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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 �e-" � a CITY tLERK