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HomeMy WebLinkAbout1999-05-24 99-193 RESOLVE99-193 COUNCIL ACTION Date: 5/24/99 Item No.: Item/Subject: Ratifying Execution of Documents Regarding Lease with Stillwater Realty Trust -900 Hammond St. Responsible Department: Community and Economic Development Recently Stillwater Realty Trust exercised an option extending the term of the lease with for property at 900 Hammond St., Bangor until April 30, 2018. The Consent recognizes that the property is subject of a leasehold mortgage and certifies that the Lessee has complied wbh the provisions in the lease requiring notice of the mortgage to the City. Rent for the property is set through 2008. The Agreement extends the period for negotiating rent for the property for the period 2 01a.� Deparfm Head Ier/''ss/H�Coo'mments:44 r% r' �' 4f Cily Manager Associated Information Budget Approval: Finance Director Legal Approval: lCiry Solicitor Introduced For %Passage Qpym/ First Reading Page 1 of 1 Referral Assigned to councilor ayler May 26, 1999 CITY OF BANGOR Ratifying Execution of Documents Regarding Lease of 900 (TITLE.)hlg._......... _.... _..... _........... ......_...._...... ..... _..... ..._.......... 6.._ ... _............... . Hammond Strast - Carol A. Epstein, Trustee of Stillwater Realty Trust RIO the car Cowreil oftAe City of Romper. RROLVED. • AT the actions of the City Manager in executing an Agreement and Consent relating on the Lease between City of Bangor and Carol A. Epstein, Trustee of Stillwater Realty Trust for property located at 900 Hammond Street anal Lessee's financing of the property is hereby ratified. A copy of said Agreement and Consent are attached to this Resolve. T Cin C008CIL May 34, 1999 Passed 99-193 8E//SOL V E CLQ �(r� Ratifying 8xecuCio¢ of Ooeameata Regard- ing Lease of 900 Ramond street - Carol �a eo tIllvarei Realty Trust 99-193 AGREEMENT (900 Hammond Street, Bangor, Maine) This agreement is entered into this _ day of May, 1999, by and between CAROL A. EPSTEIN, TRUSTEEE OF STILLWATER REALTY TRUST (Lesser) and the CITY OF BANGOR (Lessor), with respect to the Indenture of Lease dated May 12,1988 from Lessor to Lessee, as amended by Amendment dazed July 19,1989 (the Lease), for certain land at 900 Hammond Street, Bangor. BACKGROUND A. By Notice dated March 25, 1999 and received by Lessor on March 29,1999, Lessee has exemised its first option to extend the Lease, pursuant to Article XXll of Ne Lease. The extended term will commence on May 1, 2008, and terminate on April 30, 2018. B. Article XX 11 of the Lease provides, in para that upon exercise of the option to extend, the Lessor and Lessee will proceed to negotiate between themselves for the purpose offing the rental for the extension tens and if they, fail agree in writing within sixty (60) days after the exercise of the option, than the rental shall be determined through arbitration. C. Lessor and Lessee have commenced the process 0fnegotiating pursuant to Article XXll,and have agreed to extend the time for submitting the determination to arbitration. AGREEMENT: In consideration of the foregoing and other goad and valuable consideration, the paries agree as follows: 1. If the parties have failed to agree in writing on or before August 1, 1999, as to the amount of rent to be paid by Lessee for the "mortal term commencing May 1, 2008, then, unless otherwise agreed in writing, the parties shall proceed with arbitration as set forth in Article XXII of the Lease. 2, This Agreement constitutes the written agreement to be entered into within 60 days after Lessee's exercise of its option to renew. Nothing in this Agreement Shall be construed to modify or amend any provisions of the Lease. J. This Agreement may be modified only by a written agreement signed by Lessor and Lessee. CITYOFBANGO/R > ��(�y/ By: U.jW Edward A. Bameu City Manager, hereunto duly authorized Carol A. Epstein, Trustee of Stillwater Realty Trust 33as MW 113.11.1 99-193 CONSENT The undersigned City of Burger, as the Lessor in the Indenture of Lease from the City of Bangor to Stillwater Realty Trust, dated May 12, 1988, amended by Amendment to Lease dated June 18, 1989, for certain land located at 900 Hammond Street, Bangor, Maine, and es Lessor in the Lease to YERAC, Inc. dated November 16,1972, and assigned by YERAC, Inc. to the Trustees of Stillwater Realty Trust by assignment dated December 5, 1986, for certain land located at 890 Hammond Street, Bangor, Maine, hereby consents to a mortgage of the lessee's leasehold interest in the demised premises to The Onion Central Life Insurance Company to secumalnanhavingatermoffifteen(IS)years. Thiscomentissubjecttotheconditionsset forth in Sections; (2), (3), and (4) of Article XX ofthe Lease dated May 12, 1988. Dated this All? day of May, 1999. CITY OF BANGOR /� By: �AAArl'ja Edward A. Barrett Its City Manager Hereunto duly authorized