TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Chemeketa Parkade Retail Lease - Rudy’s Steakhouse LLC
Ward(s): 1
Councilor(s): Kaser
Neighborhood(s): CANDO
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ISSUE:
Shall City Council authorize the City Manager to execute a lease with Rudy’s Steakhouse LLC for 290-350 Chemeketa Street NE?
RECOMMENDATION:
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Authorize lease for property located at 290-350 Chemeketa Street NE with Rudy’s Steakhouse LLC.
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SUMMARY AND BACKGROUND:
The Chemeketa Parkade retail/restaurant space located at 290-350 Chemeketa Street NE (Attachment 1) has been vacant since January 2017.
FACTS AND FINDINGS:
Rudy’s Steakhouse has been in business in Salem since 1998. Through the proposed lease (Attachment 2), Rudy’s Steakhouse will invest nearly $100,000 in the space. Proposed investments include dining room updates and improvements to the bar area, outdoor dining area, kitchen, walk-in cooler, and kitchen office.
Recommended Terms:
• Term: 2 years beginning August 1, 2017
• Lease Rate: Year 1: $0.70, Year 2: $0.75 per square foot per month
• Square Feet: 5,224 rentable square feet, 6,092 sf CAM expenses
• Free Rent: Four months
• Commission: $2,288.11 to Coldwell Banker Commercial
• Option Periods: Five three-year terms with rent escalations
Clint Dameron
Real Property Services Manager
Attachments:
1. Site Map
2. Proposed Lease