TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Second amendment to the ground lease with WattEV Salem Inc. for real property located at the Salem - Willamette Valley Airport.
Ward(s): 3
Councilor(s): Phillips
Neighborhood(s): SEMCA
Result Area(s): Strong and Diverse Economy
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SUMMARY:
summary
On October 23, 2023, City Council authorized the City Manager to execute a ground lease (Attachment 1, Lease) with WattEV Salem Inc. for property at the Salem - Willamette Valley Airport. On May 28, 2024, Council authorized the City Manager to execute an amendment to the Lease (Attachment 2, First Amendment) extending the due diligence period to July 1, 2024.With the formal survey of the property boundary lines now complete, this second amendment adjusts the leased acreage to its correct size.
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ISSUE:
Shall City Council authorize the City Manager to execute the attached second lease amendment?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached second lease amendment.
body
FACTS AND FINDINGS:
The original ground lease acreage was estimated at 8 acres. The formal survey of the buildable property boundaries outside of the airport’s Runway Protection Zone has been completed and has reduced the developable property to 6.3 acres. Annual ground lease rent will be reduced accordingly.
BACKGROUND:
Revenue from the Lease will be applied to the Salem - Willamette Valley Airport Fund.
John Paskell
Airport Manager
Attachments:
1. Attachment 1, Lease
2. Attachment 2, First Lease Amendment
3. Attachment 3, Second Lease Amendment