HomeMy WebLinkAbout1995-03-15 95-140 ORDERCOUNCIL ACTION
Date: 3113/95 Item No. 95-140
Item/Subject:
LEASE A RNNNNNT WITH NORTH STAR INTNRNATIONAL @INNGR
CORPORATION.
Responsible Department: CONNUNITY AND NCONONIC DEV OPNENT
1
Associated Informationi
Budget Approval:
Finance Director
Legal Approvals -
%
Use olicit r/
Introduced For IIs
R Passage
first Reading Page 1 of 4
_Referral
XHnWMea (mann)
95-190
A gngn to CowuBor Tyler N rcA 15, 1995
CITY OF BANGOR
(TITLE.) (Prber. AUTNORIEING THE CITY MANAGER TO_EXECUTE A
LEASE AGREEMENT WITH NORTH STAR INTERNATIONAL ENERGY CORPORATION.
By ON City GouuH Of CRY ofB411m..
THAT THE CITY MANAGER IS HEREBY AUTHORIZED AND DIRECTED, ON
BEHALF OF TILE CITY OF BANGOR TO EXECNTB A LEASE AGREEMENT WITH
NORTH STAR INTERNATIONAL ENERGY CORPORATION FOR LOT 18 IN THE NAINE
BUSINESS ENTERPRISE PARK.
ml o vsl.mo p/IIbg
IN CITY COUNCIL
Narch 15, 1995
Tabled
Consider Next Neeti g
CIT 'LERK
IN CITY COUNCIL
Nemh D, 1995
Pass
CIT CLERK
95-140
ORDER
Title,
?vFhor}:ng, tte City, Nanag r to Execute a Lease
AgreementWith Nar6c Sear kwteiu M;11 'Energy
Corpotion.
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Councilman
paaUM000RPORATION 945-140
• BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION
Go Econ ie Development Deponent
Banpa OW Hell
Sense, Maine 04401
Memorandum
To: Members of the City Council - "-
Front Stephen A. Bolduc, Executive manager
Date: march 13, 1995
Subjectt Lease Agreement with North Star International Energy
Corporation
Issue
North Star International energy Corporation has exercised its
option and would like to lease Lot 18 in the Maine Business
Enterprise Park to relocate their retail gasoline station.
Background
North Star international Energy Corporation has leased the gasoline
service station facility at 75 Maine Ave. from the City of Bangor
since 1981. Their lease expired on March 31, 1991, and since that
time they have continued to operate the facility on
month-to-month basis. As owner of the facility, the City of Bangor
is required by state law to remove the underground gasoline storage
Lanka located on the property. Because of the tank removal and the
development of the Maine Business Enterprise Park, the Council
decided to make Lot 18 of the Maine Business Enterprise Park
available to North Star international Energy Corporation for a new,
privately owned gasoline station facility. North Star
International Energy Corporation entered an option to lease the lot
in .July, 1994, and exercised that option in November, 1994.
Lease Torms and Conditions__ _..
The following lease rate and conditions have been accepted by North
Star International energy Corporation:
Proanisest Lot 18 of the Maine Business Enterprise Park
Te t Twenty (20) years.
2
OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. BE
Toophone: (20])99]-0842. TELEX: SANAIR 9500D7
95-140
Rates The lease
rate is comprised of a
base
rent, a
fee
based on
the level of gasoline
sales,
and a
fee
based on the level of convenience
store
sales.
gal.
Base Rent - $5,800 annually. The base rent will be
adjusted every five (5) years in relation to the
change in the Consumer Price Index, All Items
expenditure category, during the previous five (5)_
year Period.
Gasoline Override Pee - A fee for each gallon pumped
over 500,000 gallons according to the following
schedule:
$0.005
500,000 -
750,000 gal.
$0.010
750,000 -
1,000,000 gal.
$0.015
1,000,000
- 1,250,000
gal.
$0.020
1,250,000
- 1,500,000
gal.
$0.025
1,500,000
- 1,750,000
gal.
$0.030
1,750,000
gal. and up
Convenience
Store Override Fee - a 'fee
on gross
sales over
$1 million according to the
following
schedule,
$0.010
$1 mill.
- 1.5 mill.
$0.005
$1.5 mill.
and up.
8ecrow account: North StarInternational Energy Corporation
will establish an escrow account in the amount of $1,450.00
which can be drawn upon by the City if North Star International
Energy Corporation is late or deficient in making monthly lease
payments.
Records: North Star international Energy Corporation must keep
records in amanner cceptable to the Airport Director
indicating the number of gallons of fuels sold and the gross
sales at the convenience store. The City has the right to
audit the records at any time.
Taxes: Any taxes imposed upon the real estate, building and
personal property are the responsibility of North Star
International Energy Corporation.
Use: North Star International Energy Corporation will develop
the lot for a retail gasoline station and convenience store
assuming all development and operational costs and for no other
purposes.
Utilities: North Star International Energy Corporation will
be responsible for all utilities.
95-190
Insurance: North Star International Energy Corporation will
provide comprehensive public and property damage liability
insurance to limits of $1,000,000 per each occurrence,
environmental hazard insurance to a limit of $1,000,000 per
each occurrence, and workers' compensation insurance.
Exclusivity: Lot 18 will be the only lot in the Maine Business
Enterprise Park on which a retail gasoline station will be
developed.
Oesian StaMzrds: The retail gasoline station must be
designed, constructed and operated in a manner consistent with
the objectives of the Maine Business Enterprise Park.
Specifically, the development must comply with a set of
standards similar to the covenants governing the Maine Business
Enterprise Park. For instance, the primary facade materials
will be masonry, brick, glass or wood.
Appraisal Coate: North Star International Energy Corporation
will reimburse Benhir Corporation in the amount of $1000.00 for
the coat of the professional evaluation of the site and market
information on retail gasoline and convenience store sales as
directed by Council Order 93-12.
BECONNENd1TION
The Board of Directors of Bankir Corporation have reviewed this
matter and recommend approval of this lease agreement under the
Lerma and conditions outlined above .
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