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HomeMy WebLinkAbout2018-11-14 19-006 Order 11/14/201819-006 11/14/2018 19-006 Airport Order 001-001 Title, Order Authorizing A Lease Agreement Between New Castle Hotel Corporation (Sheraton) and the City of Bangor for Land at Bangor International Airport (BGR) This Order will authorize a lease agreement between New Castle Hotel Corp. and the City of Bangor for operation of the Sheraton Four-Points Hotel, located at the Bangor Airport. Recently, New Castle management requested to extend the term on their current lease in order to secure financing necessary for hotel improvements. Given the original agreement was executed in 1974, and there have been numerous subsequent amendments, it was prudent to establish a new agreement. This new agreement outlines a term of 20 years, with three options for 10 year extensions. The agreement also outlines an updated land lease rate schedule and includes installment payments to be made on the first business day of the months of May through December. Additional terms include use of parking and rate adjustments which range from $84,000 in 2019 to $110,200 in 2035 for the initial term of the agreement. This agreement will be in a final form as approved by City Legal. Airport Committee 11/05/2018 Recommend for passage Staff recommends approval. Consent 11/14/201819-006 CITY OF BANGOR ORDER 11/14/2018 19-006 Nealley Authorizing A Lease Agreement Between New Castle Hotel Corporation (Sheraton) and the City of Bangor for Land at Bangor International Airport (BGR) WHEREAS, The City of Bangor owns and operates the Bangor International Airport; and WHEREAS, New Castle Hotel Corp. owns and operates the Sheraton hotel located at the airport; and WHEREAS, New Castle requested an new lease which would extend the term on their current agreement through 2035 with three ten year extensions; and WHEREAS, this extension will provide New Castle the ability to secure financing necessary for hotel improvements; and WHEREAS, The initial term of the lease establishes rates ranging from $84,000 per year in 2019 to $110,200 per year in 2035; and WHEREAS, the lease establishes the use of parking and payment terms; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, That The City Manager is authorized to execute this agreement between New Castle Hotel Corporation and the City of Bangor for a land lease at Bangor International Airport. Said agreement shall have an initial term through 2035 with the right to extend for 3 ten year terms; a yearly lease rate starting at $84,000 and increasing to $110,200 in 2035; lease rates established for subsequent 10 year terms; and an agreement as to the use of parking. The final agreement shall be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL NOVEMBER 14, 2018 CO 19-006 PASSED 1 / EPUTY V TY CLERK