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HomeMy WebLinkAbout2003-03-12 03-110 ORDERCOUNCIL ACTIOR Item Bo. ate: Item/Subject: Authorizing the City Manager and/or Airport Director to execute a lease agreement between Bangor International Airpert andTelford Aviation, BesponsMe apartment: Airport Cosunentery: This lease agreement will be for a ten year term. The lease will reflect the addition of the new hangar in the 600 Area and adjust the terms for the other facilities Nat Telford is leasing. The rate for the original complex will be $51,456 per annum, which adjusts the current rate of $50,436 m reflect the change in the Consumer Prim Index. For the warehouse addition, the rate will remain constant at $74,400 per annum since that rate was calculated using a 7% return over a 20 -year period using the net present value method. The rate for the new Hanger addition will be calculated using the cost of the addition, plus land value at a 6% return over 20 years and will remain constant throughout the term as we are using a net present value calculation. Based on a $500,000 investment that would be $42,771,96 per annum. The lease will be in a final form approved by the City Solicitor or Assistant City Solicitor. This item has been reviewed by the Business and Economic Development Committee which rectmends approval. Rebecca Huop Department Head manatees Commenis: City Manager Associated fafermstlem - Budget Approval• Finance Direci-Or Legal Approval: 7 itv solicitor IIgduced for passage _ First Beading _ Referral Page — of 03-110 Bssiirmed to Couaci of Medley "March 12, 2003 CITY OF BANGOR (TITLE.) Order, AUTHORIZING HE DIRECTOR TO EXECE A LEASE AGREEMENT BETWEEN BANGOR INTERNATIONAL AIRPORT AND TELFORD AVIATION. INC FOR THE LEASE OF BUILDING 600 By Nle citYCarzNofthe QyofBangor WHEREAS, Telford Aviation desires to lease certain premises, known as Building 600 at the Bangor International Airport for their aircraft parts distribution and aircraft maintenance business; and WHEREAS, Bangor International Airport desires to lease such space to Telford Aviation and this Is consist with the AirpoRY mission. NOW, THEREFORE, BE IT ORDERED BY THE CITU COUNCIL OF THE CITY OF BANGOR THAT The City Manage Is hereby authorized to execute a lease agreement between Bangor International Airport and Telford Aviation, Inc. for Building 600, said lease to be in a form acceptable to the City Solicitor. IB cin CWBCIL March 12. 2003 Moclon Made and Seconded for Paeaage Passed & 03-1IO OBD BB (TITLEJ 9 ttorrzrng rue city manager and/or oirpoa Wrector to cure aLease ¢meat Between Bangor tl Internanal Rirpwmtr ae Building 600 aenenea to Coundlor t