Template revised January 10, 2019.

COMMISSION

AGENDA MEMORANDUM

Item No. 8e

ACTION ITEM Date of Meeting February 11, 2025

Request that Commission exercises its authority under RCW 53.19.020(5) to determine a

competitive solicitation process is not appropriate or cost effective for vendor services at STOC

and property management services with Urban Renaissance Property Company LLC at STOC, for

a period of up to two years, and (2) for the Executive Director to execute all necessary

agreements and amendments for vendor services and property management services not to

exceed the amounts in the Commission approved annual budget.

EXECUTIVE SUMMARY

On October 22, 2024, the Commission approved the purchase of a three-building office property

portfolio that includes two 11-story steel-frame buildings, and a low rise four-story concrete

as 124 sq ft to as large as 75,757 sq ft over several floors. The Port currently occupies

approximately 10% of STOC office space (47,178 SF) with plans to increase that amount in the

near-term. The property has vendor contracts in place to provide services such as janitorial, HVAC

repair, parking management services, elevator maintenance, landscaping, property management

services etc. These services are required to be provided under the terms of the leases the Port is

assuming. Port staff is asking for Commission authorization to assume these vendor contracts as

part of the transaction.

STOC is currently managed by a third-party property management company, Urban Renaissance

Property Company LLC (URG). URG’s property management services are contracted under a

Template revised June 27, 2019 (Diversity in Contracting).

existing tenants with uninterrupted building/property services, we are requesting to continue

with the existing vendor service contracts and property management agreement for up to two

years, during which time staff will work to procure these services in accordance with the

applicable Port processes.

JUSTIFICATION

Staff is recommending the Commission determine that a competitive solicitation process is not

appropriate or cost effective in accordance with RCW 53.19.020(5) for building/property

management services at STOC given the number and breadth of property services required. Once

the Port becomes owner of the buildings, the Port is required to provide these property services

requirements.

During the first two years of ownership, the Port plans to (i) procure or otherwise acquire new

vendor contracts and property management services in accordance with all applicable

requirements and (ii) identify if any of the services could be provided by Port staff or existing Port

contracts.

Diversity in Contracting

Any future procurements will include opportunities for WMBE and small businesses to

participate within the procurement processes in partnership with the Port’s Central Procurement

Agreement for STOC if the seller doesn’t agree to delay the acquisition date.

Pros:

(1) Would allow for near-term competitive opportunities.

(2) The Port may identify vendors who can provide these services at a better value.

Cons:

(1) Risk in Seller backing out of the Purchase and Sale Agreement for STOC.

(2) Risk of losing earnest money paid ($6 million) under the Purchase and Sale Agreement.

(3) Would delay the Port’s occupancy expansion plans at STOC

Template revised June 27, 2019 (Diversity in Contracting).

budget process.

Pros:

(1) Continue to operate the STOC buildings with no interruptions to tenants.

(2) This two-year window would allow the Port to strategically plan for these services and

identify services that can be handled by existing Port staff/contracts and procure those

services that can’t through applicable processes.

(3) Maintains provision of contractually obligated services at STOC.

Cons:

(1) Does not immediately allow for competitive opportunities

of Port ownership. Continued use of established vendors to provide necessary services at the

STOC property during the transition of ownership was reflected in the 2025 Approved Budget.

The Operating Expense Budget for the STOC property in future years will be requested as a

normal component of each year’s annual budget process.

Assumptions reflected in the Approved 2025 Budget were pro-rated based on an estimated

April 1, 2025 acquisition date:

Template revised June 27, 2019 (Diversity in Contracting).

ATTACHMENTS TO THIS REQUEST

October 22, 2024 – The Commission authorized execution of the STOC Purchase and Sale