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HomeMy WebLinkAbout1976-07-26 314 AD ORDER334 AD Introduced by Councilor Soucy, duly 26, 1916 CITY OF BANGOR (TITLE.) Mrba,_.Author 1 ing Beacons f x q, ure f Lease wicn s international By As My Coaa43 of the My of Banger: ORDERED. TEAT the City Manager is hereby authorized and directed, on behalf of the City of Bangor, to execute an Indenture of Lease with authorized representatives of Beacon Motor Company, of Bangor, a true copy of said Indentire being om file in the office of the City Clerk and made a part hereof, for purposes of leasing Lot No.. 9 located. in the B.I.A. Commercial/ Industrial park, Bangor international Airport, to said Beacon Motor Crnnpany. STATEMENT OF FACT! The purpose of this Coder is to provide for final approval of an agreement providing for the lease of Lot No. 9 in the w Commercial/Industrial park at Bangor International Airport to Beacon Motor Company. The _lease has been reviewed and approved by the Airport Committee of the City Council. r IN CITY COUNCIL 319 AD Jury 254. 1976 Indanture,of Lease amended a q per -att hed[ andum As - _ 0 4R;D E R 2� am�enyded-, Passed. (/�... y _ Tice cxxx.c I -`RECEIVED A to '[9 e. tin of Ienta[e CITY OF BANGOR .... w........4.4..4.4 CITY CLERK'S OFFICE o£ Lese vitn Beacon nxo[ Compay - Bangis az PH a 47B3ngorinternational Airport. ' In4ed,7 ' MSMaRAImuM July 26, 1976 TO: Councilor Cennia Soucy FR@9: Robert E. Miller, City Solicitor RB: Council Order 314 AD' --Beacon Motor Company Lease On the agenda for tonight 'a meeting is an item which hopefully will be adopted by the Council without any problems, As sponsor of the em, I am asking, on behalf of the attorney representing one of the financing institutions involved in the matter, for a few m changes in the lease agreement which is attached to the order. Th[changes were not brought to my attention until Friday afternoon, after the item had gone n the agenda. _ (1) on page 9, Article XIV, the cast to the last sentence should be deleted. The Article, as originally proposed, hes been most - fled to require improvements to be restored to their state and condition a they were prior to the c e casualty, in accordance with planaas may be approved by the City. Provision dor thin requirement is found in the prior sentence. Therefore, this particular sentence is extraneous. (2) on page 12, Article, %VIII, 5th flat, it has been requested, that the word 'interests" be made singular: interest! . ' (3) - On page 13, Article R%, the 12th line, the last word should read transferee. (4) On page 14, the last paragraph of Article ST should be amended as follows; Lesson agrees to enter - tars -am-agreement-with -as id-eeeegagee, -eevegive ewritten roticert-teems-anyamort-heee, ashawl agree -re ery written Mice to said no notice if assignee or tsfer of which it thaser written notice £F if this defaults any of the teras and conditionsof this lease, and teeeee-(Matt-agree-with-egad-e, assignee or tgme-ee seals€have-ahpertine-aaltl thirty (30), ays afte o transferee shell haved period of thirty (30) days aft( receipt of said notice tocare nature default, provided, however, 30) amara a default by Its gree, takes tenger than thirty (30) days to such mortgagee assignee transferee dee shall be given the eright ays to commerce the aforesaid, a such default within thirty (30) days after aforesaid, end, to cute such default within aaonable period of time thereafter. Lessor shall also agreeswith that said mortgageeassignee r transferee, that in the event that certain defaults of Lessee are incapable of being cured by such mortgageeassignee r transferee, and if Lessor terminates this lease because of such incurable default, then a use lease WL11 be executed by Lessor with said mortgagee, assignee or transferee as Lessee, upon the same terms and conditions as are contained in this lease. Lessor shall also agrees with such mortgageeassignee r transferee that no change, modification, agreement,amendment, termination, or surrender of the said lease shall be effective without the prior _ written consent of such mortgageeassignee or transferee. (5) On page L6, Article XXI, second line, should be amended to read as follows: "... the taking of or an injury...... To the same paragraph, llth line, the ward "conddemnation" should be amended to delete one "d". I apologize for not getting these changes included in the original filed with the City Clerk. However, they came to my attention after the deadline for filing items for the agenda. This particular lease, agreement has involved a lot of discussions and negotiation. it no appears inmorder for execution. INDENTURE OF LEASE � THIS INDENTURE OF LEASE, executed in duplicate, this day of , 197 by and between: CITY OF BANGOR 'a body politic and corporate, duly organized and existing under and by virtue of the laws at the state of mine} and being Coteted in the County of Penobscot, State of Maine (hereinafter sometimes referred to as "Lessor") AND BEACON. NOfDR CUIPANY 1. orporation duly organized and existing under and by virtue of the lave of the State of Maine and having a place of business in the City of Bangor, County of Penobscot, State of Maine (hereinafter sometimes referred to as "Leasee") fWI T N E S S R T H: IHERIAuS, the City of Bangor is the oxaer of an airport co®only :known as'8aagor International Airport", formerly known as Dow Air Force Base, and locatel in the City of Bangor, County of Penobscot, State of Maine (heretnafter sometimes referred to as the "Airport"); Ind NREREAS, Lessee desires to lease certain proposes at the Airport for purposes of construction, operation and maintenance of an automotive sales and service agency. auk YdW, THEREFORE, the parties do mutually agree as follows: ARTICLE I The'Lessor, 'f for and ih'dnaideration oc"the rens to be paid and the obligations to be perforned by Lessee as hereinafter provided, does hereby deriee and lease unto Leasee, and the Leasee does hereby demise, lease, take and tire, upon, in its present condition and subject to the conditions hereinafter expressed, a parcel of land located at Bangor International Airport. Bangor, Maine, shown on a plan attached hereto as .Exhibit "q", -and further desetibed, via:. Lot No. 9, plan of B.I.A. Conmercfal/Indust_ial Park, dated June y, 1976, recorded in File Noe. D-626-06 and D-626J6A, Penobscot Registry of reede. l ti i ARTICLE II BEEN TO HAVE ANO TO FOLD the demised promisee unto the Lessee for the term of thirty (30) years, commencing oa the first day of August, 1976, and I'. terminating on the last day of July, 2006. ARTICLE III COPTUTATION OF ANNUAL RENTAL A. Lessee covenants to pay to the Lessor as a rental each and every yearn during the term of this lease for the premises Leased hereunder an amount of money, which shall include a pro rata Share of development costa incurred by the bisect In respect to said promisee, as follows: For