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