HomeMy WebLinkAbout1998-06-08 98-237 ORDERmmr.�rn
Date: 06/08/1998
Item NO.:
98=237
Item/Subject:
Amendment to a Lease Agreement with Gary J.
Hagan
Responsible Department: Community and Economic Development
See attached memo
DepartmenfXeatl '/
Managers Comments: 9
r-cGCUANAk.
City Manager
Associated Information: dy,rp1 r a W"4A 4
Budget Approval:
Legal Approval:
Finance Director
City Solicitor
Introduced For
% Passage
First Reading Page t M
Referral
Assigned to Council« aonman June 8, 1998
CITY OF BANGOR
GITEE.) (Drbtis Authorizing an Amendment to a Lease Agreement with Gary J. Hagan
By Mier sky Cawwil of the City nf.Ra%y .
ORDERED, WHEREAS, Gary J. Hagan has leased Lot 4 in the BIA Commercial /
THAT
Industrial Park since 1988; and
WHEREAS, the lease agreement between Gary J. Hagan and the City
of Bangor for said Lot requires that the annual rental rate be established for the
period April 15, 1998 to April 14, 2003;
NOW THEREFORE BE IT ORDERED BY THE CITY COUNCIL OF
THE CITY OF BANGOR THAT the City Manager is hereby authorized, on behalf of the
City of Bangor, to execute an amendment to the lease agreement between Gary J.
Hagan and the City of Bangor for Lot 4 in the BIA Commercial / Industrial Park, in a
form approved by the City Solicitor or Assistant City Solicitor, and in substantially the
same form as attached hereto.
IN CITY COUNCIL
June 8. 1998
Passed
LER
98-23]
0 I DE It
Title, Authorizing an Amendment to a
Lease agreement with Gary J. Hagan
......................................
...................................
�d e
Assignedd
to
'Councilman
4,^
98-237
THIS FIRST AMENDMENT TO INDENTURE OF LEASE, executed this
th day of, May, 1998 by and between:
CITY OF BANGOR, a municipal corporation organized and
existing under and by virtue of the laws of the State of
Maine, and having its principal offices at 73 Harlow Street,
Bangor, Maine (hereinafter sometimes retained to as
"Lessor");
AND
GARY J. HAGAN, an individual, with his principal place of
business at 12 Kelleran St., Houton, County of Aroostook,
State of Maine (hereinafter sometimes referred to as
'Lessee")
WITNESSETH:
WHEREAS, the City of Bangor is the owner of an airport commonly
known as "Bangor International Airport", formerly known as Dow Air Force Base,
located in the City of Bangor, County of Penobscot, State of Maine (hereinafter
sometimes referred to as the "Airport'); and
WHEREAS, by Indenture of lease, dated April 7, 1988, the parties agreed
to the lease by the Lessor of Lot 4 in the BIA Commercial / Industrial Park, and
WHEREAS, the parties hereto wish to amend said Indenture of Lease to
establish the annual rental rate for the period April 15, 1998 through April 14, 2003;
NOW, THEREFORE, the parties do mutually agree Nat the Indenture of
Lease dated April 7, 1988 be and hereby is amended as tallows:
(1) That the following be added to Article III - COMPUTATION OF ANNUAL
RENTAL:
D. During the period April 15, 1998 through April 14, 2003 the annual
rental rate will be $6,000 paid monthly in the amount of FIVE HUNDRED
DOLLARS ($500.00).
THAT except for the foregoing, said Indenture of Lease, dated April 7, 1988,
between the City of Bangor and Gary J. Hagan will remain in full force and effect in all
other respects between the undersigned
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the
day and year written above.
CITY OF BANGOR
Date:
By:
(Witness) Edward A. Barrett
City Manager
GARY J. HAGAN
Date:
A=
By:
Gary J. Hagan
Gaga]
98-237
BANAIRCORPORATION Bangor, Mem (4101
0p or ofAvapr Foreign T e 58 (207) W4842
(207) 9454449 (Fax)
To: Members of the City Council
From: Stephen A. Bolduc, Executive Manager
Date: May 27, 1998 -AQut11
Subject: Amendment to a Lease Agreement with Gary J. Hagan
Isnua
The lease agreement between the City of Bangor and Gary J. Hagan for lot 4 in
the BIA Commercial / Industrial Park, requires that the annual rental be established for
the period April 15, 1998 to April 14, 2001
Background
Gary J. Hagan leases Lot 4, 1.08 acres, in the BIA Commercial / Industrial Park.
The term of the lease is from 1988 to 2008. On the property is a 9,073 sq. ft. office
building currently [eased to Care Development. The lease rate during initial ten (10)
year term increased in 1993 from $4,920 to $5,400 annually.
The lease states that the rental rete for the five (5) year period 1998 - 2003 shall
be "set based on fair market value and fair market lease return as negotiated or
arbitrated ... except that during the period April 15, 1998 through April 14, 2003,
monthly rental shall not be less than $500 each month or more than $750 each month;'
Based upon the guidelines adopted by the Bangor City Council for determining
the lease rate for land in the Bangor International Airport Complex, staff proposed that
the annual lease rate during the extension period be established at 10% of the fair
market value of the land. Fair market value to be established through a recent
appraisal.
The available lots in the BIA Commercial / Industrial Park were appraised in
January, 1996 by The Sherwood Group Indicating that lots similar to Lot 4 have a
98-23]
market value of $50,000 per acre. At that appraised value the monthly lease rate would
be $450. However, the minimum lease rate established in the lease is $500 for the
period.
Gary J. Hagan has accepted the following proposed lease rate:
$8,000 annually paid monthly in the amount of $500.
The Board of Directors of the BanAlr Corporation and staff recommend approval
of this amendment to the lease agreement under the terms and conditions outlined
above.