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Home My WebLink About1994-11-14 95-15 RESOLVECOUNCIL ACTION Item No. 95-15 Date November 14, 1994 Item/Subject: Requesting Banair Corporation to Give Notice to Quit to Century Arms, Inc. Responsible Department: Commentary; This item has been prepared at the request of Councilor Baldacci. The item, together with the attached backup materials, is self-explanatory. Associated Information: Department Head Finance Director Legal Approval: ppp7vr'A City Solicitor Int ioduc�ed For Passage Referral Reading Referral Page 1 of Assigned to Councilor Baldacci November 14, 1994 95-15 CITY OF BANGOR Requesting Banair Corporation to G1 e (TIiLE)¢SOIU¢f.. _.._... ...- ............... ....._........... By the City Csand! of Ne Gory Ofassume: MSOLV9D, wEEREAS, Under provisions of a certain "Indenture of Lease" dated February 1982 with the City of Bangor, the Bangor Airport Civic Development Corporation (Banair Corporation) is the Lessee of building no. 271 and appurtenant land owned by the City of Bangor and located within Foreign Trade Zone no. 58 at Bangor International Airport; and WHEREAS, Century Arms, Inc. is a sub -tenant of the Banair Corporation, occupying approximately 3,000 square feet of apace in building no. 271 asa hold -over tenant antler provisions of a expired lease with Banair Corporation n dated September 20, 1993; and wHRREAS, the Banair Board of Directors, on Nay 25, 1994, voted not to causes Century Arms, Inc.'s existing Lease, which therefore expired by its own terms on May 31, 1994; and WHEREAS, it is the senseof the City Council that space Currently occupied byCentury Arms, Inc. in building no. 271 could be utilized by other potential tenants in a manner more consistent with the City of Bangor's economic development goals for building no. 211, Foreign Trade Zone no. 58, and Bangor International Airport; NOR, THEREFORE, by the City Council of the City of Bangor be it RESOLVED, THAT the City Council of the City of Bangor hereby requests the Directors of the Bangor Airport Civic Development Corporation to issue a written notice to Century Amuse, Inc., directing Century Arms, Inc. to tate space it currently occupies in building no. 271 within 30 days of the notice date. IN CITY COUNCIL November 14, 1994 95-15 NE SOL V E Tabled Co9si�der Next e4eting C/.// ::ti Requesting Banair Corporation to Give Notice ITV ULVCM to Quit to Century Arms, Inc. IN CITY COUNCIL December 12, 1994 WQ. G CITY CLE Cw�,�(x V 95-15 Note: Copy of staff memo for Banair Directors' meeting, Ilay 25, 1994 CENTURY INTRRNATIONAL ARMS LIMITED C? May 25, 1994 Issue Century Arms, Inc. wishes to extend its lease of apace in Foreign Trade Zone i58. The company, which has operated regularly in the FTS since November 1989, currently leases 3,000 sq. ft., the entire area of an addition to the International Enterprise Center constructed last summer. The lease was for one year terminating on Nay 31, 1994, at a rate of $3.50 per sq. ft. including heat and lights, per "Foreign Trade Zone No. 58, Tariff No. 1". The company imports firearms, primarily automatic and semi- automatic rifles, for resale as spare parte or conversion to . hunting rifles. Because a great deal of the firearms are not allowed into the United States as shipped, BaMir Corporation has provided laborers to perform various operations that reader the firearms inoperable and allow entry into the U.S. RNCOINffitronTIon Staff recommends that the lease with Century Arms, Inc. not be renewed for the following reasons: 1. The company does not ship or receive its merchandise by \, air carrier, and therefore it does not support BIa's air cargo operation. 2. The company's employment impact is minimal. They do act have any full time employees in Bangor. Part-time employees engaged through Benkir Corp. receive $5.00 /hr. and cork on an "as -called- basis. 3. The space could be more productively utilised. it could be leased to an FTE or incubator client that would have greater impact on airport cargo operations or employment opportunities. 4. Laborers have been asked to perform increasingly more sophisticated operations requiring the use of cutting, grinding, and drilling equipment. Performing these operations for Century increases BaMii's liability, opportunity for injury, and workers' compensation insurance premiums. action The decision of the Board of Directors will determine if this lease is renewed. Sipe cma,se 5f9r46 5q, RCFAKED GIlI9. U, Ur om CDRPDRATION`of� e BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION c/o EcmwminD eln wnt Dsur et Bmew Otv Neu Mnmr. Maine W01 May 27, 1994 George Samson Century Arms, Inc. 48 lower Newton Street - St. Albans, Vevvmnt 05478 VIA FAX (802-524-5631) near Mr. Samaont Century Arms, Inc.•s lease of 3,000 sq. ft. in Foreign Trade Zone No. 58, 40 Johnson Avenue, Bangor, terminates on May 31, 1994. The Board of Directors of the Banair Corporation considered your request to extend the lease for another year, but has decided not to extend it. The Board of Directors felt that there were other uses for that area that would have a greater impact upon the local ecunemy and the cargo operations of Bangor International Airport. The Board of Directors recognizes that your company has merchandise in Foreign Trade Zone 458 and will require some time ' to arrange shiFment. Please let me know if two months, or until July 311 1994, would be an appropriate amount of time. Blease contact me if you have any questions. _ sincerely yours, Steph A. Bolduc Executive Manager SAB/jp OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. SB Telephone: (20) 904842 TELEX: BANAIRgWO7 Banair Corporation c/o Economic Development Pont. Bangor City Hall Bangor, ME 