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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