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