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Home My WebLink About10/10/1978 Item #H-2ePy $ira Q;_ Ewe CITY OF NEWPORT BEACH Office of CITY ATTORNEY Ll October 16, 1978 To: The Honorable Mayor and Members of City Council H -2(e From: City Attorney Subject: Consent to Balboa Bay Club Sublease The lease between the City and the Balboa Bay Club requires the consent of the City before any part of the Club facilities can be subleased for a term in excess of one year. The Balboa Bay Club has requested that the City consent to a new sublease in the existing jewelry shop located in the lobby of the main clubhouse. The new sublessee is Brett -Walker Newport. I am advised by the Bay Club that there will be no change in the operation of the jewelry shop but merely a change of operator. DDO/kb September 25, 1978 City of Newport Beach City Hall Newport Beach, California Gentlemen: SEP?,:) 1978 By the CITY COUN-11 Tt^ as " '1� 3 The Balboa Bay Club has, for a period of years, granted subleases of space on its premises for the operation of a ladies` beauty salon. The current sublease expires on September 30, 1978. The lease between the Balboa Bay Club and the City of Newport Beach, dated March 24, 1948, requires that the Club obtain the written consent of the City prior to subletting any portion of the premises for the purpose of operating and conducting a business enterprise for a period in excess of one year. Pursuant to the provisions of the lease, we are requesting approval of a new sublease of the same premises with a new subtenant. The new sublease contains the following provisions: 1. Sublessee: Seligman & Latz of Newport Beach, Inc. 2. Term of lease: Two years. Automatically renews for additional five years unless either party elects to terminate. Seligman & Latz is a national firm which specializes in the operation of beauty salons. Your consideration of this request is appreciated. Very truly yours, E. S. Hightower President ESTI/cl 'X, �A October 4, X978 Mayor and City Council City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California Gentlemen: #- '� (.E,) Pursuant to the lease between the Balboa Bay Club and the City of Newport Beach, dated March 28, 1948, we are requesting your approval of a new sublease in the existing jewelry shop located in the lobby of our main clubhouse. The new lessee is Eagle American, a California corporation, dba Brett -Walker Newport, and is the same company which currently operates the Brett -Walker Jewelry Store in Fashion Island. The term of the lease is for five years. The date is October 15, 1978. Your consideration of this request is appreciated. Very truly you s, r, E. S. Hightower President ESH/cl C1td �. 4 )V8 �IiY (3F Rflhf�7,Ri' Btu 1221 West Coast Highway, Newport Beach, California 92663 (714) 645-5000 CITY OF NEWPORT BEACH CALIFORNIA masse aty twt 3300 NewpW Blvd. (714)W3-2no September 15, 1975 J, l Mr. The as J. O'Keefe Attorn y at Law 2323 . Broadway, Suite 400 _ -• San/ an Ana, California 92706 Dear I4r. O'Keefe: Enclosed please find a copy of a Notice of Default and Election to Sell Under Deed of Trust relating to the Balboa Bay Club which we discussed briefly last.week. I would appreciate your comments in regards to the significance of this document. DDO:y2 Enc. cc: C• y Clerk Very truly yours, DENNIS D. O'NEIL City Attorney LAW OFFICES UKEEFE, REGHT, 5CHWARZ5TEIN & HOWALD INCORPORATED THOMAS J.O'KEEFE ORVILLE F. RECHT - RICHARD J. SCHWARZSTEIN WALTER G. HOWALO HENRY J. COOPERSMITH Mr. Dennis O'Neil, City, City of Newport Beach 3300 Newport Boulevard Newport Beach, Calfornia Dear Dennis: Attorney SUITE 400 2323 NORTH BROADWAY P.O.SOX 6099 SANTA ANA, CALIFORNIA 92706 TELEPHONE [714] 035-1100 October 6, 1975 This letter will serve as a simplified explanation of the circumstances leading up to the filing of a Notice of Default by Independence Mortgage Trust, formerly known as USF Investors, a real estate investment trust. As you may recall, pursuant to appropriate requests for permission from the City Council, the Bay Club entered into a series of financing transactions with U. S. Financial in San Diego. Those financing transactions were made in connection with the ori- ginal change of ownership of the Club, the improvement of the Club- house and poolside building facilities and the proposed facilities at Catalina Island. After the original loan commitments were made and the work on the various projects described above was commenced, U. S. Financial developed internal problems, first with its auditors and then with the Securities and Exchange Commission, resulting in quick succession in the suspension of trading of its stock on the New York Stock Exchange, the removal of its officers, its inability to meet its funding commitments to the Bay Club and others and, finally, in the total collapse of the U. S. Financial structure and its filing under Chapter XI of the Federal Bankruptcy Act. One of the loans made by U. S. Financial prior to the time it ran out of funds and was unable to further complete its commitments, was rewritten by it with USF Investors, a real estate investment trust which it managed. The