FIN 2022-06-27 Item 1A - Lease Agreement - 6300 Building Lease with Sound Cities Association for 2023-2024

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: June 3, 2022 SUBJECT: Sound Cities Association Lease Agreement ISSUE The current lease agreement for office space in the 6300 building with Sound Cities Association (SCA) expires on December 31, 2022. Staff is proposing to enter into a new two-year lease agreement with SCA. BACKGROUND SCA is a local non-profit corporation composed of member cities with a population of with 150,000 or fewer people that works locally and partners regionally to create livable, vital communities through advocacy, education, leadership, mutual support and networking. The City of Tukwila is a member of SCA. Since 2006 SCA has leased office space from the City in the 6300 building. The current two-year lease with SCA expires at the end of the year. DISCUSSION Staff is proposing a two-year lease agreement from January 1, 2023 — December 31, 2024, to coincide with the biennium budget cycle. The rent per square foot, per year, will increase 50 cent in 2023 and again in 2024. The total annual revenue for 2023 will be $27,010.00 and in 2024 the revenue will be $27,704.00. Under revised Code of Washington 35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization, unless the City Council has delegated its authority. FINANCIAL IMPACT Unless terminated, as permitted under the agreement, the lease agreement will generate $54,714.00 in general fund revenue for the City. RECOM MENDATION The Committee is being asked to forward this item to the July 18 consent agenda for final approval to authorize the Mayor to execute the new lease agreement. ATTACHMENTS • Draft lease agreement with Sound Cities Association for office space in the 6300 building.