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RESOLUTION NO
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH INCREASING THE AUTHORIZATION
OF THE AMOUNT BY WHICH THE BALBOA BAY CLUB
LEASEHOLD ESTATE MAY BE ENCUMBERED AND APPROVING
ASSIGNMENT OF AN INTEREST IN THE BALBOA BAY
CLUB LEASEHOLD ESTATE BY SALE TO TERRACE
APARTMENTS, LIMITED PARTNERSHIP, A MISSOURI
LIMITED PARTNERSHIP, OPPENHEIMER INDUSTRIES,
INC., A MISSOURI CORPORATION, AS GENERAL PARTNER,
AND BY LEASEBACK TO INTERNATIONAL BAY CLUBS,
INCORPORATED
WHEREAS, the City of Newport Beach has entered into
a lease dated March 24, 1948, with the predecessors in interest
to International Bay Clubs, Incorporated, a California corpora-
tion, which lease has since been amended by instruments dated
April 10, 1950, September 29, 1952 and March 28, 1960, covering
the premises in the City of Newport Beach more particularly
described in said lease, as amended, which is referred to in
the consent to assignment authorized hereby as the "Main Lease ";
and
WHEREAS, one of the provisions of the said lease
provides that the lease may not be assigned without the consent
of the City of Newport Beach; and
WHEREAS, the City of Newport Beach has heretofore by
Resolution No. 7568 on December 13, 1971, authorized certain
assignments of portions of the leasehold estate by deeds of trust
and /or by sale leaseback of its leasehold estate and leasehold
improvements thereon in an amount not to exceed Thirteen Million
Two Hundred Thousand Dollars ($13,200,000); and
WHEREAS, International Bay Clubs, Incorporated, successor
in interest to Balboa Bay Club, Inc. proposes to sell to Terrace
Apartments, Limited Partnership, a Missouri Limited Partnership
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Oppenheimer Industries, Inc., a Missouri Corporation, as General
Partner, the Terrace Apartments portion of the leasehold estate
created by the Main Lease, as more particularly described in
that certain Real Estate and Personal Property Sales Contract
• to be given by International Bay Clubs, Incorporated, a California
corporation, as Grantor, in favor of Terrace Apartments Limited
Partnership, a Missouri Limited Partnership, and its successors
and assigns for a sale price in the principal sum of Ten Million
Dollars ($10,000,000), said sum inclusive of all underlying debt
and encumbrances and the right of seller to further refinance
such encumbrances so long as the aggregate underlying debt does
not exceed Seven Million Five Hundred Thousand Dollars ($7,500,000)
and a leaseback to be given by the Terrace Apartments Limited
Partnership to International Bay Clubs, Incorporated; and
WHEREAS, said proposed sale and leaseback will require
additional authorization for encumbering the leasehold estate;
and
WHEREAS, it appears to be in the best interests of the
citizens of the City of Newport Beach that the City consent to
such assignments described above;
NOW, THEREFORE, BE IT RESOLVED, that the City Council
of the City of Newport Beach hereby consents to the above - described
assignments by Real Estate and Personal Property Sales Contract
and Leaseback, increasing the aggregate net financing authority
from Thirteen Million Two Hundred Thousand Dollars ($13,200,000)
to Fourteen Million Six Hundred Thousand Dollars ($14,600,000),
subject to all of the terms and conditions set forth in the Consent
to Assignment in the form described above or as modified, subject
. to the approval of the City Attorney and the City Auditor, and
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hereby authorizes the Mayor and City Clerk to execute said
consent to assignments on behalf of the City.
ADOPTED this 26th day of October 1976.
or
ATTEST:
r
City Clerk
CERTIFIED S THE ORIGINAL
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CITY CLERK OF THE CITY OF N \ ORT BEACH
OCT 2 6 1976
DATE:
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DDO /bc
10/27/76