representatives of U. S. Financial have been negotiating for some time with the officers of the Club in connection with the rights and obligations of the parties involving those loans which were made and funded by U. S. Financial and those commitments and partially funded loans on which U. S. Financial has defaulted, and in connection with the fees and charges paid to U. S. Financial and its related and controlled entities, both on those loans which were funded by it and on those on which it failed to provide the funding. The parties have been close to reaching a settlement but recently Mr. Dennis O'Neil, City Attorney October 6, 1975 Page 2 ft the Chapter XI proceeding was changed to a Chapter X proceeding and this will, in all likelihood, result in a complete change of the parties involved. Meanwhile, USF Investors, now known as Independence Mortgage Trust, has filed the Notice of Default to which you have referred in an attempt to further accelerate the negotiations and improve their negotiating position. We have asked that the Notice of Default be rescinded and have substantial reason to believe that it may be. But, if it is not, we will proceed with litigation to restrain any further proceedings in connection with the Notice of Default and to resolve the many matters in dispute be- tween the Club and U. S. Financial and its various related and con- trolled entities. Please let me know if I can furnish you with any further information. Very truly yours, Thomas J. O'Keefe TOK:jj cc: International Bay Clubs, Incorporated nC4— RM U fl GDo ADVISOR independence Mort gage -Crud November 26, 1975 1 G Mr. Condee Corbin Title Insurance and Trust 800 North Main Street Santa Ana, California 92702 Re: Balboa Bay Club, Inc., IMT Loan #283 T. S. #220-75 Dear Condee: To confirm our telephone conversation of taday, we have reached an agreement with the Trustor, Balboa Bay Club, Inc.. and request that you prepare a recission of the notice of default. Please forward the recission to: Independence Mortgage Trust C/O Provident Realty, Inc. P. 0. Box 12098 San Diego, California 92112 Attention: E. Magee Yours very truly, PROVIDENT REALTY, INC. Edward R. Magee Vice President ERM: j r cc: William Ray Thomas Brennan Thomas O'Keefe James Del Guercio REC�tV '� DEC 1 i Mallln9 addross: Pont Office Box 12o98 - Son Diego, California 92112 • Tolophone: (714) 238-1781 ifm naw. of Intlru m+!hmtn MUlhl-do Trust m Ibn doslpnaonn of 0m Trtmtnnc for Ino bum boino under n Doclnmtlon of Trost 0-11,11 Mny In. 1471, ns -... d and ..-urlud; sot ud palm+- h-nlinu w4th InOuprndnnrn llondnq. Tru" must tool, -Moly, In In. Doll piop-r 1, for Mn uWorpnnnmi of nuy cblima no,i.,m Iwopendunve Mortonoo lwst ns rn lhnr Int, T,.,( nf. ofllcen.. 000rds. or shawtinlJos assumo any paimial bnudlly for obnonLona anlelad Into on WWI of Indupoodanco Morlonga Trust. LAW OFFICES 0fK1 EFE, RECtIT, SCMii, %RZSTEINX & 190WALD INCORPORATED THOMAS J. O'KEEFE ORVILLE F. RECHT RICHARD J. SCHWAR2STEIN WALTER G. HOWALO HENRY J. COOPERSMITH Mr. Dennis O'Neil City Attorney City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 Dear Dennis: SHITE 400 ._.2323 NORTH BROADWAY %P.:O.BO% 6099 SANTA ANA, CALI FOR NIA 92706 TELEPHONE [714] 835-1100 December 1, 1975 I have enclosed a copy of a letter which I just re- ceived from Provident Realty, Inc. evidencing their agreement to rescind the Notice of Default filed against the Balboa Bay Club property. I will furnish you with a copy of the formal Rescission of Notice when it is prepared and recorded. Very truly yours, Thomas J. O'Keefe TOS{: jj Enc. cc: Mr. W. D. Ray LAW OFFICES OF THOMAS J. HEM, May 16, 1978 0 Dennis D. O'Neil City Attorney✓�✓� `� City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Dennis: Thank you for your letter of May 11, 1978! The reason you have not received the recording information on the assignment document is that, according to my understanding, the Title com- pany failed to record it. I am checking into that, but I understand there has been a change in personnel at First American Title Company and I need to determine who is handling the matter now in the absence of Mr. Sucker. I will keep you informed in this regard. Very truly yours, THOMAS J. O'KEEFE TOK:mlt CC: Mr. W. D. Ray City Clerk, City of Newport Beach SUITE 400 THOMAS J. O'KEEFE 2323 NORTH BROADWAY POST OFFICE BOX 6099 JOHN R.CURTIN RICHARD E. KING, JR. SANTA ANA, CALIFORNIA 92706 HOWARD M. LARSEN TELEPHONE (714) 938.1100 THOMAS G. STYSKAL May 16, 1978 0 Dennis D. O'Neil City Attorney✓�✓� `� City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Dennis: Thank you for your letter of May 11, 1978! The reason you have not received the recording information on the assignment document is that, according to my understanding, the Title com- pany failed to record it. I am checking into that, but I understand there has been a change in personnel at First American Title Company and I need to determine who is handling the matter now in the absence of Mr. Sucker. I will keep you informed in this regard. Very truly yours, THOMAS J. O'KEEFE TOK:mlt CC: Mr. W. D. Ray City Clerk, City of Newport Beach