The URL can be used to link to this page

Home My WebLink AboutCOW 2004-08-09 Item 5B - Lease Agreement - Tourism and Marketing Office at 14220 Interurban Avenue South Suite 130 (Fairway Center Building) COUNCIL AGENDA SYNOPSIS J '6 t I q p 1 3' i nitials ITEM NO. j kti 16 1 Meeting Date 1 Prepared by 1 Mayor's review Coundt review 1 �l -et 2 1 08/09/04 1 A D 1 A.a.G- I. i 1 t �;n b reos 1 1 1 1 1 I 1 1 1 I J ITEM :INFORMATION CAS NUMBER: 04-113 ORIGINAL AGENDA DATE: 8/9/04 AGENDA ITEM TITLE New Lease for Tourism Office CATEGORY E Discussion E Motion Resolution Ordinance p Bid Award Public Hearing Other Mtg Date 8/9/04 Meg Date 8/16/04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date I SPONSOR Council E Mayor Adm Svcs DCD E Finance Fire Legal POR Police PIV SPONSOR'S Authorize Mayor to sign a new Lease Agreement for office space for the Tourism Office in SUMMARY the building known as Fairway Center Building A at 14220 Interurban Ave. S., Suite 130. REVIEWED BY COW Mtg. CA &P Cmte E F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/2/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve as presented COMMITTEE Same as Sponsor �OSTIMPACT /„FUNDSOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 for 2004 n/a n/a Fund Source: Comments: MTG DATtin ,'a =n r RECORDlOF-COUIVCIL ACTION:= .5:t AtaiiiAtti Kam: R= a ATTACHRIIENT.S 8/9/04 Staff report from A. Doerschel dated 7 /27/04 Staff report from K. Kertzman, dated 7/22/04 F&S Committee minutes dated 8/2/04 To: Finance & Safety Committee From: Alan R. Doerschel C~ Date: duly 27, 2004 Subject: New Lease Location for Tourism & Marketing ISSUE The City is considering moving to a new location at 1422;0 Interurban Avenue South. BACKGROUND / DISCUSSION See attached fax memorandum from Katherine Kertzman. RECOMMENDATION The City agrees to the new location and authorizes the Mayor to sign the lease. Seattle Southside Visitor Services 16400 Southcenter Parkway #209 Seattle, WA 98188 www. SeattleSouths[de.com Phone: 206-575-2489 Fax: 206-575-2529 Toll-free: 1-877-885-9452 Fax Memo Katherine Kertzman, Program To; Alan Doerschel Fi. em= Director Fax= 206.4331833 Date= July 22, 2004 Phone: 206-433-1838 Pages: 2 Re; New Office Space cc= Tukwila City Council [] uq]ent X For Review [] Please Comment [] Please Reply [] Please Recycle ,Comments: I am writing to ask the Council's support to move the Tukwila Tourism and Marketing Program, Seattle Southside Visitors Services, to a new office space known as Fairway Center Building A at 14220 Interurban Ave. South, Suite 130, in Tukwila. This move has the unanimous support of Tukwila's Lodging Tax Advisory Committee, SeaTac's Hotel Motel Advisory Committee and the Southwest King County Chamber of Commerce. Our current lease will conclude Jan. 31, 2005 and the building manager has expressed interest in moving us upstairs to the fourth floor in a space 200 sq. ft. smaller than our current office space. Since both office spaces on either side of us are now empty, the building manager believes it would be easier and has greater financial benefit to him to market all three offices as available contiguous space. This move would result in smaller space for us and we would incur all tenant improvement cost. Our recommendation for the move is justified by the following reasons: · Street frontage property, increased parking., building signage, · DOT directional signage before both I-5 and 1-405 exit ramps, · Increase space of 800 sq. ft. for approximately the same cost as our current [ease agreement, · FREE tenant improvements, · FREE rent for the first 5 months, · Ease of collaboration with the Chamber of Commerce as we would once again be neighbors and · Should another party lease our current office space before Feb. 1,2005, we would realize a saving of $2,650 for each month leased. As you can see, the building owners are very motivated and have offered us a number of excellent incentives. Our anticipated move in date is Sept. 1,2004. I think this is an exciting opportunity. It will benefit the community at large by increased visibility and access to our services and better support marketing our program as a freestanding "Visitor Center". Thank you for your support. Sincerely, Katherine Kertzman Finance and Safety Committee August 2, 2004 Present: Dave Fenton, Chair; Joan Hernandez, Dennis Robertson Alan Doerschel, Lucy Lauterbach, Rhonda Berry; Katherine Kertzman ~1. Tourism and Marketing Lease Katherine had worked out a lease agreement in a new building. Her lease in the current building would be up at the end of the year, and the new location on Interurban offers a larger space and some tenant improvements as well as better signage that will make the business easier to locate. The new space will be in the Fairway Center Building across from Gallianos. They will also get free rent for 5 months. The space will cost $2625/month for 7 months after that. Essentially the City will pay the same for almost double the space Lodging uses now. They will join the Chamber of Commeme at the new location. Send new lease agreement to COW. 2. Kent and Tourism and Marketing Kent has proposed becoming a limited member of Seattle Southside Tourism. They were involved in both softball tournaments that are coming to Starfire, as they have ball fields that will be used. Instead of being a full member as Tukwila and Sea Tac are, they will instead contract with Tourism for advertising for specific events. Kent only has about six motels. They, like Tukwila and Sea Tac, will have their own Lodging Tax Advisory Bom'd. Dave congratulated Katherine on her successful marketing. Recommend interlocal agreement to COW. 3. Debt Policy Alan said the debt policy and the Planning model are related. He had included a copy of Kirkland's debt policy, which the Committee members were not impressed with. The City has $24 million available in remaining debt.capacity, but as Alan said, there's a difference between the legal limit capacity and the City's ability to pay the debt service. We currently pay $2.1 million in debt service. With at least Klickitat and TVS to pay for, the City could conceivably use almost all of its debt capacity. Joan and Dennis thought there were better debt policies that could be used as models, and they also thought the City would benefit from some financial training. They supported bringing in the same trainer used at AWC for a couple of two hour training sessions on finances. Reschedule. 4. LIDs LIDs can either be ownerqinitiated, or started by the City with those in the LID area having the ability to vote against the LID if60% &the property owners agree they don't want it. If the City were to LID Klickitat, it would take at least of year of education beforehand to make those paying understand the benefit. To do that, one. would need to know the cost and benefit of such an LID. Even before that, understanding the infrastructure needs would need to be agreed upon. For other large City projects, the City could try to get grants, and could get a Public Works Trust Fund Loan, which would be paid back by a development. Joan wanted the whole Council to understand the options for paying for the TVS proposal. Information.