the first air ;6) months of the initial term hereof, to wit( August 1, 1976 to January 31, 1977, a monthly rental of Onc Modred ($100.00) Dollars; for the next fourteen (14) years six (6) months of the initial term hereof, to wit: February 1, 1977 to July 31, 1991, a monthly rentaL of Five Hundred Righty ($580.00) Dollars; for the next rive (5) year& of the. initial term hereof, to wit: August 1, 1991 to July 31, 1996, a monthly rental of Seven .Hundred anal Fifty ($750.00) Dollars; for the leer ten (10) years of the initial term hereof, to wit; August 1, 1996 to July 31, 2006, a monthly rental of Joe Thousand Two Hundred ($1,200.00) Dollars. All rentals during any extension nsion of this agreement shall be determined in accordance with Article XXii of this agreement. B. All rentals required hereunder shall be paid in advance, on the first business day of each .math during the Lnit:al term of any extension thereof. Leasee aha LL pay all rentals hecei.n required, without prior demand therefor, In lawful money of the United. States at the address of the lessoras herein set forth of at such other place at-, Lessor shall dee Equate. -2 ARTICLE IV I TABCS Lessee agrees topay, when due, all rssee end aeaeeamente, as may - �' be imposed by a" governmental authort the demised ty upon premises, any buildings, structures or improvements thereon, during the cerin hereof or any extension of the term Of this lease. Lanham further agrees that It does i� hereby waive all right or privilege of exemption free municipal taxation of the demised premises, buildings, structures or improvements thereon, as Say be avaitah:a by reason of Lessor's status as a municipal corporation, or by reasonof chs. use of Bangor Internacional Airport an a public airport, or for. any Other reason whatsoever; and that the City of Bandor, in its capacity as a Losing authority, may assess all taxes as would othevwiae be applicable to the demised premises, buildings, structures or improvements thereon, as if such exemption did not exist; provided, however, than .notwithstanding any provision Mrein contained, Lessor agrees that Lessee shall have the right to contest theamount of such taxes Or assessments Imposed upon the demised premises or any building, structure or improvement thereon. ARTICLE V USE, OCCUPANCY AND P@ROVBMBNf OF PREHISBS A. Lessee shall we, OccWY and maintain the premises herein demised for purposes of constructing, operating and maintaining a building to he built by Lessee at its own cont; and said premises shall be used, occupied and mafntaixd as stated herein, for no other purposes whatsoever without the prior expressed written consent Of the Lessor, which consent will not be unreasonably withheld. It is understood and agreed between these parties that said building to be built and used by the Lessee hereunder shall be used in its operation of an automotive sales, rental, and sena L -e business. The Lessee shall have the right to use its promisee in accordance with the generally a cepted purposes of selling and us renting new and ed vehicles and - parts and providing services to same, including out-Of-doorstorage and display of said vehicles. B. All buildings, structures or improvements on the demised premises shall be in accordance with Site plan Standards attached hereto as Exhibit 'T" and with asite plan and design and construction plana submitted 3 to Lessor by Lessee and approved by the Airport Committee of the City of II Bangor. M'ovided that the standards set by the Lessor for the bdivisioa are piled with and all laws, ordinanceg and regulations am met,saw approval shall not be unreasonably withheld Within minty (90) days from the date of commencement of this lease, Lessee agrees to submit such plane P to said Committee for their approval. Within thirty (30) days thereafter, said Committee shall notify Lessee in writing of its approval of such plans or requested modifications. Said modification shall be submitted on final, revised plan to said Committee for approval within thirty (30) days of said not. ice. Within thirty (30) days of the receipt of the said final, revised plan, said Committee shell notify Lessee of the approval or dis- Approval of same. Within sixty (60) days from the dateof receipt of final approval of said plane, Leasee shall commence conscructicn. Lessee further agrees to .complete construction, including all required landscaping, on before August 1,19)1• In the event Lessee fails to complete construction, ;ISI including landscaping, on or before August 1, 1977, Lessee agrees to pay to Lessor a penalty of two Hundred ($200.00) Dollars per month in addition to ill all reatalr and other charged under this Agreement to be paid by Lessee; said penalty to continue on a month-to-month basis tntll all required , construction, including landscaping, is completed. Said place as finally. approved shall be attached to this agreement as Exhibit "C" and shall there. after be a part hereof, if Lessee does nota rept the modifications proposed - by said Comittee-, then, within said thirty (30) day period, Lessee may elect to brmimte this lease by giving written notice of such election to Lessor. Unless the parties otherwise agree, the failure by Lessee to submit the final, revised plan within said thirty (30) day period shall be deemed to be an election by Lessee to termimte this. lease. Iv the event of such I election, neither party shall have any further rights w liabilities against the other. '. C. Ie computing the time the parties are Obligated to act as set forth in this Article, there shall be excluded all delays due to strikes, Lookouts, Ac.s of God, massive civil disobedience and the public enemy, o by order of direction or other interference by any municipal, state, federal, or other governmental department, board or commission having jurisdiction, or other causes beyond the control of the parties. D. Lessor, through its agents, shall have aL all reasonable times access to go upon and inspect the demised premises, any buildings, structures or improvmwnts thereon, with an authorised representative of the Lessee. 