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
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