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HomeMy WebLinkAbout2016-07-25 16-281 ORDERCOUNCIL ACTION Item No. 16-281 Date: 3uly 25. 2016 Item/Subject ORDER, Authorizing an Amendment to Indenture of Lease with QV Realty Trust — Map 101 Lot 001 Responsible Department: Community & Economic Development Commentary: QV Realty Trust has exercised its option to extend the Indenture of Lease for Lot 9 in the BIA Commercial / Industrial Park located at 361 Griffin Rd. for the period of August 1, 2016 to July 31, 2026. The lease agreement requires that the annual rental amount be negotiated for that period. The City of Bangor has proposed that the annual lease amount during the first five years of the term remain at the current rate of $27,204 annually paid monthly in the amount of $2,267. During the second five (5) years of the term, from 2021 to 2026, the annual rate would be increased by 5% to $28,564 paid monthly in the amount of $2,380. QV Realty Trust has agreed to this proposal. This item was reviewed and recommended for approval by the Business & Economic Development Committee at its July 25, 2016 meeting. Tanya Emery Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Finance Director Legal Approval: City S icitor Introduced for X Passage First Reading Page _ of _ Referral Assigned to Councilor Baldacci CI`T'Y OF BANGOR 16-281 JULY 25, 2016 (TITLE.) ORDER, Authorizing an Amendment to Indenture of Lease with QV Realty Trust — Map 101 Lot 001 WHEREAS, the City of Bangor is the owner of certain real estate, Lot 9 in the BIA Commercial / Industrial Park, located at or near 361 Griffin Road in Bangor, Maine (the "Premises"); and WHEREAS, the City of Bangor leased the Premises to Beacon Cadillac Oldsmobile & Jeep ("Beacon") under its former name of Beacon Motor Company, pursuant to the terms of an Indenture of Lease dated July 28, 1976, as such Indenture of Lease may have been amended from time to time (the Indenture of Lease as so amended is hereinafter referred to as the "Lease"); and WHEREAS, the Lease was assigned by Beacon to Jerry D. Conn ("Mr. Conn") and in tum subleased by Mr. Conn to Hogan Road Motors with the acknowledgment and consent of the City of Bangor; and WHEREAS, Mr. Conn assigned the Lease to QV Realty Trust with the acknowledgment and consent of the City of Bangor and sold the improvements located on the Premises to QV Realty Trust; and WHEREAS, QV Realty Trust has exercised its opiton to extend the Indenture of Lease for the period August 1, 2016 to July 31, 2026; and WHEREAS, the lease agreement requires that the annual rental amount be established for that period: BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute "Fourth Amendment to Indenture of Lease", in a form approved by the City Solicitor or Assistant City Solicitor, regarding the existing Lease between Beacon and the City of Bangor dated July 28, 1976, amended July 14, 1987, October 4, 2001 and September 7, 2006, and assigned to QV Realty Trust. a �z y cn r C=] H r 0 d � uNi rC CrJ C'1 N O O C" �z ONC)