Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
January 9, 2024
DATE : January 2, 2024
TO: Stephen P. Metruck, Executive Director
FROM: David McFadden, Managing Director, Economic Development Division
Pearse Edwards, Senior Director, External Relations
Sally del Fierro, Director, Community Engagement
SUBJECT: Lease Extension of Duwamish River Community Hub Property from South Park
Properties, LLC
Amount of this request:
Funding of
$240,000
previously
authorized
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve lease extension
options for up to two years beyond the current lease expiration date of June 30, 2024, and to
negotiate an option to purchase the Duwamish River Community Hub (DRCH) property. Staff
will return to Commission to acquire the property as well as the funds needed for that
acquisition.
EXECUTIVE SUMMARY
To honor Resolution 3767, the Duwamish Valley Community Benefits Commitment (CBC), the
Port of Seattle leases the Duwamish River Community Hub (DRCH) to provide Duwamish Valley
community members with opportunities for economic development, such as Port-related
career resource fairs, career and workforce trainings, small business support, and other entry-
points in Port-related economic activities. The Port’s lease of a property owned by South Park
Properties, LLC provides the Port and the near-port community with much needed convening,
conferencing, and training space for economic recovery and workforce development services.
In addition to extending the lease for this facility for up to two additional years, staff will
negotiate the terms of a purchase option within the lease agreement, should the Port be
interested in acquiring the facility over the next few years. The terms of the option agreement
is not part of this authorization request. Any Purchase and Sale agreement arising from the
exercise of the purchase option in the lease will require additional Commission approval along
COMMISSION AGENDA – Action Item No. 8e Page 2 of 6
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
with authorization for the funds for such purchase and would be thus subject of a subsequent
Commission action.
JUSTIFICATION
The DRCH has interior space and a parking lot available for booking and serving various user
groups – community-based organizations, small businesses, government agencies, PCAT, and
Port of Seattle. In 2021, the DRCH hosted 12 events; in 2022, 124 events, and in 2023- 256
events are completed or scheduled. Inquiries are coming in for reservations in 2024, including
the 2024 school year running until June 2025. The extension of this resource’s lease will support
the Port’s ability to advance Port Resolution No. 3767.
The DRCH fills a gap for the community. It provides Community-based organizations with a
facility to host their programs, resulting in youth and adults learning about the Port and gaining
job skills and contributing to the goals of the CBC. As a result, Port and community capacity
increases, the environment of this area is being restored, and workforce and economic
development is increasing.
Community-based organizations have used the DRCH for programs and events that teach youth
and adults the skills that allow for entry into educational or career pathways. The location of
the DRCH is important to local organizations who have attendees coming by foot or bus and for
proximity to Duwamish River environmental restoration work.
In the Port’s Duwamish Valley Community Benefits Commitment 2020 Work Plan described in
Resolution 3767, the Port committed to “explore the feasibility of an inter-agency job
information and training center to promote Port-related careers.” (p.12). The DRCH property at
8600 14th Avenue South, Seattle, WA 98108 fits the needs of this commitment and supports
the ongoing implementation of the Duwamish Valley Community Equity Program (DVCEP).
Duwamish River Peoples Park (formerly Terminal 117) Field Office
The DRCH also provides space to support the Port’s development of Duwamish River Peoples
Park and Shoreline Habitat in South Park (previously referred to as Terminal 117 Shoreline
Habitat and Public Access Site). The Hub provides space for a plant nursery and fabrication area
and is a convenient one-minute walk for ongoing maintenance and improvements and other
port operations at Duwamish Peoples Park that connect to the Duwamish Valley community.
ACTIVITIES
The facility has a flex-use events area for trainings, workshops and public events, a conference
area for small group meetings, and a parking lot to host outdoor trainings and events.
Workshops will be culturally responsive and include services that strive to address the concerns
of underserved and disproportionately impacted community members, especially communities
of color, Native Americans, low-income workers and residents, refugees and immigrants,
COMMISSION AGENDA – Action Item No. 8e Page 3 of 6
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
undocumented individuals, veterans, youth and elders, formerly incarcerated individuals,
LGBTQAI people, people with disabilities, limited English proficient populations, WMBEs, and
women- and people-of-color-led organizations.
Duwamish Valley Port Community Action Team Engagement
The Port Community Action Team (PCAT) is the Community-convened advisory group
established in 2017 and consists of Duwamish Valley community members that engage the Port
in collaborative action and strategic planning to address historical and current disproportionate,
cumulative impacts affecting the Duwamish Valley community. The PCAT uses the DRCH to
host its own meetings and public events that also help the Port fulfil its commitments in
Resolution 3767.
