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HomeMy WebLinkAbout2000-11-13 01-30 ORDER01-30 Item No. Date: November 13,20W Item/Subject ORDER: Author i no the City Manner to execute an amendment to the 3anuary 1. 1998 lease betwetin thef Bangor and Telford Aviation. Inc. Responsible Departmemt: Airport Commentary. This amendement serves two purposed. The first is to increase the rental amount an include the new addition in the 600 area. The addition was built to house the Volvo parts for which Telford is the North American distributor. In addition, the amendment adds two sister corporations, Telford Aviation Services, Inc, and Telford Air Spares, Inc. as co -lessees. These corporations are the ones that acutally use the facilities to which this lease applies. We are in the process of drafting a new lease with the three companies that will extend the term of the lease. Bob W. Zieeelear K���, ��,��Q����tDe ant Head a a _- c -/)4.urdmwa,�eQl� City Manager Associated information: Oi. Budget Approval: Finance Director Legal Approval: City Solicitor Introduced for Pa~ First Reading _ RefemF Fgge -1— of -1_ 01-30 Assigned to Co it Tre le November 13, 3000 CITY OF BANGOR F (TITLE.) Order, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE JANUARY 1 1998 LEASE BETWEEN THE City OF BANGOR AND TELFORD AVIATION INC By Bae Otycbrr+oVOfb* Cry ofaw .- WHEREAS, an addition to the 600 area hangar was constructed by the City of Bangor; and, WHEREAS, the lease between the City of Bangor and Telford Aviation, Inc must be amended to add Telford Avlarton Services, Inc, and Telford Air Spares, Inc. as co -lessees and to Increase the monthly rental amount; Ni THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized to execute an amdendment to the January 1, 1998 lease between the City of Bangor and Telford Aviation, Inc IN CITE COMM November 13. 2000 ..tem for Passage Node end •••_••• Seconded Passed nenea (TITLE) AnEM1nrizln¢ the Ci[v Nevaeer to arrests an Asendmest to the January I. 1998 Lease aeteeen the City of Hangar and Telford Aviation. Inc. _ uW O— / , � A 01-30 FIRST AMENDMENT TO AGREEMENT OF LEASE THIS FIRST \3%T TO AGREEMENT LEASE, executed this day Of 2000 by and between: CITY OF BANGOR, a body politic and Corporate, duly organized and existing under and by virtue of the laws of the State of Maine and having its principal offices at 73 Harlow Street, Bangor, Maine (hereinafter sometimes referred to as "Lessor"( and TELFORD AVIATION, INC., a corporation duly organized and ej existing under the laws of the State of Maine, with ;sgoat, + ''11'.'''�11 principal headquarters located at F�}lle, Ytine %,,, M6 &W4 (hereinafter sometimes referred to as "Lessee-) W I T N E 5 S E T H: WHEREAS, the City of Bangor is the owner of an airport commonly known a ^Bangor International Airport-, formerly known s Dow Air Force Base, located in the City of Bangor, County of Penobscot, State of Maine (hereinafter sometimes referred to as the "Airport"): and WHEREAS, by Indenture of Lease, dated January 1, 1998, the parties agreed to the lease by the Lessor of Hangar #11, Building 4600 and certain ground and access rights appurtenant thereto for the purpose of operating a General Aviation service; and WHEREAS, the parties hereto wish to amend said Indenture of Lease; and NOW, THEREFORE, the parties do mutually agree that the Indenture of Lease dated January 1, 1998 be and hereby is amended as follows: (1) The Indenture of Lease dated January 1, 1998 and by and between the City of Bangor and Telford Aviation, Inc. i hereby amended to include Telford Aviation Services, Inc. and Telford ➢pia T n SpareSw4s Inc. as co -lessees. r (2) That ARTICLE I, PREMISES add the following Section Three under Paragraph B: Section Three The southerly warehouse and land appurtenant thereto a described as Land Area A in Exhibit H, attached hereto• (3) That ARTICLE III, RENTAL Paragraph (A) (2) be deleted in its entirety and replaced with the following: (2) Basic Rental - Building #600 Jan. 1998 - Dec. 1998 $3,734.00 each month Jan. 1999 - Dec. 1999 $3,846.00 each month Jan. 2000 - July 2000 $3,961.00 each month Aug. 2000 - Dec. 2000 $10,161.00 each month Jan. 2001 - Dec. 2001 $10,280.00 each month Jan. 2002 - Dec. 2002 $10,403.00 each month (4) That ARTICLE IV, USE, OCCUPANCY AND IMPROVEMENTS OF PREMISES Paragraph (D) be deleted in its entirety and replace with the following: (D) Lessee shall have the right to make alterations and improvements to the premises as it may choose, subject to the prior written approval of the Airport Director which shall not be unreasonably withheld, and provided that such alterations, additions, and improvements do not weaken the structural integrity of Hangar #115, not decrease its functional quality or value, and further provided that any such work shall be done entirely a the Lessee's own expense and will include returning disrupted surfaces to a serviceable and attractive condition. Lessee shall have the right to tate the Westerly Bay of Hangar #600 with thirty (30) days advance notice to the Airport Director. In that event the Lessor shall have the right to use the bay for its own purpose or locate another user and the Lessor shall have no obligation to make the facility available to the Lessee at a future time but may do so if circumstances warrant. If during the period January 1998 through June 30, 2000 the Lessee surrenders the Westerly Bay of Hangar #600 the rental fee charged by the Lessor for Hangar #600 shall be reduced by fifty (50%) percent. The rent shall be reduced by the following dollar amounts for the remainder of the lease term: July 1, 2000 - Dec. 31, 2000 $11980.50 Jan. 1, 2001 - Dec. 31, 2001 $2,098.00 Jan. 1, 2002 - Dec. 31, 2002 $2,101.50 THAT except for the foregoing, said Indenture of Lease, dated January 1, 1998, between the City of Bangor and Telford Aviation, Inc. will remain in full force and effect in all other respects between the undersigned. IN WITNESS THEREOF, the parties hereto have set their hands and seals the day and year written above. CITY OF BANGOR (By) (Printed Name) Edward A. Barrett (Title) City Manager TELFORD �AVIATION, INC. By_2 Witness (yr d ame) (Title) TELFORD AVIATION SERVICES, INC. (By) Witness (Printed Name) laefa (Title) I TELFORD r KSS, INC. (BY) Witness (printed Name) p yp.. (Title) <PI/ -5