Title
Authorize the City Manager to finalize and execute a Landlord Estoppel and Agreement between the City of Mesquite and Atrium TRS III, LP, for the benefit of Goldman Sachs Mortgage Company; Citi Real Estate Funding, Inc.; JPMorgan Chase Bank, National Association; and Citigroup Global Markets Realty Corp., regarding the Mesquite Convention Center lease agreements.
Body
Atrium TRS III, LP, owns the Hampton Inn & Suites Mesquite and operates and manages the City's Convention Center as "Tenant" under two controlling lease agreements, the Exhibition Hall Lease Agreement to operate the Exhibit Hall portion of the Convention Center and the Conference Center Lease Agreement to operate the lobby, ballrooms and meeting space portions of the Convention Center (collectively, the "Agreements").
Atrium TRS III, LP, is seeking one or more mortgage and mezzanine loans with Goldman Sachs Mortgage Company; Citi Real Estate Funding, Inc.; JPMorgan Chase Bank, National Association; and Citigroup Global Markets Realty Corp., (collectively, the "Lender") to assign collateral, and the Lender is requesting a Landlord Estoppel and Agreement with the City to certify among other things that the Tenant is not in a current state of default with the Agreements and that no rent payments are past due. The Landlord Estoppel and Agreement also gives the Lender flexibility to continue operating the Convention Center under existing terms and conditions if the Tenant were ever to declare bankruptcy. This instrument is designed to protect the Lender's interests in securing the loan(s) and also provides the City assurance that there would be no interruptions to Convention Center operations if that unlikely event were to occur.
Attorneys representing Atrium requested the Landlord Estoppel and Agreement on November 14, 2017, and are looking to execute their transactions as soon as possible.
Recommended/Desired Action
Staff recommends authorizing the City Manager to execute the Landlord Es...
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