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HomeMy Public PortalAbout1986_12_10_O059eesl~urg in ~lffrginia ORDINANCE NO. 86-0-59 PRESENTED December 10.,-1986 AMENDED December 10,. 1986 ADOPTED December 10, 1986 AN ORDINANCE: AUTHORIZING A GROUND LEASE MODIFICATION AGREEMENT TO AMEND THE LEASE AND DEVELOPMENT AGREEMENT WITH MARKET SQUARE ASSOCIATES, INC. WHEREAS, Council Ordinance 83-0-30 authorized a Deed of Lease and Develop- ment Agreement between the Town of Leesburg and Market Square Associates, Inc., dated October 13, 1983; and WHEREAS, Council Ordinance 83-0-30 dated March 12, 1986, authorized an amendment to the Deed of Lease and Development Agreement to delete references to the bilateral authority of the Town and Market Square Associates, Inc. to termi- nate the Agreement if more than 25% of the net leasable floor area of the improve- ments on the premises were rendered untenantable; and WHEREAS, Market Square Associates, Inc. has completed construction of a re- tail commercial and office facility in accordance with said agreement; and WHEREAS, permanent financing for the facilities is jeopardized by certain provisions of the Lease and Development Agreement, as amended; and WHEREAS, Hazel, Beckhorn and Hanes, special counsel for the Town of Leesburg has negotiated with the lender's legal counsel and now recommends a Ground Lease Modification Agreement which the Council has concluded is in the public interest: THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The manager is authorized and directed to execute the Ground Lease Modification Agreement as transmitted to Council on December 5, 1986, subject to amendments to exclude the option to purchase from any new lease granted pursuant to Section 2(d) of the Ground Lease Modification Agreement. -2- AUTHORIZING A GROUND LEASE MODIFICATION AGREEMENT SECTION II. The Ground Lease Modification Agreement shall not impair or alter any other provision of the Lease and Development Agreement between the Town of Leesburg and Market Square Associates, Inc. dated October 13, 1983, and as amended March 12, 1986, and all ordinances and resolutions in conflict here- wi~h are hereby repealed. SECTION III. This ordinance shall be effective upon submission by Market Square Associates, Inc. of a certified copy of a resolution by the Board of Di- rectors of Market Square Associates, Inc. authorizing and designating such offi- cer or officers empowered to execute the Ground Lease Modification Agreement. PASSED this 10th day of August ATTE ST: Clerk of '~u~cil , 1986. Robert E. Sev~.la, Mayor Town of Leesburg