SR-07-11-1978-6FCA RLK:SS:lcb -128
Council Mtg: 'i 11 -78
Santa Monica, California AL 1 1 9978
June 30, 1978
TO: Mayor and City Council
FROM: City Attorney
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SUBJECT: Resolution Consenting to the Transfer of the
Leasehold Estate for the Royal Inn of Santa
Monica from the Royal Inns of America, Inc.,
to a Group Headed by Carolyn Artis
Introduction
This report transmits the attached resolution
for introduction and first reading.
Background
The present tenant of the property on which the
Royal Inn of Santa Monica is located, the Royal Inn of
Santa Monica, assignee of the Royal Inn of America, has
filed for protection under Chapter X of the Bankruptcy Act.
As part of the reorganization plan Royal Inn has agreed to
sell its leasehold interest to a group headed by Carolyn
Artis.for• the sum of $6,351,250. Mrs. Artis is willing to
assume the present lease and be bound by its provisions.
Section 5.09(b) of the Lease requires the written consent
of the City for any assignment of the leasehold interest.
The proposed resolution would implement such
consent.
11 mr,
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CA 78 -128
Alternative Solutions
Not applicable.
Recommendation
It is respectfully recommended that the City Council
introduce the attached resolution for first reading.
Prepared by: Richard. L. Knickerbocker, City Attorney
Stephen Stark, Assistant City Attorney
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