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HomeMy WebLinkAbout1993-01-25 93-126 ORDERCOUNCIL ACTION Date: 1/25/93 Item No. 93-126 Item/Subject: Authorize the City Manager to execute an amendment to a lease agreement with International Paper Co. for Building #272 at 39 Florida Ave. in the Bangor International Airport Complex. Responsible Department: Community and Economic Development International Paper wishes to extend for six months their lease of a portion of Building #272 at 39 Florida Ave. in the Bangor International Airport Complex. International Paper leases 648 sq. ft. (about 258 of the building's usable area) of office apace, including the use of the building's conference room, restroom antl kitchen, and a garage and greenhouse area attached to the building. Staff and International Paper have negotiated the following lease rate and conditions: Term: Six months from February 1, 1993 - July 31, 1993. Rate: a. $317.00 per month. b. A utility charge equal to 100% of the cost of utilities, except fuel oil which will be supplied by International Paper, until apace is leaned to another tenant. At that time the utility charge will be amended to reflect actual usage by each respective tenant. Premiaesz a. 648 sq. ft. of office space. b. The garage and greenhouse areas. c. Shared use of the building's restroom and kitchen with other tenants. d. Shared use of the building's conference room with other tenants. e. Right to use the driveway separating Building #272 and Building #270 jointly with the occupant of Building #270 and any other occupants of Building #272. Use of up to 50% of the parking area in front of Building #272. Utilities: The City will assume the cost of all utilities, except fuel oil. Page 1 of 3 93-126 Maintenance: International Paper will assume the cost of all maintenance, including all interior and exterior portions of the Wilding, building fixtures, equipment, operating systema, foundation, roof and structure, doors, windows, passageways, interior and exterior surfaces, parking areae, grounds and landscaping. Maintenance will be shared if a portion of the building is rented to other tenants. Insurance: Provide comprehensive public and property damage liability insurance to limits of $300,000 per each occurrence. Backaround International Paper leaned the entire building and surrounding land from 1983 to 1992. As part of the agreement international Paper m allowed to build and operate a greenhouse on the property; assumed the cost of all utilities; assumed the cost of all interior and exterior maintenance; and provided public and property damage liability insurance. By 1992 the company no longer used much of the office building and wished to decrease their costa by reducing the amount of office apace rented. The lease for 1992-93 reduced the area leased to 648 sq. £t. The company now feels that their coats can W further reduced by relocating their offices. The period of this lease would allow than time to locate and move to new offices. Recommendation The BanAir Corp. recommends approval of this lease amendment under the terms and conditioner outlined above. M ✓ r Oepartm�ant Used Manager's Comments:�yy//[[�A�� Cityty Manager e ger Associated Information:0 Finance Director a Page 2 of 3 93-136 Legal Approval: _ City Solicitor Introduced For % Passage _First Reading Page 3 of 3 Referral va�.M.aQ (LvM) 93-126 Aveipmd [o CouncilorBlanchette January 25, 1993 CITY OF BANGOR (TITLE.) (DrLHre Tc authorize and direct the city Manager to execute._ an amendment to a lease agreement with international Paper Co. am Be aty Causal Of VW City of Beazer: THAT the City Manager is hereby authorized and directed, on behalf of the City of Bangor, to execute an amendment to a lease agreement with international Paper Co. for Building 4272 at 39 Florida Ave. in the Bangor International Airport Complex. IN CITY COUNCIL January 25, 2993 Passed t� CLEM� 93-126 ORDER Title, To Authorize and Direct the City Narager to Execute an amendment to a Lease W"ment with International Paper Co. A..... I.........//.;;.............. LG L 6 Wil' P Councilman