Expression of Interest - Treaty Gas located in Cole Harbour
Release Date: March 25th, 2019
Closing Date for replies: April 19th, 2019 by 4:00pm Atlantic Standard Time.
To all Millbrook Band Members
The Millbrook Band is requesting sealed expressions of interestfrom Millbrook Band Members who are interested in purchasing the assets and inventory of Treaty Gas and Convenience store located at 600 Caldwell Rd. Cole Harbour NS. The assets include the building, (building approximately 2,420 square feet) with all fixtures, pumps, canopy, gasoline tanks, and signs are being sold on an as-is where-is basis. Inventory includes all stock and gasoline, minus any tobacco products.
The successful individual would be granted a long term land lease of 20 years, (the “initial term”) at a fixed agreed upon rental for each Five (5) year period of the initial term, with an option to renew for a further 10 years at a rate for each Five (5) year period as agreed to by the parties.
The land set aside to operate the gas station and convenience store is approximately .58 acres. Land size is to be confirmed jointly by the parties, the land is of a reasonable size to operate the existing gas station with convenience store. Land in Cole harbour has a $25,000.00 per acre lease rate, therefore this property will have an annual lease of $14,500.00, Band Members will be afforded a 50% discount on land lease for the first Five years, therefore; during the first 5 years the lease will be $7,250.00 per annum. After the 5-year initial term, the lease will return to 100% of it’s value, adjusted to reflect market rent at renewal.
The successful individual will receive a tobacco quota from the Band Council. To retain the quota the successful individual must continue to operate the Cole Harbour gas station and convenience store, selling discounted gasoline and tobacco products to status individuals. Should the Gas Station and convenience store be sold, leased to a third party, or cease operations, the quota will be terminated.
The terms for consideration by interested Band members are as follows:
The interested party:
1) If interested party currently holds a tobacco quota, no additional quota will be given.
2) Cannot be employed by the Millbrook Band either full time, part time or on a contract basis for the duration of the lease including any additional renewal periods.
3) Cannot be a Band Council member for the duration of the lease, including any additional renewal periods.
Conditions of Sale
1) Proof of Financing is required, proof can be provided by presenting a letter of offer from a financial institution, supported by proof of your equity portion as outlined in the letter of offer. Proof of equity can be verified by including a copy of your most recent banking statement. If self financing, a bank statement indicating funds in the amount adequate to support the bid is required. At closing, payment may only be made by certified cheque or bank draft, no other form of payment will be accepted.
2) It will be the responsibility of the new owner to obtain all necessary licenses and to arrange terms with all suppliers of product for the business operations.
3) All required insurance will need to be in place prior to the commencement of operations. With Millbrook added as an additional insured.
4) Date of takeover to be determined by the parties acting reasonably.
The minimum asset purchase bid must be greater than the sum of $390,000.00 to be considered.
The inventory will be over and above the purchase price. Daily inventory fluctuates between $75,000.00 and $80,000.00.
The Millbrook band member will be required to show they have adequate funds to purchase the inventory as well.
The Band may, in its absolute discretion, decide not to accept any or all submitted expressions of interest it has received.
Expressions of interest are to be submitted in writing to:
Millbrook Band Office
820 Willow Street
Attention: Millbrook Band Administrator
All bidders will be advised of the date for consideration of bids.