Some people have wondered why Barry and Annette Goldberg would lease their building at 135 King Street to such an inappropriate tenant as Capital Video. The Goldbergs have made no response to numerous inquiries from us and the media. Even their leasing agent thinks it’s a bad idea. The answer may lie in the debt the Goldbergs owe on their property, as shown by public records at the Massachusetts Registry of Deeds.
In 1992, the Goldbergs secured a $712,500 mortgage from Florence Savings Bank ( FSB ) on their property at 135 and 137 King Street. In 2004, it appears they refinanced this property, with a principal amount of $700,000. In other words, they barely reduced their debt to FSB between 1992 and 2004.
In 2004, the Goldbergs signed a Collateral Assignment of Rents and Leases with FSB. This may indicate that FSB had concerns about getting their loan paid back. The agreement states:
“WHEREAS, Bank requires security for the prompt and complete payment and performance of all debts, liabilities and obligations of Borrower to Bank of any kind, nature and description, whether now or hereafter arising, absolute or contingent, direct or indirect, including, without limitation, all terms, covenants and agreements contained in the Note, Mortgage, this Assignment and all other loan documents incident hereto (collectively the ‘Obligation’).
“NOW, THEREFORE, in consideration of the above-stated premises, and for other good and valuable consideration, Borrower agrees as follows:
“1. Borrower hereby transfers and assigns unto Bank, and its successors and assigns forever, all of the rents, revenues, issues and profits now due and hereafter to become due from the Premises and also all leases and rental agreements affecting the Premises…
“6. This Assignment shall be held by Bank as security for the payment and performance of the Obligation; it being understood, however, that Bank shall not apply or enforce this Assignment so long as Borrower shall fully and promptly pay and perform the Obligation…”
The Collateral Assignment raises the possibility that Capital Video porn shop dollars may flow directly to FSB under some circumstances. We are not claiming that FSB is happy about this prospect. It has been observed that the bank has a branch at 176 King Street, just steps from 135 King Street.
We invite you to inspect the Goldbergs’ public mortgage documents for yourself:
Many porn shop defenders have said this issue is about freedom of speech, diversity of expression, sexual liberation and other ideals. The reality, however, is that the primary motivation to make and sell porn has to do with generating profits. As Capital Video owner Kenneth Guarino told the Wall Street Journal, “It’s just a business. I like to watch the numbers.”
We don’t object to people making money, but we do object when they do it in a heedless way.