HomeMy WebLinkAbout2002-03-25 02-144 ORDERItem No. 02-166
Date: March 25, 2002
Item/Subject: Authorizing Indenture of Lease with Fleet Bank for Lot 2 in the BIA Commercial /
Industrial Park
Responsible Department: BanAlr Corporation / Community et Economic Development
Fleet National Bank wishes m extend their lease of the .77 acre Lot 2 in the BIA Commercial 7 Industrial
Park on Union Street at its intersection with the Griffin Road on which it has a branch bank. The lease
between the City of Bangor and Fleet Bank (originally Merrill Trust Company) began on December 1,
1969 and extended to December 1, 1998 with options for the bank to extend the lease agreement for
elevm(11)years to December 1, 2009, which was exercised in 1998. Fleet Bank has no further options
to extend the term of the lease beyond December 1, 2009.
The current annual lease rate of $1,200 was established at the inception of the lease and is fixed through
December 1, 2009. In September the BanAir Board of Directors and the Business and Economic
Development Committee recommended appmval of an amendment of the Lease extending the term no,
lune 30, 2011 and providing Fleet an option to extend for another five years to June 30, 2016. Beforethe
City Council considered the amendment, Flat Back made mother request for a second five-year option
period. The proposed lease rate of $7,200 annually though June 30, 2011 agreed to by Fleet and the
Airport Director represents 7.8% of the parcels 2001 assessed value of $92,700. This is a significant
improvement over the current$1,200 annual lease rate. The Forced should be aware that after these
initial negotiations look place with Fleet, the City engaged an appraisal of this and several other BIA
Commercial / Industrial park parcels indicating Lot 2 has a fair market value of 5155,000. The lease rate
for the me five year option extension periods would be at 9% of the fair market value of the panel at the
begimung of each extension period. The terms of the new agreement would be for a base loran from July
1, 2001 to Jane 30, 2011; with options for Fleet to extend for two additional five-year periods. The lease
care would be $7,200 annually through Jose 30, 2011 and at W1, of fair market value during the option
extension periods. The use would be restricted to use as a financial service institution. The BanAir
Board of Directors has recommended the City Council approve the new leaseas n posed.
—e N
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Manager's Comments: '�f--E'D �oaewnAas��n.k
Clry Manager
Associated Information:
Budget Approval:
-
France Director
Legal Approval:
Solicitor
X Passage
_ First Reading page 1 of I
Referral
Assignedto Councilor Falser March 25, 2102
CITY OF BANGOR
(TITLE.) Order, Aulhodang Indenture of Lease with Fleet Bank for Lot 2 in
the BIA Commercial / Industrial Park
By the Q"(y Coonti/of(he CYY ofUngar.
ORDERED,THAT
WHEREAS, by Indenture of Lease, dated November 26, 1969, the Gly of Bangor and
Fleet Bank as successor in Interest to The Merrill Trust Company, agreed to the lease by the
Lessor of Lot 2 in the BIA Commercial / Industrial Park subdivision, Bangor International Airport;
and
WHEREAS, the cement lease has a term which ends December 1, 2009 with an annual
fixed lease rare of $1,200; and
WHEREAS, the parties hereto wish to terminate said Indenture of Lease and enter Into
a new agreement;
NOW, THEREFORE, BE IT ORDERED BY THE CM COUNCIL OF THE CITY OF
BANGOR THAT the City Manager Is hereby authomed, on behalf of the City of Bangor, to
terminate the Indenture of Lease dated November 26, 1969 between the City of Bangor and
Fleet Bank for Lot 2 in the BIA Commercial / Industrial Park and to enter into a new Indenture
of Lease between the City of Bangor and Fleet Bank with the following terms and conditions and
In a farm approved by the City Solicitor or Assistant City Solicitor.
Premises: Lot 2 in the BIA Commercial / Industrial Park, .77 acres
Term: Ten years, from July 1, 2001 to June 30, 2011. Plus two (2) five year
options to extend the tarty.
Rate: $7,200 annually to June 30, 2011, and for each five-year option to extend
period, the lease rate will be established at 9% of the fair market value.
Use: Financial services institution and for no other purposes whatsoever
without the expressed prior written consent of the BaAr Corporadon.
Insurance: lessee will provide comprehensive public liability insurance and fire
damage to limits of $900,000 per each occurrence.
IH Cin COMM
March 25, 2002
Passed
k 02-166
• L
MENU t eu OCKiT-M"..
(TITLE.) Authorizing Indenture of Lease
slts Fleet EemK For Lot 2 in the eIA
,mercial/Industrial Park
Assign! b Councilor �/dry ��
04