HomeMy WebLinkAbout2019-07-22 19-299 Order
07/22/201919-299
07/22/2019
19-299
Legal
Order
043-040C
Title, Order
Authorizing Execution of Lease Amendment and Credit Enhancement Agreement with Waterfront Concerts
LLC
The City of Bangor leases land land abutting Main and Railroad Streets to Waterfront Concerts LLC
(WFC) for the purpose of hosting concerts and events. The current lease extends through November
1, 2027. Waterfront Concerts LLC would like to invest approximately $7 million dollars in improvements
to the venue, which include handicapped accessibility, restrooms, seating and improved amenities. In
order to ensure that there is a financial return on the investment, Waterfront concerts LLC has
requested an extension of the current lease and a TIF agreement. An extension of the term of the
lease requires an amendment to other terms and conditions of the lease including, but not limited to,
financial terms.
This Order will authorize execution of an amendment to the lease and a Credit Enhancement
Agreement with Waterfront Concerts LLC. If approved, Waterfront Concerts LLC. agrees to invest $7
million over the next 2 years in exchange for the following: A Credit Enhancement to provide for a
75% reimbursement of taxes paid on the increased taxable value of the improvements to the concert
venue for a period of 16 years. A lease amendment to extend the term of the lease from 10 years to
15 years with an option for an additional 25 year term; lease payments to continue as provided in the
current lease through 2027 and additional increases every five years as follows: 1%,1%,4% and
thereafter 2% every five years; and a contribution from the City in the amount of $300,000 for
bathrooms that can be used by the city or other organizations under specific terms. Finally, there is
an opportunity to renegotiate the terms and conditions at 15 years if WFC exercises the option to
renew.
Recommend for passage
New Business
07/22/201919-299
CITY OF BANGOR ORDER
07/22/2019
19-299
Tremble
Authorizing Execution of Lease Amendment and Credit Enhancement Agreement with Waterfront Concerts
LLC
WHEREAS, the City of Bangor and Waterfront Concerts LLC are parties to an Lease for Waterfront Concerts
LLC's use of a lot of land abutting Main and Railroad Street for the purpose of hosting concerts; and
WHEREAS, said Lease is for a period through November 1, 2027; and
WHEREAS, Waterfront Concerts LLC intends to invest approximately $7 million dollars in the venue; and
WHEREAS, Waterfront concerts LLC has requested an extension of the current lease and a TIF agreement
because of the amount of the new investment; and
WHEREAS, an extension of the term of the lease requires an amendment to other terms and conditions of the
lease including, but not limited to financial terms; and
WHEREAS, an amendment to extend the term of the lease in in the best interest of the parties.
Be it Ordered by the City Council of the City of Bangor that,
Catherine M. Conlow, City Manager, is authorized on behalf of the City of Bangor to execute an amendment to
the Lease by and between the City of Bangor and Waterfront Concerts LLC. The amendment shall include an
extension of the term for a total term of 15 years through the 2032 concert season with an option for
Waterfront Concerts LLC to extend it additional 25 years; lease payments to continue as provided in the
current lease and then to remain at the 2027 amount for five years, and then then an increase of 1%, a
second increase of 1% in five years, a third increase of 4% in five years, then an increase of 2% every five
years; contribution from the City in the amount of $300,000 for bathrooms for the venue that can be used by
other organizations and the public under specific terms; Waterfront Concerts LLC to invest $7 million in the
lease premised within 2 years; the parties to execute a Credit Enhancement Agreement to provide for a 75%
reimbursement of taxes paid on the increased taxable value of the improvements for a period of 16 years;
renegotiation of terms and conditions if the option to renew for an additional 25 years is exercised; and such
other terms and conditions are appropriate. Said amendment shall be in a final form as approved by the City
Solicitor or Assistant City Solicitor.
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