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HomeMy WebLinkAbout1991-07-22 91-300 ORDERV Cate 7-22-91 Item No. 91 -300 Item/Subject: Authorizing Asst. City Solicitor to Accept Settlement Offs City of Banger v. Hefflefingerr, Inc. (Thrifty Rent -a -Car) Responsible Departments Legal Commentary: See attached. xr ease Manager's Comments: City Mnxaus, Associated! Information: Budget Approval Fixa m Demeter Legal Approval: Asst. Our Sir.. sae Introduced Fos Passage First Reading Page _of— ❑Referral ' Aeeipmd to Cooncaor coven 91-300 CITY OF BANGOR (TITLE) @ibex Authorizing Asst. City Solicitor to Accept ,. Settlement Offer - City of Bangor vs. Hefflefinger, Inc. (Thrifty Hent-a-Car) By he Qty CeamH of Qty ofHaayer' ORDERED, THAT the Asst. City Solicitor is hereby authorized to accept a settlement offer in the amount of $13,B74.91 in the City of Bangor's pending suit against Hefflefinger, Inc. for back rental payments owed by. Hefflefinger, Inc. to Bangor International Airport, and to execute necessary releases in connection therewith. In City Council July 22.1991 Passed C ty Clex! w- 91-300 ORDER Title, Authorizing Aee0. City Solicitor to Accept Settlement offer - City of Bangor VS Hefflefinger Inc. ................. jar ................. IDr1Ety Hent a Cer Aa ipied to . ...................................... Councilman Authorising Asst. City Solicitor to Accept Settlement /tUtn!{tty of Bangor vs. Refflefinger, Inc. (Thrifty Rent -a -Car) Responsible Department: Legal Commentary In ,lune, 1990, the City filed suit in the Penobscot County Superior Court (Civil Action, 90-5) against Hefflefinger, Inc. for back rents awed on account of Hefflefinger's lease of parking areas and terminal counter space at Bangor International Airport. Heffle- finger occupied the previews under a written Lease with BIA through - December, 1981. After expiration of its Lease, Hefflefinger continued to occupy the premises as a hold- over tenant until May, 1990, when Hefflefinger agreed to quit the premises due to nonpayment of rent. The City's total claim for unpaid rents due under the Lease and during the hold -over period is $60,042.30. On review of -Airport records subsequent to filing suit, it appears the total amount Of the City's claim should be adjusted downward to $56,051.35. Of this amount, $42,210.22 represents unpaid "percentage" rents calculated in accordance with the parties' written Lease for the period of Refflefinger's hold -over tenancy, 1988-90. Hefflefinger contests its liability for this amount, asserting that as a hold- over tenant, it owed only the "basic rent" specified in the original Lease, i.e., $10595.00 per month, which it has paid. Hefflefinger does not contest the balance of the city's claim, which it calculates to be $13,814.91"(I calculate $13,181.13), and has offered to settle on this basis. The $13,814.91 represents unpaid "percentage" rents for 1982 Hefflefinger is currently in financial difficulties, which my make any judgment in the full amount of the City's claim uncollectible. In addition, the parties' failure to expressly extend their written Lease raises the possibility that the City would not recover the disputed percentage rents in a contested action. Accordingly, I recommend settlement on the basis of Hefflefinger's $13,814.91 offer. Item No. Page of_ Date S-ppngt aiun Item No. Item/Subject: Com, nut lying i1e PSSistant City Solicitct to tasks isctiort fu eettba a 1 pl action in City of Barriscr vs. HefflefDagIer Lc. Responsible Department lel Commentary: gave Status of Hue lepl action will be this subject cf an emcuttve aesefon of Hm IsImprce �tt w1ccc w Hle CM=I1 Swaine. peracug Use rnaulte of Hut godating , Hus item aay be tealy for full 6cmcil actien. it alpaaxs can Hee agars a to xesevva a spxa stee]A se he pmpa2ai To Tamm haul Kara. nePorc, �ctman ' Manager's Comments: cityMm oyer Associated Information: Budget Approval no anirc Legal Approval: city s,ii'a" Introduced For E3Passage El First Reading Page _ of ❑Referral