No preview available
HomeMy WebLinkAbout1996-09-25 96-396 ORDERCOUNCIL ACTION Date:eralser 25,122E Item No. 96-396 Item/Subject: Authorizing the City Manager to Elrecute an Amendment to a Lease Agreement with AAA Northern New England Responsible Department: Community and Economic Development Commentary: AAA Northern New England has exercised it"don to exte of it lease of Lot 3 in the BIA Commercial/industrial Park. The proposed amendment will establish the lease rate during the option period. AAA has leased the 0.996 acre lot, on which it built an office building for the operation of a novel agency and related services, since 1916. The lease grants AAA the option to extend the lease for ten (10) years at a rate to be negotiated between the parties. The lease rate during the initial twenty year umn increased those times. The most recent increase was for the period 1991 -1996 at a rate of 14,340 annually. The policy guideline adopted by the City Council is that the annual lease rate for laud in the Bangor International Airport Complex be 10% of the fair market value of the land. Available lots in the BTA Commercial/Industrial Park were appraised in January 1996 indicating that lots similar to lot duos base a market value of $50,000 per acre. The following rates are recommended: • September 1, 1996 to August 31, 2001 - $5,000 normally, paid $416.61 monthly. • September 1, 2001 m August 31,2006-to be established at 10% of the fab market value of the land as deteomimd by the Cry B parimen ead Manager's Consonants; �.w city Manager Associated Information:©�Ltt umwym�,..a Budget Approval: ,,�sft Finance D rector Legal Approval: / City Solicitor Introduced For Er Passage 0 First Reading 0 Referral Page--L--ofl ca-form 96-396 AeeiPedroe_ ..or Leen September 25, 1996 CITY OF BANGOR (TITLE.) SIT,)ETt Authorizing the City Manager to Execute a First Amendment to Indenture of Lease with AAA Northem New England By the My Ctyyaf! of the Qt ofBMAW.- ORDERED, TWT the City Manager is hereby authorized, on behalf of the City of Bangor, to wacme a First Amendment to Indenture of Lease with AAA Northern New England. Acopy of the Amendment is attached to this Order and incorporated by reference. IN CITY COUNCIL 96-396 September 25, 1996 Motion to Amend Passed 0 R 0 E R Amended by Substitution of the First Amendment t0 Indenture of Lease Title, Authorizing the City Manager to Passed As "an Execute a First Amendment to Indenture of Lease with AAA Northern New. England RR aj �yq��G. Tl�% ................. Cowcilman 96-396 THIS FIRST AMENDMENT TO INDENTURE OF LEASE, executed this day of 1996 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 referred to as "Lessor"); ONO, AAA NORTHERN NEW ENGLAND, a corporation organized and existing under the laws of the State of, Maine, and having a regular place of business in Portland, County of Cumberland, State of Maine (hereinafter sometimes referretl 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 "Airpod"); and WHEREAS, by Indenture of lease, dated August 17, 1976, the parties agreed to the lease by the Lessor of Lot 3 in the BIA Commercial / Industrial Park subdivision, Bangor International Airport; and WHEREAS, the parties hereto wish to amend said Indenture of Lease to extend the term and establish the rental rate; NOW, THEREFORE, the parties do mutually agree that the Indenture of Lease dated August 17, 1976 be and hereby is amended as follows: 1. ARTICLE II - TERM is deleted in its entirety and replaced with the following: ARTICLE II -TERM TO HAVE AND TO HOLD the demised premised unto the Lessee for the tern of ten (10) years, commencing on the first day of September, 1996 and terminating on the thirty-first day of August, 2006. a131Ly11:111RK.]LY, 9nCT1D]0to] oil alal@1a V1 Page 1 96-396 The rent to be paid by Lessee to Lessor during the term of this lease shall be as follows remitted in advance on the first day of each and every month: September 1, 1996 to August 31, 2001 - $5,000 annually paid monthly in the amount of $410.67 On September 1, 2001 and every five years thereafter during the term of this lease or any extension thereof, the annual rent shall be a sum equal to ten percent (10%) of the fair market value of the land which is the subject of this lease, as determined by Lessor. In the event Lessee disagrees with Lessor's determination of fair market value of the subject land, Lessee shall have the right to present Lessor evidence of fair market value which the Lessor shall Wks into consideration when establishing annual rent. Said annual rem shall be paid in twelve monthly payments on the first day of every month. Leasee shall pay all rentals herein required, without prior demand therefor, in lawful money of the United States, at the address of the Lessor as set forth herein or at such other reasonable places as the Lessor may designate. Late payments shall be subject to an additional interest charge of one and one-half per cent (1.5%) per month to the date of payment. THAT except for the foregoing, said Indenture of Lease, dated August 17, 1976, between the City of Bangor and AAA Northern New England will remain in full fares 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 By: (Witness) Edward A. Barrett City Manager Witness) AAA NORTHERN NEW ENGLAND Page 2 A&396 (Amended) THIS FIRST AMENDMENT TO INDENTURE OF LEASE, executed this day of 1996 by and between: CITY OF BANGOR, a municipal corporation organized and existing under and by virtue of the laws of the Stale of Maine, and having its principal offices at 73 Harlow Street, Bangor, Maine (hereinafter sometimes referred to as "Lessol'); AND AAA NORTHERN NEW ENGLAND, a corporation organized and existing under Ne laws of the State of Maine, and having a regular place of business in Portland, County of Cumberland, 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 Airporf', 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 "AiiporP); and WHEREAS, by Indenture of lease, dated! August 17, 1976, the parties agreed to the lease by the Lessor of Lot 3 in the BIA Commercial / Industrial Park subdivision, Bangor International Airport; and WHEREAS, the parties hereto wish to amend said Indenture of Lease to extend the term and establish the rental rate; NOW. THEREFORE, the parties do mutually agree that the Indenture of Lease dated August 17, 1976 be and hereby is amended as follows: 1. ARTICLE II -TERM is deleted in its entirety and replaced with the following: ARTIG FL II -T RM TO HAVE AND TO HOLD the demised premised unto the Lessee for the term of ten (10) years, commencing on the first day of September, 1996 and terminating on the thirty-first day of August, 2006. 2. ARTICLE III- COMPUTATION OF ANNUAL RENTAL is deleted in its entirety and replacetl with the following: Page 1 96-396 (Amerxied) The rent to be paid by Lessee to Lessor during the term of this lease shall be as follows remitted in advance on the first day of each and every month: September 1, 1996 to August 31, 2001 - $5,000 annually paid monthly in the amount of $416.67. On September 1, 2001 and every five years thereafter during the term of this lease or any extension thereof, the annual rent shall tre a sum equal to ten percent (10%) of the fair market value of the land which is the subject of this lease, as determined by Lessor provided that said rent increase shall - not exceed ten percent in any five year oer'otl In the event Lessee disagrees with Lessor's determination of fair market value of the subject land, Lessee shall have the right to present Lessor evidence of fair market value which the Lessor shall take into consideration when establishing annual rent; . Said annual rent shall be paid in twelve monthly payments on me first day of every month. Lessee shall pay all rentals herein required, without prior demand therefor, in lawful money of the United States, at the address of the Lessor as set forth herein or at such other reasonable places as the Lessor may designate. Late payments shall be subject to an additional interest charge of one, and one-half per cent (15%) per month to the date of payment. THAT except for the foregoing, said Indenture of Lease, dated August 17, 1976, between the City of Bangor and AAA Northern New England 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 By: (Witness) Edward! A. Barrett City Manager (Witness) AAA NORTHERN NEW ENGLAND Page 2