TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
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Ground lease with Lulay’s Aviation, LLC for property located at the Salem-Willamette Valley Airport.
Ward(s): 2
Councilor(s): Nishioka
Neighborhood(s): SEMCA, SESNA
Result Area(s): Strong and Diverse Economy
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SUMMARY:
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Lulay’s Aviation, LLC (Tenant) desires to enter into a ground lease with the City of Salem to construct an aircraft hangar and associated improvements at the south end of the airport.
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ISSUE:
Shall City Council authorize the City Manager to execute a ground lease with Lulay’s Aviation, LLC for property located at the Salem-Willamette Valley Airport?
RECOMMENDATION:
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Authorize the City Manager to execute a ground lease with Lulay’s Aviation, LLC for property located at the Salem-Willamette Valley Airport.
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FACTS AND FINDINGS:
Tenant and City staff have come to terms on a proposed ground lease (Attachment 1, Lease). Key terms are below.
Lease Start Date: September 1, 2024
Lease End Date: August 31, 2054
Total Square Feet: 15,500
Lease Rate & Revenue: $5,425.00 annually ($0.35/s.f./year)
BACKGROUND:
Revenue from the ground lease will flow to the Salem-Willamette Valley Airport operating fund.
John Paskell
Airport Manager
Attachments:
1. Attachment 1 - Lease