HomeMy WebLinkAbout2005-03-28 05-115 ORDERItem NO 05-a t s
Dee: March 2R. 2005
Item/Subject: ORDER, Authorizing Lease of -and, Buildings and Improvements at 690 Maine Avenue
W L.L. Bean, Inc.
Responsible Department: Community & Ecmmmic Development
This Order will authorize the lease of land, buildings and improvements at 690 Maine Avenue to L.L.
Bean, Inc, for use as a all center, subsequent to the City's purchase of the buildings and improvements
from the Irving Oil Corporation. The initial lease term of the 30,000 square tot building will be for Five
(5) years with two (2) five-year renewal options. The monthly lease ate will be $19,375. Under the
terms of the lease agreement, the City would finance up t $981,900 In improvements t the building for
use by LL Bean and would expand the existing parking lot to add 300 parking spaces. The lease would
be triple net, with the tenant responsible for paying all taxes, utilities and other operating Costs.
Department Head
Manages Commandos:
Recommend approval.
GCity
y.Manager
Annunciated Information
r
-_K Passage
_ First Reading Page _ of
Reatmal
o5-115
Assigned to Councilor 1'[etl1e March 29, 2005
CITY OF BANGOR
(TITLE.) Order, Authorizing Lease of Land, Buildings and Improvements at 690 Maine Avenue
to L.L. Bean, Inc.
WHEREAS, L.L. Bean, Inc. wishes to lease the land, buildings and improvements at 6% Maine
Avenue to operate a customer service center; and
WHEREAS, the Bangor Airport Civic Development Corporation (BanAir) has entered into a
Contract for Sale for the purchase of the buildings and Improvements at 690 Maine
Avenue from the Irving Oil Corporation, dated March 18, 2005; and
WHEREAS, under the terms of the Contract far Sale, Irving Oil Corporadon has consented to
the assignment of the Contract for Sale by Barr to the City of Bangor; and
WHEREAS, the obligations of the Irving Oil Corporation and Barr under the Contract for Sale
are contingent upon the buyer securing a prospective tenant for a minimum five-
year lease virthin forty-five (45) days of acceptance of the Contact for Sale by the
Irving Oil Corporation; and
WHEREAS, BanAir has consented to the assignment of the Contract for Sale to the City of
Bangor; and
WHEREAS, the City of Bangor intends W purchase the buildings and improvements at 690
Maine Avenue under the terms and conditions of the Contract for Sale between
Bin -Air and Irving Oil Corporation;
NOW, THEREFORE, BE IT ORDERED By THE CITY COUNCIL OF THE CITY OF BANGOR THAT,
subsequent W the purchase of the buildings and improvements of the Irving Oil Corporation
property at 690 Maine Avenue by the Pty of Bangor, authorized by separate Council action, the
Ory Manager Is hereby authorized, on behalf of the City of Bangor, W execute a lease
agreement between the City of Bangor and L.L. Bean, Inc. for the land, buildings and other
improvements at 690 Maine Avenue in a form approved by the City Solicitor or Assistant City
Solicitor and containing the following terms and conditions:
a. Premises: The land, buildings, and improvements a 690 Maine Avenue in the BIA
Commercial/Industrial Park, Bangor, Maine.
It. Term: Five (5) years.
c. 4ot'on Period : Two (2), five (5) year option periods.
d. Lessor's Improvements: Expand the parking lot W provide an additional 300 parking
spaces before August 1, 2005.
e. Build -out and design allowance: Provide a design and building improvement
allowance of $981,900.
05-115
f. Lessee's Improvements: Alterations and improvements can be made by the Lessee
with the approval of the City Manager or his designee. The work will be done in
compliance with municipal, state, or federal law or regulation.
g, lease Rate: Nineteen thousand three hundred seventy-five dollars ($19,375)
monthly.
h. Use: For a customer service center and for no other purposes without the consent of
the Lessor.
1. 5iii : Lessee can sect signs with the approval of the Oty Manager or his
designee and in compliance with the Citys Sign Ordinance.
j. Insurance: The Lessee will maintain the following insurance for the protection of the
Lessor who will be named as an additional insured:
Comprehensive Public Liability
Bodily Injury $900,000.00 each occurrence
Property Damage $901 each occurrence
him Damage
$2,500,000 each occurrence
worker's Compensation Insurance.
k. Operai Expenses: Lessee will be responsible for operating expenses, including,
but not limited to, real estate taxes, building maintenance, managemei building
insurance, parking lot maintenance and repairs, grounds maintenance, janitorial
services, snow removal, and the cost of all utilities, including electricity, gas, fuel oil,
water, and sewer user fees.
I. Maintenance: Lessee will be responsible for all fixtures, including electrical, plumbing
and heating, doors, windows, floor and Floor coverings, ceilings, walk, and interior
and exterior paint surfaces. Lessee will also be responsible for cleaning, grounds
landscaping, snowplowing, maintenance of paging areas and rubbish removal.
m. Lessor will be responsible for the building's major stnMural components: roof,
structural walls, foundation, operating systems, including heating, plumbing, and
electrical systems except fixtures.
m CITY COMCIL
Match 28. 2005
Motion Made and Seconded
for assage
Pa d
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(TITLE) Authorizing Leaseouf:lavdf ff"Adiog
and Imyraaements at 890 Maine Avenue to