HomeMy WebLinkAbout2004-01-26 04-67 ORDERItem No. 04-62
Data: 3anuary 26.2004
Item/Subject: ORDER: Authurldng an indenture of Loam with A Northern New England
Responsible Department: Community & Economic Development
The AAA Northern New England wishes to revise the term of its lease of Let 3 in the BIA Commercial /
Industrial PaB to extend the term through 2023 with an option to extend it through 2043.
Backarountl
AAA Northern New England has leased Lot 3, .996 acres, in the BIA Commercial / Industrial Park since
1976. On the property, it built an once building from which it operates the AAA Travel Agency and
related services. In 1996 AAA Northern New England exercised an option to extend the lease for ten
(10) years or until August, 2006. The current lease rate through August 31, 2006 is $5,500 annually.
The existing agreement provides for another ten (10) year option period through 2016.
AAA Northern New England is planning to expand their building and would like to solidify a long term
lease of the property.
Terms and Conditions
AAA Northern New England has agreed to a new lease agreement with the folbwing lease rate, terms
and conditions:
Premises
Lot 3 in the BIA Commeroial I Industrial Part:
Term
A. January1,2004-December31,2023
B. Two (2) options to extend Me term for ten (10) years each beginning January 1, 2024 and
January 1, 2034.
Rate
January 1. 2004 throuob August 31 2006
$5,500 annually paid monthly in the amount of $458.33
September 1 2008 through August 31 2011
The annual rate will be 8% of Me market value as determined by an appraisal of the property.
Schlemmer 1.2011 thmu ih August 31 2016 and every five (5) years thereafter the lease rate
would b r adjusted! in accordance with changes in the Consumer Price Index. The lease rate
would be adjusted by the sum of the five annual changes in the Consumer Price Index during
the previous five (5) year period with a cap of 5% per year. For the five year periods
beginning in 2026 and 2035 the property would be appraised again in order to reset the value
of the and.
Use: For the operalion of a motor club, insurance agency and general travel bureau and for no
other purposes whatsoever without the expressed prior written consent of the City of Bangor.
Ol
Taxes. Taxes assessed upon the real estate, building and pemonal property are the
responsibility of A Northern New England.
Insuranceprovide comprehensive public and property damage liability insurance to limits of
$400,000 per each occurrence. Fire damage insurance coverage in an amount equal to
either the assessed or appressed value.
Recommendation
The Board of Directms of the Ba11Hlr Corporation recommends approval of this lease agreement under
Me terms and conditions outlined above. The recommendation of the Business & Economic
Development Committed will be provided at the Council meeting.
Department Head
Manager's Comments:
This has been approved by the Business and Economic Development Comms wild�o /./
I! City Manager
recur,:. Arta ' —�.Ta
Nuance Director
,qity solider
X passage
_First Reading Page_2_of 2
Referral
04-6]
AsaignedM Cauncibr eashvell Janes" 26, 2006
CITY OF BANGOR
(MILE.) Order, Authorizing an Indenture of Lease vath PAR Northern New England
WHEREAS, by Indenture of Lease dated August 1T, 19]6 and amended Septamber 30,1996,
AAA Northern New England agreed In the Lease by Ore Oty of Bangor as Lessor of
Lot 3 in the BIA Commercial / Indusbial Park subdivision, Bangor; and
WHEREAS, the parties thereto wish to cancel said Indenture of Lease and engage in a new
Indenture of Lease;
NOW, THEREFORE, BE IT ORDERED BY THE CRY COUNCIL OF THE CRY OF BANGOR
THAT the City Manager Is hereby authorized, on behalf of the City of Bangor, M cancel Me
Indenture of Lease dated August 17, 19M and execute a new Indenture of Lease between AAA
Northern New England and the City of Bangor for Lot 3 in the BIA Commercial / Industrial Park
in a loon approved by the ON Solidtor and with the follmvi g temw and caMPoars:
mm
January 1, 2004- December 31, 2023. Alan two (2) Options to extend the tarn for ten (10)
years each beginning January 1, 2024 and January 1, 2034.
IM
January 1, 2004 through August 31, 2006 the lease ate will be $5,500 annually paid monthly in
the amount of $458.33. On September 1, 2006 and every five (5) years thereafter the annual
ata will be adjusted to 896 of the market value as deco mined by an appraisal of the property
or by the changes in the Consumer Price Index as Indicated in the lease agreement.
Um
For the operation of a motor club, insurance agency and general travel bureau and for no other
purposes whatsoever without the expressed prior written consent of Me City of Bangor.
IX CIW WIMIL
January 26, 206
Passed
# 06-6)
(TITLE) Authorising an Indenture of louse
with AAA Nortoem New England