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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: 4a"-L"t (1.6�rr�t�� eamfv+4 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.