TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford - Director, Urban Development Department
SUBJECT:
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Liberty Parkade retail lease with Feinstrasse LLC
Ward(s): 1
Councilor(s): Kaser
Neighborhood(s): CANDO
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ISSUE:
Shall the City Council:
1. Find that the City-owned leasehold space located at 365 Ferry Street SE, Suite A is not needed for public use; and
2. Authorize the City Manager to execute the attached retail lease with Feinstrasse LLC?
RECOMMENDATION:
recommendation
1. Find that the City-owned leasehold space located at 365 Ferry Street SE, Suite A is not needed for public use; and
2. Authorize the City Manager to execute the attached retail lease with Feinstrasse LLC.
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SUMMARY AND BACKGROUND:
The retail space at 365 Ferry Street SE, Suite A, has been vacant since the former tenant vacated the space on April 30, 2017, and staff has been marketing the space to potential users.
FACTS AND FINDINGS:
Staff has come to terms on a proposed lease (Attachment 1) with Feinstrasse LLC (dba Capitol Cryo), whose members are Joy A. Dawson and Vincent C. Dawson (disclosure: Vincent Dawson is a City of Salem Police Department employee). Capitol Cryo provides cryotherapy services to the public to promote wellness, provide pain relief, and promote muscle recovery.
Key terms of the lease are listed below.
Term: January 1, 2018 - December 31, 2023 (six years).
Option Periods: Two three-year terms.
Rental Rate: $0.80 per square foot in year one with $0.02 increases
annually throughout the base term and option periods.
Security Deposit: $808.00 (one month’s rent).
Improvement Allowance: $5,000 one-time reimbursement.
Six month rent and common area expense abatement.
Lessor to furnish space and mechanical improvements for Lessee-supplied washer/dryer unit.
Broker Commission: $1,709.00 (3% of base rent term) to Terri
Frohnmayer with First Commercial Real Estate Services LLC.
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Lease