No preview available
HomeMy WebLinkAbout2010-11-22 11-025 ORDERItem No, Date: November22.3010 Item/Subject: Order, Terminating tease Agreement with Maine Propane Energy, Inc. Responsible Department: Community and Economic Development Maine Propane Energy, Inc. has requested to terminate the lease agreement with the City of Bangor dated October 31, 1997 and amended December 19, 1999 for approximately 0.5 acres of land near the City's recycling center. Maine Propane Energy, Inc. had a large bulk propane storage tank on the site which serviced businesses on Union St. The volume of propane sold to those accounts has decreased, however, and Maine Propane Energy, Inc. decided to stop selling propane through the bulk storage tank. The current term of the lease agreement began on September 1, 1997 and continues until August 31, 2027. The lease rate during the period of September 1, 1997 through August 31, 2022 is $1,208 paid annually. Annual lease payments are current through Augusq 2010, and payments in the amount of $100.67 have been received for September and October. Maine Propane Energy, Inc. has vacated the site, removing the bulk storage tank and fencing. They have abandoned the gas line In place purging the line as required by regulating safety authorities and capping off the line above ground. There are several propane tank support structures remaining on the site. The lease agreement does not require Maine Propane Energy, Inc. to remove the support structures. Maine Propane Energy, Inc. has offered to pay the remainder of the annual lease amount if the City Council cancels the lease and does not require Maine Propane Energy, Inc. to remove the tank support structures. Bangor Public Works has estimated $1,200 to remove and dispose of the support structures. Because the lease term extends until 2027, termination of a lease agreement requires approval by the City Council. Staff recommends upon receipt of the remainder of the annual lease payment from Maine Propane Energy, Inc., the lease agreement be terminated as of October 31, 2010, and Maine propane Energy, Inc. not be required to remove the tank support structures. Department Head Mann gets cmment6: awl,wi�/jYw"A ¢nopf, Interim City Manager Assocdated Information: Order Budget Approval: n �Uah 5 Finance Director Legal Approval: Gry Solicitor 3 Passage _ First Reading Page _ of _ _ Referral d 275 f. , Assigned to Councilor_ Brunohette Yov¢ r 22. 2010 " CITY OF BANGOR (TITLE.) Order, Terminating Lease Agreement with Maine Propane Energy, Inc. WHEREAS, the City of Bangor is the owner of a parcel of land located between Maine Ave. and Union St., Bangor, Maine; and WHEREAS, by Indenture of Lease dated October 31, 1997, the City of Bangor agreed to lease the parcel to Maine Propane Energy, Inc. for operation and maintenance of a gas storage tank and distribution line; and WHEREAS, by a first Amendment to the Indenture of Lease dated December 14, 19W the CIN of Bangor agreed to extend the term of the agreement; and WHEREAS, Maine Propane Energy, Inc. has requested the Indenture of Lease be terminated as of October 31, 2010: BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The Interim City Manager is hereby authorized, on behalf of the City of Bangor, to terminate the Indenture of Lease between due City of Bangor and Maine Propane Energy, Inc. as of October 31, 2010 in a final form as approved by the City Solicitor or Assistant City Solicitor upon receipt of the remainder of the annual lease payment from Maine Propane Energy, Inc., and Maine Propane Energy, Inc. will not be required to remove the tank support structures. m cm mmcn Pweibex 22, 2010 tlot n (lade avd Seconded fos Passage Pa ed cin ©.�S mtsL lm MIQoe6b NYoWf QUI � ����