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
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City manager
Associated Information:
Finance Director
City Solicitor yu
Introduced For
X Passage
_First Reading Page 1 of 3
_Referral
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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.
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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.
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Councilman
MLNl:,lOm CORPORATION
• BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION
Go Economic Drvelwment Department
Bareor City Hall
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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.
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Bar.
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