HomeMy WebLinkAbout2019-08-12 19-367 Order
08/12/201919-367
08/12/2019
19-367
Legal
Order
026-058
Title, Order
Authorizing Execution of Second Amendment to Second Amended and Restated Indenture of Final Lease
between the City of Bangor and GLP Capital, LP.
This Order will authorize the execution of a Second Amendment to Second Amended and Restated
Indenture of Final Lease between the City of Bangor and GLP Capital, LP. The amendment will
provide the following: GLP Capital, LP shall no longer be required to have a minimum number of slot
machines on the property; GLP Capital, LP shall pay to the City an amount that will equal the amount
due personal property taxes as though there were 1,000 slot machines on the property; GLP Capital,
LP shall pay to the City 3% of net table game revenue; GLP Capital, LP shall pay the City the
difference between the 2% currently paid and 3% retroactive to March 2014.
The City of Bangor and GLP Capital, LP are parties to a lease, as amended, for the operation of a
casino in Bangor. The lease requires that the parties negotiate a percentage of table games revenue
payable to the City. During the negotiations GLP Capital, LP has been paying the City 2% of net
table game revenue as required by state law. The lease also requires that GLP Capital, LP shall have
1,000 slot machines at the casino. The City receives property tax revenue for the slot machines and
reduction in the number of machines would result in a reduction of personal property tax revenue.
GLP Capital, LP has determined that the number of machines required by the lease are more than
the number required to meet the needs of its patrons and wishes to delete the requirement from the
lease while not impacting the City's personal property tax revenue and, therefore, the amendment
will provide that there will be a payment equal to the amount of personal property tax that would
have been paid had the machines been at the property.
Recommend for passage
New Business
08/12/201919-367
CITY OF BANGOR ORDER
08/12/2019
19-367
Tremble
Authorizing Execution of Second Amendment to Second Amended and Restated Indenture of Final Lease
between the City of Bangor and GLP Capital, LP.
WHEREAS, the City of Bangor and GLP Capital, LP are parties to a lease, as amended, for the operation of a
casino in Bangor; and
WHEREAS, the lease provides that the parties shall negotiate a percentage of table games revenue payable to
the City and during the negotiations GLP Capital, LP has been paying the City 2% of net table game revenue
as required by state law; and
WHEREAS, the lease provides that GLP Capital, LP shall have 1,000 slot machines at the casino; and
WHEREAS, the City receives property tax revenue for the slot machines and reduction in the number of
machines would result in a reduction of personal property tax revenue; and
WHEREAS, GLP Capital, LP has determined that the number of machines required by the lease are more than
the number required to meet the needs of its patrons and wish to delete the requirement from the lease while
not impacting the City's personal property tax revenue.
Be it Ordered by the City Council of the City of Bangor that,
Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a Second
Amendment to Second Amended and Restated Indenture of Final Lease with GLP Capital, LP. Said
Amendment provides that GLP Capital, LP shall not be required to have a minimum number of slot machines
on the property; that GLP Capital, LP shall pay to the City an amount that will equal the amount due personal
property taxes for the number of slot machines less than 1,000 at the property; that GLP Capital, LP shall pay
to the City 3% of net table game revenue; that GLP Capital, LP shall pay the City the difference between the
2% currently paid and 3% retroactive to March 2014. Said Amendment shall be in substantially the same
form as attached hereto and in a final form as approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
SEPTEMBER 9,2019
CO 19-367
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY LERK