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Home My WebLink About1997-03-12 97-154 ORDERCOUNCIL ACTION Date: 3/12/97 Item No.: 97-154 Item/Subject: Lease Agreement with International Paper Company Responsible Department: Community and Economic Development See attached memo Depadme eat Manager's Comments: -py Bv", nyyv�//"�//]] .4.te.wnLL�e &ad &aim City Manager Associated Informebon: dMn, � Budget Approval: Finance Director Legal Approval: A> City SOTICRDW Intmduoed For X Passage First Reading Page 1 of 4 Referral 97-154 Aedped w Couad'lor Balaiieci March 12, 1997 CITY OF BANGOR (Tffu) AnxblmtAuthorizing the City Manager to Execute a Lease 11 Agreement with _... International Paper Company By aw City Coureg of "14 City OfBeayor: ORDERED, ;BAT the City Manager is hereby aumor¢ed, on behalf of the City of Bangor, to execute a lease agreement with International Paper Company in a form approved by the City Solicitor with the following general tarns and conditions: Terms and Conditions Premises: 815 sq. ft. of once spacem Building #272, 39 Florida Ave. and the land and related driveways and enhances on which International Papees garage and greenhouse are located. Term: Three years from November 1, 1996 - October 31, 1999. The lease can be terminated by either party effective October 31, 1997 or October 31, 1998, without penalty and with no further obligation by providing notice in writing to the other at least sixty (60) days prior to the effective dates of termination. Rate: November 1, 1996 to October 31, 1997 $11,883 annually, paid monthly in the amount of $990.25. - November 1, 1997 to October 31, 1998 $12,291 annually, paid monthly in the amount of $1,024.25: November 1, 1998 to October 31, 1999 $12,405 annually, paid monthly in the amount of $1,033.75. Other terms and conditions of the lease agreement would remain unchanged: 1. The Tenant will provide comprehensive public and property damage liability insurance to limits of $300,000 per each occurrence. The City of Bangor will insure the building against loss by fire by policies which shall include standard extended coverage in an amount not less than 80% of replacement value. 9J-154 2. The City of Bangor will pay taxes on the real estate and building. The Tenant will pay taxes on personal property. 3. The City of Bangor will be responsible for the building's maintenance, snowplowing, grounds landscaping, rubbish removal and cleaning of the building's common areas. The City of Bangor will not provide maintenance of the garage and greenhouse which will be maintained by the Tenant. 4. The City of Bangor will pay all utilities. Electricity and water and sewer user fees for the greenhouse and garage are included in the utilities provided by the City of Bangor. Fuel oil for the greenhouse and garage will be provided by the Tenant. 5. The Tenant will use the premises as an once for logging, fiber supply and mineral operations; the garage area will be used for the storage of a vehicle; the greenhouse will be used for forestry research far the Tenant; and the premises will be used for no other purposes without the consent of the City of Bangor. IN CITY COUNCIL March 12, 1997 97-154 Passed O R D E R .Title, Authorizing the City Manager Co CI tut � - Execute a Lease Agreement With Intet. nfltionel Paper Company ItN^^^'IM Assigned to ......... v Cowcilman 9I-154 BANAIRCORPORAIION THE GROWING opmo,ovs,W, ADVANTAGE FOWV FOMpi Rade Zoxe Zou59 To: Members of the City Council From: Stephen A. Bolduc, ExecutiveManager Date: March 12, 1997 Subject: Lease Agreement with International Paper Company Issue International Paper Company would like to continue its lease of four offices totaling 815 sq. ft. in Building #272 and land for related structures (garage and greenhouse) at 39 Florida Ave. in the Bangor International Airport complex. Background International Paper has leased some or all of the building and surrounding land since 1983. The leased area of 815 sq. ft. is about 30% of the building's usable area. There are two other tenants, in the building, Industrial Hygiene Service NE and the Safe -Hit Corporation. International Paper has accepted the following lease rate and conditions: Premises: a. 815 sq. ft. of office space in Building #272, 39 Florida Ave. b. The land and related driveways and entrances on which International Paper's garage and greenhouse are located. n HARLOW TGEsr BMGOR,M RNEM a Paget (a %74eu �9 7F. 97-154 c. Shared use of the building's common areas with other tenants: corridors, restroom, conference room and kitchen, which shall not include shared use of any appliances. it. Right to use the driveway separating Building#272 and Building #270 jointly with the occupant of Building #270 and other occupants of Building 9272. e. Use of up to 30% of the parking area in front of Building #272. Term: Three yeare from November 1, 1996 - October 31, 1999. The lease can be terminated by either party effective October 31, 1997 or October 31, 1998, without penalty and with no further obligation by providing notice in writing to the other at least sixty (60) days prior to the effective dates of termination. $g=g: November 1, 1996 to October 31, 1997 $11,883 annually, paid monthly in the amount of $990.25. November 1, 1997 to October 31, 1998 $12,291 annually, paid monthly in the amount of $1,024.25. November 1, 1998 to October 31, 1999 $12,405 annually, paid monthly in the amount of $1,033.75. 5!g€: The premises will be used in a businesslike, clean and safe manner as: an office for logging, fiber supply and mineral operations, or compamble office use; the garage area will be used for the storage of a vehicle; the greenhouse will be used for forestry research for International Paper; and the premises will be used for no other purposes without the consent of the City of Bangor. Utilities: The City of Bangor will assume the cost of utilities furnished to or consumed on the premises as listed: electricity, fuel oil, and water and sewer userfees. Electricity and ureter and sewer user fees for the greenhouse and garage am included in the utilities provided by the City of Bangor. Fuel oil for the greenhouse and garage will not be furnished and will be provided by International Paper. Maintenance: The City will assume the cast of all maintenance for all interior and exterior portions of the building including: building fixtures, equipment, operating systems, foundation, roof, building structure, doors, windows, passageways, interior and exterior surfaces, floore and floor coverings, ceilings, and parking areas. The City of Bangor will provide snowplowing of the parking areas, grounds Page 3 9]-154 landscaping, rubbish removal and cleaning of the common areas as listed: entranceway, corridor, rest moms, kitchen area and conference room. International Paper is responsible for cleaning is own office space. The City of Bangor will not provide maintenance of the garage and greenhouse which will be maintained! by International Paper. Taxes: Any taxes imposed upon the demised premises real estate and building are the responsibility of Ne City of Bangor. Any taxes imposed upon International Papers personal property are the responsibility of International Paper. Insurance: International Paper will provide comprehensive public and property damage liability insurance to limits of $300,000 per each occurrence. The City of Bangor will insure the building against lass by fire by policies which shall include standard extended coverage in an amount not less than 80% of replacement value. The Board of Directors of the BarrAir Corporation has reviewed this lease agreement and recommends its approval under the terms and conditions outlined above. Page 4