TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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BSL Transport LLC ground lease, Salem Municipal Airport
Ward(s): 2
Councilor(s): Andersen
Neighborhood(s): SEMCA
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ISSUE:
Shall the City Council authorize the City Manager to execute the attached ground lease with BSL Transport LLC?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached ground lease with BSL Transport LLC.
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SUMMARY AND BACKGROUND:
BSL Transport LLC (Lessee), whose manager is Mountain West Retirement Corporation (a related entity of Bonaventure Senior Living), whose President is Kelley Hamilton, desires to construct a 9,600 square foot hangar for its corporate aircraft on the south end of the Salem Municipal Airport (Airport).
FACTS AND FINDINGS:
Staff and Lessee have come to terms on a proposed ground lease (Attachment 1) at the Airport. Key terms of the lease are;
• Term: 30 years,
• Rate: $7,735 annually/ $0.34 per square foot, adjusted annually,
• Size: 22,750 square feet,
• Rent Credit: If necessary, Lessee shall be entitled to a rent credit in an amount equal to the actual cost to relocate existing fire hydrants at the site.
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Lease
May 25, 2017