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HomeMy WebLinkAbout1995-02-13 95-114 ORDERCOUNCIL ACTION Date 2/13/9 Item No. 95-116 Item/Subject: LICENSE AGEEEINNT NITN CGLES EXPRESS, INC. D/N/A CGM TRAINING INSTIT Responsible Department: Commortity and Economic Development Manager's Comments: m .nf,..j yj(z r&, City manager Associated Information: Finance Director City Solicitor yu Introduced For X Passage _First Reading Page 1 of 3 _Referral me mm.a (IM/95) 95-114 Auidned m COUMCiier Tyler February 13, 1995 CITY OF BANGOR (TITLE) Mrbu Authorizing_ the City Manager to Execute a License Agreement with Coles Express, Inc. d/b/a Cole Training Institute. By 1404 Cauun of wfav a(Boxyx: THAT that the City Manager is hereby authorised and directed, on behalf of the City of Bangor, to terminate a lease agreement and execute a license agreement with Coles Express, Inc. d/b/a Cole Training Institute. mscleuee.aao �vxuas� IN CITY COUNCIL"} February -13. 1995 Pas 4 95-114 ORDER Title. Authorizing the City Manager to Execute a License 'A'gree'm'ent'with'ddied hzpiefis,� Inc. d/b/a Cale Training Institute. gPG. Aaeigasdtn �-741/1 Councilman MLNl:,lOm CORPORATION • BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION Go Economic Drvelwment Department Bareor City Hall Banpop Mame Win Memorandum Rat Members Of the City Council From: Stephen A. Field nc, Bee stave Manager Date: February 13, 1995 1.(�.)/.,3 SubjeCt: License Agreement with Coles Express, Inc. d/b/a Cole Training Institute Issue Cole Training Institute has been leasing an area of the former light duty ramp at Bangor International Airport since Moveider, 199B for use as a training area for the instruction of truck drivers. The lease rate during the last year was $420.00 per month. In August the Cole Training Institute was notified that the City was assessing property taxes on their leased area for the first time and that the tax would be $2,173.62, or 43% of the annual leaspayment. Cole Training institute felt that this significant increase in their cost warranted renegotiation of the lease. Proposal After analyzing the valuation placed upon the property and the effect of the property taxes on the overallcost of use of the .property; staff, with the approval of the Airport Manager, proposed that Cole Training Institute license the use of the property rather than lease the property. Licensing the use of the property would grant to Coles Express, Inc, d/b/a/ Cole Training Institute the privilege and non-exclusive right to use the Area for the specified use, tractor trailer driver training, but would not grant a "leasehold interest" in the area. The lack of a 'leasehold interest- would preclude the assessment of property taxes. Cole Training Institute has accepted the following license rate and conditions: Page 2 of 3 OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. 58 Telephone: (207) 9,17-4842 TELEX: BANAIR 950007 95-114 Premises a. 226,000 sq. ft. as shown on the attached sketch. b. The right of access to the area. Ten: The term will begin January 1, 1995 and will continue indefinitely. The license can be terminated by either party by providing thirty (30) days written notice of the termination. Eats: $420.00 per month Pas: Coles Express, Inc. d/b/a/ Cole Training Institute will use the area for the training of tractor trailer drivers and will not make any changes or Improvements to the area without the written Permission of the City of Bangor. Maintenance: Coles Express, Inc. d/b/a/ Cole Training Institute will maintain the area in a clean condition by cleaning any debris as required. Insurance: Coles Express, Inc. d/b/a/ Cole Training Institute will provide comprehensive public and property damage liability insurance to limits of $3000000 per each Barwir Corporation and staff recommend termination of the existing lease and approval of this license agreement under the terse and conditions outlined above. S"/Jp Bar. Page 3 of 3 KWUNMAo.WN (1126195)