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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. Aft d4k, Associated infaxmation:au Finance Director ( °/'h City S licitam Introduced For z Passage _First Reading Page 1 of 3 Referral .WIANUM ma P/u/so 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. YMn.\mua. wv tzns/aa1 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. ...................................... -a�a' �Fmo to �......... Conncilasn GOOFREY E i AVENUE BOULEVARD pry i api , UfY Cf B01YM -_ i f-= a �- UTAH g ¢ 0 GOOFREY E i AVENUE BOULEVARD pry i api , UfY Cf B01YM -_ i f-= �91-1 08 M L; MM*CORPORATION ' 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