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CITY OF BANGOR – AIRPORT COMMITTEE
Monday, November 15, 2021
Starting at 5:15pm
Or immediately following _________________ Committee meetings.
Meeting Agenda
Resolve – Ratify execution of application for an ARPA grant for relief funding for airport concessions (Draft Resolve attached.) a. Request approval for the execution of grant application
Authorization to submit a grant application to the EPA for demolition and remediation of Building #610 at the airport. (Draft Order attached) a. Request approval for the authorization to submit this grant
United Airlines – lease amendment for additional terminal space a. Request approval for lease amendment (Draft Order attached)
C&L Aerospace – new lease agreement a. Request approval for new lease agreement which combines all existing leases and adds the new buildings. (Draft Order attached)
Military Construction Cooperative Agreement a. Request approval for this agreement to cost share the runway rehabilitation project (Draft Order attached)
Airport terminal study – phased implementation plan to meet increasing passenger demand a. Request approval for Phase 1 project design & engineering services (Draft Order attached)
Update from Assistant Director Thomas & Marketing & Business Development Manager Thibodeau a. ABS recommendations - Improved communications, more efficient work order process b. FBO marketing
Airport Advertising & Marketing update
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Airport
Title, Resolve
Resolve (^) 001-
Ratifying Execution for the Application of a Grant in the Amount of $278,564 from the Federal Aviation Administration under the Airport Rescue Plan Act (ARPA) for Rent Relief to Airport Concessions at Bangor International Airport (BGR).
This Resolve will ratify the Interim City Manager's execution for the application of a grant in the amount of $278,564 from the Federal Aviation Administration under the Airport Rescue Plan Act (ARPA) for rent relief to airport concessions at the airport. This grant funding is to be used to provide relief from rent and minimum annual guarantees to eligible airport concessions. New guidance from the FAA now allows use of these grant funds to provide financial relief dedicated for airport concessions. Airports must submit payment requests for reimbursements similar to the Airport Improvement Plan (AIP) program administration.
Airport Committee 11/15/ Recommend for passage
Staff recommends approval.
First Reading
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Airport
Title, Order
Order (^) N/A
Authorizing The Interim City Manager to Submit a Grant Application of up to $650,000 to the Environmental Protection Agency for the Demolition and Remediation of Building #610 located on Bangor International Airport property.
This Order authorizes the Interim City Manager to apply for a grant of up to $650,000 from the Environmental Protection Agency (EPA) for the cleanup of Building #610 (commonly referred to as the Alert Building) located on Bangor International Airport property.
The Alert Building has been identified as a wildlife hazard by the FAA and its demolition is strongly recommended. Additionally, this area has been identified in the Airport Master Plan as a potential area for growth or expansion of air freight operations and warehousing space needed for aeronautical development in the future.
Phase I and Phase II Environmental Site Assessments (ESA) have been completed on the property through the City's Brownfields Assessment program. The ESA's indicate the site is contaminated with various hazardous substances which increases the cost of the demolition and remediation of the site. Applying for and receiving a grant will help mitigate those costs of the demolition. Estimates have indicated that the cost of demolition will be $500,000.
The EPA has Cleanup Grants available up to $650,000 to carry out cleanup activities to address sites that are contaminated with hazardous substances. A 20% cost share is required which may be in the form of funding, labor, materials, or services. If the application is successful, the EPA will notify the City of the award in May 2022, and funds will be available to be expended starting October 1, 2022.
11/15/ Recommend for passage
New Business
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CITY OF BANGOR ORDER 11/22/
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Authorizing The Interim City Manager to Submit a Grant Application of up to $650,000 to the Environmental Protection Agency for the Demolition and Remediation of Building #610 located on Bangor International Airport property.
