TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
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Salem Municipal Airport ground lease with Valmont Industries, Inc.
Ward(s): 2
Councilor(s): Andersen
Neighborhood(s): SEMCA
Result Area(s): Good Governance; Strong and Diverse Economy
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ISSUE:
Shall the City Council authorize the City Manager to execute the attached lease with Valmont Industries, Inc. for a ground lease at the Salem Municipal Airport?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached lease with Valmont Industries, Inc. for a ground lease at the Salem Municipal Airport.
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SUMMARY:
Valmont Industries, Inc. (Lessee) (via its predecessor) has leased industrial land at the Salem Municipal Airport (Airport) since 1967. The 9.59-acre site is at 3575 25th Street SE (Property).
FACTS AND FINDINGS:
Key terms of the Lease are below.
Term: 20 years
Rate per square foot: $0.34
Square Feet: 417,740
Rent Increases: Subject to appraisal every five years
BACKGROUND:
Revenue from the Lease will go to the Airport Fund.
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Lease