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