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Home My WebLink About1995-05-08 95-212 RESOLVEItem/Subject: RESOLVE, Approving Amendments to the Lease with General Electric Company Responsible Department: Comity and Economic Development Commentary: The attached Resolve authorizes the City Manager to execute amendments to the City's lease with General Electric. The attached Memorandum describes the proposed changes. Department Head Manager's Comments: CiManager Associated Iaformat ion: fl4O , Budget Approval: Legal Approval: lbsaft /MSL pMln9invl'n_fr5 ��,,,� ry� t-iP LE Ltov5 f ,baek iv fUl /icy / Introduced For (OuAel l /fr N(Mal rorr{rrofy/n Once Suns./ X Passage _First Reading byik lily Nangyrr, rf jr r5 Page 1 of z Referral //(MjS PO/aveol. (Lai( rok "dcsF ,�. i1ni:n P4� Cfyr 05 rnS vr, is tk ye Siclval ountr at/ kniFpprer AA4A buiWAl 1'/wr&eY o , 3Go✓lel G6 GL61 Met l' n<w;c /raSz ran i/5 ✓lh'rrn{( ?e�lnri on. In 11wf GE'S inr�ia.,+,.(n�% d� ll+ Ci/y'y 6lraer{r{7Ha,K FiLPn dpran.[d by a� jnLKASL ,n GE'S Rn+ pAof t lln elly, WO 60ek-v/1 9✓ao+ lrL) by GE 1 a0- arAl COUNCIL ACTION Date NAY 8, 1995 Item No. 95-N9 Item/Subject: RESOLVE, Approving Amendments to the Lease with General Electric Company Responsible Department: Comity and Economic Development Commentary: The attached Resolve authorizes the City Manager to execute amendments to the City's lease with General Electric. The attached Memorandum describes the proposed changes. Department Head Manager's Comments: CiManager Associated Iaformat ion: fl4O , Budget Approval: Legal Approval: lbsaft /MSL pMln9invl'n_fr5 ��,,,� ry� t-iP LE Ltov5 f ,baek iv fUl /icy / Introduced For (OuAel l /fr N(Mal rorr{rrofy/n Once Suns./ X Passage _First Reading byik lily Nangyrr, rf jr r5 Page 1 of z Referral //(MjS PO/aveol. (Lai( rok "dcsF ,�. i1ni:n P4� Cfyr 05 rnS vr, is tk ye Siclval ountr at/ kniFpprer AA4A buiWAl 1'/wr&eY o , 3Go✓lel G6 GL61 Met l' n<w;c /raSz ran i/5 ✓lh'rrn{( ?e�lnri on. In 11wf GE'S inr�ia.,+,.(n�% d� ll+ Ci/y'y 6lraer{r{7Ha,K FiLPn dpran.[d by a� jnLKASL ,n GE'S Rn+ pAof t lln elly, WO 60ek-v/1 9✓ao+ lrL) by GE 1 a0- arAl By On City Cosseil of W OYk OfBaapor; RRSOLVRD. WHEREAS, the City of Bangor and General Electric Company are parties to a lease dated June 30, 1993, as subsequently amended on August 30, 1994; and WHEREAS, said parties wish to further amend their Lease to increase the authorized loan amount under Article III (E) (2) and elsewhere in said lease as previously amended; and WHEREAS, Article III (E) (2) of said Lease states that the additional rental for Building #273 shall include the amount necessary to amortize Nine Million Dollars ($9,000,000.00) 1 financing obtained by Bangor Target Area Development Corporation; and WHEREAS, General Electric has requested that the maximum amount financed by Bangor Target Area Development Corporation be increased to Eleven Million Dollars ($11,000,000.00) for the purpose of funding closing costa, and contingencies related to the expansion of Building #273, and reimbursement to General Electric for capital expenditures made at Building #488; THEREFORE, BE IT RESOLVED THAT the City Manager in hereby authorized to execute amendments to the Lease which will adjust the rent to be paid by General Electric in the amount necessary to amortize the cost of up to Eleven Million Dollars ($11,000,000.00) in financing from Bangor Target Area Development Corporation, and provided that the proceeds of such funding be utilized to pay for the costs of installing overhead cranes at Building #488 as well as the Building #273 expansion. Woon.an a/x/fsl Assigned to councilor galtacci May e, 1995 95-212 CITY OF BANGOR (TITLE.) mtM'`_B' APPROVING AMeNDMENTS TO THE LEASE WITH GENERAL ELECTRIC COMPANY By On City Cosseil of W OYk OfBaapor; RRSOLVRD. WHEREAS, the City of Bangor and General Electric Company are parties to a lease dated June 30, 1993, as subsequently amended on August 30, 1994; and WHEREAS, said parties wish to further amend their Lease to increase the authorized loan amount under Article III (E) (2) and elsewhere in said lease as previously amended; and WHEREAS, Article III (E) (2) of said Lease states that the additional rental for Building #273 shall include the amount necessary to amortize Nine Million Dollars ($9,000,000.00) 1 financing obtained by Bangor Target Area Development Corporation; and WHEREAS, General Electric has requested that the maximum amount financed by Bangor Target Area Development Corporation be increased to Eleven Million Dollars ($11,000,000.00) for the purpose of funding closing costa, and contingencies related to the expansion of Building #273, and reimbursement to General Electric for capital expenditures made at Building #488; THEREFORE, BE IT RESOLVED THAT the City Manager in hereby authorized to execute amendments to the Lease which will adjust the rent to be paid by General Electric in the amount necessary to amortize the cost of up to Eleven Million Dollars ($11,000,000.00) in financing from Bangor Target Area Development Corporation, and provided that the proceeds of such funding be utilized to pay for the costs of installing overhead cranes at Building #488 as well as the Building #273 expansion. Woon.an a/x/fsl IN CITY COUNCIL 95-212 May 1995 EE80L V E P e CIT CLE&K Approving amendments to the Lease With General Electric Company j 6n �'' c lKam4 FSO 95-212 To: Bangor City Councilors Edward A. Barrett, City Manager1/ From: Kenneth R. Gibb, Director, T X_ Dept. of Community & Economic Development Date: May 3, 1995 Re: Proposed General Electric Lease Amendments As you know, GE is completing the last of three expansions of their Bangor facilities which represent an investment of over $30 Million in their Bangor plant and equipment. The buildings occupied by GE are owned by the City of Bangor and GE pays rent to Bangor International Airport for the use of these buildings. Over the years, this rent has been increased in order to pay for the expansion and improvement of buildings leased by GE. A major portion of the financing has been provided by Bangor Target Area Development Corporation, anon -profit development corporation which has secured loans from Fleet Bank of Maine. The City has then assigned rent to Target in an amount necessary to repay the Fleet loans. The mostr ent financing from Target was approved for a mount up to $9Million. GE is now requesting that this amount be increased to $11 Million for the purpose of covering additional i costs and to reimburse GE for capital expenditures related to building improvements at Building #488 (the previous expansion project). This increase will necessitate minor changes in the lease between the City and GE which are outlined in the attached Council Resolve. Staff recommends approval of such changes. It should be noted that both Target and Fleet will need to approve the increase in financing. mus\®.u+ (Bp/sz) Page 2 of 2