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.
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