Loading...
HomeMy WebLinkAbout1999-12-13 00-43 ORDERCOUNCILACTION Date: 12/8/99 Hem No.: 00-43 Hem/Subject: Amendment to a Lease Agreement with Maine Propane Energy, Inc. Responsible Department: Community and Economic Development See attached memo. Department Head Manager's Comments: Ch F9 WZLI ns.oto UfA4-C+£9 mppmoa C Manager Associated Information: ftM tdiv\ Budget Approval: Finance Director y of cifor Introduced For X Passage First Reading Page 1 of 3 Refenal 00-43 M®tined to Councilor Vardarda December 13, 1999 CITY OF BANGOR (rITLE.) (orbHr, Authorizing an Amendment to a Lease Agreement with Maine Propane Energy, Inc. By tM City Cuuwi of Oft ofBetri ORDERED, TDIT WHEREAS, Maine Propane Energy, Inc. has leased a parcel of land at 571 Maine Ave. since 1997; and WHEREAS, the lease agreement between Maine Propane Energy, Inc. and the City of Bangor provides an option for Maine Propane Energy, Inc. to extend the tens of the lease agreement for five (5) years; WHEREAS, Maine Propane Energy, Inc. has exercised that option extending the term of fire lease agreement for five (5) years and the parties wish to clarify the procedure for exercising subsequent options; NOW THEREFORE BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized on behalf of the City of Bangor to execute an amendment to the lease agreement between Maine Propane Energy, Inc. and the City of Bangor dated October 31, 1997 for a parcel of land at 571 Maine Ave., in a form approved by the City Solicitor or Assistant City Solicitor, and in substantially the same form as attached hereto. IN CITY COUNCIL December 13, 1999 Passed 0D 3 ORDER Title, pechorisiog m Aneodmeet to a Lease Agreement w1tL Maine Propane 6sMW.,, Inc ............................ ......... ... �.......'...J.............. R/ 1p` Amigned to ((v UUU Cowcilman Teml The new tens would be for thirty (30) years, from September 1, 1997 to August 31, 2027, with options to extend the term for two (2) additional periods of five (5) years each. The options could be exercised only during the last five years of Me lease term. Rental Rate September 1. 1997 to August 31. 2022 $1,208 annually. September 1. 2022 to August 31, 2027 The annual rental rate will be ten percent (10%) of the fair market value of the leased premises as determined by an appraiser. Recommendation Staff recommends approval of the amendment as presented. page 3 00-43 iNNABtCORPOEATION THE GROWING opncam, fe ADVANTAGE Fartign hale Zow Zak58 Memorandum To: Members of the Community B Economic Development Committee From: Stephen A. Bolduc, Executive Manage Date: December 8, 1999 Subject: Amendment to a Lease Agreement with Maine Propane Energy, Inc. Issue Maine Propane Energy, Inc. has exercised its option to extend its lease of 0.5 acres at 571 Maine Ave. and has agree to an amendment that clarifies the procedure for exercising additional options. Background Maine Propane Energy, Inc., in a lease dated October 31, 1997, leased 0.5 acres of land at 571 Maine Ave. for the relocation and operation of a propane gas storage tank. The land was leased for twenty-five (25) years beginning September 1, 1997 at the rate of $1,208 per year. The lease also grants Maine Propane Energy, Inc. the option to extend the lease for three (3) additional terms of five (5) years each or until August 31, 2037 at a rate of 10% of the fair market value as determined by an appraiser. - Maine Propane Energy, Inc. has exercised its option to extend ifs lease for the first adtlitional. five (5) year period and has agreed to the following terms of an amendment to the lease agreement which clarify the procedure for exercising additional options. nunswwsrvser Pass eascrix mown la✓nara 2 (x2)9 VFAx