Memorandum

City Attorney’s Office

City of Lawrence

TO:	David L. Corliss, City Manager
FROM:	Toni R. Wheeler, City Attorney
C:	Diane Stoddard and Cynthia Wagner, Assistant City Managers Ed Mullins, Finance Director
Date:	April 29, 2013
RE:	Request to Amend Ground Leases With Riverfront, LLC and Lawrence Lodging, LLC

Please place this item on the City Commission’s May 7, 2013, City Commission agenda for consideration. 

Riverfront L.L.C. and Lawrence Lodging, L.L.C. request approval of the attached Assignment Assumption and Modification of Ground Lease and Amended and Restated Ground Lease.  It provides that in the event Lawrence Lodging closes on a sale of its hotel to BC Lynd Hospitality, L.L.C. (BC Lynd Hospitality), Lawrence Lodging assigns its interest in the ground lease to BC Lynd Hospitality.  As assignee, BC Lynd Hospitality (or any subsequent tenant) will be obligated to assume and satisfy the obligation currently held by Riverfront L.L.C. to annually purchase from the City 138 parking permits for the hotel’s use. Under the City’s existing ground leases, the City bills Riverfront L.L.C. $2208 per month ($192 per space) for the 138 parking spaces for Spring Hill Suites. Annually, the City collects $26,496 for these reserved parking spaces. After the closing of the sale of the hotel, Riverfront, L.L.C. will be relieved of the obligation to pay for the hotel’s parking spaces, and BC Lynd Hospitality will have that obligation.    The amount of the parking payments remains the same and the City will not lose revenue as a result of this amendment.

Evan Ice, attorney for Riverfront, L.L.C., provides additional information regarding the parties’ request for the Assignment, Assumption and Modification agreement.   

Action Requested:  Authorize the Mayor to execute the Assignment, Assumption, and Modification of Ground Lease and Amended and Restated Ground Lease.