69 II ARTICLE VI MCMNICS' IIENS Tha Lessee agrees to promptly discharge (either by payment or the filing of a, necessary bond or otherwise) any mechanics`, materialnes's o other liens as may be placed against the demised premises, a" buildings, structures or improvements thereon,. which liens may arise out of any payment due for labor, services, materials, supplies or equipsent which may have been furnished to or for the Leasee. provided, however, the Lessee at its option Shall have the right to contest the validity or justice of any such liens before pay,m the same, and to postpone payment thereof until final Leterminatio'a of any such proceedings. Title to the buildings, structures and Improvements constructed on the demlaei premises during the term of this lease, or any extension thereof, shall be in the Leasee, aha during such term or extension thereof, the Leasee - shall have the right, at its sole expense, Co demolish and remove any and all buildings, Structures and improvements and other personal property erected o located on the demised premises. Upon the termination of this lease, the buildings,: structures and improvements and other personal property erected or located upon the demised premises by the Lessee Shall remain the property of the Lessee, and the Lessee shall have the right to remove the same from the demised pr,mises within sixty (60) days from the date of the termination of this lease. any such property not so removed within Said sixty (60) day - period, shall become the property of the Lessor to be disposed of in such way as it may be deemed fit. In the avant the Leasee elects to remove said buildings, structures, and improvements and other personal property, the land shall be returned to as near as possible its condition as of the commencement of this lease, ordinary near and tear excepted. � c I I, ASTICLE VIII SURRENDER OF POSSESSION Subject to theprovisions contained. In Artictn VII, the Lessee -5- ARTICLE VII TITLE TO BUILDINGS. STRUMURES APED INIH OVEMENTS Title to the buildings, structures and Improvements constructed on the demlaei premises during the term of this lease, or any extension thereof, shall be in the Leasee, aha during such term or extension thereof, the Leasee - shall have the right, at its sole expense, Co demolish and remove any and all buildings, Structures and improvements and other personal property erected o located on the demised premises. Upon the termination of this lease, the buildings,: structures and improvements and other personal property erected or located upon the demised premises by the Lessee Shall remain the property of the Lessee, and the Lessee shall have the right to remove the same from the demised pr,mises within sixty (60) days from the date of the termination of this lease. any such property not so removed within Said sixty (60) day - period, shall become the property of the Lessor to be disposed of in such way as it may be deemed fit. In the avant the Leasee elects to remove said buildings, structures, and improvements and other personal property, the land shall be returned to as near as possible its condition as of the commencement of this lease, ordinary near and tear excepted. � c I I, ASTICLE VIII SURRENDER OF POSSESSION Subject to theprovisions contained. In Artictn VII, the Lessee -5- shall, upon the termination of this lease, surrenderthe quiet and peaceable possession of the demised premises. rl "TIME IS BULBS, BBGULATIONS AGO LAWS A. The premises herein leased are located upon the property of the Lessor arO :olmonly known as Bangor International Airport. Therefore, the Leasee heraby agrees to obey and observe, add to cave. all personnel employed . by the Lessee to obey and observe, all municipal ordinances, State and Federal laws pertaining to the operation of said Airport and Lessee's one sodoccupancy of the demised premises. In addition, Lassos Shall obey add observe', and cause all personnel employed by the Leasee to obey and observe all reasonable orders, rules and regulations of the Airport Manager not incons£B- tent with this lease or with the aforesaid rules add regulations which are uniform, and apply to all tenants, invitees add users of the Airport and their emplayees. B. The Lessor retains the continuing right in the leased premises to prevent the erection or growth of any building, structure, tree, or other object extending into the airspace above 342.4' Mean Sea Level, and to remove from said airspace, o n at the sole option of the Lessor, as alternative, to mark ani light as obstructions to air navigation, any such building, re structure, x r other object new upon, or which in the future may be upon Leasee'aproperty together with the right of ingress to, egress from, and passage over Lessee's property for the above pnr posse. Further, Lessee will not use or permit or Buffer the one of the leased property in such a manner as to create electrical interference with radia communication between any installation upon the airport and aircraft, or as to make 1t difficult for '.� flyers to distinguish between airport lights add others, or as to impair visibility In the vicinity of the airport, or as otherwise to endanger the Sanding, taking -off or maneuvering of aircraft. Further, feasor retains a right foo the passage of aircraft ("aircraft" being defined as. any contrivance now known or hereafter invented, used, or designed for navigation of or flight in the air) by wbatmoever owned and operated, in the. airspace -above the property above 342.4' MSL to an infinite height together with the right to cause in all airspace above the property such noise, vibrations, aures, duet, fuel particles and all aftereffects that mag be caused by the operation of aircraft leading at, or taking -off from, or operating at or on the .airport and Lessee does hereby fully valve,r¢mise and release any right or cause of action which they may my have o wh1tM1 they may haveIn the �I future against Lessor due to such mise, vibrations, forma, dust, fuel. particles, and all other effects that may be caused by the operation of aircraft landing at or takirg-off from or operating at or on the airport.._ It is specifically understood and agreed that nothing herein contained shall be construed as granting or authorizing the granting of i exclusive. r'ght within the meaning of Section 308 of the Federal Aviation Act. ABI= % UNITED SMITHS BIGHTS It 1s understood and agreed that Lessor's title to said premises and the operation of Bangor International Airport 1s subject to certain rights in the United States of America, and this agreement is made subject to any such rights; provided, however, the letter of the Federal Aviation Mmini- aeration iFAA), an agency of the United States, attached hereto as Watiibit V", is hereby incorporated into this agreement. It is expressly stipulated by the parties hereto that the execution aha delivery of said letter by the FAA is a condition precedent to the execution aha delivery of this lease by Lessee, and but for the execution and delivery of said letter by the FAA, the Lessee would not sign this lease. In the event the United States of America ij or any agency thereof should exercise any such rights In or to the leased premises by reason of a default or breach of other ob}.igation of the city to said United States of America, and due to no fault of the Lessee, then the Parties agree that the United States of America any assume the benefits to accrue to the Lessor hereunder. ARTICLE xx BIONS nh Lessor recognizes the need of the Lessee to provide reasonable signs in conjunction with the we, occupancy aha maintenance of the leased premises by the Lessee and to that em agrees that the original plans and specifications to be submitted