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 Civic Center 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 project schedule and the specific needs of some City services. On January 13, 2025, Council approved the lease agreement with SAIF for portions of the Parkway building. The second location considered is at 2850 Broadway Street NE and will provide space for Salem Municipal Court staff and services.
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ISSUE:
Shall City Council authorize a lease agreement with the owner at 2850 Broadway Street NE for temporary relocation of Civic Center services?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute a lease agreement with the owner at 2850 Broadway Street NE for 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 of the Civic Center Improvements project. No single site was available to meet the specific needs for all City services within the relocation budget for the project. However, currently vacant space at 2850 Broadway Street NE is suitable to accommodate the Municipal Court services at a lease rate within budget. While the lease rate at 2850 Broadway Street is more than the space recently leased at SAIF, the Broadway space is particularly suitable for use by the Salem Municipal Court because it was used as temporary court space by a prior tenant. This will lead to lower tenant improvement costs in the leased space.
2850 Broadway Street NE - Terms of the proposed lease (Attachment 1):
Term: June 1, 2025 - November 30, 2026
Occupancy: June 1, 2025, or upon substantial completion of tenant improvements
Square Feet: 15,171
Lease Rate: $2.20 per square foot per month (includes all expenses except interior janitorial)
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
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 reimbursed to the General Fund for construction of the Customer Service Center.
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 to Loucks Auditorium to facilitate City Council meetings.
Allen Dannen, PE
City Engineer
Attachments:
1. Proposed Lease for 2850 Broadway Street NE