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HomeMy WebLinkAboutC-3067(I) - Jamboree, 3300 - Consent, Non-Disturbance and Attornment Agreement of Leasehold Interest 2022 - Fletcher Jones MotorcarsRecorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Miller, Canfield, Paddock and Stone, P.L.C. Attention: Shawn N. Hopper 150 W. Jefferson Avenue, Suite 2500 Detroit, Michigan 48226 With a conformed copy to: City of Newport Beach Attn: City Clerk 100 Civic Center Drive Newport Beach, CA 92660 111111111 111 111 111111111 *$ R 0 0 1 3 5 8 7 1 7 9$* 2022000093236 10:36 am 03/09/22 227 RW9A Al2 C34 12 0.00 0.00 0.00 0.00 33.00 0.00 0.000.0075.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE CONSENT, NON -DISTURBANCE AND ATTORNMENT AGREEMENT OF LEASEHOLD INTEREST This Consent, Non -Disturbance and Attornment Agreement of Leasehold Interest (this "Agreement") is made as of the day of Nt. , 2022, by and among COMERICA BANK, a Texas corporation ("Agent"), as the administrative agent for the Lenders (as hereinafter defined); the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("Lessor"); and FLETCHER JONES MOTOR CARS, INC., a California corporation ("Lessee"); with respect to the following facts: RECITALS A, Lessor and Lessee are the present landlord and tenant, respectively, under that certain Lease dated May 20, 1996 ("Lease"), a short form Memorandum of which Lease among said parties was recorded on July 19, 1996, as Instrument No. 19960369208 in the Official Records of Orange County, California, covering real property commonly known as 3300 Jamboree Road, Newport Beach, California 92660, and more particularly described in Exhibit "A" and depicted in Exhibit "B" attached hereto and incorporated herein by reference (hereinafter referred to as the "Premises"). B. Lessee acquired certain real property contiguous to the Premises, and pursuant to that certain Master Credit Agreement dated as of June 10, 2021 (as amended, restated or otherwise modified from time to time, (the "Credit Agreement"), by and among: (1) Lessee, (2) each of the other borrowers from time to time signatory thereto, (3) the Agent, and (4) the financial institutions from time to time signatory thereto (any and all such financial institutions, each individually and all of them collectively, the "Lenders"), the Agent and the Lenders have agreed to extend credit to the Lessee on the terms set forth in the Credit Agreement. Lessee's obligations under the Credit Agreement (including a term loan in a principal amount equal to $58,897,668.00 (the "Loan") are secured, in part, by a deed of trust encumbering Lessee's leasehold interest in the Premises and all improvements, fixtures, and other personal property to the extent provided in Section 9 of the Lease, together with Lessee's leasehold interest in any and all rents, issues, income, and profits derived from the Premises which deed of trust was recorded as Instrument No. 2021000386506. C. Agent and Lenders are willing to make the Loan if, and only if, in addition to all other terms and conditions set forth in the loan documents among Agent, Lenders, and Lessee concerning the making of the Loan, Lessee grants to Agent, as security for Lessee's performance under the Loan, a deed of trust encumbering the Lessee's leasehold interest in the Premises, and the Lessor (1) consents to the making of the Loan, including but not limited to, Lessee granting to Agent a deed of trust encumbering Lessee's leasehold interest in the Premises, in accordance with the loan documents among Agent, Lenders and Lessee and a Deed of Trust, Security Agreement and Fixture Filing (with Assignment of Rents and Leases) (the "Deed of Trust"), all dated June 10, 2021, and (2) agrees to non -disturbance and the other covenants, as hereinafter set forth, provided such covenants, or any of them, do not constitute modifications of the Lease. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Lessee hereby: A. Represents, warrants and agrees that the Lease is in full force and effect, and no event of default has occurred under the Lease, nor has any event occurred which, with the giving of notice or lapse of time, or both, would constitute an event of default under the Lease. B. Agrees that irrespective of any right to do so that may be expressed or implied in the Lease, Lessee will not surrender, terminate, cancel, or renounce Lessee's right, title or interest under the Lease, or cause or permit the demolition of the improvements on the Premises, without the prior written consent of Agent, which consent Agent may give or withhold in its sole and absolute opinion and judgment. C. Lessee hereby covenants and agrees with and for the benefit of Agent and Lenders, that without Agent's prior written consent, which consent Agent may withhold in its sole opinion and judgment, the Lessee will not execute modifications, amendments, changes, or alterations to the Lease. Notwithstanding any provision to the contrary herein contained, Agent's consent to any such modification, amendment, change, or alteration shall not be unreasonably withheld in the event the same shall not materially adversely affect Agent's or Lenders' rights hereunder. 