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HomeMy WebLinkAbout2010-05-24 10-193 ORDERCOUNCIL ACTION Item No. i 0 1 w Date: May 19, 2010 Item/Subject: ORDER, Authorizing the Execution of a Lease Amendment with New Castle Hotel Corporation Responsible Department: Airport Commentary: The proposed lease amendment would modify the payment terms in 2010 and 2011 and allow the New Castle Hotel Corporation to defer some rental payments in 2010 until 2011 with the payment of an additional 5% interest on any deferred amounts. All other provisions would remain the same. This item has been reviewed by Airport staff and the City Solicitor. Rebecca Hupp Department Head Manager's Comments: This has been reviewed by the Airport Committee and is recommended for app Associated Information: Order Budget Approval: Finance Director Legal Approval: Introduced for X Passage First Reading Referral Solicitor Page 1 of 1 Assigned to Councilor— Palmer CITY OF BANGOR 10 193 May 24, 2010 s (TITLE.) ORDER, Authorizing the Execution of a Lease Amendment with New Castle Hotel Corporation. WHEREAS, The City of Bangor owns and operates the Bangor International Airport; and WHEREAS, the City of Bangor and New Castle Hotel Corporation entered into an Amendment of Lease dated as of January 1, 2008; and WHEREAS, the City of Bangor and New Castle Hotel Corporation wish to further amend the Lease; and WHEREAS, the terms of this agreement are in the best interest of the Airport; and WHEREAS, the terms of this agreement are advantageious to both parties. NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, That Robert W. Farrar, Interim City Manager, is hereby authorized, on behalf of the City of Bangor to enter into a lease amendment with New Castle Hotel Corporation in substantially the same form as attached hereto and in a final form as approved by the City Solicitor or Assistant Solicitor. IN CITY COUNCIL May 24, 2010 Passed (TITLE,) A„rhnri _iIIg the Execution of a Lease Amendment with New Castle Hotel Corporation Assigned to Councilor F 10 193 THIS AMENDMENT OF LEASE dated as of the first day of June , 2010 by and between THE CITY OF BANGOR, a municipal corporation organized and existing under the laws of the State of Maine and located in Penobscot County, State of Maine ("Bangor" or "LESSOR") and NEW CASTLE HOTEL CORPORATION, formerly BHI Inc., a business corporation organized and existing under the laws of the State of Maine having a place of business in Bangor, Penobscot County, State of Maine and doing business as the Bangor Four Points by Sheraton (formerly the Bangor Marriott Inn) ("New Castle" or "LESSEE"). WITNESSSETH WHEREAS, LESSOR and LESSEE entered into an Amended and Restated Agreement of Lease (the "Lease") dated December 1, 1997, demising unto LESSEE all that certain premises located in the Bangor International Airport, in the City of Bangor, County of Penobscot, State of Maine, known as the Bangor Four Points by Sheraton (formerly the Bangor Marriott Inn), as more particularly described on Exhibits A and B attached to the Lease, together with the other rights and appurtenances stated therein; and WHEREAS, LESSOR and LESSEE entered into an Amendment of Lease dated as of January 1, 2008; and, WHEREAS, LESSOR and LESSEE wish to further amend the Lease. NOW, THEREFORE, for and in consideration of the sum of $10.00, receipt of which is hereby acknowledged by the LESSOR, and other good and valuable consideration, it is mutually covenanted and agreed as follows: A. The third bullet point of Article III Net Rental is hereby deleted and replaced with the following: • The sum of Ninety Three Thousand Nine Hundred Thirty - Seven and 50/100 Dollars ($93,937.50) for lease year 2010 due and payable in five (5) equal installments of $1,575.00 commencing January, 2011 until, and including May, 2011 and six (6) equal installments, commencing June 2011 until, and including, November 2011 in the amount of $12,468.75 each, and as of the date hereof the May, 2010 payment in the amount of $11,250.00 is acknowledged to have been paid; B. Except as herein expressly modified, all of the provisions of the Lease are hereby ratified and confirmed. iC 193 C. This Amendment of Lease shall be binding upon and inure to the benefit of the successors and assigns of the respective parties. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK IN WITNESS WHEREOF, this Amendment of Lease has been duly executed by the parties hereto as of the date and year first bove written. WITNESSES LESSOR — ITY OF BANGOR By Its: LESSEE — EW CASTLE HOTEL C RPORATION By Its: STATE OF MAINE ) ): ss: COUNTY OF ) Personally appeared , on Bangor signer and sealer of the within instrument, and a to be his free act and deed on behalf of the LESSOR, bf Commissioner of the SL Notary Public My commission expires STATE OF CONNECTICUT , 2010 calf of the City of owledged the same me. perior Court ): ss: , 2010 COUNTY OF FAIRFILED ) Personally appeared , a of New Castle Hotel Corporation signer and sealer of the wi hin instrument, and acknowledged the same to be his free act and deed on b half of LESSEE, before me. Commissioner of the S perior Court Notary Public My commission expire