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HomeMy WebLinkAbout2016-02-22 16-098 ORDER_COUNCIL ACTION Item No. 16-098 Date: February 22, 2016 Item/Subject: ORDER, Authorizing the City Manager to Execute a Lease Agreement between Wayfair Maine, LLC and the City of Bangor — 690 Maine Avenue (Map 102, Lot 006) Responsible Department: Airport Commentary: This Order will authorize execution of a lease agreement between the City of Bangor and Wayfair Maine, LLC for office space at 690 Maine Avenue. Wayfair, headquartered in Boston, is one of the world's largest online destinations for home furnishings and home goods. They have grown dramatically since 2002 and are now a publicly traded company with over $1.3 billion in sales in 2014. This facility will provide call center operations for customer support and expects to employ 450 full time employees. If approved, the base rent for the lease will be $16,250.00 per month, increasing to $17I '725.00 in month 61. The term of the lease is for seven (7) years, with two (2) five-year options for extensions, and a 3% increase in base rent during each extension term. This was item reviewed in Pre -Council Executive Session on February 8, 2016. Tony Caruso Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Legal Approval: Introduced for _X Passage First Reading Referral Finance Director Solicitor Page 1 of _1_ 16-098 FEBRUARY 22, 2016 Assigned to Councilor Graham CITY OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to Execute a Lease Agreement between Wayfair Maine, LLC and the City of Bangor — 690 Maine Avenue (Map 102, Lot 006) WHEREAS, the City of Bangor, Maine is the owner of an building located at 690 Maine Avenue in Bangor, County of Penobscot, State of Maine; and WHEREAS, Wayfair Maine, LLC wishes to lease this space to operate a customer service call center at this location; and WHEREAS, the City and Wayfair Maine, LLC wish to enter into a lease agrement outlining the terms and conditions for the rental of 690 Maine Avenue. NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, That Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a lease agreement between Wayfair Maine, LLC and the City of Bangor for rental of 690 Maine Avenue, Bangor. Said lease agreement shall include the following terms and conditions: term of for seven years, with two five-year renewal options; a base rent of $16,250.00 per month beginning the third month of occupancy, adjusted to $17,725.00 per month in month 61; tenant improvements having a value of $479,900.00 paid for by the City; real estate taxes and utilities paid by the tenant; and such other terms and conditions as appropriate. The lease agreement shall be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL FEBRUARY 22, 2016 MOTION MADE AND SECONDED FOR PASSAGE PASSED CITY CLERK