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HomeMy WebLinkAbout1997-11-10 98-14 ORDERCOUNCIL ACTIOM mate: ^ 10 1997 Item NO. _$B= lA__ Item/subject: Authedzingthe City Mamagero Exezmte al.eaee Agmmsjsntwith Kathy Han y dUs Kathy's Catering Beeponsi ie Depectmait: Community a Economic Development Commentary: See attached Memo. A Dep; [men[ Heb NanNer's cMmants: city Manages AsaociateE ::I: n:1111: © Budget Approval: Finance Director Legal Approvsl: city solicitor Introduced am Passage O Pira! loading ❑ Referral Page__j_of 1 98-16 Arigned to Councilor Aube November 10, 1997 a� CITY OF BANGOR AW (TITLE ) (p1'Abt.T Authormng the City Manager to Execute a Lease Agreement with Kathy Harvey d/b/a Kathy's Catering By tM CBy Coonan of W qtr efBaa .' ORDERED, TBAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute a lease agreement with Kathy Harvey d/b/a Kathy's Catering in a form approved by the City Solicitor for Lot 17 in the BIA Commercial / Industrial Park, Bangor. IN CITY COUNCILI November 10, 1997 Passed CIT CLERK T 98-14 ORDER Title; Authorizing the City Manager to Execute a Lease Agreement with Kathy Harvey d/b/a Kathy's Cater ...................................... .......................................�......... ���././ ...... 1.'.: .........v,T.............. Councilman 98-16 BANAIRCORPORATION Bango,Maine 04 operatw ofsangwforelgn lade zo (207)947-4842 (207) 945-4449 (Fax To: Members of the Community & Economic Development Committee From: Stephen A. Bolduc, Executive Manager Date: November 5, 1997 Subject: Lease Agreement with Lease Agreement with Kathy Harvey d/b/a Kathy's Catering Issue Kathy Harvey d/b/a Kathy's Catering wishes to lease Lot 17 in the BIA Commercial / Industrial Park, Bangor to constmct a building of at least 10,000 sq. ft. for use as a food preparation, catering and banquet facility. Kathy Harvey d/b/a Kathy's Catering has accepted the following lease rates and conditions: Premises: Lot 17 - BIA Commercial / Industrial Park, 3.97 acres, 172,903 N. ft., with approximately 300 ft. of frontage on Gruen Rd. Term: Forty years. Bate: First year: $2,010 annually paid monthly in the amount of $217.50. Each year thereafter $8,700 annually paid monthly in the amount of $725.00. Every five (5) years the lease rate would be adjusted to reflect changes in the value of the land. The lease rate would be adjusted in accordance with the change in the Consumer Price Index. For the five year periods beginning with the twentieth and thirtieth years of the lease, the property would be reappraised in order to reset the value of k -EM 98-14 the land. The annual lease rate would 10% of the appraised value of the land parcel. Taxes: Taxes assessed upon the real estate, building and personal property are the responsibility of Kathy Harvey d/b/a Kathy's Catering, Insurance: Provide comprehensive public and property damage liability insurance to limits of $300,000 per each occurrence. Land Use District: The lease agreement would be contingent upon the City of Bangor changing the current land use district to a "General Commercial & Service' land use district in which the project would be an eligible use. Prosect Description: Kathy Harvey d/b/a Kathy's Catering agrees to construct a building of at least 16,000 sq. ft. for use as a food preparation, catering and banquet facility. Site work and building construction are required to commence within one (1) year and be completed within two (2) years. Option to Purchase: The City of Bangor will grant an option to purchase the property at fair market value if the parcel becomes available for sale. Development Loans: The City of Bangor will assist Kathy Harvey d/b/a Kathy's Catering in applying for low interests loans totaling up to $100,000 from the City of Bangors Business Development Loan program and the BanAir Corporation's Economic Development Revolving Loan Fund. These loans would be long tens, low interest bans that will lower the monthly payments and improve the long term viability of the project. The recommendation of the Community and Economic Development Committee will be presented during the consideration of this Item by the City Council. Page 3