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Salem Council authorizes five‑year lease of city parking lot to M&B Hospitality, LLC
Summary
Council authorized the City Manager to finalize a five‑year lease with M&B Hospitality, LLC for 22 parking spaces at $55 per space ($1,210/month; $14,520/year) with a six‑month cancellation clause; the agreement replaces a 2006 incentive arrangement that had expired.
The Salem City Council on May 11 authorized the City Manager to finalize and sign a five‑year lease agreement with M&B Hospitality, LLC for use of a city‑owned parking lot (Tax Map #107‑6‑5).
City Manager Chris Dorsey explained that the parcel had been under a 20‑year economic incentive agreement executed in 2006 that allowed Mac and Bob’s to use the lot for a nominal $1 per year; that agreement expired in February 2026. In negotiations with the new property owners, staff and the owners reached terms for 22 parking spaces at $55 per space per month, totaling $1,210 per month or $14,520 annually. The proposed lease includes a six‑month cancellation clause for the City.
During the public hearing, resident John Breen asked whether the City Attorney would formally review and sign the lease and whether the business’s need for parking created leverage in the negotiation; Mayor Turk confirmed the City Attorney would review the agreement. Council then voted to authorize the City Manager to finalize and execute a lease with M&B Hospitality, LLC in a form acceptable to the City Attorney. The motion to authorize execution was made by Randy Foley and seconded by Hunter Holliday; recorded votes were Ayes: Hunter Holliday, Randy Foley, Anne Marie Green and Renée Turk; Absent: John Saunders; Nays: None.
The authorization directs the City Manager to complete the lease documents and obtain final legal review; the council did not vote on a finalized contract language at the May 11 meeting.
