HomeMy WebLinkAbout2003-09-22 03-297 ORDERCOUNCILACTION
Item NO. 03-297
Date: September 22, 2003
Item/Subject: ORDER Amendment to a lease agreement with Gary J. Hagan
Responsible Depstment: Community® Economic Development
Commandant:
Issue
The lease agreement beNreen the City of Bangor and Gary J. Hagan for lot 4 in the SIV, Commercial /
Industrial Park, requires that the annual rental amount be established for the period April 15, 2003 ro April
14,2008.
Background
Gary J. Hagan leases Lm 4 in the BIA Commercial / Industrial Park with steno of 1988 m2008. Came
property is a 9,073 sit. ft. of of building currently leased to Care Development The lease agreement
requires that the sound =tat be determined for the period April 15, 2003 to April 14,2008 based on'fair
market value and fair market lease return mai that the monthly =tat payment will not be less that
$500 per month or greater Ones $900 per month". The airport lease rate is $6,000 normally or $500
monthly. Based upon the guidelines adopted by the Bangor Cly Council for determining the lease rate for
land in the Bangor International A rpon Complex, we proposed that the annual lease rate during the
period be established at 8% of the fair market value of the land. The Ban it Corporation had the lots in
the BIA Commercial I Industrial Perk appraised! In November, 2001 by Gosline t Company which
Indicated that Lot 4 at 970 Illinois Ave. has a marketvalue of $140,000. Therefore,vreproposedthatthe
lease ate for Lot 4 be set at $10,800 annually paid monthly in the amount of $900 for the period April 15,
2003 to April 14, 2008.
Terms and Conditions
After extended negotiations Mr. Hagan has agreed to accept the proposed lease mos. April 15, 2003 to
Atril14,2008, $10,g mnuallypeidmOM6lyinlheamouMof$900.
Recommendation
The Board of Directors of the BanAir Corporation and staff recommend approval of the amendment to the
lease agreement under the tames and considons whined above.
Department Head
Manager' a Cemmente:
OtyManagel—
yvNlK/IRNS/ilyryryt'"`"%""%f
Associated Information:
Budget Approval:
AYJl.�L�
Finance Director
Legal Approval:
solicitor
Intro lumld for
—0%sage
_ First Reading Page 2 of 2
Referral
03-2W
Assigned to Comwiior Nealley September 22. 2003
f&:
OR
CITY OF BANGOR
(MLEJ Order, Amendment tm a lease agreement with GaryJ. Ragan
By Me OryCounolofthe Glyo/Ban .
ORDERED,
THAT the lease agreement betuasn the City of Bangor
Bud Gary J. Hagan for lot 9 in the DIA Commercial / Industrial Perk be
ended such that the al ental exhaust during the period April 15.
2003 to April 19, 2005 be shagged to $10.000 wally paid monthly in
the mount Of $300.
IN CITT COO9(.'II. I September 22, 2003
Passed
p 03-29]
CI.EBg
(TITLE,) Amendment to a lease Agreement
vlth Gary. gen
Assigned to Coundlorrq