HomeMy WebLinkAbout2021-05-24 21-191 Order
05/24/202121-191
05/24/2021
21-191
Legal
Order
R25-026
Title, Order
Authorizing the City Manager to Execute a Lease with Bangor Nursing and Rehabilitation Center.
This Order will authorize the City Manager to execute a lease with Bangor Nursing and Rehabilitation
Center. Since 2001, the City's Public Health and Community Services Department has leased space
at 103 Texas Avenue from Bangor Nursing and Rehabilitation Center (BNRC). Due to the complexity
of operating nursing home beds, BNRC has entered into an agreement to transfer the beds and
facility to Covenant Health, which has been operating under a management agreement with BNRC
for more than 10 years.
If approved, the proposed lease is roughly $10 per square foot for three years, with one option for
an additional three-year lease. Should either party wish to terminate the lease, a two year notice is
required. Additionally, the lease includes a provision that the services provided in the facility cannot
violate the healthcare directives of the Catholic Church. Currently, the city does not provide public
health services in conflict with the healthcare directives of the Church. Should the city, at some
point in the future, desire to expand services that may conflict with the directives of the church, they
can do so at an alternative city location or seek termination of the lease.
Recommend for passage
Consent
05/24/202121-191
CITY OF BANGOR ORDER
05/24/2021
21-191
Sprague
Authorizing the City Manager to Execute a Lease with Bangor Nursing and Rehabilitation Center.
WHEREAS, the City's Public Health and Community Services Department currently resides at 103 Texas
Avenue;
WHEREAS, the City has leased a portion of the building at 103 Texas Avenue ("the Property") from Bangor
Nursing and Rehabilitation Center ("BNRC") since 2001;
WHEREAS, the prior lease for the Property has expired;
WHEREAS, the proposed lease would be substantially similar to prior leases, but would contain new conditions
including a two year notice for termination and a requirement that the City not violate the health directives of
the Catholic Church;
WHEREAS, the health directive condition is required as part of a potential private transaction between BNRC
and Covenant Health, which transaction would substantially increase BNRC's stability;
WHEREAS, the health directive condition would only apply to activities located at 103 Texas Avenue and
would not limit the City's current or future programs at any other location;
WHEREAS, it has been agreed that no City activity currently taking place at 103 Texas Avenue would violate
said healthcare directives;
Now therefore, be it Ordered by the City Council of the City of Bangor that the City Manager is hereby
authorized to execute a lease agreement between BNRC and the City of Bangor, which lease shall be for a
term of three years with an option for the City to extend that term for another three years. The rent payable
under said lease shall be for a sum equal to ten dollars per square foot of space occupied, which rent shall not
change for the duration of the lease. Said lease shall be in a final form approved by the City Solicitor or
Assistant City Solicitor.
IN CITY COUNCIL
MAY 24,2021
CO 21-191
Motion made and seconded for Passage of Consent Agenda
Councilors Voting Yes: Davitt,Dubay,Fournier,Hawes,Nichols, Schaefer, Sprague,Tremble
Councilors Voting No: None
Passed
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CITY tLERK