2. Lessor hereby: A. Agrees that, to the best of Lessor's knowledge, the Lease is in full force and effect, and, no event of default has occurred under the Lease, nor has any event occurred which, with the giving of notice or lapse or time, or both, would constitute an event of default under the Lease. B. Consents to the Loan, including, but not limited to, the granting by Lessee of the Deed of Trust as an encumbrance on Lessee's leasehold interest in the Premises to the extent the Deed of Trust does not modify the Lease, the land use restrictions applicable to the Premises or other restrictions on the Premises. Lessor is providing this Consent, Non -Disturbance and Attornment Agreement of Leasehold Interest based upon the understanding that the Loan shall be fully subordinate to Lessor's title in and to the Premises and all of Lessor's rights set forth 2 in the Lease. Lessor shall provide notice to Agent of any default under the Lease, and Agent shall have the right, but not the obligation, to cure such breaches or defaults. C. Lessor agrees to provide written notice to Agent of any modification, amendment, change, or alteration to the Lease. 3. It is further hereby declared, understood and agreed as follows: A. That Lessor will not declare a termination or forfeiture of the Lease, without first providing written notice to Lessee and Agent of default or other grounds upon which Lessor could terminate the Lease or declare a forfeiture, the notice to be given as set forth in subparagraph 5.B below, Agent: (1) Within thirty (30) days after Lessor's written notice, cures any breach or default by Lessee of any covenant to pay rent or other sum of money expressly provided for in the Lease (hereinafter referred to as a "Monetary Default"), and (2) Within forty-five (45) days after Lessor's written notice, with respect to any other breach or default by Lessee other than a Monetary Default (hereinafter such other default is referred to as a "Nonmonetary Default"): (i) commences a judicial or nonjudicial foreclosure under the Deed of Trust and diligently pursues such foreclosure to completion, and (ii) cures any and all Nonmonetary Defaults then existing within said forty-five (45) day period, or, Agent diligently pursues such cure to completion but in no case, no longer than ninety (90) days. For purposes of this Agreement, a "Nonmonetary Default" which can be cured by Agent shall not be deemed to include the commencement of any case by or against Lessee under the U.S. Bankruptcy Code, the appointment of a receiver or other custodian to take possession of the Premises (whether by Agent or any other holder of a lien or security interest in Lessee's interest under the Lease or improvements upon the Premises), or abandonment or other breach or default of the Lease which is not reasonably capable of being cured by Agent; provided, however, that Lessor may, notwithstanding the foregoing provisions to the contrary, elect to terminate the Lease based upon such default and may elect to enter into a new lease with Agent. B. That if, as and when Agent shall acquire Lessee's interest in the Lease, as a result of a sale under said Deed of Trust, whether pursuant to judgment of foreclosure or trustee's sale, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action or proceeding, and provided Agent shall have cured all Monetary Defaults, and cured all Nonmonetary Defaults within said forty-five (45) day period, Lessor will recognize Agent as the tenant under the Lease as though Agent were a signatory to said Lease as such tenant and will not in any way deem such sale or transfer of Lessee's interest to Agent to be a violation, breach or default of said Lease. C. Any transfer of the Lease to a third -party purchaser (i) at foreclosure, or (ii) following Agent taking title, shall be subject to Lessor's prior written consent and all other applicable assignment terms and conditions set forth in the Lease. Upon subsequent conveyance, sale or transfer of the Agent's leasehold interest in the Premises, pursuant to and in accordance with the Lease, Agent shall be relieved and discharged of any further obligations or responsibilities under the Lease, which accrue or otherwise occur after said transfer. 