HomeMy WebLinkAbout1994-03-28 94-148 ORDERMMMMMTM
Date: 3/28/94 Item No.: 94=148
Item/subject:
Extension of a Lease Agreement with The Hertz Corporation
Responsible Department: Community and Economic Development
Coummentarys
SEE ATTMHED MEND.
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Finance Director
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Introduced For
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_First Reading Page 1 of 3
Referral
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94-148
Asgiped to CuuncOu. Shubert March 28, 1994
_- CITY OF BANGOR
(TITLE.) &INers _..Authorizing. the. City. Manager to Execute a I®ama._...
Amendment with The Hertz Corporation
Be CMY C&wsaB sfW City KNZ*➢a:
ORDRRRD,
THAT
the City Manager is hereby authorized and directed,
on behalf of the City of Bangor, to execute an amendment to a lease
agreement dated November ], 1974, with The Herta Corporation for
Lot 3 in the Utah Avenue Subdivision.
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IN CITY COUNCIL
March 28, 1994
Passed d�
ITY CL"
94-148
ORDER
Title,
AnbhorizinQ the City kf w"gIx tq Exgf4re
a Lease Amendment with the Hertz Corporation.
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' BANGOR AIRPORT CIVIC DEVELOPMENT CORPORATION
c/o Ecclocamic natelco em Calanumn
Baeo, City Hall
legal, Maim M401
MBmora m
To: Members of the City Council
From; Stephen A. Bolduc, Executive Manager
Date: March 28, 1994
Subjectz Extension of a Lease Agreement with The Hertz
Corporation
Ieeue
The Hertz Corporation wishes to exercise its option to extend the
lease agreement between the City of Bangor and The Hertz
Corporation for Lot 3 in the Utah Avenue Subdivision.
Background
The lease agreement dated November 7, 1974. will expire on
September 30, 1994. it grants to The Herta Corporation an
"irrevocable option" to renew the lease for a ten (10) year term
upon notification to the City of Bangor prior to the termination
of the lease. The Hertz Corporation has confirmed its intention
to exercise the option, and we have negotiated a lease rate for
the option period.
The Hertz Corporation has accepted the following lease rate and
conditions which are based upon the policy that the annual lease
rate ba a percentage of the appraised value:
Premieeex Lot 3 of the Utah .Avenue Subdivision as described
in Article I PRIMERS of the lease agreement dated November
7, 1974 ,between the City of Bangor and ,The Hertz
Corporation. (.598 acres)
T; Ten (10) years as prescribed in Article III OPTION TO
EENEW of the lease agreement dated November 7, 1974, between
the City of Bangor and The Hertz Corporation.
Page 2 of 3
OPERATOR OF BANGOR FOREIGN TRADE ZONE NO. E8
Telephone:(2B7) 9474842. TELEX: BANAIR 9510007
94-148
Nate:
October 1, 1994 to September 30, 1999 - $5,130.00
annually paid in monthly amounts of $427.50. The
rate is derived as follows: Annual lease rate
98 of appraised market value ($57,000 or
$95,262/acre).
October 1, 1999 to September 30, 2004 - The
monthly lease payment during this period will be
-
determined as follows $429.50 plus the product
of $427.50 multiplied by the a= of the five
annual percentage changes in the Consumer Price
Index, the All Items expenditure category, for the
period July, 1994 to July, 1999. The maximum
annual change in the CPI will be 58.
All other Lerma and conditions of the lease agreement dated
November 7,
1974, between the City of Bangor and The Hertz
Corporation
would remain in full force and effect.
Recommendation
The Airport
Committee and Staff recommend the approval of the
extension of the lease agreement under these terms and
conditions.
SAB/JP
For. (Nap)
Page 3 of 3
eeeveVmn.fce 12,21/941