AGREEMENT HIGHLIGHTS
Landlord: South Park Properties, LLC
Tenant: Port of Seattle
Term/Effective Date: The current Lease term is three years, beginning July 1, 2021, and ending
June 30, 2024. The proposed extension is from July 1, 2024, to June 30,
2025.
Use: The Port will use the Premises for general office work, training, events
and staging for redevelopment of Terminal 117 (and similar properties)
Area: Approximately two thousand three hundred (2,300) square feet of office
space, and about ten thousand (10,000) square feet of paved parking, all
as shown on the attached Exhibit B. The premises (the “Premises”) is
located at 8600 14
th
Avenue South, Seattle, WA 98108.
Rent & Other Costs: Current monthly rent plus specified operating cost, property tax and
insurance totals $9,229.75 which will increase by 3% per year starting July
1, 2024.
Parking: Approximately 10,000 square feet of parking available on the premises.
Schedule
Commission authorization
Lease Agreement Signed (We already
received landlord’s letter granting Port the
request to extend the lease.)
In-use date
COMMISSION AGENDA – Action Item No. 8e Page 4 of 6
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Extend Lease for this facility
Pros:
1. The facility was identified as an ideal location for community access by South Park and
Georgetown residents, easily accessible by foot, public bus, car parking is widely
available, and pedestrian/bike trails pass right in front of building. Due to the highways
that intersect the South Park neighborhood, this location is especially valuable for
accessibility. As other facilities that the CBO’s currently use are on the other side of the
highway.
2. Ideal location for incorporating the Port’s Duwamish River People’s Park and Shoreline
Habitat into site programming (less than a two-minute walk away).
3. Cost efficient and affordable rental offer considering size of space and location.
4. Community members identified the large parking lot as a unique feature that will be
useful for events and gatherings.
5. Recommended by the Duwamish Valley PCAT.
Cons:
1. Leasing a property from an owner is an uncommon method in the Port’s real estate
portfolio and requires the continuation of a unique relationship to manage the property.
This is the recommended alternative.
Alternative 2 – Lease a different property
Pros:
1. Possible lower cost to lease another property.
2. Properties in other locations could impact who is served, possibly meeting unmet needs.
3. Other properties could offer alternative features like additional rooms or larger spaces.
Cons:
1. No other facilities have been identified to meet this demand. The facility was identified
as an ideal location for community access by South Park and Georgetown residents,
easily accessible by public bus, car parking is widely available, and pedestrian/bike trails
pass right in front of building.
2. Ideal location for incorporating the Port’s construction of the Duwamish River People’s
Park and Shoreline Habitat into site programming (less than a two-minute walk away).
3. The location makes it feasible for the Port’s construction project team and contractors
to use the site as a field office.
4. Community members identified the features in this property as most ideal: ADA
restrooms, large parking area, multiple meeting, and storage rooms.
This is not a recommended alternative.
Alternative 3 – Do not lease the facility
Pros:
1. Cost savings for the Port.
COMMISSION AGENDA – Action Item No. 8e Page 5 of 6
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).
2. Reduced staff time coordinating lease and building operator.
Cons:
1. Due to discrimination and redlining, there are very few community spaces in the
Duwamish Valley, so the inventory of spaces to conduct the Port’s programming is
limited already.
2. No existing location in Duwamish Valley could meet all of the needs for the Port’s
proposed activities, so the Port will not be able to deliver on its commitments.
3. Whenever public space is available for the Port’s programming, Port will still need to pay
venue rental fees.
4. Inability to effectively incorporate the Port’s construction of the Duwamish River
People’s Park and Shoreline Habitat into other Port programming.
5. Continued inefficiencies in coordinating, scheduling rentals of public spaces by Port
staff.
This is not a recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$0
$0
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Annual budget for lease of facility is $120,000 with the base rent being $112,418. The source of
funds is Economic Development Division Maritime Sustainability and External Relations share
the cost of this previously budgeted item under previous authorizations. No funding is
requested for this authorization.
ATTACHMENTS TO THIS REQUEST
(1) Current lease
(2) Map of location and images of building exterior
(3) PowerPoint presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 26, 2021 – Commission authorization to lease the Duwamish River Community Hub
one
COMMISSION AGENDA – Action Item No. 8e Page 6 of 6
Meeting Date: January 9, 2024
Template revised June 27, 2019 (Diversity in Contracting).