HomeMy WebLinkAbout032682 ORD - 02/22/2022Ordinance approving a lease estoppel and amendment to the ground lease
with MREIC Corpus Christi TX, LLC ("Tenant") at the Corpus Christi
International Airport to include language required for a merger and loan
transaction by the Tenant; authorizing the City Manager to execute all
documents necessary and related to the amendment and refinancing
transaction; and providing for an effective date.
WHEREAS. the City, as landlord, and Corpus Christi Developments 1, LLC, doing business as
Corpus Christi FXG, LLC, as the original tenant, executed a certain Ground Lease ("Lease"), dated
October 12, 2010, and which commenced December 12, 2010, for approximately 8.18 acres at the
Corpus Christi International Airport ("Airport");
WHEREAS, Corpus Christi Developments 1, LLC, subleased the acreage to FedEx Ground
Package System, Inc., for development and construction of a build -to -suit cargo and shipping facility;
WHEREAS, the City Council subsequently agreed to a certain Assignment and Assumption of
Ground Lease ("Assignment") on August 23, 2011, with such Assignment made effective as of October
11, 2011, to MREIC Corpus Christi TX, LLC ("Tenant");
WHEREAS, the Tenant, as part of a planned merger and encumbrance of its leasehold interest,
has requested that the City agree to amend the Lease and execute all documents as may be necessary
and related to the loan transaction; and
WHEREAS, the City Council finds the terms of the amendment to the Lease beneficial and
acceptable to the City.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. The City Council specifically finds that the foregoing statements included in the preamble
of this ordinance are true and correct and adopts such findings for all intents and purposes related to
the authorization of the Lease amendment and planned loan transaction.
SECTION 2. The City Council approves an amendment to the Lease between the City and MREIC
Corpus Christi TX, LLC, as Tenant, with such amendment to be hereafter known and referred to as the
"First Amendment" (whether or not so designated), and authorizes the City Manager, or his designee,
to execute all documents necessary and related to the First Amendment, the merger, and loan
transaction involving the Tenant, as may be necessary and in substantially the same form as presented
for approval pursuant to this ordinance. A copy of that certain Ground Lease Estoppel and Amendment,
which contains the Lease estoppel and First Amendment, joined into a single instrument, is incorporated
by reference into this ordinance as if fully set out here in its entirety. Following the closing date of the
Tenant's merger and loan transaction, presently anticipated to be February 24, 2022, a fully executed
copy of the Ground Lease Estoppel and Amendment must be submitted by the Tenant and placed on
file with the Office of the City Secretary.
SECTION 3. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision
of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent
jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or
provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph,
subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose.
SECTION 4. This ordinance is effective upon Tenant's closing of the transaction stated in Section 2 of
this ordinance. In the event Tenant's closing is not concluded by March 31, 2022, this ordinance is null
and void without any legal effect and without the necessity of further action taken by the City Council.
032 682
SCANNED
11
The foregoing ordinance was read for the first time and passed to its second reading on this the I S
day of , 2022, by the following vote:
Paulette M. Guajardo
Roland Barrera
Gil Hernandez
Michael Hunter
Billy Lerma
John Martinez
Ben Molina
Mike Pusley
Greg Smith
The foreoing ordinance was read for the second time and passed finally on this the &",71(4day of
���.,� 2022, by the following vote:
Paulette M. Guajardo
Roland Barrera
Gil Hernandez
Michael Hunter
Billy Lerma
John Martinez
Ben Molina
Mike Pusley
Greg Smith
PASSED AND APPROVED this the '.Lday of
ATTEST:
elag-el-A 004—
Rebecca Huerta
City Secretary
, 2022.
OF CORPUS CHRISTI
Paulette M. Guajardo
Mayor
032682
Page 2 of 2
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly
authorized representative), hereby certify to the City Council and other appropriate officers that
the money required for the current fiscal year's portion of the contract, agreement, obligation
or expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: February 22, 2022 Legistar Number: 22-0218
Agenda Item:
Ordinance approving a lease estoppel and amendment to the ground lease with MREIC Corpus
Christi TX, LLC ("Tenant") at the Corpus Christi International Airport to include language required
for a merger and loan transaction by the Tenant; authorizing the City Manager to execute all
documents necessary and related to the amendment and refinancing transaction; and providing
for an effective date.
Amount Required: $0.00
Fund Name
Accounting Unit
Account No.
Activity No.
Amount
Total
® Certification Not Required
Director of Financial Services
Date: c2/c t.