HomeMy WebLinkAbout1992-07-13 92-352 ORDER92-352
COIRK!M ACTION
Data: 7/13/92 Item No.:
Item/Subject:
Approval to terminate the lease between the City of Bangor and
K. F. Godfrey Partners and to execute a lease agreement with
Irving Oil Inc. for Lot t26 in the BIA Commercial/ industrial
Park.
Responsible Department: Community and economic Development
Irving Oil Corporation hoe a Purchase and Sale agreement with
M.P. Godfrey Partners for the former Timberland Shoe building on
Maine Ave. in the Sanger International Airport complex. The sale
of the building. is contingent upon negotiation of a land lease
with City Of Bangor.
The building would be Irving Oil Corporation's New England
headquarters and used primarily as an office building, although
the facility will also include distribution and warehousing.
Them will be no exterior storage, and interior storage will be
of cased motor oil and drums of lubricants.
This facility will combine several of Irving Oil Corporation's
existing sites into one facility. Employment is expected to he
50 to 60 initially, expanding to 125 after one year.
Irving Oil Corporation estimates building improvements to total
$500,000. They plan to completely rehab the interior;
immediately improve the exterior landscaping: mature trees,
flowers, etc.; install windows of appropriate size s color;
modify the building's entrance; and refinish or paint building's
exterior with colors or treatments in keeping with the Atm
Land Develooment strategy.
Following are the lease terms that have been negotiated and
agreed to by Irving Oil Corporation:
* Lease Term - 10 years, 1992-2012, with four 10 yr. options.
+ Lease Rate - Increases 408 each 10 yr. period after 2012.
1992-2002 $10,386.00 annually $ 865.50 monthly
2002-2012 $15,581.40 annually $1,298.45 monthly
2012-2022 $21,814.00 annually $1,817.84 monthly
2022-2032 $30,540.00 annually $2,545.00 monthly
2032-2042 108 annually of the fair market value determined by
appraisal but not to exceed a 408 increase from previous period.
Page 1 of 2
The lease agreement between M.B. Godfrey Partners and the City of
Banger began on October 1, 1987 and continues through September
r_ 92-352
30, 2007, with N.F. Godfrey Partners having an option to extend
- the lease for an additional forty years. The lease rate through
1997 is $10,386 annually; $129$.45 until 2007; and is negotiated
for any periods thereafter.
The BanAir Corporation has reviewed the proposed lease agreement
and recommends its approval to the City Council.
Staff recommends approval of the termination of the lease between
the City of Bangor and N.P. Godfrey Partners and the execution of
a lease agreement with Irving Oil Inc. for Lot i26 in the BIA
Commercial/Industrial Park. /
s
Department neaa
Hanger's Comments:
�A a
City me at
Associated Information:
Budget Approval:
Finance Director
Legal Approval: ny^.a','.,",','�P,,1/
City Solicitor
Introduced For
,Passage
_Pirst Reading Page 2 of 2
Referral
92-352
AmignM [a CouucJw Sawyer, July 13, 1992
CITY OF BANGOR
(TIR&) VLrDCTf The _ term¢natien of I the lease between the city of Bangor
and H.F. Godfrey Partners and to execute a lease agreement with
Irving Oil Inc.
By w Coy CmxaU of the My of Bangor.
ORDERED,
THAT the City Manager is hereby authorised and directed,'
on behalf of the City of Bangor, to texminate the lease between
the City of Bangor and M.F. Godfrey Partnere and to execute a
lease agreement with Irving Oil Inc. for Lot 426 in the BIA
Commercial/ Industrial Park.
In City Council July 13,1992
Passed vote 7 yes 2 Absent
voting Yes Baldacci,Blanchette,
Frankel, Sawyer,Saxl,Soucy,Stone
Absent Bragg, Cohen
`YVY cj k
0 R � E 2
Title,
The Termination of the Lease ttetween
.....................................4
the City of Bangor and M.F. Godfrey
.ButpeFA .94d..k4. xscyte, a Lease Agreement
with I g Oil Ipc..-��%
Assigned to 'w�",.�"W[
.......��.'in...d0.cli+�/1.............
,b, ,,� Councilman