WHEREAS, the City of Bangor, Maine is the owner of an airport located in Bangor, County of Penobscot, State of Maine, commonly known as Bangor International Airport (BGR); and
WHEREAS, BGR would like to submit an application for a grant up to $650,000 to the Environmental Protection Agency Brownfields Cleanup Grant program; and
WHEREAS, The purpose of the grant is fund the demolition and remediation of Building #610, a/k/a the Alert Building, located on the airport property which has been identified as a wildlife hazard by the FAA; and
WHEREAS, The Bangor International Airport is prepared to contribute the required 20% match which can be in the form of funding, labor, material, or services.
Now, therefore, Be it ordered by the City Council of the City of Bangor That:
The Interim City Manager is authorized to submit a grant application of up to $650,000 to the Environmental Protection Agency for the Demolition and Remediation of the Alert Building #610 located on Bangor International Airport property.
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CITY OF BANGOR ORDER 11/22/
11/22/
Authorizing the Interim City Manager to Execute a 2nd Amendment to the Lease & Use Agreement with United Airlines at Bangor International Airport.
WHEREAS, The Lessor is the owner of an Airport, commonly known as “Bangor International Airport”, formerly known as Dow Air Force Base and located in the City of Bangor, County of Penobscot, State of Maine (hereinafter sometimes referred to as the “Airport”); and
WHEREAS, The City of Bangor and United Airlines are parties to a 5-year lease and use agreement dated July 1, 2016, with two 1-year extension options, and amended to extend through April 30, 2022; and
WHEREAS, United Airlines has requested they lease additional exclusive use space for their contract Ground Handling company, G2, which is necessary to support their operations; and
WHEREAS, This 2nd amendment identifies the location and lease rate for this exclusive use space.
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR,
That Debbie Laurie, Interim City Manager, is hereby authorized on behalf of the City of Bangor to execute a 2nd amendment to the lease and use agreement between the City of Bangor and United Airlines at the airport. United Airlines has requested they lease additional exclusive use space for their contract Ground Handling company, G2, which is necessary to support their operations. This 2nd amendment identifies the location and lease rate for this exclusive use space. All terms and conditions of the current agreement shall remain in effect. This amendment will be in final form as approved by City Legal.
CITY OF BANGOR/BANGOR INTERNATIONAL AIRPORT
DOMESTIC AIR CARRIER AGREEMENT AND LEASE
SECOND AMENDMENT TO INDENTURE OF LEASE
This Amendment to Indenture of Lease, executed in duplicate, this ____ day of ________, 2021 by and between the City of Bangor (”Lessor” or “City”) and United Airlines, Inc. (“Lessee” or “United”).
WITNESSETH:
WHEREAS, the Lessor is the owner of an Airport, commonly known as “Bangor International Airport”, formerly known as Dow Air Force Base and located in the City of Bangor, County of Penobscot, State of Maine; and
WHEREAS, Lessee currently leases certain facilities at said airport for purposes of permitting the use by UNITED of BGR for aeronautical purposes under provisions of certain agreement of lease commenced on July 1, 2016 (“the Lease”) and dated January 4, 2017; and
WHEREAS, the City and UNITED agree that efficient and unobstructed movement of aircraft on BGR premises is mutually beneficial;
WHEREAS, UNITED desires to lease additional exclusive use space necessary for its operations.
NOW, THEREFORE, the parties agree to amend the Indenture of Lease by and between the Parties commenced on July 1, 2016, countersigned on June 23, 2021 and amended June 26, 2021, to amended as follows:
- By amending Article, I – Use by Airline. For this purpose, Article I, Section A, last paragraph, of the Lease is hereby replaced with the following: - United Airlines shall have the exclusive right to occupy the premises identified in Appendix A and Exhibit B of Lease, and shown in Exhibit A of this Amendment, Rooms ATO 3, ATO 4, Ticket Counter and Kiosk space.
