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