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HomeMy WebLinkAbout1991-05-13 91-206 ORDERCOUNCIL ACTION Item No. 91-206 Date May 6, 1991 Item/Subject: Authorizing the City Manager to execute a lease with BanAir Corporation Department: Community and Economic Development Commentary: BanAir Corporation requests several changes in the existing real estate management and marketing contract with the City. In general the changes wouldz A. Clarify the responsibilities of Banhir as the property management and real estate marketing organisation at Bangor International Airport. B. Clarify the area and buildings for which BanAir has property management responsibility. C. Clarify that BanAir is responsible for the planning of the development of airport land and buildings but is not responsible for the construction or physical development. D. Clarify that the Lessees and the City have the responsibility for maintenance of buildings. E. Add requirement that BanA.in contract with the City for staff es. Fe Change the compensation to Ban r from 108 to 258 of lease revenues and 5% of selling price. G. Add that if BanAir is involved with lease negotiations in aeronautical areas, BanAir will be reimbursed for direct Coost&. , Department Mead Manager's Comments : - 41 City Manager Associated Information:© Finance Director Legal Approval; -rjs w4 t4 wR ttmA p«..�'T'�^"'aha — city solicitor 'course For __X__Passage _First Reading Page i of 1 Referral 91-za6 Assigod to Coondor Saxl. May 13, 1991 CITY OF BANGOR (TITLE.) tprbjYy._....Autharizing-the..city .Manager. ..to.. execute.. a.. lease........ By tht City Coaxed of AM City ojBanpor: ORDERED, THAT the City Manager is hereby authorized and directed n behalf of the City of Bangor, to execute a lease, a copy of which is on file in the office of the City Clerk, with Bangor Civic Airport Development Corporation (BanAir) for property management and marketing of real estate at Bangor International Airport. . In City Council Mev 13.1991 Passed as Amended Amended by Addis Subject to FAA Aprovel a�(/M/ a..w.. 91-206 ORDER Title, Authorizing the City Manager to Exec¢ A Leese wi BA}lAIR Co'e� ................. I.................. avzzQ 6 W Awngned to Councilman 91-206 Memo To: Members of the Bangor. City Council From: Stephen A. Bol c, economic Development Officer, Department o o try Qie o c Development Date: May 6, 1991, Subject: Amendment to the BanAir Real Estate Management Contract and lease for Building l2I1 Following is a summary of the raccommended changes to the Real Estate Management Contract between the City and B ektr Corp. and to the lease agreement for Building #271 at Bangor international Airport. SUMMARY OF BAMAIR CHANGES Real Estate Manaament Contract The purpose of the suggested amendment is: A. Clarify the responsibilities of ShaAfr as the property management and real estate marketing organization at Bangor International Airport. B. Clarify the area and buildings for which 6enAir has property management responsibility. C. Clarify that BaMfr is responsible for the planning of the development of airport land and buildings but is not responsible for construction or physical development. The specific changes am: 1. Change: Geographic boundaries to include all non -aeronautical areas plus the 3 General Electric buildings. 2. Add: Language which includes environmental and engineering studies as a BanAir responsibility along with property management responsibilities. 3. Clarify that the Lessees and the City have the responsibility for maintenance of buildings. 4. Add: A condition of the contract shall be that BanAir contract with the city for staff services. 5. Change: Compensation to SanBir from la% to 258 of lease revenues and 5% of selling price. 91-206 Page 2 6. Add; If BanAir is involved with lease negotiations in aeronautical areas, BanAlr will be reimbursed for direct costa. Building #271 Lease 1. Rental - change rate from 75 cents per square foot to 75 cents or 658 of gross rent, whichever is greater. 2. Define maintenance and repair responsibilities as follows: (a) BanAir - minor interior maintenance up to $500 limit (b) Airport - major maintenance Currently, the airport is responsible for all maintenance. 3. Utilities - Airport is responsible for all utilities. Currently, BanMr pays airport 50 cents per square foot of occupied space. 