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HomeMy WebLinkAbout1990-06-25 90-240 ORDERwc6-2s'90 Date Item No. 90-240 Item/Subject: Granting Consent to Assignment of Lease with Spillane Car Rental Company -- Bangor International Airport Responsible Department: Legal - Commentars: The purpose of this Order is to authorize the assignment of the ground lease for the National Car Rental service structure to Peoples Heritage Savings Gantt as security _for financing with Spillane Car Rental Company. Q-4; M(\; .. Manager's Comments: L Associated Information: Orden "Nuo Budget Approval: IV Fine m D Legal Approval: oli<imr Introduced For CONSENT AGENDA - ®Passage ❑ First Reading - - _ Par—of— El Referral 90-240 Assigned to Comados Baldacci, June 25, 1990 CITY OF BANGOR (TALE.) f®rber, G - ractins c0n1. sent to Assignment of Lease _with.. Spillane Car Rental Company -- Bangor International Airport By tM City Council oftAe Ciq KBawar: ORDERED, �r Peter R. D'Errico, Airport Manager, is hereby authorized to take all necessary action for purposes of permitting the Spillane Car Rental Company to assign its Lease Agreement with the City, dated September 10, 1973, to Peoples Heritage Savings Bank as security for financing for Spillane Car Rental Company. 90-240 IN CITY COUNCIL June 5, 1990 0 R D E R P Title, CITY LEPR Granting Consent to Assignment of Lease VItA Spillane Car Rental Company ,,., Bau�goypppx,Iun'tdelxmHaval A1rp0rt ��� " ^ ngn A�eriynp,Aled't0 �,�4 Lm- cilman MEMORANDUM June 18, 1990 TO: Bangor City Council FROM: Robert X. Miller, City Solicitor RBs Bangor International Airport, National Car Rental - Proposed Assignment Of Lease As the Council will recall, there is a National Car Rental Agency located in the Domestic Terminal Building at the Airport. The franchise is owned by a Maine corporation known as Spillane Car Rental Co., Inc. In addition to the concession arrangement, Spillane has a lease with the Cityfor a parcel of land near the entrance to the Airport on which it has built a structure for servicing its vehicles. The ground lease was executed on September 10, 1973 and expires on August 31, 1993. Spillane has an option to renew the lease for an additional term of ten years. Recently, legal counsel forPeoplesHeritage Savings Bank contacted the Airport and requested the City's consent t0 the assignment Of the ground lease for the services building as security for the Bank on a loan it has granted to Spillane. Acopy of the cover letter and Leasehold Mortgage and Security Agreement between Spillane and Peoples Heritage is on file in the City Clerk's office. The City's consent to the assignment is necessitated by a provision in the Lease which provides as followss "ARTICLe XXI It isexpressly agreed that the leased premises may not be sublet in whole or in part, and Lessee shall t assign this lease withoutd writtencent of the Lessor, sublet the premixes herein leased, nor permit any transfer by operation of law of Lessee's interest created hereby, other than by merger, consolidation or sale Of substantially all of Lessee's assets. (emphasis Supplied) Many of our agreements grant the Lessee the limited right to assign their lease for financing purposes, but not for other purposes. However, this Agreement contains an outright prohibition against any assignment without our consent. 90-240 -2- Based upon the information that has been provided, it appears to be a routine matter and is necessary for Spillane's continued operation at the Airport. For that reason, Pete B'Errico and I recommend that you vote your consent to the assignment at your next regular meeting of June 25th. R.E.M. to pc: city Manager Airport Manager