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.
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Manager's Comments:
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Associated Information: Orden "Nuo
Budget Approval: IV
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Legal Approval:
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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
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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