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HomeMy WebLinkAbout2015-05-27 15-186 ORDERCOUNCIL ACTION Item No. 15-186 Date: May 27, 2015 Item/Subject: ORDER, Authorizing the City Manager to execute a new lease agreement between the City of Bangor and LifeFlight of Maine, LLC- Building #600 - Bangor International Airport (BGR). Responsible Department: Airport Commentary: This Order authorizes the lease between the City of Bangor and LifeFlight of Maine, LLC. for hangar and office space within Building #600 at Bangor International Airport (BGR). LifeFlight is in the process of expanding their fleet of aircraft and consolidating operations, and they desire to lease a majority of the Hangar #600. This will include over 17,000 sq ft of hangar space and over 7,000 sq ft of office space. As part of this expansion, they wish to make improvements to the facility. This includes items such as adding restrooms, upgrading existing restrooms, improving the HVAC system, improving the IT infrastructure in this facility, upgrading and adding required stairs (per City code), and making improvements to the fire suppression system. The new lease agreement outlines the list of improvements that are approved that will mutually benefit both Parties. The new lease agreement also outlines a ten (10) year term, with a five (5) renewal term, with rental credits during Years 1 through 5 for approved facility upgrades. Annual revenues from this new lease are estimated at over $75,000 for Years 1-5, and over $95,000 for the following years. This lease agreement will be in final form as approved by City Legal. This item has been reviewed and approved by the Airport Committee at its meeting on May 12, 2015. Tony Caruso Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Finance Director Legal Approval: Introduced for _X_ Passage First Reading Referral Solicitor Page 1 of —1— I5-186 MAY 27, 2015 Assigned to Councilor Graham CI`T'Y OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to execute a new lease agreement between the City of Bangor and LifeFlight of Maine, LLC. - Building #600 - 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, LifeFlight is in the process of expanding their fleet of aircraft and consolidating operations, and they desire to lease a majority of the Hangar #600; and WHEREAS, As part of this expansion, they wish to make improvements to the facility in return for rental credits; and WHEREAS, this leased space will be used exclusively for the purposes of LifeFlight of Maine, LLC. to support their emergency aviation operations. 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 the City of Bangor and LifeFlight of Maine, LLC. for hangar and office space within Building #600 at Bangor International Airport (BGR). IN CITY COUNCIL MAY 27, 2015 PAS CITY CLERK