BANGOR – The owner of the Four Points Sheraton hotel at Bangor International Airport is gearing up for an $8 million overhaul during the first half of this year.

New Castle Hotel Corp.’s extreme makeover plans, however, hinge in large part on the city’s willingness to adjust its lease with the hotel for the land it occupies.

An order that would extend New Castle’s lease for another 13 years is among the items that city councilors will address during their next regular meeting set for 7:30 p.m. Monday.

The extension, when combined with two 10-year renewal options, would provide for a term of 40 years over which to finance the work, according to city documents connected to the proposal.

New Castle also has asked the city to consider modifying the formula used to calculate rent to reflect operating losses it expects to occur during the construction period.

The renovations would include a new facade and exterior finishes, a renovated lobby, a new indoor swimming pool and upgraded fitness facilities, expanded meeting space, and new fixtures and furniture.

The current land lease formula is based on a base rent plus a percentage of specified hotel revenues.

If city councilors authorize the requested changes next week, the city initially would see its income from the hotel decrease, though those losses would be recovered after 11 years and would continue to increase each year beyond that.

During recent talks with city officials, New Castle representatives said the overhaul will be attacked in quarters, meaning that one-fourth of the rooms will be under construction at any given time.

To that end, the company has projected operating losses totaling $1.5 million during the construction project.

After the $8 million investment, however, the company anticipates it will be able to generate an additional $1.2 million a year in room revenue as well as more income from food and beverage sales.

Based on the proposed investment, the city’s assessing department projects a 69 percent increase in property tax income, which translates to about $50,000 a year.

The hotel hasn’t seen any major improvements or upgrades since at least 1983, when New Castle acquired it, company founder David Buffam noted in recent talks with local officials.

In addition, it lacks adequate insulation and its exterior has asbestos-related problems that need to be addressed, he said.

BIA Director Rebecca Hupp said the hotel upgrade would “certainly benefit all the parties involved. … These renovations are critical to their [New Castle’s] maintaining their brand [Sheraton] and being able to compete with other hotels coming down the line.”