HomeMy WebLinkAbout2005-08-22 05-279 ORDERIDNCILAMON
Item No. 05-279
Date: 08-22-2005
Item/Subject Order, Authorizing Lease with LifeFlight of Maine, LLC for Space In Building
123, Corporate Aviation Hangar, Bangor International Airport.
Responsible Department Airport
The attached Order will authorize a new Indenture of Lease between the City of Bangor, Airport Department
and LlfeFlight of Maine, LLC. This agreement is for a Ove -year term, August 01, 2005 through July 31, 2010,
for the lease of hangar space in Building 123 (also known as the Corporate Aviation Hangar) at Bangor
International Airport. The original lease has recently expired and the airport is interested In extending
DfeHighCs lease. The terms and conditions of the lease remain unchanged except as follows:
1. Under Article W - Maintenance & Repairs, Subpart B, language Identifying that the tenant will be
responsible for any and all asbestos removal has been removed. This facility does not Contain asbestos.
2. Article XIX - Termination, Part B, # 2 was removed. This language discusses the ability to terminate the
lease should me tenants' business volume fall bebw what is considered economically feasible and
profitable.
The lease rates set forth under Article III - Rent, call for an annual lease ate of $32,100, payable In twelve
(12) monthly installments of $2,675. This ate remains the same from the previous lease agreement. The
anginal lease amount was established based an our cast of construcEng the Corporate Aviation Hangar plus a
7% ate of return. Given the size and space allocation within this Hangar, there Is a limited demand for
space of this type in our market. Therefore, market forces do not support an increase in lease payments at
this time. The proposed lease payment will continue to provide the Alport with a reasonable rate of return
on Its investment in constructing this facility. The full cost of utilities consumed will remain the responsibility
of the tenant.
The terms outlined In this lease contract have been agreed on between the airport and LifeHight. The City of
Bangers Legal Department has reviewed and approved the new lease. The airport respectfully submits this
lease for review and recommends approval.
L%Bc gS�6
DepaMceM Head
This has been reviewed and is recommended by Transportation and InfrastryQure
X Passage
_ Fist Reading Page _ of
Respond
GN Manager
Associated Information:
Budget Approval:
AIWL
Finance Director
Legal Approval:
iN Solidtor
X Passage
_ Fist Reading Page _ of
Respond
05-2]9
'.Q Assigned to Councilor enven August 22, 2005
CITY OF BANGOR
(TITLE.) ORDER, MMor¢ing lease with UfeFlight of Maine, LLC for Spare in Building 123,
Corporate Aviation Hangar, Bangor Interretlonel Airport.
By the oty Cooncll of the city ofSiangon
ORDERED, THAT a lease with LifeRlight of Maine, LLC for space in Building 123,
Corporate Aviation Hangar, Bangor International Airport, is hereby approved in a form
substantially the same as presented to the Transportation and Infrastructure Committee
and approved by the City Solicitor.
IN CITY COMIL
Augn t 22. 2005 [
Paz �d
w CLBBH
y 05-279
O HO GB
0.TLI) Authorizing Lease alth Lifefliot of
. LLC for Space in Building 123, Corporate
Aviation Hanger. Bangor International Airport
Avignedlo CouncHor gmw
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