TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Mike Niblock, Fire Chief
SUBJECT:
title
Third Amendment to the Lease Agreement between the City of Salem and Capitol Community Television.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Safe and Healthy Community.
end
SUMMARY:
summary
Execution of the Third Amendment to the Lease Agreement with Capital Community Television to waive their rent obligation under the existing lease through April 30, 2026. In lieu of rent, the Lessee shall continue to provide radio content creation services requested by the city and up to 8 hours of English and Spanish radio broadcasting time per month as requested by the City. In all other respects, the terms of the original lease remain unchanged.
end
ISSUE:
Shall the City Council authorize the City Manager to execute the Third Amendment to the Lease Agreement with Capital Community Television to waive their rent obligation under the existing lease through April 30, 2026?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute Third Amendment to the Lease Agreement with Capital Community Television to waive their rent obligation under the existing lease through April 30, 2026.
body
FACTS AND FINDINGS:
Due to ongoing fundraising challenges, Community Television (CC: Media) has requested a waiver of their lease payments until April 30, 2026.
Under the terms of the First Amendment, the annual lease cost to CC: Media is $6,131.00, to be paid in quarterly installments of $1,532.75. CC: Media has not made any lease payments to date.
Due to CC: Media’s continued unique and unforeseen circumstances, Staff and CC: Media have come to terms on a proposed third amendment to the Lease whereby rent does not commence until April 30, 2026, and shall be increased in accordance with ODOT/SRP Annual Collection and Ground Lease Rental Rates per quarter, subject to increases each calendar year.
Waiver of CC: Media’s rent obligation under the Lease through April 30, 2026, will not cause hardship for city operations.
BACKGROUND:
The City leases antenna space at its Lowen Tower site to several communications companies.
On July 24, 2019, the city entered into a lease agreement with CC: Media for the lease of space at Lowen Tower and Amendment #1 that took effect on April 2, 2021.
Amendment #2, which updated the agreement to allow rent obligations to be satisfied by providing radio content creation services from December 1, 2022, through April 30, 2024, was executed on November 29, 2022.
The lease of this space by CC: Media is part of a multi-year effort to establish a low-power FM radio station in the Salem area, expand their local programming outlets, and establish a means for local governments to provide emergency communications information to various communities in the area. The station can reach an area with 800,000 people and provides programming in English and Spanish.
In December 2019, CC: Media began transmitting from its new station after many years of planning and development, including nearly five years, to secure the required FCC licensing.
Mike Niblock
Fire Chief
Attachments:
1. Amendment #3 to the Lease Agreement
2. Amendment #2 to the Lease Agreement
3. Amendment #1 to the Lease Agreement
4. Original Lease Agreement