1968, in Book 3, Page 10 of Parcel Maps in the Office of the County Recorder, San Luis Obispo County, California (the "Leased Premises") attached to this Certificate, and incorporated by reference as Exhibit A. B. In connection with the Agreement, Tenant has requested that Landlord execute this Certificate. C. Landlord makes this Certification with the knowledge it will be relied on by Assignee in assuming Tenant's obligations under the Lease. NOW THEREFORE, Landlord certifies to Assignee as follows: Section 1. Tenant: As of the date of this Certification, Tenant is the tenant of the Leased Premises under the Lease. Section 2. Leased Premises: The Leased Premises consists of the real property depicted on the Map attached hereto as Exhibit B and incorporated herein by reference. Section 3. Full Force of Lease: As of the date of this Certificate, the Lease is in full force, has not been terminated, and is enforceable in accordance with its terms. Section 4. Complete Agreement: The Lease constitutes the complete agreement between Landlord and Tenant for the Leased Premises, and no amendments to the Lease, either 01181.0024/239904.1 1 written or oral, currently exist. Section 5. Lease Term: The term of the Lease commenced on July 1, 2012, and ends on June 30, 2025, subject to an option to extend, as set forth in Section 13.02 of the Lease and termination provisions. Section 6. Rent: The minimum rent currently payable under the Lease is $7239.39 per year, subject to the adjustments set forth in Section 2.02 (Adjustment to Annual Minimum Rent), Section 2.03 (Calculation of New Minimum Rent) and Section 2.04 (Percentage Rent) of the Lease. Section 7. No Defaults: As of the date of this Certificate, there exist no defaults under the Lease by Tenant, and no event which with the passage of time or the giving of notice or both would constitute a default under the Lease by Tenant. Section 8. Notice by Landlord: From the date of this Certificate and until Assignee becomes Tenant under the Lease, Landlord agrees to notify Assignee immediately at the following addresses, on the occurrence of any default under the Lease by Tenant or on the occurrence of any event which with the passage of time or the giving of notice or both would constitute a default under the Lease by Tenant: Neal Maloney, Morro Bay Oyster Company, LLC, 3936 Rockview Place, San Luis Obispo, CA 93401, email: nhm6p.yaboo.com, and Dwight Maloney, 15 Dunnsmoor Court, Danville, CA 94526, email: dkmalo pacbell.net. Once Assignee becomes Tenant, then notice of the occurrence of any default under the Lease shall be made pursuant to the Lease. In WITNESS WHEREOF, Landlord has executed this Certificate as of the date first written above. LANDLORD: CITY OF MORRO BAY, a municipal corpor4*d By: Name:uckingham Its: City Manager 01181.0024/239904.1 2