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HomeMy WebLinkAbout2008-06-23 08-232 ORDERitem No. 08 232 Win; June 23, 2008 Item/Subject: ORDER, Authorizing the Extenslon of a Lease Agreement with Hannaford Bros. Co. for 208 Maine Ave. and a Lease for Office Space at 39 Florida Ave. Responsible Department: Community® Economic Development Hannaford Bros. Co, has leased Building #258 at 208 Maine Ave. since 1983 for use as a regional office and training center. They have decided reduce the amountof office space forthis regime l office. We have negotiated with them to lease all of the available space at 39 Fiords Ave. and W allowfirstrefusal on any additional office some that becomes available. Their lease at 20B Maitre Ave. will expire on June 30, 2008 and they have requested a me month extension W July 31, 2008. Beginning August 1, 2008, Hannaford Bros. Co. will begin theirfve (5) year lease of eight(8) office units, totaling 1,893 sq, ft., at 39 Florida Ave. They will have two (2) options W extentl the term for three (3) years each. The lease rate from August1, 2008 to July 31,2030 will be $1,860.00 per month. From Auguet1,2010to July31,2013, the ate will be $1,916.00 per month. The City will provide utilities and maintenance of the building. On August 1, 2010 and each subsequent year, me rental rate will be adjusted based on the cost of unions. The Busices and Economic Development Committee and the Board of Directors of the BanAlr Corpmaron will review these lease agreement prior to the City Council meeting. Department Head Manager's conaments: City Manager Associated Information: tlb, on Fpa.,:la a - - as FDi�recror Introduced for i Passage First Reading Page _ of _ _ Referral 08 232 �o+•' sr As iymed ro Councilor ypeelex June 23. 2008 oa'ti CITY OF BANGOR (TITLE.) ORDER, Authorizing the Extension of a Lease Agreement with Hannaford Bros. Co. for 208 Maine Ave. and a Lease for Office Space at 39 Florida Ave. WHEREAS, the Hannaford Bros. Co. has leased Building #258, 208 Maine Ave., from the City of Bangor since 1983; and WHEREAS, the Hannaford Bros. Co. has requested to extend that Lease for one (1) month under the current terms and conditions; and WHEREAS, the Hannaford Bras. Co. has requested to lease office space at 39 Florida Ave.; NOW, THEREFORE, BE IT ORDERED "THE CM COUNCIL OF THE CITY OF BANGOR THAT The City Manager is hereby authorized, on behalf of the Ory of Bangor, to execute an Amendment to the Lease Agreement between the Cloy of Bangor and Hannaford Bros. Co. at 208 Maine Ave. to extend the term of that Agreement to July 31, 2008 and to execute a Lease Agreement between the City of Bangor and Hannaford Bros. Co. for office space at 39 Florida Ave. in a form approved by the City Solicitor or Assistant City Solicitor and containing the following terms and conditions: a) Premises: Eight (8) office units at 39 Florida Ave. totaling 1,893 sq. R. b) Term: Five (5) years, from August 1, 2008 to July 31, 2013, with two (2) options to extend the term for three (3) years each. c) Rate: August 1, 2008 to July 31, 2010 - $1,860.00 per month. August 1, 2010 to July 31, 2013 � $1,916.00 per month. d) Rate adjustment: On August 1, 2010 and each subsequent year, the rental rate will be adjusted to reflect the City of Bangor's current cost of utilities furnished to the Hannaford Bros. Co. e) Use: The premises will be used in a businesslike, clean, and safe manner as a business office and for no other purposes without the consent of the City of Bangor. f) Utilities: The City of Bangor will assume the over of utilities. g) Maintenance: The City of Bangor will be responsible for all maintenance. h) Taxes: The City of Bangor will be responsible for real estate taxes. The Hannaford Bras. Co. will be responsible for taxes on personal property. i) Insur nce: The Hannaford Bros. Co. will provide comprehensive public liability insurance for the leased premises. Clw COMM Sooe 3. 2008 Ear un mm o EDEA [fITLEI AuNwrf zinc the Execution of a Le••e Agreement with 9 ford Eio•. Co. fns 900. 1Mine a of Off�ra Space at 39 Florida Ave. AmPaacounuior G rR 232 73 Harlow Sc BANAIRCORPORATION Bangor, Maine 09401 alwwwo(B�rFOMge ZvdeZme58 (207)7354059 (207)W4 7(Fax) Memorandum To: Members of the Business and Economic Development Committee From: Stephen A. Bolduc, Executive Manager Date: June 18. 2(108 Subject: Lease Agreement with Hannaford Buck. Co. Issue Hannaford Bros Co wishes W lease office space at 39 Florida Ave., Bangor. Backaround Hannaford Bros. Co. has leased Building #258 at 208 Maine Ave. since 1983 for use as a regional office and training center. There lease will expire on June 30, 2008 and they will not extend their lease of the building. They would Ake to reduce the amount of office space leased for Me regional office, and we have negotiated with Hannaford Bros. to lease all of Me available space M 39 Florida Ave. and W have first refusal on any additional space that becomes available. Terms and CondHIM Promises: a) Eight (8) office units at 39 Florida Ave. totaling 1,893 sq. ft. b) Shared use of the building's common areas with other tenants: corridors, reshooms, and kitchen c) Use of seven (7) designated parking spaces in the parking area in bunt of 39 Florida Ave. d) Right to use Me driveway separating 39 Florida Ave, and 49 Florida Ave. jointly with Me occupant of 49 Florida Ave. and other occupants of 39 Florida Ave. e) Right of first refusal to lease office units A, B. J and K as vacated by the cunenttenants. f) Additional parking far up to, Mirty(30) vehicles will be available at 40 Johnson Ave. Term: a) Fhre (5) years, from August 1, 2008 to July 31, 2013 CZ] nQ 712 HenrreIWSW. ca b) Two (2) options fo extend the tern of three (3) years each Rate: August 1, 2008 to July 31, 2010 $1,860.00 per month August 1, 2010 tc Jury 31, 2013 $1,916.00 per month On August 1, 2010 and sack subsequent year, the rental rate will be adjusted to reflect Me lessors current cost of utilities furnished to the tenant. Use: The premises wi0 be used in a businesslike, dean and safe manner as a business office and for no other purposes without the consent of the City of Bangor. Ulllkies: The City of Bangor *11 assume the coal of utilities furnished to or consumed on the premises as listed: electricity, fuel oil, and water and sewer user fees. Maintenance: The City of Bangor will be responsible for all maintenance of interior and exterior portions of the building, including building fixtures, equipment. foundation, reof, structural walls, operating systems: including hea$ng, plumbing, and electrical systems, doors, windows, floor and floor or"rings, ceilings, walls, and interior and exterior surfaces in the demised premises, as well as parking areas, grounds landscaping, snowplowing and the Gearing of common areas. The tenant is responsible for cleaning the leased area and bash removal to designated receptacles. Taxes: Any was imposed upon Me real estate and building are the responsibility of Me City of Bangor. Any house on personal property are the responsibility of the tenant. Insurance: The tenant will provide Insurance for the leased premises of the following types: Comprehensive Public Liability Bodily Injury- $400,000.00 each occurrence Comprehensive Property Damage - $400,000.00 each occurrence Workers Compensation Reeemmenda6on The Staff recommends approval of this lease agreement under Me farms and conditions outlined above. Peae2d2 YO