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HomeMy WebLinkAbout2018-03-26 18-147 Order 03/26/201818-147 03/26/2018 18-147 Airport Order 001-268 Title, Order Authorizing the City Manager to Execute a Lease Amendment with Bangor Airport Food Services, Inc. (BAFS) at Bangor International Airport. This Order will authorize the City Manager to execute an amendment to a lease with Bangor Airport Food Services, Inc. (BAFS). BAFS leases buildings #266 and #268 for purposes of operating an in-flight kitchen facility. These services are an integral part of the overall services provided at BGR, and in some cases, are a required service for the international flights. Currently the lease provides that BAFS pays the cost of electricity. This amendment will provide that the City will pay the cost of electricity for a six (6) month period beginning April 1, 2018. BAFS and the City shall meet monthly to review BAFS's costs of operation and the parties may, upon mutually agreeable terms and conditions, extend this provision for up to an additional six months. All other provisions of the lease will remain unchanged. Recommend for passage This item was previosuly discussed in Executive Session with the City Council. Consent 03/26/201818-147 CITY OF BANGOR ORDER 03/26/2018 18-147 Tremble Authorizing the City Manager to Execute a Lease Amendment with Bangor Airport Food Services, Inc. (BAFS) at Bangor International Airport. WHEREAS, the City of Bangor is the owner of an airport commonly known as “Bangor International Airport” located in the City of Bangor, County of Penobscot, State of Maine; and WHEREAS, by Agreement of Lease, dated April 19, 2010 the BAFS agreed to lease buildings #266 and #268 and a parcel of land which abuts and is situated between such buildings for the purposes of operating an airline catering and food service facility; and WHEREAS, by a First Amendment of Lease, dated September 26, 2014 that the term of the lease agreement was extended to December 31, 2019; and WHEREAS, under the terms of the Lease BAFS is responsible for the cost of electricity; and WHEREAS, by BAFS has requested that the City pay the cost of electricity for a six (6) month period commencing April 1, 2018. Be it Ordered by the City Council of the City of Bangor that, That Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a Second Amendment to Agreement for Lease between Bangor Airport Food Services, Inc. and the City of Bangor. Said amendment will provide that the City pay the cost of electricity for a six (6) month period commencing April 1, 2018, that BAFS meet with the City monthly to review its cost of operations, and that the parties may agree, under mutually acceptable terms and condition, to extend this provision for up to six (6) additional months. Said agreement shall be in a form substantially the same as attached hereto and in a final form as approved by the City Solicitor. 18-147 MARCH 26, 2018 SECOND AMENDMENT TO AGREEMENT OF LEASE This Second Amendment to Agreement of Lease, executed this _____ day of ________, 2018 by and between: CITY OF BANGOR, a municipal corporation organized and existing under and by virtue of the laws of the State of Maine, and having its principal offices at 73 Harlow Street, Bangor, Maine (hereinafter referred to as “Lessor”); BAFS, Inc., a corporation organized and existing under the laws of the State of Maine, and having a regular place of business at 61 Florida Ave., County of Penobscot, State of Maine (hereinafter referred to as “Lessee”) WITNESSETH: WHEREAS, the City of Bangor is the owner of an airport commonly known as “Bangor International Airport”, formerly known as Dow Air Force Base, located in the City of Bangor, County of Penobscot, State of Maine; and WHEREAS, by Agreement of Lease, dated April 19, 2010 the parties agreed to lease buildings #266 and #268 and a parcel of land which abuts and is situated between such buildings for the purposes of operating an airline catering and food service facility; and WHEREAS, by First Amendment of Lease, dated September 26, 2014 the term of the lease agreement was extended to December 31, 2019; and WHEREAS, the parties hereto wish to amend said Agreement of Lease. NOW THEREFORE, the parties do mutually agree that the Agreement of Lease dated April 19, 2010, as amended September 26, 2014, be and hereby is further amended as follows: ARTICLE XVII - UTILITIES shall be deleted in its entirety and replaced with the following: ARTICLE XVII - UTILITIES Lessee shall pay the cost of all utilities furnished and consumed on the premises, including electricity, gas, heat, water, and sewer user fees, provided that, however, for the period of April 1, 2018 through September 30, 2018 Lessor shall pay of the cost of electricity (six (6) months of electric bills). During this six (6) month period Lessee and 18-147 MARCH 26, 2018 Lessor shall meet at the end of each month to review Lessee’s current costs of operation. At the expiration of this six (6) month period, and under terms and conditions mutually agreed upon by the Parties, the Lessor may agree to pay the cost of electricity for up to an additional six (6) month period. Lessee accepts all utility fixtures as they now exist. All new utility fixtures shall be installed and maintained by the Lessee. Lessee is responsible for all snow and rubbish removal. THAT except for the foregoing, said Indenture of Lease, dated April 19, 2010, as amended September 26, 2014, between the City of Bangor and BAFS, Inc. will remain in full force and effect in all other respects between the undersigned. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year written above. City of Bangor: __________________ ____________________________ Witness Catherine M. Conlow City Manager BAFS, Inc.: __________________ ____________________________ Witness Allon Fish President IN CITY COUNCIL MARCH 26, 2018 CO 18-147 PASSED 4-As, 9 CITY CLERK