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HomeMy WebLinkAbout2014-09-22 14-303 ORDERCOUNCIL ACTIO Item No. 14-303 Date: September 22, 2014 Item/Subject: ORDER, Authorizing the City Manager to execute a lease amendment between Montage Enterprises, d/b/a The Grasshopper Shop, and the City of Bangor, Airport Department (BGR). Responsible Department: Airport Commentary: This Order will authorize a lease amendment between Montage Enterprises, d/b/a The Grasshopper Shop, and the City of Bangor, Airport Department (BGR). Montage has operated a retail concession in the domestic terminal at Bangor International Airport since 1995. Through an internal audit, it was discovered that a new lease rate was set which is consistent with the other concessions at the Airport. Any lease rate must be approved by the City Council and Airport staff cannot find documentation that this rate was officially approved by City Council. Montage has been paying the lease rate of 10% of net sales, since OCT 2007, which was approved by the Airport Director at the time. Under the approved terms of the lease, the rate was tiered at the following: $0-$100,000 = 10%, $100,000-$150,000 = 12.5% and over $150,000 = 15%. If approved, Montage would continue to pay the lease rate of 10% which is consistent with the rate for Stellar Partners operators of Bangor News & Gifts. Staff supports that both concessions pay the same lease rate. All other provisions of the original lease will remain unchanged. The lease amendment will be approved by City Legal. This item has been reviewed and approved by the Airport Committee at its meeting on September 9, 2014. rtment Manager's Comments: UJ City Manager Associated Information: Budget Approval: Legal Approval: Introduced for _X_ Passage First Reading Referral finance Director Solicitor Page 1 of —1— 14-303 SEPTEMBER 22, 2014 ASSIGNED To COUNCILOR DURGIN CITY OF BANGOR (TITLE.) ORDER, Authorizing the City Manager to execute a lease amendment between Montage Enterprises, d/b/a The Grasshopper Shop, and the City of Bangor, Airport Department (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, Montage Enterprises, d/b/a The Grasshopper Shop, operates a retail concession in the domestic terminal; and WHEREAS, Through an internal audit it was discovered that the lease rate being paid by Montage, 10% of net sales, was not officially approved by Bangor City Council; and WHEREAS, another retail concession in the airport terminal has the same lease rate of 10% of net sales; and WHEREAS, The Airport agreed that the retail concessions within the airport terminal should be paying the same lease rate as each other. 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 amendment between Montage Enterprises, d/b/a The Grasshopper Shop, and the City of Bangor, Bangor International Airport (BGR), amending the lease rate to 10% of net sales. Said amendment shall be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL SEPTEMBER 221V 2014 PASSED CITY CLERK