- By amending Appendix A of Lease – Rates and Charges, Section B – Terminal Rent, Part 1 Exclusive Premises. For this purpose, Appendix A of the Lease is hereby replaced with the following: - Airline Ticket Offices, Ticketing Counters, and Kiosks locations identified in Appendix A and Exhibit B of Lease, and shown in Exhibit A of this Amendment, defined as:
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Airport
Title, Order
Order (^) 001-
Authorizing the Interim City Manager to Execute a Lease Between the City of Bangor and C&L Aerospace Holdings, LLC. for the Lease of Property at Bangor International Airport (BGR).
This Order, if approved, authorizes a lease agreement between the City of Bangor and C&L Aerospace Holdings, LLC. for all of the property they lease at Bangor International Airport (BGR). This will include the following facilities: Docks 10, 11, 12, 13, the Office complex, and the 2 new maintenance shops built as part of the EDA grant project. C&L Aero continues to expand at the Bangor facility requiring them to seek additional maintenance shop space to accommodate a growing need for aircraft maintenance services. As a result of the planned expansion, C&L desires to enter into a long-term lease for the hangars, offices, and newly built maintenance shop space. This new lease shall discontinue all previous long term leases, and form one lease with a term of 22.5 years, with an option to extend for a 10 year term.
If approved, the annual rent for the lease for all facilities will be $397,551. Additional terms include CPI adjustments, that C&L is responsible for remitting aircraft landing fees to the airport, and that C&L is responsible for all utility costs, and routine maintenance and inspection costs. This also includes a capital improvement plan, identifying necessary upgrades and repairs, with some projects being cost shared. This lease agreement will be in final form as approved by City Legal.
Airport Committee 11/15/ Recommend for passage
Staff recommends approval.
New Business
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CITY OF BANGOR ORDER 11/22/
11/22/
Authorizing the Interim City Manager to Execute a Lease Between the City of Bangor and C&L Aerospace Holdings, LLC. for the Lease of Property at Bangor International Airport (BGR).
WHEREAS, the City of Bangor, Maine is the owner of an airport located in Bangor, County of Penobscot, State of Maine, commonly known as Bangor International Airport; and
WHEREAS, C&L Aerospace Holdings, LLC. currently operates a maintenance, repair and overhaul shop (MRO) facility at BGR; and
WHEREAS, C&L Aerospace Holdings, LLC. continues to expand at the Bangor facility requiring them to seek additional maintenance shop space and office space to accommodate a growing need for aircraft maintenance services; and
WHEREAS, As a result of the planned expansion, C&L desires to enter into a long-term lease for the hangars, offices, and expansion of maintenance shop space; and
WHEREAS, This new lease shall discontinue all previous long term leases, and form one lease with a term of 22.5 years, with an extension option of 10 years.
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR,
That Debbie Laurie, Interim City Manager, is hereby authorized on behalf of the City of Bangor to execute a lease agreement with C&L Aerospace Holdings, LLC. for the lease of hangar and office space at Bangor International Airport. Said lease agreement term shall be for 22.5 years, with an option to extend for an additional 10 years. The base annual rent for the lease will be $397,551 with the tenant being responsible for all utility costs and routine maintenance costs. The lease agreement shall be in final form as approved by the City Legal.
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- Hangar 10, depicted on Exhibit A;
- Hangar 11, depicted on Exhibit A;
- Hangar 12 (paint facility), depicted on Exhibit A;
- Hangar 13, depicted on Exhibit A;
- Office Complex, depicted on Exhibit A;
- Recently built shop storage space connected to Hangar 11: built using EDA grant and airport funds depicted on Exhibit A and C;
- Recently built maintenance and warehouse building adjacent to Hangar 12, built using EDA grant and airport funds; depicted on Exhibit A and C;
- Parking Areas, depicted on Exhibit A and B;
- Fenced Hardstand Area southwest of Building 600 depicted on Exhibit B.
