TO: Chair and Housing Authority Commissioners
THROUGH: Krishna Namburi, Interim Executive Director
FROM: Nicole Utz, Director of Housing
SUBJECT:
title
Office Lease Agreement with SAIF.
Ward(s): All Wards
Commissioners(s): All Commissioners
Neighborhood(s): All Neighborhoods
Result Area(s): Safe and Healthy Community; Welcome and Livable Neighborhoods
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SUMMARY:
summary
The Salem Housing Authority needs additional office space for effective operations. The State Accident Insurance Fund (SAIF) Corporation has office space available for lease at the building located at 440 Church Street, SE, Salem, Oregon (known as the Parkway building, which is the same building the City is temporarily housed at). Staff have reached tentative agreement to enter into an Office Lease Agreement with SAIF for a term of 60 months, beginning on July 1, 2026.
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ISSUE:
Shall the Salem Housing Authority Board of Commissioners approve the signing of the Office Lease Agreement (SAIF Contract No. 7532) for the rental of approximately 2,125-square feet of space on the 6th floor of the Parkway building located at 440 Church St. SE, Salem Oregon for a term of 60 months?
RECOMMENDATION:
recommendation
Approve the signing of the Office Lease Agreement (SAIF Contract No. 7532) for the rental of approximately 2,125-square feet of space on the 6th floor of the Parkway building located at 440 Church St. SE, Salem Oregon for a term of 60 months.
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FACTS AND FINDINGS:
Salem Housing Authority will cover the costs associated with this lease agreement through the utilization of funding that was incorporated into the budget approved on September 22, 2025. These are non-federal dollars that have been assigned to the central office cost center.
Key Terms:
• 2,125 square feet on the 6th floor of the building,
• Six non-exclusive customer use parking spaces,
• Employee parking in the adjacent garage,
• Use of common areas,
• SAIF to perform tenant improvements as specified by SHA at SAIF’s cost,
• Rent:
o Year 1 - $4,515.63
o Year 2 - $4,651.10
o Year 3 - $4,790.63
o Year 4 - $4,934.35
o Tear 5 - $5,082.38
• Common Area costs included in rent,
• SAIF responsible to pay for standard utilities.
Staff have requested a correction to section 11.3 of the lease to limit SHA’s duty to indemnify SAIF in the event of loss caused by SHA or SHA’s visitors to the property by virtue of the Oregon Tort Claim Act. Staff expects SAIF to agree to the correction. If there is any issue with the correction, this item will be brought back to the Commission for additional consideration.
BACKGROUND:
Salem Housing Authority has long needed additional office space, often finding it necessary to double-up staff in offices where a separation of space is needed. The current arrangement is impacting production, office efficiencies, and client services. SHA has a pressing need for dedicated workspace for key departments, especially those working directly with clients. Additionally, the finance team is currently working in an open-air environment that is inundated with the sounds generated by client services at the front desk. The finance team needs space conducive to focus on detailed projects and tasks.
The initial plan for the leased space will include moving the finance team to the leased location along with at least one member of the executive leadership team. This will enable the remaining departments to utilize the vacated spaces and better arrange work areas for improved efficiency and effectiveness.
Nicole Utz
Director of Housing
Attachments:
1. Lease Agreement