HomeMy WebLinkAbout1992-10-26 92-490 ORDER92-490
IAS AMENDED)
Ae®pmd W CwmcOor Sawyer October 26, 1992
CITY OF BANGOR
(TITLE.) (Orber, Authorizing the, City Nanagez_to Execute Leese Amendment
with NESCO Corporation
By ehz City Caused a1Bm CHy ofBnsym:
THAT the City Manager Is hereby authorized and directed, on
behalf of the City of Bangor, to execute an amendment to a lease
agreement dated July 1, 1983, with NESCO Corporation for a
building at 233 Odlin Rd. The amendment authorizes a credit
against rental payments of up to $1,800.00 for repair of the
building's roof subject to inspection.
STATENENT OF FACT: THIS AMENDMENT SERVES TO CLARIFY THE ORIGINAL
ORDER.
Aeeipted to CouncBor Sawyer October 26, 1992
CITY OF BANGOR
(TITLE) (DrbVr,.mthoriz.inq the,_Gity Manager. to Execute Lease Anendvant
with MBSCO Corporation.
By tae Cies Coumi! of the IXty of Banter.
ORDERED,
THAT the City Manager is hereby authorized and directed, on
behalf of the City of Bangor, to execute an amendment to a lease
agreement dated July 1, 1983, with NESCO Corporation for a building
at 233 Odlin Road.
IN CITY COUNCIL
October 26. 1992
Amended by Substitution
an assed.n
CITY`CLERK
92-490
ORDER
Title,
AltbgK5. M AM1e Aitp MaaIm to B ecate
Lease Annulment with NESCO Corporation
............................�......�...........�y..
O Councilmen
To: Bambara of the Bangor City Council
From: Stephen A. Bolduc, Economic Development Officer
Date: October 26, 1992
Subject: Authorise the City Manager to execute an amendment to
a lease agreement with NESCO Corp. for a building at
233 Odlin Rd.
Issue
NESCO Corp. has requested a reduction in their lease payment Bud
reimbursement for roof repair expenses for a building at 233
Odlin Rd. used as a warehouse and office for the wholesaling of
laminate products and equipment.
NESCO Corp. 'a monthly rent payment increased from $1,687 to
$1,875 on August 1, 1992, as prescribed in the lease. NESCO
Corp. Me requested that the monthly lease payment be maintained
at the previous monthly rental amount of $1,687. =BCD Corp. Me
also requested reimbursement for expenses to repair deteriorating
actions of the building's roof. Expenees are estimated to be
$1,800.
Background
NESCO Corp. is a wholesaler of laminate products and equipment.
They are a division of Nelson S Small, Inc. a Portland based
distributor. NESCO Coxp., which also has an operation in
Portland, has operated In Bangor and leased a building in the
airport complex since 1983. The building is a 9000 sq. ft.
former US" storage building at 233 Odlin Nd. Upon leasing the
building, =BCD Corp. performed approximately $20,000 0£
Improvements in consideration for a reduced lease rate schedule.
The rate reduction is requested because of continued decreases in
their business which is tied to the construction industry. NESCO
Corp. reports that their sales volume has fallen in each of the
last two years and that the Bangor operation is losing money for
the third year. David Small, Treasurer, said that the Bangor
operation is under "tremendous pressure". They reduced their
workforce from 12 in 1990 to 7 In 1992. Currently there are 8
employees. The requested reduction in overhead will assist NESCO
Carp. keep their Bangor operation open.
NESCO Corp.'s current lease rate is $1,875 per month or $2.50 per
square foot on a NNN basis (lessee pays utilities, maintenance,
liability Insurance, and taxes). NESCO Corp. is requesting a
reduction in lease payments to $1,687.00 per month or $2.25 per
sq. ft. Other leases within the Airport Complex are:
Northeast Reg. Airline
$1.50
NMN
Penton Hill American (Warehouse)
$4.06
N
Cablevision (Office)
$2.13
NNN
Philtrum Corp. (Office)
$5.25
NN
International Paper (Office)
$5.87
NNN
Recoveries, Center
Norrison's Custom Catering
(Ware)
$3.00
N
ASCO Corrugated (Manufacturing)
$1.60
N
WEPSCO (Manufacturing)
$2.35
was
MEPSCO (Office)
$3.00
N
Imperial Sheet Metal (Warehouse)
$3.00
N
Life Safety Manufacturing
$2.52
NNN
Other Pmoert'ea
Byer Warehouse
$2.50
NNN
Maine Banana
$4.00
NNN
Snow 6 Neally
$4.00
New
Harris Baking
$2.57
NNN
In June, 1991, NESCO Corporation
requested that the City of
Bangor either reduce their lease
rate
or amend the lease to a
••Tenancy at Will- basis. The Community and
Economic Development
Committee of the Bangor City Council considered the request and
decided not to reduce the lease rate but to
amend the lease to a
'Tenancy at Will' basis.
Regarding the roof repair, the lease states
that the Lessee has
the responsibility for maintaining
the building, including the
roof.
The Board of Directors of the BanAlr Corporation has considered
this request and recommends that the lease rate be maintained at
its current rate of $1,875 Per month. The Board feels that the
rental rate, including the August increase, is lower than
comparable properties. To forgo the rate increase would be
inequitable to other airport tenants and the private sector and
may stimulate other requests for reductions.
The Board of Directors of the Sanair Corporation recommends that
the City perform the roof repair with a limit of $1,800.
Although the Lessee has the responsibility for maintaining the
building, the City's assumption of this expense would assist
NESCO and protect the City's building from further deterioration.
`AB/jp
Date: October 26, 1992 Item No
Item/Subject:
Authorize the City Manager to execute an amendment to a lease
agreement with RESCO Corporation for a building at 233 Odlin Rd.
Responsible Department: Community and Economic Development
Sue attached mamo.
m�� t Hee
Manager's Connects:
999
Associated Information: yrQ aIMj�
Finance Director
mg-j&;"^YI9M
City Solicitor
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