HomeMy WebLinkAbout1999-04-12 99-152 ORDERCOUNCILACTION
Data 4/12/99
Hem No.: 99=152
Item/Subject Amendment to a Lease Agreement with the Cabral Company -
396 Griffin Rd.
Responsible Deparbnent: Community and Economic Development
The Cabral Company leases 6.9 acres at 396 Griffin Rd. on which an office building
was developed and leased to the State of Maine, Dept. of Human Services. The Lessee
wishes to extend the term of the lease agreement to December 31, 2028 as allowed in
We (2) option "nods established in the lease.
Rent is fixed until 2008 under the current agreement after which an appraisal
would be used to determine the rent during Me remaining period of Me tens.
DepaAme eatl
Manager's Comments: C+FD kwu
Tula e � GGu.e f
City Manager
Associated Information;OAAy, ,
Budget Approval:
Finanw Director
OLM �1..a.. I.,/
Introduced For
X Passage
First Reading Page 1 of 1
Referral
99-152
Ae®pmd to Councilor Aube April 12, 1999
CITY OF BANGOR
(TITLE) tefYDPY Authonzmg an Amendment[ -a Lease Agreementwiththe Cabrel.___
Company - 396 Griffin Rd.
By tAe arm CayxJ Of City of Bangor.
ORDERED,
MT
WHEREAS, by Indenture of lease, dated April 1, 1979 and amended
February 12, 1993, the Cabral Company agreed to the lease by the City of Bangor of
Lot No. 14AB, Plan of B.I.A. CommerciaVlndustrial Park, dated June 7, 1976, recorded
in File No. D626-76 and D626 -76A, Penobscot County Registry of Deeds and revised
August 28, 1978, and recorded as Plan D86-78 in Penobscot County Registry of
Deeds;and
WHEREAS, the parties hereto wish to amend said Indenture of
Lease to extend the term of the lease;
NOW THEREFORE BE IT ORDERED BY THE CITY COUNCIL OF
THE CITY OF BANGOR THAT the City Manager is hereby authorized, on behalf of the
City of Bangor, to execute an amendment to the lease agreement between the Cabral
Company and the City of Bangor for Lot No. 14AB in the BIA Commercial / Industrial
Park, in a form approved by the City Solicitor or Assistant City Solicitor, and in
substantially the same form as attached hereto.
m CITY WONCIL
April 12, 1999
Notion for passage Nelle and 99-152
Seconded 0 R D E R
passed
Title, Authorizing am Amendment to a
LAMA
Lease Agreeamc rite the cebxel Company
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' CounciLnan
99-152
THIS SECOND AMENDMENT TO INDENTURE OF LEASE, executed
this th day of, April, 1999 by and between:
CITY OF BANGOR, a municipal corporation 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");
URIC
CABREL COMPANY, a corporation organized and existing
under the laws of the State of Maine, and having a regular
place of business in Bangor in said Bangor, County of
Penobscot, State of Maine (hereinafter sometimes referred
to as "Lessee")
WITNESSETH:
WHEREAS, the City of Bangor is the owner of an airport commonly
known as "Bangor International Airpod", formerly known as 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 April 1, 1979 and amended
February 12, 1993, the parties agreed to the lease by the Lessor of Lot No. 14AB, Plan
of BJ A. CommemiaVlndustrial Park, dated June 7, 1976, recorded in File No. D626-76
and D -626.76A, Penobscot County Registry of Deeds and revised August 28, 1978,
and recorded as Plan D86 78 in Penobscot County Registry of Deeds; and; and
WHEREAS, the parties hereto wish to amend said Indenture of Lease to
extend the term of the lease;
NOW, THEREFORE, the parties do mutually agree that the Indenture of
Lease dated April 1, 1979 and amended February 12, 1993 be and hereby is amended
as follows:
(1) That Article II - TERM be deleted in its entirety and the following be
substituted in its place:
Cenral company
Simone Amendment to Indenture of Laase
TiiCdft�Idi4{Tul
TO HAVE AND TO HOLD the demised premises unto the Lessee
for a tens commencing on the tat day of May, 1999 and terminating on
the 31st day of December, 2028.
