HomeMy WebLinkAbout2001-06-25 01-259 ORDERLem NO OI -259
Date: Sum 25. 2001
Item/Subject Council Order amending the lease Termination Agreement
with Bangor Youth Hockey Association.
Responsible Department: Parks & Recreation
Commentary:
For the past four years, Bangor Youth Hockey (BYHA) has been assessed a $10 per
session surcharge in order to pay down their debt to the City. Rental rates at
Sawyer Areas have remained stable sin" 1993 until this year. Now that operating
costs have equaled revenues, it will be necessary to raise the rates on a near annual
basis in order to operate Me arena on a break-even basis. Fearing that this would
place a financial hardship on BYHA and realbing that there is strong sentiment on
the City Council to have rate differentials for Bangor residents, the Director of
Parks and Recreation made the following proposal to the Government Operations
Committee: that Bangor Youth Hockey be given a $10 a session discount, while
repining the $10 surcharge unfit such time as their debt to the City is paid in full.
Once the debt is paid, the discount would remain in effect The Government
Operations Committee approved this proposal on June 13, 2001.
Depa,ment Head
Manager's Comments:
Ciw Manager -
Associated Information:
„� /_
oar. �Nr/A1 WK
.
Budget Approval:
JWFinance Director
Legal Approval:
My solicitor
Introduced for
Passage
First Reading
Fi
Page_of_
Referral
01-259
.4emgoed 10 COwNor Parnham June 25, 2001
CITY OF BANGOR
(TITLE.) orbfr, _-_Authorizing the. city Manager to Execute an amendment
to the Lease Termination Agreement with Bangor Youth Hockey Association.
Be MA CBY Cooled of the MY Of Bas .
ORDRRRD,
THAT the city Manager is hereby authorised to execute the attached
amendment t0 the Lease Termination Agreement with Bangor Youth Hockey
Association.
IA CIR CO®CIL
Joue 25, 2001
Notion Made d Seconded
for Passage
Pa//Cs��Csed�dj- // 1p
OO
IR dCB6 '
01-259
ORDER
T1tle.Aathorlriag the City Manager to
Execute an Amndment to the Lease
Yernimtlm Agreemnt with Bangor Youth
......................................
....................................
Auigned to
AMENDMENT TO LEASE TERMINATION AGREEMENT
This Amendment is made and entered into as of September& 4001, by and between:
CITY OF BANGOR (hereinafter "City'), a body politic and corporate, duly organized
and existing under and by virtue of the laws of the Slate of Maine, located in the County of
Penobscot, State of Maine,
and
THE BANGOR YOUTH HOCKEY ASSOCIATION (hereinafter "BYHA'), a non-
profit corporation, duly organized and existing trader the law's of the State of Maine, and having
an office or place of business in said City of Bangor,
WITNESSETH
WHEREAS, the City and BYHA entered into a Leese Termination Agreement in
September 1997, approved by Council Order 97-385: and
WHEREAS, this Lease requires modification as the result of the City of Bangor
increasing the rental fees at Sawyer Arena:
NOW, THEREFORE, M CONSIDERATION of the mutual promises and covenants
contained in this Agreement, the parties hereto agree as follows:
1. Paragraph 4 is deleted and replaced with the following:
A. All net amounts owed by BYHA to the City of Bangor as rent, management fees,
or reimbursement of excess distributions or expenses Eder the parties' Lease dated April
1, 1991, as amended, or coder the parties' Facility Maintenance and Management
Agreement dared October 7, 1993, as amended, or for ice time charges, accrued prior to
July 1, 1997, shall be coursed forward as an account receivable by the City of becalm. No
imerest or late payment fees shall be charged on receivables accrued prior to July 1,
1997. The net amounts owed shall be collected by the City of Bangor as a $10.00 per
session surcharge on BYHA's use of Sawyer Ares. BYHA may, at its option, make
additional payments at my time to pre -pay these seemed charges. This surcharge shall
not apply to toumements and special events coordisted by BYHA and which primarily
serve other groups or non-BYHA users. In consideration of the City of Bangor's
forbearance of othercollection action with respect to such amounts, BYHA hereby agrees
that it shall exclusively utilize Sawyer Ares for all scheduled on -ice practices and home
games to the extent of available ice time of a period of ten (10) years or until all amounts
owed are paid, wbichever is sooner, following the execution of this Agreement.
B. It is further agreed that BYHA shall pay to the City of Bangor the City's
established rates for use of Sawyer Arena is time, subject to a $10.00 per session
discount for scheduled practices mW regular season and playoff games.
2. Except as explicitly stated in this agreement the terms of the Lease Termination
Agreement remains unchanged and in full force and effect.
W WITNESS WHEREOF this agreement has been executed, sealed and delivered as of
the day and year first above Written.
WitnessEdward A. Barren,
AS
lrn IJ�OCKQTi
CM OF
City Mamager
BANGOR YOUTH HOCKEY
ASSOCIATION
By:
Its:
LEASE TERMINATION
AGREEMENT
THIS AGREEMENT, made and executed in duplicate, this
day of September, 1990 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, located in
the County of Penobscot, State of Maine
(hereinafter referred to as "CITY")
and
THE BANGOR YOUTH HOCKEY ASSOCIATION, a non-profit
Corporation, duly organized and existing under
the laws of the State of Maine, and having an
office or place of business in said City of Bangor
(hereinafter referred to as "BYHA"),
W I T N E S S E T H;
WHEREAS. the City of Bangor and the Bangor Youth Hockey
Association are parties to certain agreements as follows:
Lease dated April 1. 1991 as amended by an
"Amendment to Lease" dated October 7, 1993;
^ "Facility Maintenance and Management Agreement"
dated Ottober 1, 1993 as amended by an
"Amendment to Agreement" dated January 5, 1996
relating to the financing, maintenance and operation of an ice
arena ("Sawyer Arena") located at the City of Bangor's Hayford
Park; and
WHEREAS, the parties' Lease dated April 1, 1991 as amended
October 7. 1993 Contains a schedule of structured annual rental
payments by the BYHA to the City intended to amortize the Cost of
certain capital improvements to Sawyer Arena that were financed by
the City of Bangor; and
WHEREAS, the principal balance remaining unpaid for capital
improvements to Sawyer Arena to be amortized under the parties'
April 1, 1991 Lease as amended was $61,632.59, following 9YRA's
scheduled payment of $11,500.00 to the City of Bangor on August 1,
1996; and
WHEREAS, BYHA is the Borrower under a certain Promissory
Note dated -December 2, 1994, in favor of Merrill Merchants Bank, in
the original principal amount of $172,804.20, as modified by an
Allonge dated August 29, 1995, true copies of which are
collectively attached to this Agreement as Exhibit "A", the
01-259
01-259
proceeds of which Promissory Note were used to purchase and install
a chiller mat and compressor at Sawyer Arena; and
WHEREAS, as of June 30. 1997, BYRA owed $141,045.31 to
Merrill Merchants Bank under BYHA's Promissory Note dated December
2, 1994; and
WHEREAS, in addition to the foregoing agreements and
Promissory Note, BYHA is indebted to the City in a total amount of
$62,347.06 consisting of $52,188.05 owed for ice time during the
1996-97 skating season and $10,159.01 owed as a refund of excess
distributions of prior -year surpluses from the operation of Sawyer
Arena; and
WHEREAS, the parties wish to terminate the existing Lease
and the Facility Maintenance and Management Agreement and to
restructure BYHA's existing indebtedness,
NOW, THEREFORE, the parties hereby mutually agree as
follows:
(1) The parties' Lease dated April 1, 1991, as previously
ended, and the parties' Facility Maintenance and Management
Agreement Bated October 7, 1993, as previously amended, are hereby
terminated. All accounts and liabilities of the parties under both
agreements shall be accounted, closed out and settled as of June
30, 1997.
(2) All amounts scheduled to:be paid by BYHA,to the City of
Bangor as rent under the parties' Lease dated April 1, 1991, a
amended October 7, 1993, on or after August 1, 1997, are hereby
forgiven.
(3) The City of Bangor hereby agrees to assume BYRA's
indebtedness to Merrill Merchants Bank under the December 2, 1994
Promissory Note. In consideration of the City of Bangor's
assumption of this indebtedness, BYHA, upon execution of this
Agreement, also shall execute and deliver a bill of sale conveying
title to the chiller mat and compressor to the City of Bangor,
subject only to the security interests of Merrill Merchants Bank,
if any, under the December 2, 1994 Promissory Note.
(4) All net amounts owed by BYRA to the City of Bangor as
rent, management fees, or reimbursement of excess distributions or
expenses under the parties' Lease dated April 1, 1991, as amended,
or under the parties' Facility Maintenance and Management Agreement
dated October 7, 1993 as amended, or for ice time charges, accrued
prior to July 1, 1997, shall be carried forward as an account
receivable by the City of Bangor. No interest or late payment fees
shall be charged on receivables accrued prior to July 1, 1997. The
net amounts owed shall be collected by the City of Bangor as a
$18.08 par session surcharge on HyRA'a use of sawyer Arena ice for
the 1997-98 and subsequent skating seasons. BYRA may, at its
option, make additional payments at any time to pre -pay these
accrued charges. In consideration of the City of Bangor's
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forbearance of other collection action with respect to such
amounts, BYHA hereby agrees that it shall exclusively utilize
Sawyer Arena for all scheduled on -ice practices and home games of
all BYBA ice hockey teams, to the extent of available ice time, for
a period of ten (10) years or until all amounts owed are paid,
whichever is sooner, following execution of this Agreement. It 1s
further agreed that during such period BYHA shall pay to the City
of Bangor the City's established rates for use of Sawyer Arena ice
time, without discount, plus a $10.00 per session surcharge for
scheduled practices and regular season and playoff games. This
surcharge shall not apply to tournaments and special events
coordinated by BYHA and which primarily serve other groups or
non-BYHA users.
(5) The City agrees to grant BYHA priority in scheduling of
ice time at Sawyer Arena, consistent with BYHA 'a practice, game,
playoff and tournament schedules, for so long as BYHA remains
current on its payment of ice time Charges and surcharges to be
paid to the City under paragraph (6) above.
(6) Upon any default of this Agreement by BYRA remaining
uncured for a period of thirty (30) days following written notice,
the City of Bangor shall be entitled to declare a default of the
entire Agreement, and to declare as immediately due and payable all
indebtedness to be assumed or forgiven by the City of Bangor
hereunder, in addition to other amounts owed by BYHA for ice time
and surcharges. In such event, the City of Bangor shall have all
remedies that may be available in law or equity for the collection
of all such amounts from BYHA, to inolude collection of prejudgment
interest, court Costs and reasonable attorneys fees thereon.
IN WITNESS WHEREOF, the parties hereto have set their hands
and seals the day and year first written above.
CITY OF BANGOR
(By)
Witness
(Title)
THE BANGOR YOUTH HOCKEY
ASSOCIATION
(By)
Witness
(Title)
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