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
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C Manager
Associated Information: ftM tdiv\
Budget Approval:
Finance Director
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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
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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.
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