The above described being collectively known as the “Premises” or the “Leased Premises.” Lessor shall provide Lessee with free parking for up to fifty (50) aircraft in these designated areas provided Lessee shall still remit standard landing fees associated with all aircraft. Parking for additional aircraft shall be at the current aircraft parking rates established by the Lessor. The location of the aircraft parking shall be as follows:
Lessee shall have priority (Lessee must coordinate with Lessor parking aircraft) aircraft parking rights on the “Y Aircraft Parking Area” and “Hangar Parking Area” as shown on Exhibit B.
Lessee may park aircraft on ‘tango row,’ at the GA Aircraft Parking (general aviation) parking ramp, and along borders of the blast fence area, provided this parking must be coordinated daily with Airport Operations as this is a joint use parking area for use by airport and Maine Air National Guard. Said areas are depicted on Exhibit B. Aircraft parked on these areas must have the ability to be towed/moved upon request.
Lessee shall also have the right to use, in common and joint use with the Lessor and other tenants and customers of Lessor the aircraft parking areas as depicted on Exhibit B as “X Aircraft Parking Area” and the parking ramp in front of 600 Building subject to the terms and conditions herein. Lessee may also park aircraft, subject to the terms and conditions herein, adjacent to the Leased Premises and use said adjacent area for reasonable purposes associated with Lessee’s operations.
Lessor shall plow and remove snow from all portions of the Premises and from all vehicle and aircraft parking areas and all roadways on the airport except that Lessee is responsible for snow removal within ten (10) feet of any aircraft in the custody or control of Lessee on the Premises. Notwithstanding the foregoing, Lessee (and not Lessor) shall be solely responsible for snow removal related to the Vehicle Parking Areas depicted on Exhibit A, excepting that Lessor shall be responsible for plowing Utah Avenue in front of Dock 11. Lessee is responsible for snow removal within the first 5 feet of each hangar and facility.
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Lessor and its personnel will continue to have access to and use of the lavatory building, located adjacent and attached to the southeast portion of the hangar. Lessor will restrict direct access from the hangar to this area.
ARTICLE II: TERM
TO HAVE AND TO HOLD the Leased Premises as described herein for a period of twenty-two and one-half (22.5) years. The term of this Lease, for the entirety of the above Leased Premises, shall commence on the date of issuance of a Certificate of Occupancy for the areas being constructed under the Construction Agreement (the “Commencement Date”).
Until the Commencement Date, the parties agree to abide by the terms and conditions of the Existing Leases.
Upon commencement of this Lease, the Existing Leases shall terminate provided that nothing herein shall be deemed to relieve either party of any then-existing obligation under the Existing Leases.
Lessee shall have the option to extend the term of this Lease for an additional ten (10) years, provided that Lessee gives written notice to Lessor at least ninety (90) days prior to the expiration of the term of this Lease and that Lessee is not be in default under this Lease at the time of exercise of the option.
ARTICLE III: RENTAL
A. Rent to be paid by Lessee to Lessor under the terms of this Lease for the Premises is as follows:
Monthly Yearly $33,129.25 $397,551.
B. 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. If the Commencement Date is not the first day of the month, rent shall be prorated at the monthly rate in Paragraph A, above. On each 10 year anniversary of the lease commencement date, the base lease rate then in effect shall be increased by a percentage equal to the percentage increase of the Comsumer Price Index (CPI-U), not to exceed 1.5%.
C. Lessee agrees to pay, when due, any and all generally applicable taxes and/or assessments, fees or charges of any kind whatsoever, as may be imposed during the term hereof, or any extension of the term of this Lease, by any governmental authority upon the Leased Premises, including Lessee’s leasehold interest therein, any buildings,
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guarantee that said accesses to the runway and other aeronautical areas of the Airport are not open to the customers, employees, agents or visitors of Lessee. However, Lessee’s customers while operating aircraft shall have access between the runway and the Leased Premises.