91-206 REAL ESTATE AND T CONTRACT THIS AGREEHBNT made this day of 19910 by and between the City of Bangor (hereinafter referred to as the "City"), a municipal corporation, and Bangor Airport Civic Development Corporation (hereinafter referred to and known as "BaMfr"), a non-profit local development corporation, both of which are organized antler the laws of the State of Maine and have their principal places of business in Bangor, Penobscot County, Maine. WHEREAS, The City is the owner and operator of an airport commonly known as Bangor International Airport, and located in the City of Bangor, County of Penobscot, State of Maine (hereinafter sometimes referred to as the "Airport-); and wSS MAs, BanAir is d/IdldT/ddtllddtM1ddY/fdt'KdtdYldd OA41 engageddd/dtheYdevelopmentMd/Iddd/dE/YKd/Sof Yr/dE/Ndtate ddd engaged in the development and management of real estate in said Bangor; and NN8M8X8{/YKd/1i%¢/ddditdd/Yd/dd¢d¢d/%Kd/dlttlddd/bE BddAft/dd/ddTd/dr}ddE/id/YKd/dddddt/ddd/d�dA/YKd/YKMd KdfdiddtYdt/dd%/fdt%K{ WHEREAS. by a contract dated July 10. 1979 the City to engage the es of MnAir as sole agent for the marketing and leasing of certain Properties at Bangor International Airport in a manner and soon terms therein ant forth, and WHEREAS the parties hereto wish to amend said contract, NOW, THEREFORE, the parties do mutually agree dd ElZIdddi that the above said aareement is hereby cancelled aM the following agreement adopted in its stead: ARTICLE I AGENCY, TERM The City does hereby employ and retain BanAir as sole agent for and in connection with the services described herein beginning on the first day of July. 1991 and ending on the last day of June, 1996. -1- ARTICLE IA OPTIONS TO EXTEND In addition to the initial term of five 5 years described above, BanAir and the C1ty shall have seven (]1 options to extend the terms of this agreement for periods of five 151 years each, as follows: 11 From Julv 1. 1996 to .lune 30. 2001 121 Fr® duly 1. 2001 to .lune 30. 2006 131 From (41 Prom duly July 1. 2006 1. 2011 to to dune 30. June 30. 2011 2016 (5) Froe duly 1. 2016 to dune 30. 2021 (61 From duly 1. 2021 to June 30. 2026 (J1 From July 1. 2026 to June 30, 2031 Provided, however, that (1) BanAir shall notify the City in writing of its election to exercise said option for said additional term not less than ninety (90) days prior to the natural termination of the initial term hereof and each extension term) (2) the City shall elect to extend said notion for said additional term: (3) this agreement shall then be in full force and effect; and (4) BanAir shall then not be in default of the terms of this Agreement. ARTICLE iii PROPERTIES BanAir shall use its beat efforts to manage and develop the following described real estate located within the boundaries of the Airport: SMAOX"Af/A11 Ptd$dfY¢/d8Q/6f/P6tdEt/ddd/Xy0/dikM/Tddd/dtddd/K6/8d idlTdldd/id/Y%i8/d¢tdddE6Y/6dCIiddd! Attachment A-1 Those areas and buildings indicated on the Bangor International Airport Basic Layout Plan diY%/Tddd/dfdd8/ddd %dildid$d/fd/6d/idlZdddd/id/YMid/ddtdddddY/ddKliddd! attached to this Aareement as Attacbment A-1. The area described generally indicates autical land. Exceptions are Buildings 8466, 468 and 469 currently leased to the General Electric Corporation shall be deemed included in this agreement. althouah they are located on aeronautical land. The parties agree that additional land and buildings owned by the City may, from time to time, be added li¢ Uiblddddf to or deleted from to this agreement by amendment executed by authorized representatives of both parties. -2- ARTICLE IV Beakar'e MANAGEMENT AND oEVRWPNBNT OBLIGATIONS 1. To 6fkiff/fAd/E6d4dEY/$t6dtHdd/t6f/YHf/$t6ddYiid/dAb VWI6fidd/6f Promote and market Airport industrial/commercial properties described in article III above, and to assist where applicable in the promotion and development of aeronautical uses of the airport. 2. To $t6tid6/idf/$Z6AALAd/f Ab/dfkdYibd/bf plan_ land and building development within the area designated in article III abov and to act for the City and airport in processing necessary documents and requests connected with creation and management of airport land subdivisions and building development. BanAir my conduct feasibility studies,dee enyyrgtmsental and engineering studies, but will not be resconamble for the cost of construction and Physical development. 3. To negotiate and arrange for fII/Tkidk/idfkf4kdYd/bt YMk/AkelfiHkd/tfiZ/4dYfK6/iA/dfYtfIb/YYY/idd6Tdtd¢ the lease o_ ale of land and buildings, described in Article III. Each such agreement Y4 shall be approved by the AIf$6fY M%filffd4/if the aanvor City Council or designated vmittee. (!/Td/$t6tid4/tbt/ldfKitd/fddbtifibd/idb/$fkdEdYtib dfi6K4didEk/$f6¢tidd/iA/HdfIdiA¢d{/4H6f6/f6idiHI6/ddd f$¢ZildHI6{/iAlZddiA¢/HdK/ddK/TIAtYkb/K4/Mdi{/dYtd4Kdt4/idb tbdAdiKi6d{/bidbt/d6lH6AiliT/idd/6T6lKfilfl/dj6Yidd{/H6fY/d}dKid lddtitiidA!{/ddd/idddfidEk/dd$kff¢k/ 4. $tdt146/fb4 To encourage expansions of existing buildings and construction of new buildings and including arranaing financing of these projects, where A$$Iidald practicable.. 