HomeMy WebLinkAbout2000-08-14 00-314 ORDERCOUNCILACTION
Data 8/14/00 Item No.: 00-314
Item/Subject: Amendment to a Lease Agreement with BAFS, Inc.
Responsible Department: Airport Dept. / BanAir Corporation
attached memo.
Department Head
Manager's Comments: CF T D WaQVa o,nawa.Mry.c(.,Run.
Associated Information: Memo, order
Budget Approval
Finance Director
Legal Approval
olkilor
Introduced For
X Passage
First Reading - Page 1 of 3
Referral
00-314
Assigned to Councilor varaa.te August 14, 2000
°^ CITY OF BANGOR
(TITLE.) Order, Authorizing an AmendmernM a lease Agreement Mon MFS, Inc.
By ftre City n xyx# oftlh Of y of B an ym
ORDERED, THAT
WHEREAS, HOFS, Inc. and Its predecessors have leased Buildings #266 and #268, 61 Florida
Ave., since 1977; and _ _. _ . _.
WHEREAS, OAFS, Inc. wishes a mage attevabons and improvema6 m Building *2156,61
Flortda Ave. to accommodate the operation of a new subsidiary company specializing
in the production and ales of packaging materials; and
WHEREAS, the lase agreement between BOPS, Inc. and the City of Bangor for said Buildings
#266 and #268, 61 Florida Ave. requires the consent of Me City of Bangor M
change the use of the premises and the renal rate;
NOW THEREFORE BE IT ORDERED By THE CITY COUNCIL OF THE QIY OF BANGOR THAT the
City Manager is hereby authorized, on behalf of the CIN of Bangor, M execute an amendment
W the lase agreement between BAFS, Inc, and the City of Bangor for Buildings #266 and
#268, 61 Honda Ave., in a form approved by the City Solicitor or Assistant City Solicitor, and in
substantially the same farm as attached hereto.
IN CIIY COMM
Auugst 16, 2000
Notion for Passage Made
aad Seconded
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Title, Authorizing eu Amendment to a
Lease Agreement with eAPS. Inc.
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qB-314.
BANAIR CORPORATION73 Harlow St.
Bangor, Maine 04401
opnarm of Bangor Foreign Trade Zone 58 807)9474M2
(207) 945-0447 (Fax)
Memorandum
To: Members of the Bangor Ciry Council
From: Stephen A. Bolduc, Exe ve Manager
Date: August 9, 2000
Subject: Amendment to a Lease Agreement with BAFS, Inc.
Issue
BAFS, Inc. wishes to renovate Building 9266, 61 Florida Ave. to accommodate the
operation of a new subsidiary company specializing in the production and sales of
packaging materials.
Backorountl
BAFS, Inc. provides airline catering and food service at Bangor International Airport.
Since 1977 they have leased Buildings #266 and #268, 61 Florida Ave. To provide
space for the operation of a new subsidiary company specializing in the production and
sales of packaging materials, BAFS, Inc. wants to make alterations and improvements
to Building #266 of at least $20,000 before December 31, 2000. Furthermore, they will
make an investment in the facility, equipment and tixtuies of at least $126,000 prior to
December 31, 2004.
In compensation for the investment the minimum rant will be reduced from $27,500 to
$26,300 annually during the term of June 1, 2000 to December 31, 2004. During the
option period, January 1, 2005 ro December 31, 2009, the minimum rent will return to
$27,500 annually. percentage rent will not change during the term of this agreement
00-314
Terms and Conditions
BAFS, Inc. has accepted the following lease rates and conditions. There would be no
other changes to the agreement.
Premises: Buildings #266 8 #268, 61 Florida Ave
Term: Five (5) years, from January 1, 2000 to December 31, 2004. The agreement can
be Intended for five (5) years from January 1, 2005 to December 31, 2009.
Rate:
June 1, 2000 -December 31, 2004 $2, 191.67 per month
January 1, 2005 - December 31, 2009 $2,291.67 per month
Use: Production of packaging materials and related warehousing and sales functions
and for no other purpose whatsoever without the expressed prior written consent of the
City of Bangor.
Recommendation
Members of the BanAir Coryoretion Board of Directors recommend approval of this
amendment to the lease agreement under the terms and conditions outlined above.