Broward County Commission Regular Meeting


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AI-27066 73.       
Meeting Date: 06/12/2018  
Director's Name: Mark Gale
Department: Aviation Division: Administration

Information
Requested Action

MOTION TO DISAPPROVE Leasehold Mortgage between Village Shoppes Associates, LTD. and Valley National Bank, pursuant to the requirements of the Agreement of Lease, as amended, between Broward County and Village Shoppes Associates, LTD., authorizing the County Administrator to provide timely notice of same; and further delegating authority to the County Administrator to consider, approve or disapprove, and provide timely notice, after consultation with the Office of the County Attorney, of any and all future requests for consent, for the balance of the lease term, regarding sales, conveyances, transfers, mortgages, pledges, assignments, or subleases of the lease.

(Transferred to the Consent Agenda.)

ACTION:  (T-10:24 AM)  Approved.
 
VOTE: 7-0.  Commissioners LaMarca and Ryan were not present.

Why Action is Necessary
The Agreement of Lease, as amended, requires that the Broward County Board of County Commissioners ("Board") consent to or disapprove any leasehold mortgage within 30 days of a request from tenant.
What Action Accomplishes
Allows County to comply with the terms of the Lease and delegates authority for the balance of the lease term to County Administrator.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.

On May 15, 1984 (Item No. 64), the Board approved an Agreement of Lease between Broward County and H.A.U.L. Associates, a General Partnership organized under the laws of Florida, for approximately 9.47 acres of land on the northwest corner of North Perry Airport ("HWO") for the purpose of operating a shopping center. The Agreement of Lease is for a 50 year term, commencing 30 days after the City of Pembroke Pines issued a building permit and terminating on March 11, 2036.

On December 17, 1985 (Item No. 1), the Board approved the Assignment of Agreement of Lease from H.A.U.L. Associates to Village Shoppes.

On March 10, 1987 (Item No. 4), the Board approved an Agreement consenting to a leasehold mortgage in favor of Great-West Life Assurance Company in the amount of $7,000,000.

On October 3, 1995 (Item No. 1), the Board approved the First Amendment to the Agreement of Lease reducing the parcel from approximately 9.47 acres to 9.26 acres and adjusting the rent accordingly.

On September 25, 2001 (Item No. 2), the Board approved a Consent and Approval Agreement consenting to the refinancing of the March 10, 1987 leasehold mortgage in favor of Prudential Mortgage Capital Company in the amount of $5,800,000.

On April 17, 2012 (Item No. 2), the Board approved a Consent Agreement consenting to a leasehold mortgage in favor of Total Bank in the amount of $4,850,000.

Pursuant to Section 17 in the Agreement of Lease, Village Shoppes must receive the prior written consent of the County to secure a leasehold mortgage. The lease provides that if the County shall not have disapproved the consent within 30 days of the request, then it is deemed approved.

By letter dated May 15, 2018, Village Shoppes submitted a request that the County enter into a Consent Agreement for Leasehold Mortgage in the amount of $4,400,000 among the County, Village Shoppes Associates, LTD., and Valley National Bank. Village Shoppes Associates, LTD has an existing loan with Total Bank, to which the County previously consented. Village Shoppes Associates, LTD proposes to assign the Total Bank loan and related documents to Valley National Bank.

Staff has requested additional information be provided in order to analyze the request. The requested information has not been provided. Therefore, staff has had insufficient time and information to review the request and recommends the consent be disapproved.

The Agreement of Lease requires that the County consent to or disprove any request for consent of sales, conveyances, transfers, mortgages, pledges assignments or subleases. This delegation is essential as the Lease provides that the failure of the County (currently, through the Board) to consent or deny consent within any 30 day period shall be deemed County consent to the tenant’s action. Following receipt of the requested information, the County Administrator may, after consultation with the Office of the County Attorney, move forward with the consent. 
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199

Fiscal Impact
Fiscal Impact/Cost Summary:
This Board action to disapprove the Leasehold Mortgage does not have a fiscal impact.
Attachments
No file(s) attached.


    

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