HomeMy WebLinkAbout2008-09-22 08-316 ORDERCOUNCILACIION
Item No, 08 316
Dal September 22, 2008
IremlSubject ORDER, Authoril a Lease Agreement with Bangor Hydro Electric Company for
W 4, BIA Commerdal/Industrial Park, 790 Illinois Avenue
Responsible Department: Community & Economic Development
Commegatl Gary). Hagan has leased Lot 4 in the BIA Commercial/Industrial Park (1.08 acres)
since 1988 and constructed a 9,073 sq, ft. office building on it. Bangor Hydro Electnc Company
wishes purchase the building from Mr. Hagan and enter into anew lease agreement with the City.
By policy, the City leases this land M a base annual lease rate equal M 8.5% of Its market value.
Staff has negotiated the following terms and conditions with Bangor Ill Electric Compairy.
Term - October 1, 2008 -September 30, 2048
Rate - Oct. 1, 2008 through Sept. 30, 2013 - $11,560 annually paid monthly in the
amount of $963.30 Oct. 1, 2013 through Sept. 30, 2018 and every five (5) years
thereafter Me lease rate would be adjusted! by Me sum a the five annual changes in the
Consumer Price Index during the previous five (5) year period with a cep of 5% per
year. For the five year periods beginning in 2028 and 2038 Me property would be
appraised again in order to reset Me value of the land
Use - For the maintenance and operation of an office building and for no other purposes
whatsoever without the expressed prior written consent of Me City of Bangor.
Taxes - Taxes assessed! upon the real estate, building and personal property are the
responsibility, of Bangor Hydro Electric Company.
Insurance - Bangor Hydro Electric Company will provide comprehensive public and property.
damage Liability insurance te limits of $400,001 per each occurrence. Bangor
Hydro EleNic Company will provide fire damage insurance coverage in an amount
equal to either Me assessetl or appraised value.
Staff recommends approval of this tease agreement under the terms and conditions outlined
above.
Department Head
Normal Comments: This las been reviewed and m recommended by the Business and
Ecorromic Development Committee.
City Manager
assodated Information:
am Director
X passage
Pleat Resiling Page—of—
Referral I
age_of_Referzal
08 316
Assigned to Councilor Farrington Septenbex 22, 2008
CITY OF BANGOR
�a.
(TITLE.) ORDER, Authorizing a Lease Agreement with Bangor Hydro Electric Company
for Lot 4, BIA Commercial/Industrial Park, 790Illinois Avenue
WHEREAS, Gary 1. Hagan has leased Lot 4, BIA Commercial/Industrial Park, 790 Illinois
Ave., Bangor from the City of Bangor since 1988; and
WHEREAS, Bangor Hydro Electric Company has agreed to purchase the building on this
property from Gary J. Hagan; and
WHEREAS, Gary J. Hagan has agreed to terminate his lease of this property with the City;
and
WHEREAS, Bangor Hydro Electric Company now wishes to lease Lot 4, BIA Commercial /
Industrial Park, 790 Illinois Ave;
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 a Lease
Agreement between the City of Bangor and Bangor Hydro Electric Company fw Lot 4, BIA
Commercial/Industrial Patk, 790 Illinois Ave., Bangor in a form approved by the City Solicitor or
Assistant City Solicitor and containing the following terms and conditions:
a) Premises: Lot 4, BIA Commercial/Industrial Park, 790 Illinois Ave., Bangor
b) Term: Forty (40) years, from October 1, 2008 to September 30, 2098
c) Rate: Eleven thousand five hundred and sixty dollars ($11,560) annually
d) The lean rate will be adjusted at each five (5) year period.
Upon execution of a Lease Agreement between the City of Bangor and Bangor Hydra Electric
Company, the City Manager Is hereby authorized to execute a Termination of Lease with Gary
I. Hagan, said termination to be in a farm approved by the City Solicitor or Assistant City
Solicitor.
I9 CITY WO II
Septe•gea 22. 2008
!lotion Ifade and seconded
for Passage
n C BRK
with Bangor 9Pdo Electric
�CXiiCn
Pssk]90 I113mnis Avenue I