HomeMy WebLinkAbout1991-11-13 92-12 ORDERItem/Subject: Ratify the City Manager's execution an option
agreement and a lease agreement for a lot in the
BIR Commercial/ Industrial Park.
Responsible Department: Community and Economic Development
Edward Delay, President, Sir Edward's Smorgasbord, Inc., St.
Jahn, New Brunswick wishes to extend his option of Lot dll in the
BIA Commercial / Industrial Park until December 31, 1991. The
option agreement expired on October 31, 1991, and Mr. Delay has
requested a sixty (60) day extension of the option to enable him
to conduct an environmental assessment of the property. The
environmental assessment is a condition of the financing
agreement Mr. Delay has with Machais Savings BaNc.
Also because of various delays in the project schedule, Mr. Delay
intends to begin construction in the Spring.
Therefore, we are requesting your ratification of the City
Manager's execution of a second option agreement containing the
following changes to the current option agreement: -
1. The option period would be from November 1 until December 31,
1991.
2. Mr. Delay would assume full liability and hold the City
harmless for any injuries suffered by members of the general
public on the site and provide the City with evidence of his
public liability insurance.
3. Mr. Delay will maintain soil erosion control measures at the
site.
4. The lease would be amended by adding the lease rate of $230
Par month from November 1, 1991, to March 31, 1992, with the
option to extend the lease for five "are and further options to
extend the lease for up to forty years.
Delay intends to construct a 8400 sq. it. building for a
restaurant operation catering primarily to tour buses. The 2.07
acre lot has been appraised at $155,000.
Page I of 2
COUNCIL ACTION
Date
11111/91
Item
No.
92-12
Item/Subject: Ratify the City Manager's execution an option
agreement and a lease agreement for a lot in the
BIR Commercial/ Industrial Park.
Responsible Department: Community and Economic Development
Edward Delay, President, Sir Edward's Smorgasbord, Inc., St.
Jahn, New Brunswick wishes to extend his option of Lot dll in the
BIA Commercial / Industrial Park until December 31, 1991. The
option agreement expired on October 31, 1991, and Mr. Delay has
requested a sixty (60) day extension of the option to enable him
to conduct an environmental assessment of the property. The
environmental assessment is a condition of the financing
agreement Mr. Delay has with Machais Savings BaNc.
Also because of various delays in the project schedule, Mr. Delay
intends to begin construction in the Spring.
Therefore, we are requesting your ratification of the City
Manager's execution of a second option agreement containing the
following changes to the current option agreement: -
1. The option period would be from November 1 until December 31,
1991.
2. Mr. Delay would assume full liability and hold the City
harmless for any injuries suffered by members of the general
public on the site and provide the City with evidence of his
public liability insurance.
3. Mr. Delay will maintain soil erosion control measures at the
site.
4. The lease would be amended by adding the lease rate of $230
Par month from November 1, 1991, to March 31, 1992, with the
option to extend the lease for five "are and further options to
extend the lease for up to forty years.
Delay intends to construct a 8400 sq. it. building for a
restaurant operation catering primarily to tour buses. The 2.07
acre lot has been appraised at $155,000.
Page I of 2
Investment in the project will be $900,000 in building,
machinery, and equipment generating approximately $14,000 in
property taxes. There will be 30 new full-time jobs and 10
part-time jobs created from the project. The projected lease
revenues over the first twenty years of the lease will be over
$40v
000.
This investment is the direct result of Bangor's Sister City
relationship with Saint John. Delay became interested in a
operation in Bangor after talking with Bangor officials during a
Sister City exchange. //�J
s.(,F. z, ,Yi�f.�
Dope nt sad
Manager's Commentary �,., m
Osla..rwJ�AJ'F4`Amm.wWnd.l.
City Manager
Associated Information:
This item was reviewed by the Community and Economic Development
Committee at their meeting on October 30. It was not officially
approved because of the lack of a quorum, but the two members
present recommended the Council approval.
Finance Director
Legal Approval:
Mr{�n5 city so 'citor
Introduced For
X_Pdssage
First Reading Page 2 of 2
_
Referral
92-12
A 4ped to CaomeNor Stone, November 13, 1991
r CITY OF BANGOR
(➢TIF.) (Drbgr AtrEhorizing_the City manager to sign an option
agreement and a lease agreement with Sir Edward's Smorgasbord, Inc.
By the City Costal at da Oity ojBa ose.
ORDERED,
TMT
the City Manger is hereby authorized and directed, on
behalf of the City of Bangor, to execute an option agreement and
a lease agreement, a copy of which is on file in the office of
the City Clerk, with Sir Edward's Smorgasbord, Inc., for I.Ot %11
in the BIA Commercial/ Industrial Park at Bangor International
Airport.
IN CITY COUNCIL
November 13. 1991
Tabled f
CITY Fj On
In City Council November 25r1991
Passel
City rk
93-12
OR DEN
Title,
AOCbo�r�/ixin�g�th�e/City`�Mana er .t
o .S1 n.
a
OptimmC and aLease Agreement
with
Sir Edward Smorgasbord, Inc.
..............................
�A{n/uigned to
.............
Councilman