10-28-2014 Special School Board Meeting
Agenda Item #31


Title
Subordination Agreement

Discussion

On September 21, 1976 the School Board transferred property in the City of Melbourne, Florida to Brevard County.  The deed contained a reverter clause providing that the property would revert back to the School Board if it is not used for a public purpose or is vacated or abandoned for a period in excess of 12 months.  This land was subsequently leased for the construction of Trinity Towers South to provide housing for low-income seniors, constituting a public purpose.

The current owner, Trinity Towers South Preservation Associates LLLP, is refinancing the project and is requesting that the School Board subordinate their reversionary interest for the benefit of PNC Bank as a requirement of the loan.  The Subordination Agreement subordinates the School Board's reverter as to Trinity Towers' leasehold interest only, not the fee simple title to the property.   

The Subordination Agreement has been reviewed and approved for form by the School Board Attorney.

Attachment: Trinity Towers South Subordination Agreement



Recommendation
Approve the Subordination Agreement for the property described on Exhibit A for the benefit of PNC Bank.

Meeting Date(s)
Consent w/o Information - 10/28/2014

Authority for Action
1001.42 F.S.

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program

Contact
Dane Theodore, Assistant Superintendent / Facilities Services  633-1000 x657


Attachment:  Trinity Towers South Subordination Agreement (School Board).pdf