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HomeMy WebLinkAbout1998-09-28 98-398 ORDERItem No. 98-395_ Date: 9-2848 ItemlSlthjat ORDER: Authorizing an Amendment to an Existing Lease with the Hose 5 Fire Museum Responsible Department: Legal Commentary: Attached is an agreement emending a lease between the City and Hose S Fire Museum. This mutter hes been discussed 4 several Finance Committee matings. Hose S asked to amend the existing lease and temtinateapurchaeoption. ThecommidwagreM to reducethe routo$1.00peryearinretum for annual capital improvements and a nommihnent for the museum on remain open a rhdmum number of dates peryear. This amendment addresses those concerns. The rem is reducedm $1.00 per year. It may be terminad d upon sic month's notice. Hose S use longer has the option to purcisaw but does have the right of fust refinal in the event the lease is terminated and the City decides to sell the property. The amendment also provides that the museum will be open at lease one day aweek from lune 15 in October 15 of each year. Finally, it provides that Hose 5 shelf spend not less than an annual average of $1,0W per Year to improve andmarriamtheproperty. Department Head Manager's Commends: The Emotive Committee mweassnds approval. U City Manager Membered Information: Order, Agreement Budget Approval: Finance Director Legal Apprmtd; City Sol a* Introduced for i Passage First Handing Page—of— Referral 98-398 AeuQ,ed to Councdororouley September 28, 1998 CITY OF BANGOR (TiTLEJ t9 rbers ......... Authorizing an Amendment to an Existing 1. ease with the Hose 5 Fire Musemn BY the city a of V e ab of Ba,por.. ORDERED, TMT the City Manager is hereby authorized to execute the attached lease amendment with the Hose 5 Fire Musemn. IN CITY COUNCIL September 28, 1998 Motlon for Passage Made and Seconded Passed clTr Iexx 98-398 ORDER Title, Authorizing an Amendment to an Existing Leese Vith the Rose 5 Fire Maseom ...................................... �6.? Ae,�aIn Ci Councilman 4 . AGREEMENT THIS AGREEMENT made this_ day of , 1998 by andbetween the CITY OF BANGOR, amunicipal corporation duly organizedand existing under the laws of the Store of Maine (herehnderdle CITY) and HOSE 5 FIRE MUSEUM, a non- profit charitable corporation duly organized and existing under the laws of the State of Maine (hereinafter the MUSEUM). WITNESSTH WHEREAS, the CITY and the MUSEUM are paries to a lease, dated September 3, 1993, of certain property owned by the CITY formerly used by the CITY as its old Fire Station No. 5; and WHEREAS, under the terms of the lease and a Real Estate Option Agreement between the parties dried September 3,1993, the MUSEUM has been granted an option to purchase old Fire Station No.5 upon expiration of the existing Lease on August 31, 2008; and WHEREAS, the CITY and the MUSEUM are parties to an Agreement dated Septernber 3, 1993 regarding their obligations in the even[ the MUSEUM exercises to option to purchase old Fire Station No. 5; and WHEREAS, die paries agree that it is thew mutual ben interest to Unchain the Real Estate Option Agreement and Agreement and amend the Lease. NOW THEREFORE, the parties do mutudly agree as follows: 1. The MUSEUM hereby antennas any and all rights it has to purchase old Fire Station No.5 order the terms and conditions ofdre Red Estate Purchase Option Agreement and Lease between the parties, each dated September 3, V993. 2. The parties hereby mutually agree rhes all rights and obligations under the Agreement are terminated. 3. The parties inwardly agree list tM Lease between the paries doled September 3,1993 shall be amended as follows: A.) By deleting ARTICLE H, RE T,in its entirety and replacing it with the following: ARTICLE II Lessee shall pay to Lessor as rest for the premises the amount of One Dollar ($1.00) per year. B) By deleting ARTICLE I TERM,initsentiretyendreplacing Itwiththe following: ARTICLE III TERM This Lease shall remain in full tome and effect unless terminated by either party upon six (6) months tronas to the other or unless otherwise terminated under the provision of tlds Lean. C.) By deleting ARTICLE IV, OPTION TO PURCHASE, in its entirety and replacing it with the following: ARTICLE IV OPTION TO PURCHASE Lessee shall ran have an Option to Purchase said prmnues. However, iv the evert that the Lease is terminated and the CITY decides to sell old Fire Station No. S, the MUSEUM, provided that it is acharitable non-profit corporation under the laws of (be State of Maine, shall be given the right to purchase said premises for the fair market value as of The data of its offering for sale. The MUSEUM will have thirty(30)days from the date this CRY notifies the MUSEUM that the premises will be offered for sale. D.) By adding to ARTICLEV USE AND OCCUPANCY OF THE PREMISES, the following: 1.) Between the dates of June 15 and October 15 of each year the old Fire Station No. 5 shall be open in the public at least one (1) day each week K.) The MUSEUM shall spend not less than an annual average of $1,000.00 to ingrain sal improve the condition of old Fire Station No. S. 1, E.) By deleting the second full paragraph of ARTICLE VII, TITLE TO IMPROVEMENTS AND ARTIFACTS, in its eMnety. F.) By deleting the following from ARTICLE XI, DAMAGE BY FIRE OR OTHER CASUALTY: `Such termination shall be deemed to extinguish Lessee's option to purchase granted ander Article W above." IN WITNESS WHEREOF the parties hereto have caused Oils Agreement to be executed on the date first written above, signed and scaled by the paries hereto. FOR LESSOR: CITY OF BANGOR WRua&s Edward A. Barrett City Manager FORLESSEE: HOSE 5 FIRE MUSEUM Witness Name: Title: State of Maine Penobscot; ss. ,1998 Then personally appeared Ne above -reined Edward A. Barrett, in his capacity as City Manager, and scirnowledged the foregoing instrument to be his free act and deed in his said capacity, and the free art and deed of said body corporate. Before me, Notary Public / Attorney Printed Name: My Commission Expires: 96+398 State of Maine Penobscot, as. ,1998 Than personally appealed the above-named in his capacity w of Hose 5 Fire Museum, and acknowledged the foregoing it nrnnent to be his fixe act and deed in his said capacity, and Ne free sot and decd of said corporation. Before me, Notary Public / Attorney Printed Name: My Commission Expir s: nuoRce/wmwoMmlaiatedwse5.dac