Loading...
HomeMy WebLinkAbout2015-10-26 15-352 ORDERCOUNCIL ACTION Item No. 15-352 Date: October 26, 2015 Item/Subject: ORDER, Authorizing the City Manager to execute an amendment to the lease agreement between the City of Bangor and Maine Aero Services, Inc. for the rental of Hangar #115 at Bangor International. Airport (BGR). Responsible Department: Airport Commentary: This Order authorizes an amendment to the lease between the City of Bangor and Maine Aero Services, Inc. for the rental of Hangar #115. In July of this year, Gene Richardson, President of Maine Aero, provided notice that he wished to terminate his lease agreement and sell his business. However, after further review and discussions with City staff, Mr. Richardson has decided to remain at the Airport under a restructured lease. It is important that the Airport maintains this type of small general aviation aircraft maintenance services. If approved, this amendment outlines the changes to include a clarification of the square footage amount leased in this hangar; adjusting the lease term to 5 years; making a lease rate adjustment and yearly payment schedule; waiving the requirement to provide the airport a percentage of revenue for subleases; providing a rental credit for heating unit replacement; and clarifying maintenance and repair responsibilities. This lease amendment has been reviewed and approved by City Legal. This item was approved by the Airport Committee at its meeting on October 13, 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— 15-352 OCTOBER 26, 2015 Assigned to Councilor Baldacci CI`T'Y OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to execute an amendment to the lease agreement between the City of Bangor and Maine Aero Services, Inc. for the rental of Hangar #115 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, the City of Bangor and Maine Aero Services, Inc. are parties to a lease dated August 1, 2012 wherein Maine Aero Services, Inc. leases a hangar from the City of Bangor; and WHEREAS, this leased space will be used exclusively for the purposes of Maine Aero Services, Inc. to support their small general aviation aircraft maintenance operation. 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 an amendment to the Indenture of Lease of August 1, 2012 between the City of Bangor and Maine Aero Services, Inc. for the rental of Hangar #115 at Bangor International Airport (BGR). The amendment outlines the changes to include a clarification of the square footage amount leased in this hangar; adjusting the lease term to 5 years; making a lease rate adjustment and yearly payment schedule; waiving the requirement to provide the airport a percentage of revenue for subleases; providing a rental credit for heating unit replacement; and clarifying maintenance and repair responsibilities. The amendment will be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL OCTOBER 26, 2015 PASSED ol CITY CLERK