5. To perform Property management duties for the land and buildings deacribed in Article III. including monitoring of tremperformance of Lessee. Mainteof the pmnerties will remain the responsibility of Lessees and the City 6. 9Ad4idif To establish, if practicable, iAdA6YtIAT services a,xl facilities at the airport that encourage industrial, commercial and aeronautical growth, to include, If f/t6idiHTE/dkdidb/ftidYd, but not necessarily limited to a bonded warehouse or free foreign trade zone and freight buildings; and to provide for management of such facilities. ]. To provide assistance in seeking and utilizing governmental or quasi -government loans, grants or programs of financial aid where use of a development corporation is applicable and advantageous. -3- S. To Contract with the economic Development Division of the Department of Community and Economic Develooment of the City of Baraor as principal staff of BanhIr and ontract with other deoartments as necessary Compensation will be in relation o the staff time fulfilling manaaament and days apmant obli at amount of such comnensation shall be determined a wally throe h the budaet =Case of the City and BanAir COLDOratioT ARTICLE V BanAir shall indemnify the City and save harmless its inhabitants, officers, and employees and save them completely harmless in respect to liability and damages, costa and expenses n connection with any damage or injury whatsoever to persona or property arising out of the performance of the development and management functions described herein. ARTICLE VI COMPENSATION TME/QTY#/0N0TT/$d$/Yd/ddd%it/8!/@ddQddddYidd/fdt/i8d JJitiQ88/Kdd/pdfQBdt/((10R(/dt/KRJ/ddAKMZ¢/¢t686/tJ¢JJBdJ/ddtZ¢Ed ffdd/YRE/tE8Y0T8/df/Tddd/8dd/ddTTdldgd/diYXTd/YME/dtEO/dEddfigdd id/XCKddddddKd/X{1(/X{2/ddd/X{i/ The City shall pay to BanAir as comcensation for its services 254 of the monthly gross revenues derived from the rentals of land and buildings described in Article III. with the exception of those properties subiect to any other lease agreement between BanAir and the City of Banaor. Should land within the described area be sold. BanAir shall be coagxansated for its services in the f the aross aellina urine nice its out-of-rcket expenses incurred in connection with the sale ADDITIONAL RIGHTS In addition to the other covenants and agreements contained herein, the City and BaMir may mutually agree to the following, 1. To lease to BanAir individual properties involved in projects for construction of building additions or new industrial buildings, on such terms and conditions as are necessary to obtain financing of such projects. -4- 2. To assign to Ba lir any lease that may exist in individual buildings involved in building construction projects. 3. To permit Bahr, in turn, to assign its lease to any financial institution, where necessary to finance such projects. 4. To allow Bahr to negotiate with tenants for higher rental or rental surcharges, where applicable and feasible, to provide income against financing of building corrections and maintenance programs. 5. To request Balir to assist in negotiating and/or manaoina leases for land or buildings located in the aeronautical Portions of Bangor International Airport in such cases. BdnAlr shall be reimbursed for the direct cost of providing staff. other services, and out -of -rocket expenses. 6. To contract with Balir for the lona term pmrerty management of land and buildings located in the aeronautical cortions of Manor International AS ort in comnensation for a uronertv sanaaament fee. ARTICLE VIII ON -ASSIGNABILITY This agreement is nonassignable by Balir to any third parties without the prior written expressed consent of the City. NOTICE All written notices to the City shall be addressed and mailed by regular U. S. Nail to the City Manager, 73 Harlow Street, Bangor, Mine D4401; and to the agent by regular U. S. Nail addressed to Executive Director, Bangor Airport Civic Development Corporation, c/o Department of Community and Economic Development OApdffd@df, 73 Barlow Street, Bangor, Maine, 04401; or to such other addresses as the parties may give notice to the other in writing from time to time. ARTICLE R MODIFICATIONS This agreement My not be modified, altered or amended in any manner except by written amendment executed by authorized representatives of the parties. -5- ARTICLE EI SUCCESSORS SOUND This agreement shall be binding upon representatives Of the parties hereto, their successors and assigns. IN WITNESS WHEREOF, the parties have set their hands and seals the day and year first written above. [�*3 eu BY! Its City Manager RANOOR AIRPORT CIVIC DEVELOPMENT CORPORATION By: Its Executive Director -6-