SR-07-20-1967- 900-003-10CITY OF SANTA MONICA 67 -C -43
DATE: July 20, 1967
TO: The Honorable City Council
FROM: City Manager
SUBJECT: Modification of Lease Between the City and Royal
Inns of America
In order to finalize financing requirements for the construction of the hotel
improvements on the parcel leased by the City to Royal Inns of America, it
will be necessary to amend or modify the subject lease to satisfy the require-
ments of Glendale Federal Savings and Loan as follows:
a) To limit the term of the lease to a period not to exceed fifty
fifty (50) years.
b) To limit the right of the City and Royal Inns of America
to cancel the lease by mutual consent and to require the
approval of the Holder for such a cancellation or term-
ination.
c) To clarify the rights and obligations of the City and the
Holder in the event of a breach or default under the
Agreement.
d) To provide for a loss payable clause on any policy of fire
insurance procured pursuant to Section 3. 16 of the Agreement
and to provide for payment of such proceeds to the Holder
under certain circumstances.
e) To provide for the payment of monies reserved as compen-
sation for condemnation of the Lease Parcel to the Holder
in discharge of secured indebtness.
f) Provides for the consent of the City for the assignment of
this Agreement to Glendale Federal Savings and Loan as
security for financing.
To: The Honorable City Council
July 20, 1967
page 2
It is the opinion of the Administration and the City Attorney's office that the
foregoing modifications do not materially change the substance or the desir-
ability of the Lease and it is recommended that they be approved by the City
Council. It is also recommended that the City Council approve the "Consent
to Assignment" to Glendale Federal Savings and Loan in order that construction
can proceed in the immediate future.
It is the intention of Royal Inns of America to commence construction on the
date of recordation of the loan.
aox�,_ da-l—e-
PERRY tfCOTT
City Manager
PS /js
cc: City Clerk
City Attorney
Director of Finance