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
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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
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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.
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