by the Lessee to the Lessor an Exhibit "C" imorporato such signs subject to their being in compliance with the requirements of day governmental agency, including such requirements as may be imposed by regulation of the Federal Aviation Administration and the Sign Ordinance of the City of Bangor, and the approval of the Airport Committee of the Leseo':. ARTICLE XII II i NONOISCRL4IN4TION �I L Lessee in the use am occupancy of the leased premises shall not on tha grounds of sex, , color, creed or national origin. of any.othei I� manner prohibited by lawn diserdnlnete or pewit discrimination against any person or group of persons in any mannan B. Lessee for itself, its personal representatives, successors in Interest and a signs, as a part of the considerations hereof, does hereby n covenant and agree as a covenant running with the lam test (1) no person o the gxounm of race, color, or national origin shall be excluded from patticipa_ion in, denied the benefits of, or be otherwise subjected to disertminotion in the use of said demised pveeises; (2) in the construction of all Improvements, buildings, structures, on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to voiceful discrimination; am (3) Lessee shall see the promisee in compliance with all other requirements as may be Imposed by or pumsuant to Title 49, Code of Federal Regulations, papaxtment of Transportation, Subtitle A, Office of the Secretary, Parc 21,' NondiserttLstfon in Federally -Assisted Programa of the Separtarat of - Txansportr]ion - Affectnation of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended. In the event of breach of any of the above non-discrimination covenants, the Lessor shall here the right, after failure of Leasee to rectify such breach Ovinia thirty (30) days after receipt of notice from Lessor, to terninaee. this alleemiLt_ ARTICLE %LII COVENANT OF QUIET ENJOYMENT The m Lessor, subject to the tae and provisions of this lease, on payment of the rent, am observing, keeping and performing all the Gema and provisions of this lease on its part to be observed, kept and performed, shall lawfully, Peaceably am quietly have, hold, occupy am enjoy the demised ptemiees during the cera and any extension hereof without hindrance or ejection by the Lessor or any persons lawfully claiming under the Lessor. -8- Tao Lessor covenants that at the commencement of the term and any extension thereof, it has good title to the demised premises except; for the rights of the Mired States of America, ea more fully described in Article X, and that it has compl led with all applicable local, state and federal Lend use laws and regulations, including but not limited to the Local and State subdivision laws and the State site locatibn law. ARTICLE XIV DALNGR BY :'IRE OR OTHER CASdJdlV Lessor covenants and agrees that in the event of destruction or damage of the improvements on the leased premises, or any part thereof, and a often as the improvements shall be destroyed or damaged, by fire or other casualty, the Lessee shall have the right, but not the obligation to rebuild : and repair the improvements for occupancy. If Lessee [,leets not to rebuild and repair. Leasee shall have the option to terminate this lease and shell s notify Lessor within one hundred and twenty (120) days after said fire or other casm.lty. In such event Lessorshall have the right, after notice to Lessee, to cause Lessee to demolish all structures to ground level, remove all foundations and to remove all debris from said demolition and removal free the .� demised premises. In the event Leasee does not elect to ea terminate, Leasee shall within one hundred and twenty (120) days of said fire or other casualty, give notice to Lessor of such election. All improvements shall be restored to'. their state and condition prior to said fire or other casualty, or shall be onstructea in accordance with plane approved by Lessor. In addition, all improvements .will be approved and constructed in accordance with Article V of this agreement. Any insurance proceeds, In any event, shall be paid to Lessee. ARTICLE XV LIABILITY ALT PROPERTY DAMAGE INSURANCE -- The Lessee at all tLess during the term or extension thereof of this lease shall carry public liability and property damage insurance satis- factory to meet the approval of the Lessor with ammany authorized to do business in the State of Maine insuring the Lessorandthe Lessee as the insureds therein against any and all losses or claims arising out of the operation of the Leeeee'¢ business on the demised premises or any flet or omission of the Lessee, its agents, servants, employees or invitees. SD Certificates of said policies of public liability and property damage imutance shell be filed with the City Clerk. Such imurance shall afford 1' I,I protection in minimum limits ofliability of $500,000 fm injury or death t0 any one person and $1,000,000 for injury or death t0 more than one .. person, and $50,000 with respect to damage to propevty. All such insurance may be covered by a blanket policy of Leasee. ARTICLE XVI INDj EMNITY Lessee shall indemnify andsawharmless the Lessor and all of its employees and agents from and against any and all claims, liability, damage, expense, cause of action, suite or judgments, by or on behalf of any person or person, firm or firms, corporation or corporations arising from the use, occupancy, conduct or management of, or from any work or thing whatsoever in or about the demised premises by the Leasee, or any representative, i� invitee, officer, employee or agent of Lessee. C ARTICLE %VII t, DEPADLT _ C is covemnted and agreed that: (1) If the Leasee Shall neglect or fail to pay the rent o other chargee payable hereunder and such default shall continue for a period -� of thirty (30)daysafter written notice thereof by lesser; or. ... (3) If Lessee shall neglect or fail to perform or observe any of the other covemnts, terms, provisions, or conditions on its part to be performed, or observed, and such neglect or failure shall coatinue for a period of shirty (30) days after written notice thereof by Lessor; or if such covenants, terms, provisions orconditions ca not be performed or observed within said thirty (30) day period, if Lessee fails to diligently Prosecute the curing of such neglect or failure; o (3) if the estate hereby created shall be taken on execution or by other process of law; or -10- (4) If the Lessee Shall be declared bankrupt or insolvent accordinb to law; or (d) If any assignment shall be made of the property of the Leasee for the benefit of creditors{ or (6) If a receiver, guardian, conservator, or trustee in bank- _ xuptcy or other similar officer shall be appointed to take charge of all o waysubstantialpart of the Lessee's property by a Coast of competent jurisdiction{ or (7) If a petition shall be filed for aorganisation of the does under provhsionenf the bankruptcy act w os, hereafter Sneered{ or (8) If the Lesseeshall file a petition for such reorganization or for arrangements under any provision of the bankruptcy act now or here- after counted, then, in any of the said .cases (notwithstanding any license of any former breach of covenent or waiver of the benefit hereof or consent i� 1n a forme instance), the Lessee may be considered in default hereunder, and _ the Lessor lawfully may, immediately or at any thus chereaftex, and without .. demand ornot ice, enter into add upon the said premhsas or any part thereof, in the owes cf the whale and repossess the Isms, as of the Lessor's former estate,and expel the Lessee and those claiming through or under it and r remove its or their effects (forcibly if necessary) without being deemed - guilty of any cancer of trespass, and without prejudice to any remedies which might otherwise be used for arrears of rent or preceding breach of covenant, and upon entry as, aforesaid, this lease shall terminate, and the Lessee covenants and agrees to pay and be liable for the days originally fixed herein for the payment thereof, amounts equal to the several install- ments of rents and other chargee reserved as they would, under the terms of this lease, become due if this lease had but been terminated or if the Lessor had not entered o entered as, aforesaid. Notwlthatateiug the. foregoing, beasts's liability shall Out exceed the difference, if any, between the rental which would have been due for Such month Led there been no such termination, and the amount being received by. Lessor as, rent from occupants of said premises. In order to mitigate Lessee's damages hereunder, Lessor agrees to make every reasonable effort to secure Subsequent tenants, at a rental equal to the prevailing local rate for the demised premises. - ]f Lessor shall default in the performance or observance of -11- any agmeement or condition in this lease contained on. its part to be �I performed or observed, and if Lessor eha11 not cure such default within li thirty (Joi days_ after action from Lessee specifying the default (or shall cot within said period coameme to cure each default and thereafter prosecute the curing of such default to completion with due diligence), Leasee may, at its option, without waiving any claim for damages for breach of contract,, at any time thereafter terminate this lease. ARTICLE XVIII i' AMRRBY'S FEES The Lessee shall pay to the Lessor a reasonable attorney's fee i the event the Lessor employs an attorney to collect any rents due hereunder Iand secures a judgment In connection with collection of said rent, or to IS protect the interest of the Lessor in the event Lessee is adjudged a bankrupt,,' r Legal pac..ess is levied upon the fotsmsts of the Leasee in this Lease or. �j 1n said premises, or in the event Lessee violates any of the terms, conditions] or covenania on the part of the Lessee herein contained, provided said Lessee fails to pror@tly correct the violation of a" term, condition or covenant after receiot of notice that it is in violation thereof. Lessor will pay to Leasee area eonable attorney's fee if Leasee employs. an attorney in the event that Lessor violates any of the terse, conditions or covenants on the part of the Lessor herein contained, provided said Lessor fails to promptly correct the violation of arty .farm( condition or covenant after receipt of notice that �I it is in violation thereof. ARTICLE XLY ASSIGNMENT SALE AND SUBLETTING The Lessee shall act at any time assign, sell, convey or transfer this lease a, any interest therein, or sublease n sublet or rent the premises, pr a" part thereof, without the prior written consent of the Lessor, wh:.ch consent shall not be unreasonably withheld, provided that; L. Lessee shall notify the Lessor of the came and address of such assignee, buyer, subleases, r tenant, and its principal offices. -12- 2. A" agreement between Leasee and such assignee, buyer, sub. ' lessee, os tenant, shall require compliance by Such party, its off Lcers,:�. employees aid invitees with the obligations on the part of the Lessee to;. be performed. 3. Any revisions in use of the demised premises, or in site plans 1 and building layout and design to provide for the use, occupancy or accesses - dation of said assignee, buyer, subleases or tenant be first approved by the �i Lessor's Airport (b®ittes in conformance with sxtic:e y of this agreement. 4. All rentals of Land by or an any assignee, buyer, sublessee or tenant will be at a rate no greater than that charged to the Leasee hereunder.' Lessee shall have the right to assign this lease to any corporation with which it may have become merged, consolidated, or otherwise associated, l r say co ratioor holding company having the controlling interest in .the it Leasee, or to any corporation which may be a subsidiary of the Lessee. In no 'f veno shall the Leasee named herein be believed from any obligations under this lease by virtue of such assignment or subletting. ARTICIS %% j FINANCING :PFECfING DWISED PRMISES Lessor is cognizant of the need of Lessee to finance the construction of buildings, structures and improvements on the deprived premises, and there- fore, notwithstanding any provision contained in Arc".cie Arx to the contrary, ' specifically agrees to permit the Leasee Co moi [gage, sssign or transfer its leasehold interest in the demised premises for the purpose, of obtaining nstruetfon and permanent loan financing for the said buildings, structures and impruvsuects, provided: (1) the term of such mortgage, assignment or transfer shall Out exceed the Initial term hereof; (2) Leasee shall give Ali notice of tooexistenceof such mortgage, assignment or transfer, together with the Owes and address of the mortgagee, assignee or transferee and a copy Of the mortgage, assignment or transfer document; (3) that In the event of foreclosure, and in the event that said mortgagee, assignee or transfer shell becomz the owner of the Lessee's interest pdYevanc to such foreclosure, �I said mongageae., assignee or transferee shall have the right Co take possess - Lon and shall xcnma the. Legal owner and holder of the leasehold estate created herr.nnder and shall hold such estate .upon the sameterms and conditions as held by Lersee from which such mortgagee, assignee or transferee acquired possession, but in such event, said mortgagee, assignee or transferee shall only be Liable under the terms and conditions hereof during the period of time in which said mortgagee, assignee or transferee holds such estate, and Out -13- 1", I thereafter, nor shall said mortgagee, assignee or trenefeibe liable for itany defaults under the terms o conditions hereof which arosebefore said estate becare vested in said mortgagee, assignee or transferee; (4) thaE the existence. of such mortgage, assignment or transfer, or any foreclosure by a mortgagee shall not relieve the Leasee from any liability Or couponsI bility, of the obligations oh its part to be performed. �I Lessor agrees to enter into anagreement with said mortgagee, assignee or transferee, by the terms of which Leeeor Shall agree to give" wt itten notice to said mortgagee, assignee or transoeree if Lessee defaults under any of the terms or conditions of chid lease, and Lessor shall agree with said mortgagee, assignee or transferee that the said mortgagee, assignee`. or transferee shall have a period of thirty (30) days after receipt of said notice to core such default, provided, however, that where a default by"its nature takes longer than thirty (30) days to core, sich mortgagee, assignee. or transferee shall be given the right to commence the curing of Such default 'i within thirty (30) days after notice aforesaid, and to cure such default. within a reasonable period of time thereafter. Lossot shall also agree with said mortgagee, assignee or transferee Chat in the event that certain defaults of lessee are incapable of being cured by such mortgagee, assignee or transfe,ee, and if Lessor terminates this lease because of such incurable &fear, Cwn a new lease will be executed by Lessor with said mortgagee, assignee or transferee as Lessee, upon the same teran and conditions as are contained in this lease. Lessor shall also agree with such mortgagee, assig- use or transferee that no change, modification, agreement, amendment, termination, or surrender of the said lease shall be effective without the prior written consent of such mortgaged, assignee or trauferee. AICfICLS xxi HAINNNT MMAIN A. Condemnation' Separate Awards. If during the term of this Lease or any extension thereof the demised premises, the improvements thereon or any portina of either are condemned or taken by any governmental authority, or by any r. ration having the paver of eminent domain, Lessor and Lessee agree to request the courts in such condemnation proceeding to make separate awards to lessor and Lessee as to their respective interests in the demfeed premises. If for any reason the court is unwilling or unable to make separate awards, Lessor and Lessee agree that the one award shill be equitably appor toned between them, as hereinafter set forth, to .reflect their respective Interests in the demised premises. -14 B. Taking of Demised Premises; Tetminstior of Lease. 1� (1) if the whole of the demised promisee shell be taken or, condemned by any cog,etent authority for any public or quasi -public use o purposes, or if such a substantial part thereof is mass asshallresultin the portioa of the demised premises remaining being no longer operable as a economically useful unit to the conduct of Lessee's business, then this lease shall terminate as of the date upon which such authority shall cake possession of the demised premises. Such termination shall, however, be without pre- ' judice to the rights of Lassos and Lessee to recover free the condemasr eompeneatfon and damage caused by such condemnation or taking. (2) If only a part of the demised premises Shall be so taken r condemmn be restored or converted for the �d, and the part not so taken c ii ° a general bar being mage of the demised premises I®edisteiy prior to Such taking and as an eco,micalty useful unit, this lease shall remain in full force and effect and the monthly rental thereafter payable by Lessee to Lessor shall be reduced in the proportion that the amount of airy award if actually received by Lessor as a result or such taking bears to $60,000.00 and the total rental shall be adjusted accordingly. Any such reduction in rental 1haL1 becane effective as of the first day of the calender month following the month In Mich such condemnation or taking occurs, provided, however, If In such case the award to Lessee on account of such taking shall not be sufficient t° enable Leasee t° rebuild or restore the demised pre ' mrees sufficiently for its purpoeeS, Lessee shall have. the Wring to terminate this lease and shall ss notify Lessor within a reasonable time. in such event Lessor shall have the right after notice to Leasee to cause Lessee to remove all structures to ground level, excluding foundat Loss, in the event Lessee �I does not elect so to terminate, Leasee shall, within a reasonable ties, comemenc e restoration of the Improvements to the extent made economically feasible by � the award p,lid to Lessee. C. Allocation of Single Award. In the event that Lessor and Lessee are unable to obtain separate awards with respect to their interests in the demised premises, than, the single award shall is fairly and equitably I apportioned between Lessor and Leasee. With respect to a condemnation covered by Section g (1) above, (a) Lessee shalt receive an amount equal to the total irdebtedneea outstanding under any loan$ secured by mortgages encumbering Lessee's leasehold interest in the demised premiers; (b) Lessor -15- shall next receive an amount equal to the portion of the award which i II attributable to the taking or an injury to the fee sippie carats to the laud only (excluding buildings and other improvements) covered by and subject to this lease; and (c) the balance of the award attributable to the taking.. of - any buildings or other improvements shall be paid to Lessor and Leasee, as follows; (q Lessor shall receive an amount equal to the product of the a. portion of the award attributable to the taking of a" buildings or other improvements multiplied by a certain fraction, the numerator of which &ban be the number of years, and fractions thereof, which have expired in the tease is= or any extension thereof as of the date of such takings or CaMdemnat.ons, and the denominator of which shall be fifty (50); and (n) Lessee shallreceive the balance of the portion of the award attributable to the taking of any buildings or other improvements'. With respect to a ondem aticn covered by Section B (2) above, (a) Lessee shelf receive to the extent available from any such award an amount equal tothecoat of restora- tion, repair and replacement required by Section B (2). above, and (b) the: balance of the award, if any, shall be paid to Lessor. Arbitration and Appraisal. In the event of a dispute or dis- agreement between Lessor and Lessee as to whether, in the case of a partial taking, the portion not condemned can be restored or converted for use as a economically useful unit as contemplated under Section B (3) above, or in the event rf a dispute or disagreement between Lessor and Lessee as to the fair ant e,.uitable apportionment of a single award an contemplated under Section C above, than such dispute or disagreement Shell be submitted to arbitration in accordance with the rules of the Americanarbitration Aesociat fon. In the event an appraisal becomes necea a_y or desirable in connection with Such arbitration proceedings, Lessor and Leasee shall each appoint on appraiser. These two appraisers shall promptly appoint a third appraiser; if