TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Community Planning and Development Department Director
SUBJECT:
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Ground lease with WLS Enterprises, LLC for property located at Salem Municipal Airport.
Ward(s): 2
Councilor(s): Nishioka
Neighborhood(s): SEMCA
Result Area(s): Good Governance; Strong and Diverse Economy.
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SUMMARY:
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WLS Enterprises, LLC (Tenant) (Dany Sadakah, Manager) desires to enter into a ground lease with the City to construct a multi-hangar development and associated improvements at the south end of the airport.
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ISSUE:
Shall City Council authorize the City Manager to execute the attached ground lease with WLS Enterprises, LLC for property at the Salem Municipal Airport?
RECOMMENDATION:
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Authorize the City Manager to execute the attached ground lease with WLS Enterprises, LLC for property at the Salem Municipal Airport.
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FACTS AND FINDINGS:
Staff and Tenant have come to terms on a proposed ground lease (Lease) (Attachment 1), key terms of the Lease are below.
Lease Start Date: January 1, 2025
Lease End Date: December 31, 2054
Extension Option: One 10-year option
Square Feet: 115,735 (subject to final survey)
Lease Rate: $40,507 annually ($0.35/s.f.)
BACKGROUND:
Revenue from the Lease will flow to the Salem Municipal Airport Fund. There will also be a Broker Fee due to Tenant’s broker of record, Samih Sadaka of Sadaka Realty LLC, in the amount of $60,105 (estimated) as dictated by Council Policy W-2, City of Salem Policy Regarding the Compensation of Real Estate Brokers.
Clint Dameron
Real Property Services Manager
Attachments:
1. Lease