TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
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Lease amendment for property located at 960 Liberty Street SE to expand City of Salem employee health clinic
Ward(s): 2
Councilor(s): Andersen
Neighborhood(s): SCAN
Result Area(s): Good Governance
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ISSUE:
Shall the City Council authorize the City Manager to execute the attached lease amendment to increase the square footage of the City’s existing lease?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached lease amendment to increase the square footage of the City’s existing lease.
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SUMMARY:
On June 25, 2018, City Council authorized the City Manager to execute a lease (Lease) (Attachment 1) with 960 Liberty, LLC for 1,678 square feet of space to be used as a health clinic for City employees. The Lease term is for five years and commenced on August 1, 2018. The building is owned by Swift Mountain, LLC (Lessor) (George Miller, Member).
FACTS AND FINDINGS:
Staff and Lessor have come to terms on a proposed amendment (Amendment) (Attachment 2) to the Lease to increase the square footage of the Health Hub, the City’s employee health clinic. Key terms of the Amendment:
New lease square footage: 2,305 (1,678 previously)
New monthly lease rate: 8/1/2020 $4,161.55
8/1/2021 $4,244.78
8/1/2022 $4,329.67
All other terms of the original Lease remain in effect.
BACKGROUND:
Funds for the Lease will come from the Self Insurance Fund.
Clint Dameron
Real Property Services Manager
Attachments:
1. Lease
2. Proposed Amendment