(2) That Article III - COMPUTATION OF ANNUAL RENTAL be deleted in its
entirety and the following be substRuted in its place:
ARTICLE III- COMPUTATION OF ANNUAL RENTAL -
A. Lessees covenants to pay to the Lessor as a rental during the
period May 1, 1999 to the 31st day of December, 2008 a monthly rental
of Eight Hundred and Fifty -Three ($853.00) Dollars.
B. Lessee further covenants to pay to the Lessor as rental each
and every year during the remaining term of this lease for the premises
leased hereunder as follows:
January 1. 2009 throuah December 31. 2013
The monthly rental payment during this period will be one4welfth
(1/12) of one-tenth (1/10), or .00833, of the market value of the demised
land, The market value will be determined by a current appraisal of the
land provided by an independent appraiser hired by the Lessor. The
appraisal will value the land as of October 30, 2008 as if there has not
been any development or structures erected on it. In the event that the
Lessee disputes the appraised value, the Lessee may commission, at its
expense, a second appraisal by an independent appraiser and will notify
the Lessor of such within ten (10) days of receipt of the appraisal. If the
parties remain in dispute as to the market value of the land after the
second appraisal, the two appraisers will appoint a third independent
appraiser. The market value will then be the average of the high and low
appraisals performed by the three appraisers. In such event the expense
of the third appraisal will be shared equally by the Lessor and Lessee.
January7 2014 through December 31 2018
The monthly lease payment during this period will be determined
as follows:
Page 2
calwN Gompany
Semnd Amendment to hxAevure ofLesse
the monthly lease payment of the previous five year period plus
the product of monthly lease payment of the previous five year
period multiplied by the sum of the five annual percentage changes in the
Consumer Price Index, the All Items expenditure category, for the period
October, 2008 to October, 2013.
The annual percentage change is calculated by subtracting the
value of the index on October at the beginning of the period, eg. October,
2008, from the value of the index on October of the following year, eg.
October, 2009 and dividing the remainder by the value of the index on
October at the beginning of the period, eg October, 2008. The annual
percentage change will be the percent resulting from the above
calculation but in no case greater than five (5%) percent for any year.
The term "Consumer Price Index" is the "monthly unadjusted
Consumer Price Index for All Urban Consumers (CPI -U)" published by the
United States Department of Labor, Bureau of Labor Statistics.
In the event that the CPI -U index should cease to be published
during Me term of this lease, the rental adjustment for the subsequent
five-year period shall be calculated as stated above by reference to the
annual percentage change in any substitute index published by the U.S.
Dept. of Labor or other reliable source which authoritatively represents
the annual change in urban consumer prices in Me United States over
the preceding five-year period.
Januaw l 2019 through December 31 2023
The monthly lease payment during this period will be determined in
a method similar to that used for the previous period with the exception
that the sum of the five annual percentage changes in the Consumer
Price Index, the All Items expenditure category, will be for the period of
October, 2013 to October, 2018.
Rrr[7 }.isDrzni7 1111.Z--S�.- 11•'.
The monthly lease payment during this period will be determined in
a method similar to that used for the previous period with Me exception
that the sum of Me five annual percentage changes in the Consumer
Price Index, the All Items expenditure category, will be for the period of
October, 2018 to October, 2023.
Page 3
Cabral Company
Serorc AmerMment to Indenture of Lease
C. Rent shall be paid monthly in advance on the first day of each
and every month. Lessee shall pay all rentals herein required, without
prior demand therefor, in lawful money of the United States, at the
address of the Lessor as set forth herein or at such other reasonable
places as the Lessor may designate. Late payments shall be subject to
an additional interest charge of one and one-half (1.5%) Per cent per
month to the date of payment.
(3) That Article XXI - OPTIONS TO EXTEND be deleted in its entirety.
THAT except for the foregoing, said Indenture of Lease, dated April 1, 1979 and
amended February 12, 1993, between the City of Bangor and the Cabral Company will
remain in full farce and effect in all other respects between the undersigned.
IN VATNESS WHEREOF, the parties hereto have set their hands and seals the
day and year written above.
CITY OF BANGOR
Date:
By:
(Witness) Edward A. Barrett
City Manager
CABREL COMPANY
Date:
(Witness)
By:
Carol A. Epstein
Its Vice President Hereunto Duly Authorized
Pape 4