HomeMy WebLinkAbout1999-05-24 99-194 RESOLVECOUNCIL ACTION
Date: 5/24/99 Item No.: 99-194
Item/Subject: Ratifying Execution of Lease Agreement with Stillwater Realty
Trust - 880 Hammond St
Responsible Department: Community and Economic Development
Recently Council extended the term of the lease with Stillwater Realty Trust for
property at 890 Hammond St., Bangor until April 30, 2018, with an option to extend the
term until 2028.
Rent for the property is set through 2002. The Agreement indicates that the City
will continue to negotiate rent for the property for the period 2002 -2018.
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DepadmenfH d
Mariaen's Comments:
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19/494i;4 &f CityManager
Associated Information
Budget Approval:
Finance Director
Legal Approval:
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Introduced For ���-(y
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First Reading Page 1 of 1
Referral
99-196
"sigoed to Councilor Palmer llay 26. 1999
CITY OF BANGOR
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(TI(TITLE.)11\���CS➢lilP.Ratifying Execution of Agreement Regarding Lease of 890
__.............. ._.... .... _....... ...
Hammond Street - Carol A. Epstein, Trustee of Stillwater Realty Trust, Lessee
Ry lAe G(ey Gawav! ef61e cup WBanPor..
RliWLVRD.
THAT the actions of the City Manager in meaning an Agreement relating
to the lease between City of Bangor and Carol A. Epstein, Trustee of
Stillwater Realty Trust for property located at 890 Hammond Sow Is
hereby razifled.
A copy of said Agreement is attached to this Resolve.
IP CIn WIRICIL
Maya2244. 1999
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99-196
0 E S 0 L v E
PIMA
Sa i yiaeRegarding
Lease of 890 9amand Street - Carol A.
Epstein. Trustee of Stillwater Realty Trust.
99-196
RE: 890 Hammond Street. Burger. Maine
This letter confirms the understanding of the undersigned patties with respect to the Lease dated
May 12. 1999, from the City of Bangor (Lessor) to Carol A Epstein, Trustee of Stillwater Realty
Trust (Lessee), for the initial team commencing November 1, 2002 and terminating on April 30,
2018, for land at 890 Hammond Street, Bangor, Maine,.
In order to meet carbon time limits in connection with Lessee's mortgage financing, the Lessee
and Lessor have executed the Lease in the form proposed by the Lessor with cenain revisions
requested by Lessee. In order to address further concem5 of the Lessee and Lessee's lender, the
Lessor has agreed to negotiate with Lessee in goad faith with regard to amending the provisions
set forth in Article III of the Lease related to computation of annual rental. In particular, the
Lessee and its lender have questioned the appropriateness of the calculation of rent adjustments
based on the Consumer Price Index, and the Lessor has agreed to consider alternatives to be
proposed by the Lessee. The parties have also agreed to negotiate in goad faith with regard to
ending the lease to include an option or right of first refusal for Lessee to purchase the
property.
To begin this process, the Lessee expects to submit a proposal for computation of annual rent
during the term of the Lease and any extensions. Such proposal would first be considered by
BanAir Corporation, who would their nwke a recommendation to the City Council. The City
Council would then refer the matter ro the Economic Development Committee who would in
turn make a recommendation to the full City C9urle1l for final action.
Trued: May/7. 1999
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Carol A. Epstein. Trustee of Stillwater Realty Tmst
3395P35163. 91351-1
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