TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Director, Public Works Director
SUBJECT:
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Third 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, SESNA
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 gound lease (Attachment 1, Lease) with WattEV Salem Inc. for property at the Salem - Willamette Valley Airport. On May 28, 2024, City Council authorized the City Manager to execute the first amendment to the Lease (Attachment 2, First Amendment) extending the due diligence period to July 1, 2024. On August 12, 2024, City Council authorized the City Manager to execute the second Amendment to the Lease (Attachment 3, Second Amendment) adjusting the leased acreage. Lessee has not yet completed its due diligence and is requesting additional time, the third amendment (Attachment 4, Third Amendment) extends the due diligence period to October 31, 2024.
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ISSUE:
Shall City Council authorize the City Manager to execute the attached third lease amendment with WattEV Salem, Inc.?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached third lease amendment with WattEV Salem, Inc.
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FACTS AND FINDINGS:
WattEv Salem, Inc. has represented to Staff that the due diligence process is taking longer than anticipated. WattEV is requesting an extension until October 31, 2024, to complete their due diligence.
Staff is in agreement with extending the due diligence period until October 31, 2024. Staff feels this should be sufficient time to complete the due diligence process.
BACKGROUND:
Lessee executed a ground lease with the City of Salem on October 9, 2023, which provided for a due diligence period until April 30, 2024. Lessee subsequently requested an extension to their due diligence period to expire on July 1, 2024.
The second lease amendment, which was approved by Council on August 12, 2024, contained a formal lot line adjustment but did not include a request from Lessee to extend the due diligence period.
John Paskell
Airport Manager
Attachments:
1. Lease
2. First Amendment
3. Second Amendment
4. Third Amendment