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Select Board approves estoppel certificate and lease amendments to clear hotel refinancing at 40 Webster St.
Summary
The Select Board approved an estoppel certificate and limited amendments to the ground lease for the Courtyard Marriott at 40 Webster St., delegating signing authority to the Town Administrator so the tenant can complete refinancing; staff said the tenant had remedied prior lease issues and the changes preserve town protections.
The Town of Brookline Select Board on Dec. 3 approved an estoppel certificate and a narrow amendment to the long-term ground lease for the hotel at 40 Webster St. (Courtyard Marriott) to facilitate the tenant's refinancing.
First Assistant Town Counsel Jonathan Simpson told the board lenders were requiring assurances before they would advance financing and that the estoppel certificate confirms the tenant is not in default and that the town will not assert historical defects as a basis to block the refinancing. Simpson said the town had verified the tenant had corrected earlier minor deficiencies involving street maintenance and that revenue-share parking arrangements were in order.
"The tenant's been meeting their obligations under the lease," Simpson said, recommending the board sign the estoppel certificate and allow a limited amendment that protects the town's interest while enabling the lender to step in to maintain hotel operations if the tenant were to fail.
Transportation Administrator Amy Engles confirmed that the hotel provides some publicly available parking and that revenue-sharing terms in the lease remain consistent with town policy. Counsel said the proposed changes do not alter the town's long-term rights in the lease but provide lenders a measured mechanism to keep the facility operating.
The board approved the estoppel certificate and amendment and delegated authority to the Town Administrator to sign on the board's behalf. The board acted despite a public comment earlier in the meeting (Jonathan Davis) asking that a separate ground-lease amendment be postponed for a public hearing out of concern that certain lender protections could permit a third-party veto of future town-tenant amendments; counsel said those concerns were not material to the Courtyard Marriott matter and staff had performed due diligence.
The vote authorizes execution of the documents and immediate delegation so the tenant may finalize refinancing arrangements.
