HomeMy WebLinkAbout2005-01-10 05-64 ORDERItem No. 05E6
Date: 1-10-05
Item/Subject Order, Authorizing the City Manager to Execute Repayment Agreement with
Pan American Airlines
Responsible Department: Legal
Commentary:
Pan American Airlines and an affiliated airline, Boston -Maine, has an outstanding
balance pending with the Bangor International Airport. Pan Am has expressed a
willingness to pay, off this debt and has signed a Repayment Agreement to provide a
repayment schedule.
Under this agreement, Pan Am aclmowledges the amount owed to Bangor International
Airport, agrees to an initial payment of $75,000 and monthly payments beginning in
February 2005 in the amount of $20,000. In return, the City agrees to refrain from filing
a lawsuit to collect any amounts due so long as Pan Am and Boston and Maine remain
current on the repayment schedule.
Department Head
Recommend approval. G P? �
City MManger
Associated Information:
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Flnance Director
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X Passage
_ First Resting Page _ of
Referral
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AMignsd MCouncilor D'Errico inummuy 10. 2005
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CITY OF BANGOR
(TITLE.) ORDER, Authorizing the City Manager to Execute Repayment Agreement with Pan
Amencan Airlines
ORDERED, THAT
The Gly Manager is hereby authorized to exewte the attached Repayment
Agreement WON Pan Ameritan Airlines.
IN CITY COUNCIL
]aouary 10, 2005
Passed
A nue Copy.mAttest:
IN CITY COOHCIL
January 10. 2005
Nation Made and seconded F 0864
for Passage
Pass OHDBH
Q,ggH (IYfIN Authoilalsz the clb Msaaeet to
Execute Repayment Agreement vlth Pan
American Airlines
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This Agreement is made and entered into this _ day of December, 2004, by and between me
following parties:
CITY OF BANGOR (hereinafter "City'), a municipal corporation organized and
existing under the laws of the Seats of Maine, and having its principal offiws located at
73 Harlow Street, Bangor, Maine, and
PAN AMERICAN AIRLINES, INC. (hereinafter "Pan Am'), a Florida corporation
with As principal offices Inerrant at 14 Aviation Avenue, Portsmouth, NH, 03801, and
BOSTON - MAINE AH4WAYS CORP. (hereinafter "Boston- Maine'), a New
Hampshire corporation with its principal offices loomed at 14 Aviation Avenue,
Portsmouth, NH, 03801.
WITNESSETH
WHEREAS, Me City is the owner of an airport located in Bangor, County of Penobscot, State of
Maine, commonly known as Bangor International Airport (berein iter MIA"),
WHEREAS, Pan Am and the City entered into a Domestic Carrier Agreement & Leare dated
Febmzry 29, 2000, for services and the mass ofthe BIA facilities;
WHEREAS, Boston -Maim operated train flights under Me auspices of Pan Am that received
services and used the BIA facilities;
WHEREAS, Pan Am and BostonMainehave an outstanding balance due to the City pursuant to
said Domestic Carrier Agreement & Leaser; and
WHEREAS, Pan Am and Boaton-Maine desire to pay off this debt;
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter set forth, and
other grind and valuable consideration, the parties hereto agree as follows:
1. Pan Am and Boston -Maine acknowledge and agree that theyioimly and severally owe to Ne City
of Bangor the sum of ONE HUNDRED NINETY SEVEN THOUSAND TWO HUNDRED
THIRTY FOUR DOLLARS AND EIGHTEEN CENTS ($197,234.18) for services and lease
charges accrued from approximately March 2003 m Me present Pursuant 0 the Domestic Cartier
Agreement & Lease dated February 29,200, by and between the City of Bangor and Pan Am.
2. Pon Am and Boston -Maine further acknowledge and agree that of the amount stated above, the
City claims Pan Am and Boston -Maine owe Passenger Facility Charges (PFCs) in the summer of
TWENTY THOUSAND FOUR HUNDRED ONE DOLLARS AND FOURTEEN CENTS
($20,401.14). The City acknowledges that Pan Am and Boston -Maine dispute this amount and
board to submit dacumenrstion to support their dispute. The City agrees to evaluate any such
documentation and adjust Ne PEE balance interestingly, if warrzoed. However, if Pan Am and
Boston -Maine fail to provide sufficient documentation to support its claim by July 1, 2005, they
shall accept the City's determination of the halmme due.
05-66
3. On or before Decembra 30, 2004, Pan Am and Boston -Maine shell pay ro the City the sum of
SEVENTY FIVE THOUSAND DOLLARS (S75,000.00) to be applied 0 the debt described in
paragraph 1.
4. Pan Am and PortionMaineshall thereafter make monthly payments of TWENTY THOUSAND
DOLLARS ($20,000.00), payable on the first day of each month beginning February 1, 2005, to
be applied to the debt described in paragraph I until the debt has been paid. ThereeReq the
payments shell be applied to the debt described in paragraph 2, if not otherwise discharged by the
City, unfit the debt has been paid.
5. Nothing in this Agreement shall prohibit Pan Am and Boston -Maine from making larger
payments or earlier payments.
6. The City shall refrain from fling a lawsuit to collect upon said debt while Pan Am and Boston -
Maine remain moment on Noir obligations hereunder.
T. In the event Pan Am and BostonMainetender any payment due hereunder late, a late fee of 10%
of Me amount payment due shall be added to the balance.
8. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the
State of Maine, as the same may from time to time exist, and Pan Am and Boson -Maine consent
To theryrisdiction of the State of Maine in regards to any matter pertaining to this Agreement.
M WITNESS WHEREOF this Agreement has been executed, sealed and delivered as of the day
and year first above written.
CITY OF BANGOR
By: Edward A. Barren
Its: City Manger
PAN AMERICAN AIRLINES, INC.
BOSTON - MAINE AIRWAYS CORP.
Its: