TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Brian D. Martin, PE, Public Works Director
SUBJECT:
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Amendment 1 to the Intergovernmental Agreement with the State of Oregon allowing the Office of the Legislative Assembly to use a portion of State Street adjacent to Oregon State Capitol.
Ward(s): Ward 1 and 2
Councilor(s): Councilors Tigan and Nishioka
Neighborhood(s): CANDO, Centra Area Neighborhood Development Organization
Result Area(s): Safe, Reliable and Efficient Infrastructure.
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SUMMARY:
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Amendment 1 to the Intergovernmental Agreement between the City of Salem and Sate of Oregon, acting by and through the Office of the Legislative Administrator on behalf of the Oregon Legislative Assembly, will extend the timeline for planning, design, and permitting activities related to the construction of safety measures in State Street adjacent to the State Capitol.
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ISSUE:
Shall the City Council authorize the City Manager to execute Amendment 1 (Attachment 2) to the Intergovernmental Agreement between the City of Salem and the Office of Legislative Assembly (OLA) for OLA’s use of a portion of State Street adjacent to the south side of the State Capitol?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute Amendment 1 to the Intergovernmental Agreement between the City of Salem and the Office of Legislative Assembly (OLA) for OLA’s use of a portion of State Street adjacent to the south side of the State Capitol.
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FACTS AND FINDINGS:
• On March 10, 2025, City Council authorized the City Manager to execute an Intergovernmental Agreement (IGA) between the City of Salem and the Office of Legislative Assembly (OLA) for OLA’s use of a portion of State Street to provide security measures adjacent to the south side of the State Capitol.
• The attached Intergovernmental Agreement (IGA) allows the OLA to use a portion of the left, northernmost lane of State Street that is adjacent to the south side of the State Capitol and between Cottage Street NE and Waverly Street NE for a period of 10 years at a compensation of $2 million.
• The State compensated the City $2 million for use of the property in 2025. The compensation was deposited into the City’s General Fund.
• At the time of IGA approval, design and permitting for the work was incomplete so a lease for the property was unable to be developed. The IGA established an expiration date of December 31, 2025 to complete design, permitting, and lease negotiations.
• The OLA has requested that the IGA expiration date be extended to September 30, 2026, so that they can complete their design, obtain permits, and sign a 10-year lease agreement with the City.
• OLA will be responsible for all costs related to the improvements at this location, including design, construction, operation, and maintenance.
• Amendment 1 to the IGA extends the expiration date to September 30, 2026.
BACKGROUND:
The OLA and the City worked in close collaboration to develop an IGA which will allow the OLA to use a portion of State Street adjacent to the State Capitol for the implementation of safety and security measures for members of the Legislative Assembly, legislative staff, and visitors. The State will be responsible for designing, constructing, operating, and maintaining the improvements.
Attachments:
1. Intergovernmental Agreement between the City of Salem and the State of Oregon
2. Amendment 1 to the Intergovernmental Agreement between the City of Salem and the State of Oregon