TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
title
Real property lease for temporary location of Salem City Hall services
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Safe, Reliable and Efficient Infrastructure; Welcoming and Livable Community.
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SUMMARY:
summary
The Salem Civic Center Improvement project requires vacating the building to allow for more efficient construction and less disruption to City services. Two separate sites are necessary to meet the specific needs of City services currently located at the Civic Center. One of the two selected sites is the 4th and 5th floors of the Parkway building owned by SAIF and located at 440 Church Street SE. The majority of Civic Center staff will be located at this location including the City Manager’s Office, Community Planning and Development Department, Community Services Department, Finance Department, and Customer Service Center.
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ISSUE:
Shall City Council authorize a lease agreement with SAIF at 440 Church Street SE for the temporary relocation of Civic Center services?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute a lease agreement with SAIF at 440 Church Street SE for the temporary relocation of Civic Center services.
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FACTS AND FINDINGS:
Staff evaluated several properties to find a suitable location to temporarily house City staff and associated services for the 18-24 month construction period required to complete the Civic Center improvements. No single site was available to meet the specific needs for all City services within the relocation budget for the project. However, current vacant space owned by SAIF at 440 Church Street SE is suitable for most City services at a lease rate within budget.
440 Church Street SE - Terms of the Proposed Lease (Attachment 1):
Term: June 1, 2025 - November 30, 2026
Occupancy: May 1, 2025
Square Feet: 20,000
Lease Rate: $1.50 per square foot/$30,000 per month gross (includes all expenses)
Renewal Option: Month to month up to 6 months
Termination Option: Lessee may terminate after 18 months with 60-day notice
Tenant Improvements: Lessee responsibility
A lease agreement for a second site for Salem Municipal Court staff and services will be presented for approval at a subsequent Council meeting.
BACKGROUND:
In November 2022, The City of Salem passed measure 24-474 titled City of Salem Community Capital Improvements General Obligation Bond for $300,000,000. $39,500,000 has been allocated to Civic Center improvements including seismic retrofit, roof replacement, and other system improvements.
Bond funding for the Civic Center improvements is not eligible to be used for relocation and moving expenses. Funding for the relocation will come from multiple sources. The largest portion is savings from the Police Station Bond which reimbursed the General Fund for construction of the Customer Service Center at the Civic Center. The Building and Safety Fund will also contribute proportionately to Building and Safety’s occupation of the leased space.
City Council Meetings will be held in Loucks Auditorium during construction of the Civic Center improvements. The City is seeking reimbursement from Public, Education, and Governmental (PEG) funding from the Mid-Willamette Valley Cable Regulatory Commission for the improvements needed at Loucks Auditorium to facilitate the City Council meetings.
Allen Dannen, PE
City Engineer
Attachments:
1. Proposed Lease for 440 Church Street SE