04401 Attn: Mr. Steven A. Bolduc Executive Manager Dear Mr. Bolduc, On May 27, 1994, you notified Century Arms, Inc. that its lease of 3,000 square feet in Foreign Trade Zone No. 58 (the "Lease") would terminate and that Banair Corporation had decided not to extend the Lease for another year. Banafr Corporation also recognized that it would take a period of time for Century Arms. Inc. to remove its merchandise from Foreign Trade Zone No. 58. Since receiving your letter on May 27, 1994, Century Arms, Inc. has been actively pursuing spacein other Foreign fTrade space Zones and hopes t0 successfully ue cc ssfully conenegotiations in the near future. As soon as Century Arms, Inc. obtains space ih another Foreign Trade Zane, we will apply for permits to move r merchandise from Bangor to the new foreign Trade Zone. As you are aware, it will take a period of time to complete negotiations and obtain the appropriate permits. Century Arms, Inc. will not have the space or proper permits to move its mercbandise from Bangor to a new Foreign Trade Zone prior to July 31, 1994. After we obtain space in a new Zone, we will apply for pdrmits to move the merchandise accordingly. Therefore, it will be necessary to extend our Lease beyond the July 31, 1994 date mentioned in your letter. Century will continue to pursue in moving its merchandise as soon as possible, and we will keep you informed of our progress. 4nanager a any questions, please call me. n Ad Gen GS/sr 95-15 lM req,maaefn : )DPNsn'lin mass, Rd9 M WFwe: CE Fu: (MR) PIfAYtR War Tram No.: 090RC155 •nsxsO+N: CFHfR PNB MiL)CmaJe) CENTURY ARMS INC, F.O.Det)I< StAl b Woullt Wer July 5, 1994 Banair Corporation c/o Economic Development Pont. Bangor City Hall Bangor, ME 04401 Attn: Mr. Steven A. Bolduc Executive Manager Dear Mr. Bolduc, On May 27, 1994, you notified Century Arms, Inc. that its lease of 3,000 square feet in Foreign Trade Zone No. 58 (the "Lease") would terminate and that Banair Corporation had decided not to extend the Lease for another year. Banafr Corporation also recognized that it would take a period of time for Century Arms. Inc. to remove its merchandise from Foreign Trade Zone No. 58. Since receiving your letter on May 27, 1994, Century Arms, Inc. has been actively pursuing spacein other Foreign fTrade space Zones and hopes t0 successfully ue cc ssfully conenegotiations in the near future. As soon as Century Arms, Inc. obtains space ih another Foreign Trade Zane, we will apply for permits to move r merchandise from Bangor to the new foreign Trade Zone. As you are aware, it will take a period of time to complete negotiations and obtain the appropriate permits. Century Arms, Inc. will not have the space or proper permits to move its mercbandise from Bangor to a new Foreign Trade Zone prior to July 31, 1994. After we obtain space in a new Zone, we will apply for pdrmits to move the merchandise accordingly. Therefore, it will be necessary to extend our Lease beyond the July 31, 1994 date mentioned in your letter. Century will continue to pursue in moving its merchandise as soon as possible, and we will keep you informed of our progress. 4nanager a any questions, please call me. n Ad Gen GS/sr 95-03 D Lrt1Ht.1WCORP®R/ATI®N BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION c/o Economic nonalignment Depammmt Bangor City Hell Bonar. Mein O4401 October 5, 1994 George Samson Century Arms, Inc. 48 Lower Newton Street St. Albans, Vermont 05478 VIA FAX (802-524-4922) Dear Mr. Samsons In regard to Century Arms, Inc. 'a use of 3,000 sq. ft. in Foreign Trade Zone No. 58, please inform me of your progress in arranging for the removal Of the merchandise currently stored in Foreign Trade zone No. 58. It has been over four months since you glare notified the lease would not be extended. Hopefully that has provided you with enough time to make appropriate arrangements. I- look forward to hearing from you. Sincerealyyyours, �/ �,�,r�I Stephen Bolduc Zxecntivete Manager BAB/jp OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. 59 TMephoms: (209)94TJB42 TELEX: BANAIR 9501007 October 11. 1994 Banafr Corporation c/o Economic Development Department Bangor City Bell Bangor. ME 04401 Deer Mr. Bolduc. L received your letter dated October 5. 1994oming the Progress in arranging of the moving the merchandise from Bang0r. Presently we have a FTE in which is being renovated to meet the requirements and is expected to be completed in around the latter part of October 1994. We have already applied for our Import Permits to move the merchandise from Bangor to Eke new Foreign Trade Zane. Unfortunately the time involved with ATP with approving these permits is our primary delay. Oncewa get closer in knowing j exactly as the $Earls of our permits I will inform yon. • ce ov V t' WE e Boom erUsing ik � �OOp P N 0 22ca 6Dwr 1 stook 95-15 FF1 Na.(trnu ThOheme nu116T.1m CM emkim a: CEMEARY9 Fax: (046ra,v9r TaIR W.: 050L1e6 Ammxbq: CFMFARh9YRICmMO) WX CENTURY ARMS INE. P.O,Bx FIa vLmm„ Kv October 11. 1994 Banafr Corporation c/o Economic Development Department Bangor City Bell Bangor. ME 04401 Deer Mr. Bolduc. L received your letter dated October 5. 1994oming the Progress in arranging of the moving the merchandise from Bang0r. Presently we have a FTE in which is being renovated to meet the requirements and is expected to be completed in around the latter part of October 1994. We have already applied for our Import Permits to move the merchandise from Bangor to Eke new Foreign Trade Zane. Unfortunately the time involved with ATP with approving these permits is our primary delay. Oncewa get closer in knowing j exactly as the $Earls of our permits I will inform yon. • ce ov V t' WE e Boom erUsing ik � �OOp P N 0 22ca 6Dwr 1 stook