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HomeMy WebLinkAbout2014-08-25 14-272 ORDERCOUNCIL ACTION Item No. 14-272 Date: August 25, 2014 Item/Subject: ORDER, Authorizing the City Manager to execute a lease extension between the City of Bangor and Bangor Airport Food Services, Inc. (BAFS) to lease buildings #266 and #268. Responsible Department: Airport Commentary: This Order authorizes the lease extension between the City of Bangor and Bangor Airport Food Services, Inc. (BAFS) to lease buildings #266 and #268 for the purposes of operating an airline in- flight kitchen at Bangor International Airport (BGR). Under the terms of the lease, the rental rate for the in- flight kitchen shall be $27,500.00 per year. In addition to the minimum rental, the Lessee shall pay a percentage of annual Gross Sales as follows: 5.5% of the first $250,000 of annual Gross Sales that exceed $1 million, 6.6% of the next $250,000 of Gross Sales that exceed $1.25 million, and 8% of all Gross Sales in excess of $1.5 million. The Airport has been pleased with the service provided by the current vendor and the current rental rates are among the highest in the industry. This vendor has been a proactive business partner in recruiting and retaining the international transit business and has also made several investments in Airport facilities, per the lease agreements. This has been reviewed and approved by the Airport Committee at its meeting on August 12, 2014. 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 14-272 AUGUST 25, 2014 Assigned to Councilor Durgin CITY OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to execute a lease extension between the City of Bangor and Bangor Airport Food Services, Inc. (BAFS) to lease buildings #266 and #268. 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, on April 19, 2010, the City of Bangor and Bangor Airport Food Services, Inc. entered into an agreement to lease buildings #266 and #268 for the purposes of operating an airline in-flight kitchen at Bangor International Airport (BGR); and WHEREAS, BAFS, Inc. desires to renew the lease agreement for the purposes of operating an airline in-flight kitchen at Bangor International Airport (BGR); and WHEREAS, it would be advantageious to both parties to renew this agreement.. 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 extension with Bangor Airport Food Services (BAFS) to lease buildings #266 and #268 for the purposes of operating an airline in-flight kitchen at Bangor International Airport (BGR). IN CITY COUNCIL AUGUST 25, 2014 PASSED CITY CLERK