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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.