CDN 2017-11-27 Item 2D - Agreement - 2018-2022 Gregor House Lease Agreement 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, Human Service Program Coordinator CC: Mayor Ekberg DATE: November 1, 2017 SUBJECT: Lease for Way Back Inn, Gregor House ISSUE Staff discussed the development of a five-year lease with the Way Back Inn for Gregor House at CDN on October 25, 2017. Since there was committee consensus to move forward with a five- year lease, we are returning with the lease for review and approval to move forward. 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 42nd Ave. 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. 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 bed nights at Gregor House, resulting in more than 5,000 bed nights 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. FINANCIAL IMPACT A long-term lease would commit the City to use of this property for homelessness intervention/prevention and thus the property would not be available for any other development during the length of the lease. RECOMMENDATION Council committee is being asked to approve the 5 -year lease with the Way Back Inn on the Gregor House and consider this item at the December 11, 2017 Committee of the Whole meeting and Special Meeting to follow that same night. ATTACHMENTS Way Back Inn Gregor House Lease. 145