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Home My WebLink About2009-03-23 09-120 ORDERCOUNCIL ACTION Item No. 09 19-0 Date: March 23, 2009 Subject: ORDER, Authorizing the City Manager to Execute a Third Amendment to a Lease Agreement between the City of Bangor and Bangor Development Associates — 183 Harlow Street Responsible Department: Legal Commentary: The City of Bangor and Bangor Development Associates entered into a Lease Agreement on August 31, 1984 under which thirty parking spaces are leased in connection with the use and occupancy of Bangor Development Associates' building located at 183 Harlow Street. The Lease Agreement has been amended twice previously by a Lease Agreement Amendment dated July 30, 1987 and a Second Lease Agreement Amendment dated May 20, 1992. Bangor Development Associates intends to modify its Maine State Housing Authority loan for its property at 183 Harlow Street to extend the loan to 2039. The Maine State Housing Authority requires that Bangor Development Associates seek an extension of its lease with the City of Bangor so that it will be co -terminus with their proposed loan modification and extension. They have also indicated a desire to be released from their current lease of 8 spaces in upper Abbott, which are currently not needed and for which other demand exists. This Order will authorize the City Manager to execute a Third Amendment to the Lease Agreement with Bangor Development Associates to extend this lease to be co -terminus with a Maine State Housing Authority loan modification and extension, but not to extend beyond 2039. Department Head Manager's Comments: This has been reviewed and is recommended by Business and Economic Development. �Q�Ly• City Manager Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Rpfprral Finance Director WcitySolicitor i!I Page _of_ v9 x.20 r Assigned to Councilor Hawes March 23, 2009 OSA , ! � CITY OF BANGOR �'P4lED,fE r�� (TITLE.) ORDER, Authorizing the City Manager to Execute a Third Amendment to a Lease Agreement between the City of Bangor and Bangor Development Associates —183 Harlow Street WHEREAS, the City of Bangor and Bangor Development Associates entered into a Lease Agreement on August 31, 1984 for the lease of thirty parking spaces for utilization in connection with the use and occupancy of Bangor Development Associates` building located at 183 Harlow Street; and WHEREAS, the parties previously amended said Lease by a Lease Agreement Amendment dated July 30, 1987 and a Second Lease Agreement Amendment dated May 20, 1992; and WHEREAS, Bangor Development Associates intends to modify its loan with the Maine State Housing Authority for its property at 183 Harlow Street to extend the loan to 2039; and WHEREAS, Bangor Development has also indicated that they wish to be released from their current commitment to lease eight (8) spaces in the upper Abbot lot, a lot for which there is additional demand; and WHEREAS, the Maine State Housing Authority requires that Bangor Development Associates seek an extension of its lease with the City of Bangor to be co -terminus with the loan modification and extension; Now, bierefom be it Ordered by t#e City Corrndl of Me City ofgatrgor tut the City Manager is hereby authorized and directed to execute a Third Amendment to the Lease Agreement with Bangor Development Associates to eliminate the eight (8) leased spaces in Abbot Square lot and for an extension of the lease to be co -terminus with a Maine State Housing Authority loan modification and extension with Bangor Development Associates, but not to extend beyond 2039. The Third Lease Amendment shall be substantially as attached hereto and in a final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL jMarch 23, 2009 Notion Made and Seconded for Passage Passed/ CV10Y CLERK # 09-120 TITLE) Authorizing the City Manager to TITLE,) a Third Amendment to a Lease Agreement between the City of Bangor and Development Associates - 183. Harlow Street Assigned to Councilor414.4 j9 x.20 THIRD LEASE AGREEMENT AMENDMENT THIS THIRD LEASE AGREEMENT AMENDMENT is entered into this day of , 2009, by and between the CITY OF BANGOR a municipal corporation located in the County of Penobscot, State of Maine (hereinafter sometimes referred to as the "City') and BANGOR DEVELOPMENT ASSOCIATES, a Maine Limited Partnership with a place of business in Bangor, County of Penobscot, State of