HomeMy WebLinkAbout2009-06-22 09-210 ORDERCOUNCIL ACTION
Item No. 09 210
Date: June 22, 2009
Item/Subject: ORDER, Authorizing an Amendment to the Ground Lease Agreement for Development
of Land and the Purchase Option Agreement — Hodgdon Defense Composites, LLC
Responsible Department: Community & Economic Development
Commentary:
On June 23, 2008, the City Council authorized a Lease and Purchase Option Agreement with Maine
Marine Manufacturing, LLC for 16.62 acres of City property in Hampden known as Stern's Pit. The site
would be used for a shipyard for the manufacture of advanced composite vessels suitable for military
and coastal patrol applications. The development would be substantial in terms of employment and
value. Last year, the company developed the MAKO prototype of the US Navy Seal's patrol boat and
delivered it to the United States Special Operations Command.
This Order would amend the corporate entity which will lease the property and build the facility from
Maine Marine Manufacturing, LLC to Hodgdon Defense Composites, LLC. It will also extend the beginning
of the term of the lease for one (1) year from June 30, 2009 to June 30 2010 in order to provide Hodgdon
Defense Composites, LLC with additional time to negotiate with customers, finalize financing, complete
final design and obtain approvals from the Town of Hampden. It will also extend the City's use of the
parcel as a snow depository until June 30, 2010.
Department Head
Manager's Comments:
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City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
X Passage
First Reading
Page _ of
Referral
09 U
Assigned to Councilor Hawes June 22, 2009
CITY OF BANGOR
(TITLE.) ORDER, Authorizing an Amendment to the Ground Lease Agreement
for Development of Land and the Purchase Option Agreement —
Hodgdon Defense Composites, LLC
WHEREAS, the City Council on June 23, 2008 authorized a Lease and Purchase Option
Agreement with Maine Marine Manufacturing, LLC for 16.62 acres of City
property in Hampden known as Stern's Pit adjacent to the Hampden marina; and
WHEREAS, Maine Marine Manufacturing LLC has changed its name to Hodgdon Defense
Composites, LLC and as such will build the facility, lease the property and
develop and use the site as a shipyard for the manufacture of advanced
composite vessels suitable for military and coastal patrol applications; and
WHEREAS, Hodgdon Defense Composites, LLC, which developed the MAKO pratrol boat
prototype and delivered it to the United States Special Operations Command last
year, is affiliated with Hodgdon Yachts Inc., and the University of Maine; and
WHEREAS, Hodgdon Defense Composites, LLC requests additional time to negotiate with
customers, finalize financing, complete final design and obtain approvals from
the Town of Hampden:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
The City Manager is authorized to execute an amendment to the Ground Lease Agreement for
Development of Land at Turtle Head in Hampden with the following changes:
(1) That in paragraph 1, Parties, that the name of the "Tenant" be changed from Maine Marine
Manufacturing, LLC to Hodgdon Defense Composites, LLC.
(2) That in paragraph 3, Term, the beginning of the term of the lease and the deadline for the
commencement of construction be changed from June 30, 2009 to June 30, 2010.
(3) That paragraph 15.1, Miscellaneous Provisions, be deleted in its entirety and replaced with
the following:
"15.1 Landlord shall have the right to use premises to deposit snow cleared from City of
Bangor streets and parking areas until June 30, 2010 in areas that will not interfere with
Tenants development of the Demised Premises."
IN CITY COUNCIL
June 22, 2009
Passed
QIT CITI CLERm
# 09-210
(TITLE, Authorizing an Amendment to tbe
Ground Lease AgreementforDevelopment of
Land and the Purchase Option Agreement
Bgdgdon Defense Composites, LLC
Assigned to Councilor,
0 9
AND BE IT FURTHER ORDERED THAT
The City Manager is also authorized to execute an amendment to the Purchase Option
Agreement with the following changes:
(1) That the name of the "Optionee" be changed from Maine Marine Manufacturing, LLC to
Hodgdon Defense Composites, LLC.
(2) That in paragraph 2, Option Period, the dates of the option period be changed from January
1, 2009 to December 31, 2028 to January 1, 2010 to December 31, 2029.