TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Director, Community Planning and Development Department
SUBJECT:
title
Amendment to ground lease with WattEV Salem Inc. for real property at Salem Municipal Airport.
Ward(s): 3
Councilor(s): Phillips
Neighborhood(s): SEMCA
Result Area(s): Good Governance; Strong and Diverse Economy
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SUMMARY:
summary
On October 23, 2023, Council authorized the City Manager to execute a ground lease (Lease) (Attachment 1) with WattEV Salem Inc. (Umar Javed, President) (Lessee) for property at the Salem Municipal Airport. Due to unforeseen circumstances, due diligence activities are taking longer than anticipated and it is necessary to extend Lessee’s due diligence period to July 1, 2024. Additionally, it was previously unknown that Lessee’s property would require linking improvements (Linking Improvements) to adjacent and adjoining streets. As it is not feasible for Lessee to complete the required Linking Improvements and staff has determined it would be in the City’s best interest to create a Temporary Facilities Access Agreement Fee Area to fund the Linking Improvements (future) required to develop the bulk of the Airport property at the south end.
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ISSUE:
Shall City Council authorize the City Manager to execute the attached lease amendment?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached lease amendment.
body
FACTS AND FINDINGS:
Staff and Lessee have come to terms on a proposed amendment (Amendment) (Attachment 2) to the Lease. Key terms of the Amendment are below.
Amended Due Diligence Period: July 31, 2024
Linking Improvements: City staff to create Temporary Facilities Access Agreement Fee Area to fund required street improvements
Lessee’s financial contribution to Temporary Facilities Access Agreement Fee Area shall be paid from its Base Rent and shall never exceed Lessee’s annual rent
BACKGROUND:
Revenue from the Lease will flow to the Salem Municipal Airport Fund.
Clint Dameron
Real Property Services Manager
Attachments:
1. Lease
2. Amendment