HomeMy WebLinkAbout1994-07-11 94-327 ORDERnup
Date WY)-11-4n Item No. 24_327
tlxK;an Aebho =lrq clmgas m genal Electtic
Item/Subject: Cly mases w1N City o£ Barbi
Respomible Department Tergal Dept'
Commentary:
City staff has beer wcrking ciceely suN Cerro a1 ffi� on a fuxUer
e :p km of G. E. Is operatAcm at 6iA. Tle piopo expsasp m will f ve a
$] million expenlitore f exganaiwt of 9 ding 273, ingest ent of $20
million in neva egtipmmt sad machinery, and iha midition of 100 naa jobs with
� avexaga salaries of $31,500 per year. The Cwmcil tecently aplat
a Tax Intme t Firmicfrq Dist for Nis purpose.
Ceraral Elsiric da anxious to noose on Nle project anal a lease
ansadloent must be p pla to scro=ta fi irq. G.E. •s gal ms
N lave Ne expansi n completed Nis ming spying.
T1a attstrzi t)Ldec' Wald a Lze ele naeasa levee �erdreret. Thin
avaaaa R will ba teualcped lewd on Ne major prv✓latore of elle existing
lease sad tle smeary of It +could also fe subject N
apj 1 by Ne City 6oltcitor.
Your approval will assist in expediting i expansion.
Oefammme Head
Manager's Gammen:
city maxoga,
Associffiad Information:
ceder, Summary, (a3rmal Team Team
Budget Approval
Fiwnce Dire,to,
Legal Approval:
CIO SdWffw
Introduced For
EI Passage
❑ First Reading - Page _ of
❑ Referral
94-327
A pmdto Counsem Sullivan July 11, 1994
CITY OF BANGOR
(TITLEJ @rbtr Authorizing Changes to General Electric
> .......... ....... ............... ......._.. ...........
Company Leases with City of Bangor
BY the City Cssaeii Of WY ofBnnW .-
ORDERED. -
TBAT the City Manager is hereby authorizedtoexecute all
documents necessary to effect the following changes to existing
leases between the City of Bangor and General Electric Company for
the lease of property at Bangor International Airport:
(1) Mutual termination of the existing lease of
building 273;
(2) Addition of building 273 as a leased premises
under General Electric Company's existing
lease of. Buildings 466, 488 and 489 for a 20
year term commencing July 1, 1994;
(3) Additional rent provisions under the existing
Lease of buildings 466, 488 and 489 to
provide for continuing payment of the rents
currently paid by General Electric on
building 273, with future rent increases on
building 273 to be addressed in the same
s future rent increases on buildings
466,1e 488 and 489;
(4) Additional provisions for the payment of
increased rent on building 273 sufficient to
amortize the financed cost of a planned
expansion of building 273 by General Electric
Company. Said expansion cost is to be
financed by Fleet Bank of Maine as lender and
Bangor Target Development Corporation a
borrower, and to be secured by a assignment
of the increased rents on building 273 from
Bangor to Bangor Target and by a collateral
assignment of said increased rents to Fleet.
July 11, 1994 94-337
Passed O R D E R
xT4 C Title,
Authorizing CFange6 t0 Genial Electric
......................................
' Company Leaees xltfi CSty of Bangor.
/In, M��Aseip�ed to
:�.4..\.......
Councilmen
94-327
mw"•>mer 4v- • •.Y 2 lvl»t
1, ata existtag separate lease for Building 273 (t huilding to )
mom) will le term natal and added to the lease for Buildings 466,
488, ani 489.
2. � electric will agree to mnutrux an addition to Building 273 of
60,0004 agnea feet.
3. Tim Leon of the lease will ie increased to 20 years [ .Tiny, 1994.
4. G. E. will rutin ue to mala amvvl andel paynens on Building 273 of
$70,416 per year increasing to $1060400 in 1998.
5. G.E. will nada a payment to the City as a parr of tleir ]ease sufficfet2
to mmti.xe the coots of eapwdi i ld' 273.
6. G.E. will pay real estate tains m all Citybwrmi buildings.
7. G.E. will receive a credit against tlalr lease payresds ]veal on
captured Tax 3rm[eainC Pinancing taroaces on the real and peramal
property taxes cape ued in tM1e T1f District as well as State Ten
RrneQmR Pinancing R ar s, if any, receivsi form tM1e State.
S. G.E. will F an option to purcM1aae Building 273.
A separate suaary of tte mjor prwisiom of the existing lease is also
enacted for }wr infoxmaT.imi.
94-327
(5) A new lease provision regarding real estate
taxes, under which General Electric shall be
responsible for payment of all real estate
taxes assessed by the City of Bangor against
buildings 273, 466, 488 and 489 (or against
building 487, if exchanged for building 466
as providedinthe parties' existing Lease),
including real estate taxes assessed against
any future additions to said buildings. The
lease provision shall provide that the City
of Bangor, through its Airport Department,
shall reimburse to General Electric all real
estate taxes paid by General Electric onsaid
e
buildings in a amounts the am unts paidby
General Electric for FY 1994, with Bangor to
receive a credit against said reimbursement
amount in the amount of any payments made to
r to the benefit of General Electric Company
on account of any tax increment financing
district to be created which shall include
within its boundaries any of said buildings;
., (6) A new lease provision granting General
Electric an option to purchase building 273
on the same terms and conditions as provided
in the parties' existing Lease with respect
to buildings 466, 487, 488 and 489.
All such documents executed by the City Manager shall
be
in a form approved by the City Solicitor and shall be returned
to
the Council for formal ratification.