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Board approves form of hangar land lease, sends draft to aldermen
Summary
The advisory board approved the form of a proposed hangar land lease presented by Richard Bell and instructed staff to take the edited draft forward to the aldermen for negotiation and final action; the city attorney had reviewed the form, board members said.
The Salem City Airport Advisory Board voted to approve the form of a proposed land lease for a hangar and instructed staff to forward the draft to the aldermen and continue negotiations with the prospective lessee.
"What I did is I started with the lease that you all have for the hangars, and edited accordingly," Richard Bell said, explaining he had underlined additions and struck deletions in the draft provided to the board. Bell said he carried a clean printed copy and asked whether anything stood out to members.
Board members raised questions about utilities and whether the lessee would have a separate electric meter or the city would provide electricity as with the existing hangar leases. Bell said the current hangar leases show the city providing electricity and agreed he could amend the draft to allow a separate meter if the board preferred.
The draft includes a rent schedule that uses a base figure of 10¢ per square foot with inflationary factors beginning around year 16 of the term; the board discussed a 30-year lease as part of the possible package. The Chair said the city's attorney, Mr. Weber, had reviewed the draft and given preliminary clearance for the form.
Citing that review and staff recommendation, the Chair moved to approve the form of the lease and forward it to the aldermen; the motion carried by voice vote. Staff will continue to negotiate lease particulars, including utility-metering language and final rental rates.
