HomeMy WebLinkAbout1993-08-09 93-396 ORDERCOUNCIL ACTION
Date: 8/9/93 Item No.: V 93-396'
Item/Subject:
Authorising the City Manager to execute an amendment to a lease
agreement with International Paper for office space in Building
#272 at 39 Florida Avenue.
Responsible Department: Community and Economic Development
Associated Information:
MWl OR
-r,
3%NA- w
Finance Director
U&1W¢
r(- 4rti
City Solicittor
Introduced For
Passage
_First Reading Page 1 of 3
Referral
93-396
A.=ipwd to Ca.nclln, sites. a, A�B,st 9, 1993
CITY OF BANGOR
QITLE.) Mrber Authorizing the City manager to Execute a Lease.,
Amendment with International Paper.
By City CotmwU of W My ofBarpm:
ORDERED,
THAT the City manager is hereby authorized and directed, on
behalf of the City of Bangor, to execute, after a satisfactory
inspection, an amendment to a lease agreement dated April 22,
1992, with international Paper for office space in Building #272
at 39 Florida Avenue.
93-396
O ROER
IN CITY COUNCIL
Title,
August 9, 1993
Passed
AucM1orizing the Cit Nna
z..a.. per, ca. En€fYta a Lease
�.�cuy4<.iI:P�e✓+�-'
TYWERK
Amendment with International Paper
.�..�..�....�.
............[
......//'"^""{�.//..�.l�/.�.. ..
Q
se, t
�A�����/(�
Councilman
93-396
Memorandum
To: Members of the Bangor City Council
Fran: Stephen A. Bolduc, Economic Development Officer
Date: August 91 1993 a, B 3
Subject: Authorizing the City Manager to execute an amendment to
a lease agreement with International Paper for Office
space in Building 5272 at 39 Florida Avenue
ICMB£
The lease agreement between the City of Bangor and International
Paper Company covering portions (648 sq. ft.) of Building 5272
and related structures (greenhouse) at 39 Florida Ave. in the
Bangor International Airport complex expired on July 31, 1993.
Internwtional paper has proposed to continue leasing 648 sq. ft.
of Building 5272 and the greenhouse area in the rear for $650 per
month with the City of Bangor assuming all maintenance, taxes and
utility expenses.
Following are the proposed lease rate and conditions:
Premises:
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 xoom with
other tenants.
e. Right to use the driveway separating Building 5272
and Building 5270 jointly with the occupant of
Building 5270 and any other occupants of Building
5272. Use of up to 508 of the parking area in
front of Building 5272.
Term: One year from August 1, 1993 - July 31, 1994.
Rate{ $650 per month, $12.04 'per sq. ft.
Utilities: The City will assume the cost of all utilities.
Maintenance: The City will assume the cost of all
maintenance, Including all interior Bud exterior portions of
the building, building fixtures, equipment, operating
systems, foundation, roof and structure, doors, windows,
passageways, interior and exterior surfaces, parking areas,
grounds and landscaping.
Page 2 of 3
93-396
Insurances International Paper will provide comprehensive
public and property damage liability insurance to limits of
$300,000 per each occurrence.
Backaaonnd
International Paper leased the entire building, 2,823 sq. ft.,
and surrounding land from 1983 to 1992. As part of the
agreement, International Paper was allowed to build and operate a
greenhouse on the property; assumed the cost of all utilities;
assumed the coat 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 costs by reducing the amount of
office space rented. The lease for 1992-93 reduced the area
leased to 648 sq. ft. (about 258 of the building's usable area)
of office spac including the use of the building's conference
room, restroom antl kitchen, antl a garage antl greenhouse area
attached to the building.
International Paper currently pays $317 per month and has
responsibility for all taxes, maintenance and utilities.
Recommendation
The Board of Directors of the BanAfr Corporation recommends the
approval of this lease amendment under the rate and terms
outlined above with the following conditions:
1). that an inspection of the promisee, including the
boiler, is satiafactory.
2). that Airport personnel can provide an adequate
maintenance response or will engage private parties to
provide maintenance.
The Board of Directors of the Banair Corporation recommends
'approval for the following reasoner
A). international Paper's proposal Is $12.04 per sq. ft.
which Is comparable to other gross rents in Bangor.
B). There is an excess supply of office space in the
Airport complex which would make it difficult to rent
the building to another tenant.
International Paper has accepted the outlined terms antl
conditions.
Page 3 of 3
MWAM.M1 (iixnn