HomeMy WebLinkAbout1988-02-18 Airport Committee Minutes66, rnr,
AIRPORT COMMITTEE MEETING
A meeting of the Bangor City Council Airport Committee was
held on Thursday, February 18, 1988 at 6 P.M. at the City Hall
Council Room.
Present were.
Mary Sullivan, Chairperson
Jane Deal
Arthur Tilley
Edward McKeon
Peter D'Errico
Item kl - General Electric Lease Revisions. Economic Development
Director, Edward McKeon, presented to the Committee, two revisions
requested in the General Electric lease covering buildings #466,
#488 and #489; this lease agreement was executed June 10, 1987.
The first revision concerning FAA stock language which related to
aeronautical restrictions, was inadvertently omitted from the final
signed draft. Mr. McKeon recommended this revision and it was
unanimously approved by the Committee.
The second revision pertained to the change of starting dates
of the General Electric lease which required the new lease with
higher monthly payments to commence when the new additions to the
buildings are substantially completed as certified by the engineering
firm of Harriman Associates, or no later than January 1, 1988. However,
Mr. McKeon stated the delay in the construction has moved this date to
May 1, 1988, and Merrill Trust Company has approved the new date in
relation to its loans to this expansion project through Target
Corporation. Target will be asked to approve the new dates at its
meeting next week. Mr. McKeon also pointed out the impact would
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not be significant as General Electric must eventually meet
through its new lease payments, the higher costs created by any delays.
However, the city could insist interest on its share of the project
(up to $829,000 contributed from two reserve accounts) as approximately
$520,000 of that money has been disbursed in the past three months
with the remaining expected to be disbursed by the middle of March.
The Committee discussed the procedure but due to the value of
the project to the city and region, they would not insist on iterim
interest (construction period) on its funds because of the delay.
The Committee unanimously voted to approve the revision.
Item p2 Building 271 Disposition. Mr. McKeon discussed with the
Commiitte, Building 271 at theairport which presently houses the
Free Trade Zone activity in one bay and an incubator center for
start-up companies (international trade or industrial firms) in
the other bays. The transfer of the Zone has been planned for some
time to an adjacent building of 1,200 sgft (Bldg. 269) formerly
occupied by the Airport Maintenance Division which has relocated to
w facility on Maine Avenue). Mr_ McKeon related that an industrial
firm is interested in Bldg. 271 and if their decision is to come to
Bangor, the firm would eventually require the entire 21,000 sqft.
facility by October 1, 1988. He detailed the incentive rental/heat
rates being discussed with the prospect during a short-term rental
agreement as they were phasing into the space, and a three-year
lease agreement with a three-year extension option, beginning
October 1, 1988. The Committee agreed with the rental rate structure
y (Minutes continued)
proposed to the prospect. If the firm selects Bangor, a formal
lease agreement would be brought before the Committee.
Mr. McKeon explained that Bldg. 271 represented a greater
resource of income and use to attract new industry than presently
being utilized. He would relocate the three small firms now
using the building, as well as the Zone, even if the industrial
proscect did net lease the building. The space is sorely needed
in the city's marketing program for new firms. No formal vote
was required or taken.
Item #3 Airport Land Use and Development Policies. Councilor Sullivan
discussed the recent recommendation of the Bangor Economic, Development
Advisory Commission relative to lot uses and development approaches
to land designated for non -aeronautical development at the airport.
The Commission's recommendations were received by the City Council
at a recent meeting but no specific action has been taken. The need
for a specific land -use review of airport properties was discussed.
Ariport Manager, Peter D'Errico, suggested that the consultant, who
will be selected for airport planning, could incorporate specific
area land use in his contract. The business, industrial, and new
subdivision areas of the airport could be reviewed in this process
taking into consideration the Commission's recommendations as well
as others. it was generally agreed this could be carried out within
the next month or two.