HomeMy WebLinkAbout1993-02-22 93-164 ORDERCouncil Action
Date Febmew2e.19e5 Item No. 93-164
Itam/Subject Authorizing Amendment Extending Parking Lease with Bureau of Indian Affairs -
MaliseetGardens
Responsible Department Community Development
Commentary:
The developers of Me Maliseet Gardens project on Exchange Street proposed development
in two phases, each phase using approximately one half of the City's development parcel
located between Exchange, Oak, York and Hancock Sheets (sea attached site plan). The
City granted two separate options for the development, one for each phase. During the
period of Me Phase II Option (from November 1987 to November 1990) the developer was
granted the right to develop and maintain parking spaces on City property In the Phase II
was in anticipation of fie development proposed for the Phase 11 area. The Phase II
development never occurred.
At Me request of Me now present owner, the U.S. Bureau of Indian Affeirs, a perking lease
agreement was negotiated and entered Into with the Bureau for Me two year period ending
December 31, 1992. The Lease rete agreed to was $5.48 per space per month during the
period of Me lease, with a right of first refusal for Me Bureau to continue leasing the spaces
after December 31, 1992 at Me City's current surface parking rate - less an allowance of
$5.00 for Me value of Me City not doing maintenance and snow removal. The Bureau has
now requested a reduction of approximately 80% from this rate. The Community and
Economic Development Committee has reviewed the Bureau's request and has
recommended no change in Me rate provided for in Bureau's right of first refusal.
(see next page)
Deoaamem Head /
Manager's Comments:
The Community and Economic Development Committee has recommended Mat Me
Maliseet Project pay Me standard permit fee per month less $5Ao for snow removal and
maintenance. This is Me same approach used elsewhere in Me Downtown parking area
The Maliseet Project has recovered Its original Investment In constructing Me lot over Me
pasttwo years. Ill be unfair to provide Me project with a lower rate than is charged to
others. I recommend Me attached order providing for Me went rate chargetl ihersb
passed. - /�f .gyp
Mena e
Associated Iniormatiom )
Budget Approval: -IOjF
Finance Dlrecror
Legal Approval: �y1
6
city sollcllorar
Introduced For
❑X Passage
FFirst Reading Page 1 of 3
❑ Referral
93-164
Amassed CouucJa Sullivan, February 22, 1993
CITY OF BANGOR
Author rng Amendment extending Parking Lease with
11
Bureau of Indian Affairs - maliseet
By My COwldi of 04 of Sensor.
ORDERED,
THAT the City Council of the City of Bangor hereby
authorizes the City manager to execute an Amendment to the Lease
Agreement by and between the City of Bangor and the United
States Bureau of Indian Affairs dated October 25, 1991, in a
form satisfactory to the City Solicitor, which would extend the
term of the Lease for an indefinite term at the City's regular
surface parking permit rate times the number of spaces leased,
less Five Dollars ($5.00) per space per month if the united
States Bureau of Indian Affairs assumes the responsibility of
snow plowing and maintenance of the parking spaces leased.
93-166
ORDER
Title,
Fe -
CITY COUNCIL
Pebxuaxy 22, 1993 _ AneTorizing Amendmene eutending Parking
.Or der-Passed.,
edY ed Lease vitb Bureau of Indian Affairs Maliseet
No conf11Ct f x Council r Coh5n, Gardens
by the following yes and.to Wtes. ............ . ................ .. .
Councilors voting na: Blanchette,
Bragg, Frankel, Sael, Sbubert. Saucy/�J,g'��J///`
Stone and Sullivan. Councilor Cohen
abstaining. Amigned to
C. .0 l� ....
CI CLE %cilgen
93-164'
The Bureau's representativeafeel Met since the Bureau in effect financed the coal of
constructing the 70 parking spaces located on City property, It should be entltled to a lower
rate of leasing City parking spaces than others. The City recognized this when negotiating
the lease rate with Me Bureau during Me last two year period. The estimated cost of
constructing the 70 spaces was $56,000 ($800 per space). Amortized over Me 4 years of
usage during Me Option and Lease "nods, this cost amounted to $16.67 per space per
month. The value of the Option fees paid Me City during Me two years of the option period
Me project was occupied ($4,800) amounted to $2.85 per month.
The parking lease rale during the two year pedod of Me Lease Agreement was derived by
adjusting Me surface parking rate at Met time of $30.00 per space per month by deducting
the $5.00 value per month per space of the City not doing snow plowing and maintenance,
deducting Me $2.85 per space per month value of Me Option fees paid the City during the
two year pedod of Me Option the project was occupied, and deducting $16.67 which is Me
per opera per month cost of amortizing the construction cost of the spaces over the 48
months of usage during the Option and Lease period 1$56,000 divided by 48 months divided
by 70 spaces). The result was a lease coat per space per month of $5.48. This Lease fee
allowed the Bureau to recover all costs assodated with the cost of constructing Me 70
spaces on City owned property in the 'Phase 11 area. To rescue Me calculation:
City surface parking rate at the time of Lease negotiation
$30.00
Adjusted by:
Value of CIry not doing snow removal 8 maintenance
($6.00)
Value of Option teas paid the City
($2.85)
Credit for 4 year amordzallon of cog of spaces
($16.67)
Net lease fee per space per month agreed to by Bureau 8 City $5.48
Times number of spaces leased 70
- Times number of months in year 12
= Annual lease rate agreed to for two year period of lease ".603
Rounded to - $4,600
Of Ma 70 spaces involved, 12 are signed as reserved for customer parking, 33 signed as
reserved for employees, and the balance as reserved for tenantoloccupants. Some of the
occupants have expressed a concern about the loss of use of the spaces involved,
The stall recommendation Is that the Bureau be chargetl the same surface parking rate
charged all in Me downtown area This is the rate the Bureau fully agreed to when Me
parking Leese was negotiated and executed. The Bureau has offered a 5% increase in the
$5.4B per space per month which would result in a rate of $5.75 per space per month
($4,830 annually), approximately an 80% reduction from Me surface parking rate charged
others (allowingfor Me$5 creditfor snow plowing and maintenance). Wthouttlerate
reduction requested, the Bureau would be paying $28.00 per space per month ($23,520
annually). The Bureau has thus requested a rate recitation not provided to other downtown
property owners.
Per Committee recommendation, Me atached Orderwould authortze the City Manager to
extend the parking Leave, Agreementior an indefinite period at the City's normal parking
lease rate with a $5.00Ispace allowance for the maintenance of the leased spaces by BIA.
The lease contains a proNsion Mat the City may terminate Me Lease wit IM days notice M
assure the availability of Me Phase II area for development purposes,
Page 2 of 3
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