Maine (hereinafter sometimes referred to as "Lessee'. WITNESSETH WHEREAS, the parties hereto entered into a Lease Agreement on August 31, 1984 relative to the lease of thirty parking spaces for utilization in connection with the use and occupancy of Lessee's building located at 183 Harlow Street, Bangor, Maine; WHEREAS, the parties previously amended said Lease Agreement by a Lease Agreement Amendment dated July 30, 1987 and a Second Lease Agreement Amendment dated May 20, 1992; WHEREAS, the parties hereto have mutually agreed to amend the term and rental provisions of the lease. NOW, THEREFORE, in further consideration of mutual promises and covenants contained in said Lease Agreement, the parties hereto hereby agree to amend the Lease Agreement as previously amended as follows: 1) By amending Article I, Premises by adding the following: As of April 1, 2009 the premises shall be the following described property, in its present condition: viz: 22 spaces in the Atler Parking Lot, said spaces being more fully indicated on a sketch attached hereto as Exhibit AA and incorporated by reference. The premises shall not include any parking spaces in the Abbott Square Parking Lot. 2) By deleting Article II TERM of the Lease Agreement Amendment dated July 30, 1987 in its entirety and replacing it with the following: ARTICLE II TERM j 9 ►/� TO HAVE AND TO HOLD the demised premises unto the Lessee for a period of fifty-four (54) years commencing on the 1s' day of April 1985 and expiring on the last day of March, 2039, unless sooner terminated as provided herein. 3) By deleting Article III RENTAL of the Lease Agreement Amendment dated July 30, 1987 in its entirety and replacing it with the following ARTICLE III RENTAL The rental to be paid by the Lessee to the City during the term of this agreement for the thirty (30) spaces identified on Exhibit AA shall be as follows: (1) During the first fifteen (15) years of the term of this lease, Lessee shall pay the City, on a monthly basis, a monthly rental sum equal to the greater of: (a) $225.00 (30 spaces x 7.50), which sum shall be increased by 5% at each annual anniversary of this lease, or (b) a sum equal to the product of 30 parking spaces times the City's monthly fee, as in effect at the annual anniversary date of this lease, established for its regular permit parking spaces in the Abbott Square Parking Lot and the Atler Parking Lot, respectively. (2) Until March 31, 2009, Lessee shall pay the City, on a monthly basis, a monthly rental sum equal to the greater of: (a) $400.00 or (b) a sum equal to the product of 30 parking spaces times the City's monthly fee, as in effect at the annual anniversary date of this lease, established for its regular permit parking spaces in the Abbott Square Parking Lot and the Atler Parking Lot, respectively. (3) During the remainder of the term of this lease, Lessee shall pay the City, on a monthly basis, a monthly rental sum equal to the product of 22 parking spaces times the City's monthly fee, as in effect at the annual anniversary date of this lease, established for its regular permit parking spaces in the Atler Parking Lot, which is determined by the parking rate set for Lower Abbott Square Lot. A 320 City shall give Lessee notice of any increase in the City's regular fees for permit parking spaces which result in an increase in the rental fees hereunder. All rentals under this Agreement shall be payable in advance on or before the first business day of each calendar month. Lessee shall pay all rentals herein required without prior demand therefore in lawful money of the United States, at the address of the City as herein set forth or at such other places as the City may designate. In the event that Lessee terminates the lease as to all or a portion of the leased spaces pursuant to the terms herein, the rental shall be calculated on a pro -rata basis. 4) THAT except for the foregoing, said Lease Agreement dated August 31, 1984, between the City of Bangor and Bangor Development Associates, as previously amended, shall remain in full force and effect in all other respects between the undersigned. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first written above. Witness Witness Witness CITY OF BANGOR Edward A. Barrett City Manager BANGOR DEVELOPMENT ASSOCIATES, A Maine Limited Partnership By Bangor Schoolhouse Associates, Its General Partner Name: Title: Name: Title: