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HomeMy WebLinkAbout2001-10-22 01-410 ORDERDate: 10-22-01 Itan/Subject Order, Authorizing an Agreement with the Maine Air Museum to Provide a Loan for Purposes of Roof Replacement at Building 98, Bangor International Alrport Responsible Department: City Council Several years ago, the City leasetl a building a[ the Airport to the Maine Air Museum. The intention of this organization Is to develop a museum at this location which will preserve and highlight information and historical artifacts relating to Maine's aviation history. The lease is at no cost to the organization, but requires that it undertake all necessary maintenance and Improvements. A portion of the roof of the leased building currently leaks, and the entire roof requires replacement at an estimated cast of $35,000, an amount which the Museum momently does not have. The Museum is requesting financial assistance from the City. This request was reviewed by the finance Committee at im last meeting. The Committee voted 9-1, Councilor Blanchette dissenting, to recommend such assistance. The Committee clesired, however, that such assistance Be stmcthred in a fashion similar to that used for the Children's Museum and several other organizations where the assistance was provided based on these organizations achieving measurable progress toward their goals. Given the pressing need for roof replacement however, this approach required some modification to meet the Air Museum's circumstances. The attached order proposes a loan from the City In an amount not to exceed $40,000 for roof replacement The term of the loan would be ten years. The initial five years would be on a no - interest, deferred payment basis. After this period, Interest would be charged and the loan would be repaid over is remaining five was unless the Museum meets certain mutually agreed and measurable benchmarks. If met, the City would forgive any remaining amounts due on the loan. Given that the building is Airport property, the agreement would also provide that'd the Museum defaults on its loan obligations or, for any reason, ceases to occupy the leasetl premises, the Airport would relmhuree the City for any remaining loan principal amounts, less depreciation based on the initial cost of the roof and an asset We of twenty years. This provision recognizes the increased value of the building to the Airport. The attached order outlines these provisions and authorizes a final agreement subject th the approval of the City Solicitor, allowing us to move forwartl expeditiously. Daideftent Head Manager's Comments: CurManager Associated Information: Order Budget Approval: Finance Director Legal Approval: M oar Introduced for _tX Passage _ first Reading Page—W Referral ; riz MAVW UD o Mlbr Paxdiam Octopi 22. 2001 CITY OF BANGOR (TITLE.) Ober, Auth rleng an Agreement wth the Maine Air Museum W Provide a Iron for Purposes of Roof Replacement at Building 99, Bangor miximadonal Airport. By the Oly Onmtll of tre Ofy 0f Hargx: ORDERED, That the qty Manager is hereby authorized to execute an agreement between the qty of Bangor, Bangor Intemational Airport, and the Maine Air Museum for purposes of replacing the roof of Building 98 at Bangor International Airport. Such agreement shall be in a final form approved by the qty Solicitor and shall incorporate the following terms and condi 1. The qty shall loan the Museum the amount necessary to replace the roof of Building 98, such amount not to exceed $40,000. 2. The tam of the ban shall be ten (10) years. 3. The loan shall be interest free for the initial five (5) years of Its term. 4. Subject to terms to be negotiated between the qty and the Air Museum, and after the initial five year period of the loan, the loan shall be forgiven by the qty based on established benchmarks achieved by the Air Museum in its effort tD establish and open to the public a museum which will preserve and highlight Information and historical artifacts relating to Maitre's aviation history. Such benchmarks may include but not be limited to progress toward fund raising goals, implementing scheduled Improvements to the leased building, and achieving a minimum number of hours per week during which the facility is open to the public S. Should the Museum fail to achieve these benchmarks after the initial five year loan period, the Museum shall annually thereafter make a principal payment equal to 20% of the Initial loan amount plus interest computed at 6%. 6. Should the Museum default on its repayment obligations, the Museum shall vacate the premises and terminate Bs lease with Bangor International Airport. 7. Should the lease be terminated, or should the Museum for any reason vacate Building 98 at Bangor International Airport, Bangor International shall reimburse the City in recognition of the value of the Improvements provided to the Building. The reimbursement shall be computed bared on the total cost of iooB replacement less any principal payments made by the Museum and the accrumulated depredation of the asset value of the new roof on the basis of a twenty year asset life. IB CITY COIMCIL October 22. 2001 Katiuu Made and Seconded for Passage Hotion Doubted 8d Armstroug, Chairman of the board of Halve Aviation Historic, Society, explained the used for this agreement Vote: 8 yes. I no. Comcilor voting yes: Baldaccf, Crawley. Faceless. Farrington, Palner, mbmm. Tremble b Vardamis Councilor Voting m: Hlauchette Pawed CrITLE,)A,..m.:..,,e . .,ten me mine Air thueum to provide a Loss for Purpose of mofReepl cement at Building 98, Bangor .l International 01- 10 AGREEMENT This AgreemerdismadesadenterediMomof :r 7 2002layanlbetweenthe City of Bangor (haeiva(ter "City'%amamicipal corporation located in Bangor, County ofP,evobsco% State ofMaive, and the Maine Aviation Historical Society (hereinafter "Aviation Societ}'%a Maine non-profit corporation duly organized and existing ander the laws of the State of Maine, with aplace of business in Bangor, County of Penobscot, StateofMame. WITNESSETH WBEREAS, the City is the owner of the a building known as Budding #98, located on Maine Avenue, in the City of Bangor and certain land under and abutting the butlding (here tater "the Propnty't and WHEI2EAS,The Aviation Museum has currently leases the Property fier the purpose ofestablishiog a Maine Aviation Museum on the Property; and WIMREAS, the amount needed to establish a Maine Aviation Museum is estimated to be approximately $2,000,000, wldch includes amounts for building renovations, computer sin ulawrs, working capital and start up costs; and WHEREAS, The Aviation Society will attar¢ approximamly $2,000,000 in private and other fir di sources for me Museum through a fundraising capital campaign; and WBEREAS, five years are needed 0 raise the funds necessary to establish a Maine Aviation Museum, and WHEREAS, completion of the Maine Aviation Museum will create a significant public benefit by providing educational opportunities to for ¢Suzann, especially children, and by occupying vacant and unutilized building space owned by the City; and WHEREAS, the high cos[ of creation of a Maine Aviation Museum requires assistance from the City, in the form of loan to replace the roof on said Building #98 not to exceed $40,000, to ensure the public benefit of location of the Maine Aviation Museum in Beggar; NOW, THEREFORE, IN CONSMERATION of[be mutual promises and otverants contained in this Agroavent, the City and the Aviation Society agree as follows. 1. Subject to the provisions of Us Agreement, the Aviation Society agrees to conduct a fundraising capital campaign to raise $1,000,000 necessary at establish an aviation museam m building #98. 2. The Aviation Society agrees to provide City evidence, not later thea June 30, 2002 flat it hes mised rent less than $30,000 in cash or pledges as Pan of its capital campaign. 3- The Aviation Society agrees to provide City evidence net ]mer then June 30, 2004 that it has mised rot less than an additional $25,000 in cash or pledges as pan of its capital campaign. Aviation Society agrees to provide City evidence not lata than lone 30, 2005 that it has raised not less than an additional $100,000 in cash or pledges as part of its capital campaign. 5. The Acted on Society agrees that not lata dray June 30, 2006 union vatioas for the avemou museum shall be under contract with an enonecrang or archi[ectma] firm, for the purpose of creating the aviation museum. 6. The Aviation Society agrees that not later&an Jones 30, 2002 the aviation museum will be in a condition such that it will be open to the public. ]. The Aviation Society agrees that development of the aviation museum shall be in accordance with all applicable Federal, State, and City laws, ordinames, and building codec 8. The Aviation Society dull, on or before September 1, 2002 be open to the public at new two (2) days per week and a least fou (4) home per day June 10 through September 30io. 9. The Aviation Society agrees that it shall keep and maintain books, records and other documents relating directly w the receipt and disbursement of &a capital Cmds mused and expended, and agrees that any duly authorized representative of the City shall, at all reasonable times, have access to and the right to impact, copy, audit, and examine all such books, records and other documents of The Aviation Society until completion of the aviation museum, upon prior written notice. The Aviation Society shall eosure that similar provisions see included in all comments or subcontracts entered into in connection with the Aviation museum. 10. The Aviation Society agrees that my duly authorized represemative of the City shall, 9 all reasonable times, have access to my portion of the aviation museum until its completion and apamanen[ Occupancy Person for the Project bas been issued by the City. 11. The Aviation Society shop not assign its rights under this Agreement. 12. A default of the Promissory Note to be executed pursuurt to this Agreement shall be a breach oRhe Indenture of Lease between the parties data August 18, 1999. IS Any notice which either party desires or is required 0 give to the other in connection with this Agreement shall be in writing arta shall he sent portage prepaid, certified mail, realm receipt requested, as follows: If the City: Edward A. Barrett, City Manager CAyofBangor 73 Harlow Shoot Bangor, Maine 04401 Ifto the Aviation Society Ed Amvslmvg, Chairman Maine Aviation Historical Society P.O. Box 2641 Bangor, Maine 04402 Or to such other person and/or address as may be identified in writing by the parties. IN WITNESS WHEREOF this Agreement has been executed, sealed and delivered in duplicate counterparts as of the day and year fust above written. MAINE AVIATION HISTORICAL SOCIETY WitnessBYTz✓- "` Its: Chairman, duly authorized CITY OF BANGOR By &b.(� Witness Edward A. Barrett Its: City Manager, duly authonzel