CDN 2017-09-25 Item 2C - Lease Agreement - Potential Long-Term Lease with Way Back Inn

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Development and Neighborhoods Committee FROM: Stacy Hansen, Community Services and Engagement CC: Mayor Ekberg DATE: August 16, 2017 SUBJECT: Lease for the Way Back Inn ISSUE Staff would like to discuss the development of a long-term lease with the Way Back Inn organization to assist homeless families. The lease would be for the Gregor House property, located across the street from the Foster High School and next to the Foster library. BACKGROUND The City has worked with the Way Back Inn organization for more than 15 years. Way Back Inn provides short term housing for homeless families with children at the properties they manage, including three properties owned by the City of Tukwila. Way Back Inn already has long-term leases for two other City of Tukwila owned homes: • Hartnett Manor, next to the Winter Garden has a 10 -year lease with the City, which ends in November of 2021. • Kennedy Cottage, near 42Ave. S. and Southcenter Boulevard, is currently in a five-year lease, which ends in October Of 2018 The Gregor house is currently without a lease as it has been uncertain whether the property would be used for Tukwila Village or if the Tukwila School District wanted to purchase it. Both Tukwila Village and the District have confirmed there are no plans to purchase the property. Sale of the Gregor House was included in the City's 2017/2018 biennial budget as preliminary discussions with the Tukwila School District had indicated they may be interested in purchasing the property due to its adjacency to the former library site. However, we now know the District is no longer interested in the property. Should the Council concur to enter into a long term lease, the City would need to do a budget amendment of $250,000 in order to replace the budgeted amount. DISCUSSION Recently Human Services prepared a memo for the Council outlining what activities were in place to address homelessness. The Way Back Inn was included as a provider to keep families from living on the street, and offering a brief respite to help them return to permanent housing. In 2016, the Way Back Inn served 59 residents. 13 families moved in and 11 moved out successfully. In 2015 11 families exited with nine of them moving into permanent housing. Typically, families are provided 90 bednights at Gregor House, resulting in more than 5,000 bednights a year for families that might otherwise be homeless. Through the Human Services Division, the City contracts with the Way Back Inn for $9,000 a year to cover the utilities including, water, sewer, and waste management. They have been excellent stewards of the properties. 17