Title
Recommendation to Approve a Consent to Amend the Lease and Leasehold Deed of Trust with Safe Harbor Marina Ballena Isle at Ballena Marina to Change the Credit Facility. (Community Development 216)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Approve a Consent to Amend the Lease and Leasehold Deed of Trust with Safe Harbor Marina Ballena Isle at Ballena Marina to Change the Credit Facility
BACKGROUND
The City entered into a lease agreement with Ballena Isle Marina (BIM), LP, in 1979, for 27 acres of submerged land and 27 acres of dry land, located at 1150 Ballena Boulevard. The lease term was for 25 years with an option, exercised in January 1988, to renew for an additional 25 years. Under the current lease, which expires December 31, 2028 (which includes the remaining time on the original term), the annual rent is $40,400 for the entire property, increasing to $55,000 in the last year. In March 2010, the City approved a Consent to Assignment of Lease between BIM and CLP Ballena Marina, LLC. In July 2015, SHM Ballena Isle, LLC (SHM) proposed acquisition of Ballena Isle Marina from CLP Ballena Marina, LLC. In November 2015, the City approved an assignment to SHM Ballena Isle, LLC.
DISCUSSION
SHM is requesting consent to amend the existing leasehold deed of trust to reflect the change of the agent for the credit facility (i.e. a type of loan) from Regions Bank to Citizen's Bank and an increase in the amount of the credit facility. The increase in the facility was in connection with Safe Harbor Marina's acquisition of a portfolio of marinas.
While the amount of the facility has increased, the loan to value ratio, which is the amount of indebtedness compared to the value of the asset, has not changed. The form of consent is based on the same form executed in 2015, with modifications to delete the estoppel and consent to assignment, which are no longer applicable for this amendment.
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