TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Urban Development Dept. Director
SUBJECT:
title
Retail lease for Agency-owned property at 279 Chemeketa Street NE
Ward(s): 1
Board Member(s): Kaser
Neighborhood(s): CANDO
Result Area(s): Good Governance; Strong and Diverse Economy; Welcoming and Livable Community.
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ISSUE:
Shall the Agency Board authorize the Executive Director to execute the attached lease with Kiki B’s O’Hana Salon for retail space located at 279 Chemeketa Street NE?
RECOMMENDATION:
recommendation
Authorize the Executive Director to execute the attached lease with Kiki B’s O’Hana Salon for retail space located at 279 Chemeketa Street NE.
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SUMMARY:
On March 29, 2019, the Urban Renewal Agency acquired a portfolio of property (Property) located in downtown Salem bounded by Commercial Street NE, Chemeketa Street NE, Front Street NE, and Marion Street NE. The Property was acquired with several tenants in place. One of the tenants, Kiki B’s O’Hana Salon (Kim C. Bender, owner)(Lessee), occupies the space with only a verbal lease.
FACTS AND FINDINGS:
In order to formalize Lessee’s interest in the space, a new lease (Lease)(Attachment 1) is necessary. Key facts of the lease are below.
Start date: June 1, 2019
Expiration Date: February 28, 2021
Square Feet: 832
Rate: $550/month
Expenses: Lessee responsibility
BACKGROUND:
The Agency entered into an agreement to acquire the Property on November 19, 2018. The Property, along with adjacent property owned by the Union Gospel Mission (UGM) which is currently under contract for purchase by the Agency, will be used as a redevelopment site once UGM has relocated to its new facility. All revenue from the Lease will flow to the Riverfront-Downtown Urban Renewal Area.
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Lease.