3 D. That if, by reason of any default or delinquency of Lessee, or otherwise as a result or consequence of the insolvency or bankruptcy of Lessee, or any of its successors or assigns, or any proceedings relating thereto, the Lease shall be terminated by Lessor or by a trustee (as defined in the Bankruptcy Code) prior to the stated expiration thereof, Lessor may upon request of Agent, made at any time within thirty (30) days after such termination of the Lease, enter into a new Lease with Agent to the extent permitted by state law for the remainder of the term of the Lease, or any extension thereof, effective as of the date of such termination, provided that Agent agrees to cure any then existing Monetary Default within said thirty (30) day period, and, within forty-five (45) days after such termination, to cure any and all Nonmonetary Defaults. E. That if Agent shall become a tenant under paragraph 3.D, above, and all subleases which had been assigned to Lessor shall be assigned to Agent. F. That the agreements and covenants provided for herein, and each of them, are made with agreement that Agent, in making disbursements under the Loan, is under no obligation or duty to, nor has Agent represented that it will, see to the application of such loan proceeds by the person or persons to whom Agent disburses such Loan proceeds, and any application or use of such proceeds for purposes other than those provided for in such loan documents shall not defeat the agreements or covenants herein made, or any of them, in whole or in part. G. That the Loan being made by Agent to Lessee is being made in reliance upon all of the agreements and covenants of Lessor and Lessee contained in this Agreement. H. That all hazard insurance policies on the property carried by Lessee shall name Agent as a loss payee, and Agent shall be named as an additional insured under Lessee's comprehensive general liability policy or policies, and that all insurance proceeds and condemnation proceeds, payable to Lessee under the lease shall be payable to Agent, subject to the Lessor's rights to same under the Lease. 4. Agent agrees that upon Agent becoming a tenant under the Lease or under any new lease, as hereinabove described, to attorn to and recognize Lessor as its landlord in regard to the Premises, subject to the provisions of paragraph 3.0 above. 5. Miscellaneous: A. This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. B. Except as otherwise provided by law, all notices, requests, demands, directions and other communications provided for hereunder must be in writing and must be mailed or delivered by nationally recognized overnight courier to the appropriate party at its respective address set forth below or, as to any party, at any other address as may be designated by it in a written notice sent to the other parties in accordance with this subparagraph. If any notice is given by mail it will be effective five (5) calendar days after being deposited in the mails, certified return receipt requested; if given by overnight courier; or if given by personal delivery, when delivered. 4 Such notices will be given to the following: To Agent: COMERICA BANK Comerica Bank Center Attn: Corporate Finance — MC 3289 411 W. Lafayette St. Detroit, Michigan 48226 With copy to: To Lessor: To Lessee: MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. 150 West Jefferson, Suite 2500 Detroit, Michigan 48226 Attention: Shawn N. Hopper CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 Attention: City Manager FLETCHER JONES MOTOR CARS, INC. 7300 West Sahara Las Vegas, Nevada 89117 Attn: Shawn Dettrey with copies to: UNDERWOOD & ROBERTS, PLLC 3110 Edwards Mill Road Suite 100 Raleigh, NC 27612 Attn: Jeffrey G. Roberts, Esq. C. This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or canceled, except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought. D. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any action brought to enforce the terms of this Agreement shall be brought in the State of California, County of Orange. [SIGNATURES ON FOLLOWING PAGE] 5 IN WITNESS WHEREOF, Agent hereby has duly executed this Agreement as of the day and year first above written. STATE OF T • COUNTY OF TA t7 T dei;t4 AGENT: COMERICA BANK By: L/Lite7-& Name: 1ici6hc ,Iflj,1,41 • Its: Ike rei/(Mlr ACKNOWLEDGMENT ) SS. The foregoing instrument was cknowledg d before me this '...-1` day of ci , 202g by -ef i <'rff- , , he of COMERICA BANK, a Texas banking association, on behalf of the association. NotrPibIic, State of A4)f-il My Commission Expires: DERRICK J. ACKLIN NOTARY PUBLIC SOUTH CAROLINA MY COMMISSION EXPIRES 09-21-31 6 IN WITNESS WHEREOF, the parties hereby have duly executed this Agreement as of the day and year first above written. Approved As To Form: By: / Name: Aaron C. Harp Its: City Attorney Attest: By: Name: Leilani I. Brown Its: City Clerk "LESSOR" CITY OF NEWPORT BEACH By: Name: ' ce K. Leung Its: ity Manager "LESSEE" FLETCHER JONES MOTOR CARS, INC. Signed in Counterpart By: Name: Fletcher Jones, III Its: Secretary 7 IN WITNESS WHEREOF, the parties hereby have duly executed this Agreement as of the day and year first above written. Approved As To Form: By: •cam._ _C Name: Aaron C. Harp Its: City Attorney Attest: By: Name: Leilani I. Brown Its: City Clerk "LESSOR" CITY OF NEWPORT BEACH By: Name: Grace K. Leung Its: City Manager "LESSEE" FLETCHER JONES MOTOR CARS, INC. By: Name: Fletcher Jones, III Its: Secretary 7 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of -f- County of 0�x.°` } ss. On -:.'.n , 20 before me, Notary Public, personally appeared F a�t who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature LESUE BOEDDEKER of No. 96-1579-1 Exp. 1, 2024 (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On , 20 before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 8 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On °� , 20 before m l Notary Public, personally appeared t . L , who proved to me on the basis of satisfactory evidence to be the persons) whose name(s), is/are subscribed to the within instrument and acknowledged to me that helshe/they executed the same in his/her/their authorized capacity ' ), and that by er/their signatures(s4 on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITS my hand and official seal. Signatu JENNIFER ANN MULVEY Notary Public • California z Orange County Commission 4 2375299 My Comm. Expires Oct 12, 2025 (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On , 20 before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) 8 EXHIBIT "A" LEGAL DESCRIPTION • Land situated in the City of Newport Beach, County of Orange, State of California is described as follows: PARCEL C: That portion of Block 51 of Irvine's Subdivision, in the City of Newport Beach, County of Orange, State of California, as shown on a Map thereof recorded in Book 1, Page 88 of Miscellaneous Record Maps, in the Office of the County Recorder of said county, described as follows: That portion of Parcel 10094 granted to the San Joaquin Hills Transportation Corridor Agency by a deed recorded September 3, 1993 as Instrument No. 93-0598813 Official Records of said Orange County, lying Northerly of the following described line: Beginning at a point in Course No. 6, in the Southeasterly line of said Parcel 10094, described as "South 13 degrees 03 minutes 02 seconds West, 163.41 feet" in said deed, for the purpose of the description, the bearing will be South 13 degrees 05 minutes 41 seconds West, said point being South 13 degrees 05 minutes 41 seconds West, 15.84 feet from the Northeasterly terminus thereof; said point also being the Northeasterly terminus of a course in the Northwesterly line of Parcel No. 300092 granted to the San Joaquin Hills Transportation Corridor Agency by a deed recorded July 1, 1994 as Instrument No. 94-0436936 of said Official Records, said course described as "North 13 degrees 03 minutes 02 seconds East, 147.57 feet" in said deed; thence departing from said Course No. 6, North 68 degrees 28 minutes 13 seconds West 121.20 feet; thence North 14 degrees 22 minutes 47 seconds West 28.85 feet; thence North 73 degrees 59 minutes 06 seconds West 15.00 feet to the Northwesterly line of said Parcel 10094. Unless otherwise noted, all bearings and distances in this description are grid based on California Coordinate System (NAD 83), Zone 6, 1988 Orange County Adjustment. To obtain ground distances, divide the grid distance shown herein by 0.9999431 Tax ID Number; 442-071-20 (Parcels A and B) and 442-071-23 (Parcel C) EXHIBIT "A" — PAGE 1 0 EXHIBIT "B" PREMISES DEPICTION 10 Feet i Every reasrabk eon has tee- matte to assure the a ::racy of the Oata prov ,:÷_. however. The : ry cs Newport Beath and ..s e-+pkyees and agents dsUxm thy and a=' respor % b'ty rcm to ^elaunp tc any results xaa . . n is se EXHIBIT "B" - PAGE 1