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TO: Mayor and City Council
FROM: Steve Andras
Airport Manager
DATE: April 21, 2022
SUBJECT:
Consenting to the refinancing mortgages held by Suburban Properties, LLC (Suburban) on its facilities at the Aurora Municipal Airport.
PURPOSE:
To allow the City to consent to Suburban's proposed refinancing of its leasehold mortgages with another lender.
BACKGROUND:
In 2007, the City entered into a lease with Suburban to allow it to occupy space at the airport. This lease was recently revised and extended in 2021. Suburban operates as a hangar rental business at the Airport. Suburban has previously mortgaged its leasehold, and it desires to refinance its current mortgages to more favorable financing terms.
DISCUSSION:
The City's lease with Suburban allows it to mortgage its leasehold, which is common for tenants at the airport. Though the City may not unreasonably withhold its consent to these mortgages, its consent should not be granted without careful review and consideration of the terms of the mortgages to ensure that the City's rights under the lease are not adversely affected. Outside counsel for the City from Klein, Thorpe & Jenkins, LTD has prepared the attached agreement with Suburban and has determined that the City's rights under the lease are not adversely affected by the proposed mortgages. The Finance Department is also currently reviewing the underlying mortgage documents, to further support this position.
IMPACT STATEMENT:
Approval of this resolution will allow Suburban to refinance its current leasehold mortgages to a more favorable monthly payment, and will allow Suburban to continue its business operations at the Airport.
RECOMMENDATIONS:
That the Committee review the consent agreement and recommend approval of the resolution to the Committee of the Whole and City Council.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the consent of the City to the mortgage o...
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