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HomeMy WebLinkAbout2015-12-28 16-056 ORDERCOUNCIL ACTION Item No. 16-056 Date: December 28, 2015 Item/Subject: ORDER, Authorizing the City Manager to execute a lease and concession agreement with Stellar Partners, Inc. at Bangor International Airport (BGR). Responsible Department: Airport Commentary: This Order will authorize a lease and concession agreement with Stellar Partners, Inc. at Bangor International Airport. Stellar Partners currently operates a concession at the airport for the sale of books, magazines, newspapers, gifts etc. In exchange for the right and opportunity to operate this on -airport concession, Stellar Partners pays the airport a percentage of gross sales. After further review of this concession agreement, it was discovered that the original agreement was with Fenton Hill, which expired in 2000 and was not renewed. At this time the Stellar is requesting to enter into a new lease at the Airport with a lower and more graduated rent structure that will allow them to continue operations at the Airport. Unfortunately, as result of the decline in military troop charter traffic, annual sales have declined over 30% in a two year period, resulting in Stellar operating at a loss. If approved, this Order will authorize the City Manager to execute a lease and concession agreement with Stellar Partners for a 1 year term, with 2 annual renewal options. The agreement will also define an adjusted rent structure. ($1 - $250,000 gross sales = 5%; $250,001 - $500,000 = 7.5%; $500,001 - $750,000 =10%; +$750,001 =15%) This adjustment will allow Stellar Partners to keep their 8 personnel employed and continue to operate this valuable concession at the Airport. The agreement will be in final form as approved by City Legal. This Order was recommended for passage by the Airport Committee at its December 15, 2015 meeting. Tony Caruso Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral kacktl_� - Finance Director Solicitor Page 1 of —1— 16-056 DECEMBER 28, 2015 Assigned to Councilor Nealley GI`T"Y OF BANGOR (TITLE.) Order, Authorizing the City Manager to execute a lease and concession agreement with Stellar Partners, Inc. at Bangor International Airport (BGR). WHEREAS, The City of Bangor, Maine is the owner of an airport located in Bangor, County of Penobscot, State of Maine, commonly known as Bangor International Airport; and WHEREAS, Stellar Partners currently operates a concession at the airport for the sale of books, magazines, newspapers, gifts, etc.; and WHEREAS, In exchange for the right and opportunity to operate this on -airport concession, Stellar Partners pays the airport a percentage of gross sales; and WHEREAS, The original agreement was with Fenton Hill and expired in 2000; and WHEREAS, With the decline in military troop charter flights, annual sales have declined and as a result, Stellar Partners is operating at a loss; and WHEREAS, Stellar requests an adjusted, graduated rent structure that will allow them to continue operations at the Airport. WHEREAS, both Parties believe it is prudent to execute a new agreement. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT: That Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a lease and concession agreement with Stellar Partners, Inc. at Bangor International Airport. The agreement will be for a 1 year term with two annual renewal options, and will define an adjusted, graduated rent structure. The agreement will be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL DECEMBER 28, 2015 PASSED CITY CLERK