D. Lessee shall have the right to make alterations and improvements to the Premises as it may choose, subject to the prior written approval of the Airport Director which shall not be unreasonably withheld, and provided that such alterations, additions, and improvements do not weaken the structural integrity of any building on the Premises, nor decrease its functional quality or value, and further provided that any such work shall be done entirely at the Lessee’s own expense and will include returning disrupted surfaces to a serviceable and attractive condition.
E. Lessor, through its agents, shall have at all reasonable times the right, upon reasonable notification to the Lessee, to go on and inspect the Premises with an authorized representative of the Lessee, and the right of access to utility systems located on the Leased Premises for the purpose of maintenance, repair, correction, or inspection.
F. Lessee shall have the right to: (a) fence, secure, grade and surface the Leased Premises; (b) install such additional outdoor lighting, including flood lighting, as Lessee deems necessary, provided that such outdoor lighting complies with applicable F.A.A. regulations; and (c) erect signs on the leased Premises, provided that such signs comply with the City’s Sign Ordinance and applicable F.A.A. regulations and as further approved by the Airport Director.
G. Lessor represents and warrants that Hangar 10 includes all improvements, including, without limitation a fire suppression system, necessary to permit the storage of fueled aircrafts within Hangar 10 as a group 2 hangar.
ARTICLE V: NOISE CLAIMS
Lessee specifically agrees to make no claims in any form for damages or reimbursements to the Lessor or to the United States Government for any reason or cause resulting from noise generated from airport uses.
ARTICLE VI: INSURANCE, INDEMNIFICATION, NO JOINT VENTURE, AND HAZARDOUS MATERIALS
A. LIABILITY AND PROPERTY DAMAGE INSURANCE
The Lessee, during the entire term of this Lease, or any extension thereof, including any holdover tenancy following regular expiration or early termination hereof, shall maintain, at its sole expense, insurance in the type and amount shown below with companies authorized to do business in the State of Maine for the protection of Lessor against any and all liability, including
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wrongful death, against all claims, losses, costs or expenses arising out of injuries to persons whether or not employed by Lessee or damage to property whether resulting from acts, omissions, negligence or otherwise of the Lessee, its directors, officers, clients, employees and agents and arising from Lessee's use of the demised premises or any part or portion thereof:
- Aviation Liability Insurance with a minimum limit of $50,000,000 combined single limit per occurrence and $100,000,000 in the aggregate;
- Hangarkeeper’s Liability Insurance for each aircraft and occurrence with a minimum limit of $50,000,000 per occurrence; and
- Worker’s Compensation and employer’s liability insurance with a minimum limit of $500,000 per occurrence.
Lessee shall cause to be furnished to the Lessor, at the time of execution of this Lease, evidence in the form of certificates of insurance of the existence in force of the insurance required hereunder. Said certificates shall name Lessor as an additional insured. Lessee shall cause to be furnished to the Lessor replacement certificates of insurance whenever the insurance policies are renewed. Lessor shall be notified prior to any changes or discontinuances of coverage.
Lessor agrees to promptly notify Lessee in writing of the existence or filing of any claim, demand or action arising out of an occurrence covered hereunder of which Lessor has knowledge, and to cooperate with Lessee in the investigation and defense thereof.
The minimum insurance coverage required under this Article shall be deemed to be automatically adjusted whenever the Maine State Legislature shall increase the Lessor's maximum liability beyond such minimums for personal injury, wrongful death or property damage claims brought under the Maine Tort Claims Act. In the event of such an increase, the minimum insurance coverage required shall be no less than the amounts required herein or no less than the Lessor's maximum liability for such claims under the Maine Tort Claims Act, whichever is greater.
Lessor shall maintain comprehensive liability insurance coverage for the building, but shall not be held responsible for any harm or damage caused by an “act of god,” including, but not limited to, floods, earthquakes, and snow/ice storms.
Lessee shall provide the Lessor with an annual Certificate of Insurance (COI), which shall be sent to the following address:
Bangor International Airport Attn: Airport Director 287 Godfrey Boulevard Bangor, Maine 04401
B. INDEMNITY
