HomeMy WebLinkAbout2007-04-23 07-159 ORDERItem Mo, 07 159
Date: Ancil Z3. 2007
Item/Subject Order, Authmizing Ur utionofanAmendmer WaLease Agreementvdth
Portals C.A.P.-120 Venture Way
Responsible Department: Community B Economic Development
This Order would authorize amendment to the lease with Penquis C.A.P. for As lease of 120 Venture Way.
Penquls C.A.P. wishes Mextend the lease of the building for continued operation of a daycare center serving
primarily low and moderate income clients and to participate in the cast of renmadon of the building. Penquis
C.A.P. leased Me building from the University of Maine System for a number of years and now leases the
facility from the City. Ownership of the building transferred to the City as part of the properly exchange
between the City and the University of Maine System. The amendment would amend the term of the lease
and adjust the lease rate to provide for the recovery of cost associated with Improvements to the property
funded by Penquls C.A.P. and the City. The term offhe Lease would be 20 years, from July 1, 2007 to August
31, 2027. The lease could be terminated by Penquls C.A.P. If federal funding for Portals C.A.P's caviare Is
discontinued. The Lease rate would be up to $29,525 annually depending upon the City cost improvements
made. The annual lease amount would be sufficient to amortize the Community Development funding of the
City Improvements at 3% Interest ever 20 years, plus the $6,000 annually now paid. Penquls C.A.P. will
provide $150,000 far building improvements
Department Head
Managers Comments:
The Finance Committee and Business and Economic Development Committee have recommended
approval of the improvements M 120 Venture Way to be funded through the City's Community
Development program. The Business and Economic Committee has recommended approval of the lease
amendment.
City Manager
Budget Approval:
/ France Directhr
_ passage
_ First Reading Pape—of-
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age_of_
Referral
U7 159
Asukoed to Canned" Wrringtou April 23. 2001
1S CITY OF BANGOR
(TITLE.) ORDER, Authoring Execution of an Amendment W a Lease Agreement
With Penquis C.A.P. —120 Venture Way
WHEREAS, the City of Bangor Is the owner of an airport commonly known as "Bangor
International Airport", formerly known as Dow Air Force Base, located in the City
of Bangor, County of Penobscot, Stece of Maine (hereinafter sometimes referred
to as the "Alrporr); and
WHEREAS, Penquis C.A.P. has leased a building at 120 Venture Way from the University of
Maine System and Me City of Bangor for a number of years; and
WHEREAS, Penquis C.A.P. wishes W cordnue to lease the building a[ 120 Venture Way and
the land appurtenant thereto, for the continued operation of a daycare center
and heatetl administrative functions; and
WHEREAS, the City of Bangor and Penquis C.A.P. Intend to engage In the renovation of the
building at 120 Venture Way, Bangor; and
WHEREAS, Penquis C.A.P. has committed M contribute $1%,D00 to the renovation of Ne
building at 120 Venture Way, Bangor; and
WHEREAS, the City of Bangor acknowledges Mat the ability of Penquis C.A.P. to lease the
buildng is dependent upon continuation of funding for child development
services from the United States of America;
NOW, THEREFORE, BE IT ORDERED BY ME CITY COUNCIL OF THE CITY OF
BANGOR, THAT the City Manager is hereby authorized, on behalf of the City of Bangor, to
execute a "Second Amendment Indenture of Lease", on file in the Office of the City Clerk and
in a forth approved by the City Solicitor or Assistant City Solicitor, regarding the existing Lease
between Me Ory of Bangor and Penquis C.A.P. dated Mardi 1, 2006 and amended July 11,
2006, is hereby amendadas of July 1, 2007.
IM CIW fAOMCIL
APril 23. 2007
action Made and Seconded
Councilor Pa3mer Stated that he
Led a Conflict and accused
Mimsa
Pane
CI4 ��i
(TITLEJ "tnarizine as ...tion of an
Amevdmut to a Leese Agreement mith
Peculate C.A.P. -120 Venture Nay
AsslgnulW Councilor