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Item 2G: Approval of Land Lease for Hotel on Airport Property
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Item 2G: Approval of Land Lease for Hotel on Airport Property
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7/22/2013
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<br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Approval of Land Lease for Hotel on Airport Property <br /> <br /> <br />Meeting Date: July 22, 2013 Agenda Item Number: 2G <br />Department: Public Works Staff Contact: Tim Doll <br />www.eugene-or.gov Contact Telephone Number: 541-682-5430 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br />The City Council is asked to approve the Public Works Airport Division entering into a 30-year <br />lease with a hotel concessionaire (40 years total—30-year initial term with an option for one 10- <br />year extension). Prior to the City’s Purchasing Division issuing a Request for Proposal for a <br />potential hotel, the council must approve the Airport entering into a long-term lease. <br /> <br /> <br />BACKGROUND <br />The Airport plans to enter into an agreement with a hotel developer/operator to construct and <br />operate a hotel on land the Airport owns at the corner of Awbrey Lane and Highway 99. This <br />location is outlined in the Airport Master Plan for future commercial development such as a hotel. <br />A long-term agreement is necessary in order to attract such a developer. It is expected that a hotel <br />on Airport property will be an asset to the Airport as well as the community it serves. The Airport <br />desires to issue a Request for Proposal to solicit a hotel developer/operator to construct and <br />operate a full-service national brand hotel. <br /> <br />The Eugene Code outlines specific procedures. Pursuant to City Code, Chapter 2 – Section 2.860 – <br />2.874 establishes the procedures the City must follow to sell, lease or rent City-owned property, <br />unless a different procedure is established by another code section or a council-approved <br />intergovernmental agreement. Section 2.862 authorizes the City Manager to privately negotiate <br />with any person for the disposition of property subject to a “development plan” (such as the <br />Airport Master Plan). When the City Manager determines that such property is suitable for tenant <br />occupancy, the City Manager may lease the property – without future action by the council – but <br />only for a term not to exceed 20 years, and at fair market rent. If the City Manager desires to lease <br />the property for a term which exceeds 20 years, or for less than fair market rent, then the Code <br />requires that the “proposal acceptable to the City Manager be presented to the council for its <br />action,” Eugene Code, Section 2.872. Such approval by the council can take the form of either a <br />motion or resolution. <br /> <br /> <br />RELATED CITY POLICIES <br />This action item is related to the City Council goals of "Sustainable Development," "Effective, <br /> Accountable, Municipal Government" and “Fair, Stable and Adequate Financial Resources.” <br /> S:\CMO\2013 Council Agendas\M130722\S1307222G.doc <br />
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