HomeMy WebLinkAbout1994-10-12 94-449 ORDERCOONCIL ACTION
Date: October 12, 1994 Item No. 94-449
Item/subject:
AMENDMENT TO A I.NA.iN AORBBNRNT NITR PwaYAFnn LNABING.
Responsible
Department:
Co®unity
and Nconcmfc Development
Commentary:
See attached tense.
Nanager,a Covmienta:
Associated Infornation: #4 )O dil
Budget Approval:
Finance Director
Legal Approval:
City solicitor
Introduced For
X Passage
_first Reading page 1 of 3
_Referral
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94-449
Aeeipied b Cowailar Stone October 12, 1994
CITY OF BANGOR
(TITLE.) (DAuthorizing the City Bet..ager to 8xeon" an
bnent ......._. .._. ..... .....
.....
Amendment to a Lease Agreement with Chambers Leasing.
BY the City Causal of Me Cay efamnow:
ORDFMD,
THAT the City Manager to hereby authorized and
directed, on behalf of the City of Bangor, to execute an
Amendment to a Lease Agreement with Chambers Leasing.
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In City Cwacil Cctobc 12, 1994
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94-449
0ROER
Title,
Auto [icing the City Manager
..t Aregiment With
F.Chambers
Ie asinggase
.............. I.........��......�....A./...
4T to~ �W
Councilman
/� M� 1L�JL;3,l,-X49
L;,OLn1 CORPORATION
e BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION
C/O Economic Dem vanmt Dmanment
Bngw city HAI
Bang", Maim N401
Remorandum
To: Members of the City Council
Frets Stephen A. Bolduc, E utive 3fenager
Dates October 12, 1994 a rL3,
Subjects Extension of a Lease Agreement with Chambers Leasing
leave
Chambers Leasing wishes to exercise its option to extend the lease
agreement dated September 10, 1973, between the City of Bangor and
Spillane Car Rental Co. Inc, and assigned to limbers Leasing on
July 21, 1992, for Lot 2 in the Utah Avenue Subdivision. Chambers
Leasing operates the Budget Rent-A-Car concession at the Airport
and has a vehicle maintenance building on the lot.
Background -
The lease agrement expired on August 31, 1993. It grants to
Chambers Leasing an irrevocable option- to remw the lease for a
ten (10) year term upon notification to the City of Bangor prior to
the termination of the lease. Chambers Leasing has informed the
City that it wishes to exercise the option. We have been
negotiating the lease rate during the option period with Chambers
Leasing since the expiration of the original term, and they have
rejected several offers since August, 1993. Also during that
period we have been negotiating similar leases with The Herts
Corporation and Avis Rent A Car System, -Inc. When we reached
agreement with those two companies, Chambers Leasing also agreed to
our Proposed terms. Chambers Leaning's current monthly lease rate
is $162.50.
The lease rate and conditions accepted by Chambers Leasing area
Premia": Lot 1 of the Utah Avenue Subdivision, .45 acre.
Terms Ten (10) years.
Page 2 of 3
OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. 59
TMepeeme: (29])9414802. TELEX: BANAIR 950007
94-449
Bate:
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$3,780.00 annually, payable in monthly amounts of $315.00. The
rate is derived as follower Annual lease rate = 98 of appraised
market value of $42,000.
September 1. 1998 to August 31, 2003
The monthly lease payment during this Period will be determined a
follows: $315.00 plus the product of $315.00 multiplied by the a=
of the five annual percentage changes in the Consumer Price Index,
the All Items expenditure category, for the period June, 1993 to
June, 1998.
All other terms and conditions ofthe lease agreement dated
September 10, 1973, between the City of Bangor and Spillane Car
Rental Co. Inc. and assigned to Chambers Leasing on July 27, 1992,
would remain in full force Red effect.
�TIOR
Staff recommends the approval of the extension of the lease
agreement under these terms and conditions.
SAB/3p
Enc. (Rap)
Page 3 of 3
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