they fail to appoint such third appraiser within thirty (30) days after notice of their appointment, than either party, upon written notice to the other, may request the appointment of a third appraiser by, the then President of the Bangor Real Estate Board, or then similar existing body.' As three appraisers shall jointly make the required appraisal and if they cannot agree, the appraisal of the third appraiser will be accepted by the parties: If, afternotice by either party to the other of the appointment of an appraiser by the party giving such notice, the other party to whom notice is being given shall fail, within a period of ten (10) days after such notice,. to appoint an appraiser, then the appraiser so appointed by the patty giving the notice $bell have the power to proceed as sole appraiser to make the -16- appraisal hereunder. Lessor and Leasee shall each pay the fees of the person Appointed by it as appraiser hereunder, And Lessor and Lessee shall eamhCpay Ili ne-half l§) of the fees of the third appraiser appointed pursuant to the: Provisions of this paragraph and one-half (k) f the generalexpensesof. �.such appraisal. P E. Rights of Mortgagees, Assignees or Transferees. Any mortgagee, I'assignee ,t transferee of the leasehold estate created by this lease shall be a proper pasty to any proceeding concerning a taking of all or any portion of the demised premises or the improvements thereon and such mortgagee, assignee ,I or transferee shall be entitled to Intervene or participate in any such pro-ceeding either on its own behalf or on behalf of Lessee. All other rights of Any such mortgagee, assignee or transferee including its rights, [tile and interests in and to condemnation awards shall derive exclusively from the rights of Lessee hereunder and the agreements between Lessee and such jI, mortgagee, assignee or transferee. F. Right to Contest Award. In the event either Lessor Lessee shall desire to contest the amount of the award offered by a condemning authoriey while the other party is. willing to accept the sees , the unwilling party may make such contest, including any litigation necessary or desirable for such purpose, provided that it shall hold the willing party completely Nannies 0 from -1 any toss caused thereby, including any reduction In the final award, all costs' and expenses incurred in the contest, and interest at the rate of ten percent (10;) per on any same that otherwise would have been paid to the willing ,. party at a., earlier date. prior to undertaking such contest, the party making. the same shall furnish to the other an Indemnity bond by a surety company acceptable to the other party and In an amount equal to the settlement offered. plus a reasonable estimate for costa, expenses and lose of interest, which bond shall be conditioned on the successful prosecutiow of such contest and the willing putt' being protected from any loss occasioned thereby. ARTICLE %XII OPTIONS TO EXTEND The Lessee shall have the option to extend this lease for a further term of ten (10) years, from the first day of August, 1006, to the last day of July, 3016. Tae option to extend provided for by this Article shall be -17- i exercised, if at all, as follows and not otherwise: Not leas than ninety (90) days before the natural termination of the initial term herein provided " for, the Lessee shall notify the Lessor in writing of its election to lases the demised premises for the said additional term, whereupon the parties hereto shill proceed to negotiate between themselves for the purpose of fixing a -ental for the said additional extension period. 'If, upon the. expiration of sixty (0) days from and after the data of such notice, the parties hereto shall have failed to agree in writing as to Ne rental to be paid by the Leasee to the Lessor during .such additional extension period, then each of the parties hereto shell select an arbit_ator to determine the amount of rental, and if the two arbitrators c rent agree, then the two arbitrators shall select a third arbitrator and the fmlings of two of the SII three rbztrat.ors thus selected shall be final and binding upon both parties hereto. Lessee shall have the further option to extend this lease for a still further term of ten (10) years from the first day of August, 20L6 to the last day of July, 2026, provided that Leasee sha1L have exercised its rights to extend this agreement for the first extension term, and shall not be in default of CMS agreement in a" Senate. upon the same terms and condition and in the same manner as provided for the initial extension term. -. ARTICLE A%III RIGHT OF FIRST REFUSAL rf during the term of this Lea e e , or any extension thereof, the United States of America, or a" agency thereof, authorizes Lessor to sell said premises, and if the Lessor, in its sole discretion, is willing and able tc sell Said premises, than Lessee shall have the first right to purchases id promisee upon the following terms and conditions: 1. Lessee shall out be in default of any provision under chis lease. 2. Lessor shall give to Lessee written notice of the terms and conditions of its Offer to sell said premises. within thirty (30) days after - -' receipt of yeasor's offer to sell said premises, Lessee must give written notice to the Lessor of Its acceptance of said offer: provided, however, in the event Lessee chooses to accept said offer, but dots not agree as to the -18- purchase price for the premises, then the price shall be the value of said �i premises as determined by three appraisers, or a majority of than, am of whom shal'. be designated by the Lessor, one of whom Shall be designate& by the Leasco, wool one of whom shall be chosen by the two so designated. TTS. �! decision of a majority of said appraisers shall be final and binding upon the parties. Within thirty (30) days thereafter, and on receipt of a certified check for the purchase price, Lessor shallenecute and deliver a !; deed conveying to the Lessee a good and marketable title. 