HomeMy WebLinkAbout2007-02-12 07-079 ORDERIfept No, 07 079
Dam: FeMuary, 12, 2007
Item/Subject ORDER, Audrorizing the Execution of a Second Amendment baIndenture of
Lease with the Maine Aviation Historical Society
Responsible Department: Legal
On August 18, 1999, the City and the Mall Aviation Historical Society entered Into a lease agreement. The
Lease provided that beginning at year six of the lease, the Lessee would provide monthly reports and
percentage rent payments m the City. Given the level of activity associated with the Museum and As summer
operating schedule and the burden associated with monthly reporting, the Lessee has requested that the
report and payment be made annually. Oty staff concurs that this would be a more appropriate
arrangement, this Amendment will make that change.
Department Head
ThIswas reviewed and unanmously me Ey the Fina�n��c��eCppommM1tea at ting of January
15, 2g W. Recommend approval. aea.B"Rl `/p ,„"•��j"---1
City Manager
Associated Information: Second Amendment to Indenture
Budget Approval:
A4 lhM
Legal Approval: 1
city swldmr
Introduced for Consent
X Passage
_ First Reading Page }_ of_
Referral
02/12/2007
Assi�ed to Couvnilor Stone
,"*;� 07 079
CITY OF BANGOR
(MU.) ORDER Authorizing the Execution of a Second Amendment to Indenture
of !.ease with the Maine Aviation Historical Society
By the Cry Cmal of Ne Cry MBxWr.
THAT the City Manager is hereby authorized to execute a Second Amendment ro
Indenture of Lease with the Maine Aviation Historical Society. A copy of said Second
Amendment is attached hereto.
IN CITY COUNCIL
Pebr ry 12. 2007
Pas
f 07-079
CIT4 CLE ( ORDER
(PPPL81
of a Seconds enavent to Indenture
of Lease with the Mine Aviation
Historical Society
AmiUndlo CuemYot 97"
02/12/2007
SECOND AMENDMENT TO 07 079
INDENTNtE OF LEASE
This First Amendment to Indenture of Lease executed this day of
2W7,byandbetveen:
CITY OF BANGOR, a municipal wTomtion organized and existing under and by virtue
of the laws of the State of Maine, and having its principal offices at 73 Harlow Street,
Bangor, Maine (hen rafter referred m as"Lessoe�
AND
MAINE AVIATION HISTORICAL SOCIETY, anon -profit wVomfion organized and
existing under the laws of the State ofMaine (hefeinafler tefed to as Lessee)
WITNESSTH
WHEREAS, the Lessor and Lessee entered into an Indenture of Lease dated
August 18,1999; mrd
WHEREAS, the Lessor has loaned the Lessee camin sums for the propose of
repairing the mofan the leased premises as evidenced by a Promissory Note dated
August 7,2002; and
WHEREAS, said Ion is with oermn terms and conditions, including a provision
that Lesson will vacate the leased premises and return it m Lessor in the event ofdefault
on the loan.
WHEREAS, said Indenture of Lease was amended on August 7, 2002 to reflect
the provisions of the loan; and
WHEREAS, the loan agreement and Indention of Lease as mended provided that
the loan shall be for a period often years wiN the repayment on the loan to begin May 1,
2007; and
WHEREAS, Lessee has requested that the City cancel the first loan had provide a
second loan in the same amount at 6% per annum for a len year tenn beginning in 200
and that repayment be deferred unfit 2012.
NOW, THEREFORE, the pardes do mutually agree the Indenture of Lease
between the parties dated August 18, 1999 as amended August 7, 2002 shall be funder
amended M follows:
02/12/2007
07 079
By deleting the followingin ARTICLE III—COMPUTATION ANNUAL RENTAL
"(D) Commrncing promptly in the sixth year of this Lease Agreement, Lessee
shall report to the lessor within flimat (15) days of the and of each month on the Gross
Sales in such month. Simultaneously with the submission of such report for each month,
the Lessee shall pay the Lessor any percmmge rent that maybe due fm such month."
AM replacing it with the following:
"(D) Commencing promptly in the sixth year of this Lease Agreement, Lesson
shall pay the Lessor my parentage rent thin maybe due for such year on December Me
of each year and provide a reps of gross arcual sales."
And by deleting the following in ARTICLE X —TERMINATION:
(6) If Lessee breaches any more or conditions of a Promissory Note between the
patties for $33,700 daW August 7, 2002
And by replacing it with:
(6) If Lessee breaches my tams or conditions of a Promissory Note between the
parties for $33,700 daW 2007
In all other respects the Lease between the parties remains in fullforce and effort.
IN WITNESS WHEREOF, the parties have set their hands and seals this day of
August 2007.
Witness
MAINE HISTORICAL AVIATION SOCIETY
Name:
Title:
CITY OF BANGOR
Witness Edward A. Barrett
City Manager