3. If the Leasee shall not accept said offer, or shall fail to complete said purchase within the time and in a manner hereinbefore provided, all rights to purchase said promisee hereunder shall terminate without .further action, time being of the essence. ARTICLE X%N " MANE& .Failure on the part of the Lessor to complain of any action or non- action on 0e part of the Lessee an matter how long the same may continue,. ' shall raw" be deemed to. be a waiver by the Leaeor o. any of Lessor 'a rights hereunder. Further, it is covenanted and agreed that no waiver at any time Of any of the provisions hereof by Lessor, shall be construed as waiver of any of the other provisions hereunder, and that a waiver at any time of any of the provisions hereof shall not be construed at any subsequent time of the same p-ovisioom. The approval of Lessor to or of any action by the Lessen requiring the Lessor's consent or approval, shall rot be deemed to waive or recast unnecessary the Lessor's consent or approval to or of a" subsequent similar act by the Lessee. ARTICLE XXV - NOTICES MOticea to the Lessor provided for in this lease shall be sufficient, if sent byregistered or certified mail, return receipt requested, postage prepaid, to; City of Bangor, City H41, 73 Marlow Street, Bangor, Maine, 04401; and notices to Lessee, are to be sent by registered or certified mail, return receipt requested, postage prepaid, addressed to. Beacon Motor Corpany, 34 Steer Street, Bangor, Maine, 04401, or to such other respective addresses as the parties: may designate to each other in writing from time to time. -19- ji ARTICLE. XXVI INVALIDITY OF PARTICULAR PROVISIONS Ali If any term or provis fon of this lease or the application thereof to any person or circumstances to any extent, be invalid or one n- forceable,the remainder of this lease or the application of such terms and Provisions co persons or circumstances other than those to which it is, held invalidd.. unenforceable shall mo be affected thereby and eachterm and il. provision of this lease shall be valid and be enforceable to the fullest extent permitted by law. ARTICLE XXVII 1 CONSTRUCf10N it The headings appearing in this lease are intended for convenience and reference only, and not to be considered In construing this lease. I Nothing contained herein shall be deemed mnatrued by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of jofntvancure between the parties bevetc, it being understood and agreed that neither the method of computation of rent nor any other provision contained herein or any acts of the parties hereto shallbe deemed to create any relationship between the parties herein other than the relationship of landlord and tenant. ARTICLE XXVIII This lease shall be governed exclusively by the provisions hereof and by the Laws of the State of Mine, as the same may fr®time to time exist: ARTICLE XXIX EXECUTION OF ACREWNf A. The Lessor hereby represents and warrants that it has taken all necessary procedural and legal steps as required under all state, local and federal laws and regulations whatsoever for the purpose of authorizing y -20- the execuidon of this agreement, and that the execution of this agreement by the City Hanger renders this agreement a valid and Finding document on the 11 part of the City of Bangor and is fully enforceable 1n all of its termer -a" condition by the Lessee. ',. A. Lessee hereby represents and warrants that it has taken all necessary and procedural and legal steps as required under all elate, local, '3 and federal lame aM regulations, add all necessary corporate action to authorize :he execution of this agreemeue by one of ire officers and that the execution of this agreement is a binding add legal document on the Lessee, is fully enforceable in all of its terms and conditions by the City of Bangor. ARTICLE XXX M ORANBUK OF LEhgE Lessor aM Lessee agree that this lease shell net be recordable. Lessor agrees that, upon request by Lessee, it shall execute and deliver to Leasee a memorandum of lease in recordable foam and in compliance with. the Provisions of Title 33, Section 201 of the Maine Revised Statutes generated. i -N WITNESS FOURRe F, the parties berets have set their hands aM seals the day and year first written above. WITNESS: CUT OF BANGOR By Its City Manger BEACON MOTOR CCMFANY BY Its �• SITE PLAN MINIMUIM1 STANDARDS CpM1ERCIAL SUBDNISION I.i BANGOR INTERNATIONAL AIRPORT ' PULL LOT DEVELOPMENT Entire lot meet be improved with facilities or landscaping. No undeveloped portions ah412emain following completion of construction. • BUILDING SIZE.' . Any building constructed on the demised premiess moat contain m less than r 10,000 equate feet tocover no more than thirty-five (35) percent of the lot. BUILDING DESIGN Commercial buildings designed with odd or unique shapes such as teepee,igloo., quonset hut, etc., Asset be specifically approved by Lessor. I' EUILUING MtTRSfORS I lbe tveatmeat of all exterior walla of buildings including veneers must be jl acceptable to both the Lessee and Lessor, and acted on the site end building I• design plana. Recover wood frame buildings or exteriors with concrete o cinder bloc', painted or unpainted, which have exposed standard dimensional block lines, will act be allowed unless specifically authorized by Lessor. ROOF RQUIPMENf Roof equipment such as Btacka, ventilation, etc., must blend with building and be attrac. ively designed to the viewer, or screened with attractive materials. SIGNS U Sign locations and design avet be approved by Lessor and must net be in conflict wO:h any applicable local, state or federal laws and regulations. SEWERS A setback of 10 feet fon landscaping around the entire lot will be required. �j Ude of this setback for fearing, structures, pevement or gravel or for any we other than lavdscaptag will most be allowed, unless specifically authorized by Lessor. I• LANDSCAPING Landscaping will include lawns, property loomed, deeded and maintained, i setback area, and other decorative materials, plus decorative fencing or where it may be required by Lessorfor appearance or screening,. plus trees and shrubbery attractively placed against building and in setback areas, at corners, between driveways, along fences, and as screening for parking, loading o EXHIBIT 'b G' 1 of 2 " vehicular storage. Trees am shrubbery sufficiently hardy to withstand ' �iweather should be selected and must be maintained. Press, shrubbery sad plantings ieteriorated, dead or otherwise unattractive moat be replaced, I. :I. CROIIND TR&A1?�NT Portion ..f lots not occupied by buildings, other structures, walkways, o landscaping. must be properly paved. Other ground treatments alternate to paving, such as gravel, meet be specifically authorized by Lessor and incase of use of Loose ground mater Ll, moat be properly delineated by curb sufficiently high to retain ground materials. DRIVEWAYS - UNIDN STREET LOTS - P- On lata which fronton Union Street, no curb cute, (therefore entrances o egresses) wall be installed onto Union Street or onto Griffin Road fromthe demised premises. MAINTENANCE buildings and grounds most be kept in goodrepair and condition so as to prevent visible deterioration of property and not to detract from the attractive appearance or marketability of the commercial subdivision. OUTDOOR STORAGE �I See Article V, Paragraph A. SLOPES j Slopes created by fill meet be graded, losmed, seeded and mowed. RIGRTS OF JAY Those portions; of street rights of way abutting the demised promisee which are rot utilized by the City of Bangor for road pavevent, shoulders am drainage, and which are now eased by the City, will be kept mowed by the Lessee, and so noted on the approved site plan. ORDINANCES Lot and butlding development moat conform with all requirements of the zoning ordtucnces relating to the lot. EXHIBIT "b" 2 o 2