HomeMy WebLinkAboutFS 2009-09-09 Item 2B - Lease Agreement - Seattle Southside Visitor Center
City of Tukwila
Jim Haggerlon, Mayor
INFORMATIONAL MEMORANDUM
FROM
Mayor Haggerton
Finance and Safety Committee ~1
A---
Derek Speck, Economic Developm nt mi rator
TO-
DATE
September 3, 2009
SUBJECT
Seattle Southside Visitor Center Lease
ISSUE.
Seattle Southside Visitor Center's lease term ended on August 31,2009 and is now continuing on a
month-to-month basis After a lengthy review of available office space locations, staff has selected the
two best alternatives and is now seeking Council selection of a preferred alternative Based on that
feedback, staff will return to Council with a proposed lease agreement for the preferred location
BACKGROUND.
In May 1998 the City of Tukwila implemented a special excise tax on lodging charges that is used to
promote tourism (Chapter 8208 RCW) In May 1999, the Southwest King County Chamber of
Commerce (SWKCC) and the City of Tukwila (Tukwila) started a new partnership for tourism and
marketing services and the Chamber hired Katherine Kertzman as the tourism program manager In
April 2000 Tukwila moved the program in-house in an effort to develop the tourism and marketing
program beyond the Chamber membership and include more Tukwila tourism businesses
In January 2002, Tukwila and the City of SeaTac (SeaTac) entered into an interlocal agreement for joint
tourism and marketing seNices for the combined cities under the program title Seattle Southside Visitor
Services (SSVS) Tukwila is the administrator of the program and the SSVS staff are employees of the
City of Tukwila_ The program is funded from the special excise tax on lodging charges in both cities
The interlocal agreement separates costs into four types basic operations, joint media campaign, joint
special projects, and SeaTac specific projects For basic operations, the agreement does not specify a
specific contribution amount from each city but states the amount will be determined annually during
the budget process After the first year SeaTac has contributed 55% and Tukwila has contributed 45%
of the basic operational expenses The rationale was that this approximates a SO/50 split since Tukwila
bears administrative costs that are not charged to the SSVS budget (information technology, finance,
personnel, legal, insurance, city car, etc)
For the joint media campaign and joint special projects, the agreement specifies that the activities will
be mutually agreed upon and that Tukwila and SeaTac will split the costs SO/50 For SeaTac (and
Tukwila) specific projects, the cities pay for those projects themselves
Neither city contributes all of its lodging tax into the partnership In 2009, Tukwila will contribute
$497,000 which is approximately 80% of its budgeted lodging tax revenue For the same year, SeaTac
will contribute $652,000, which is approximately 54% of its budgeted lodging tax revenue $100,000 of
INFORMATIONAL MEMO
Page 2
the additional amount SeaTac contributes is to provide extra shuttle service from SeaTac hotels to
Westfield Southcenter and $55,000 is due to the 55/45 split of basic operating costs It should be noted
that SeaTac may contribute a higher percentage in 2010 and that a significant portion of their total
lodging tax revenue is dedicated to debt service and is non discretionary
In 2004 Tukwila signed a lease for the current office location in the Fairway Center at 14220 Interurban
Avenue South, Suite 130 in Tukwila The lease was for 1,800 square feet for a five year term ending
August 31, 2009 SSVS is currently holding over with the owner's permission on a month -to -month
basis The holdover rent is 50% higher than the most recent monthly rent and the tenancy may be
terminated by either party with 20 days notice
In April 2009 staff began researching what sites were available for SSVS office space and in May
started working with a commercial real estate broker The broker and staff reviewed all available office
listings in Tukwila and SeaTac under 5,000 square feet. The listings totaled over 30 sites
The following general criteria were considered when evaluating the available sites
Located in the cities of Tukwila or SeaTac
Lease rent lower than the current rent (market rents have fallen)
Same or greater amount of space
Within 2 miles of an 1 -5 exit for free WSDOT visitor center signage
Visible exterior building signage
Available clean public restrooms
Entrance at street level and near front of the building
The team completed 10 site visits, analyzed lease proposals on 4 sites, and selected the two best
options the current location in the Fairway Center at 14220 Interurban Avenue South in Tukwila and a
new location called the "3100 Building" at 3100 South 176 Street in SeaTac Now Tukwila needs to
select one of the sites and negotiate a lease The lease will require City Council approval
DISCUSSION.
Both proposed leases are basically five year terms The Tukwila lease proposes a 65 month term with
five months of free rent. The SeaTac lease proposes a 66 month term with six months of free rent. To
ensure a more "apples -to- apples" comparison, the rents reflected in the following table are averages
over the terms of the leases The following table compares the two sites
Comparison
Rentable Square Feet
Average Annual Rent Per Square Foot
Average Annual Rent
Moving Costs and Tenant Improvement Costs
Flood zone
Fairway Center
Tukwila
1,800
$17 54
$31,569
None
Within FZ
3100 Building
SeaTac
2,202
$16 41
$36,135
$38,000*
Outside FZ
INFORMATIONAL MEMO
Page 3
Exterior building signage
Eligible for 1 -5 WSDOT Visitor Signage
Distance to 1 -5
Distance to Airport
Distance to Future Car Rental Building
Distance to Airport Light Rail Station
Distance to the Hilton Conference Center
Distance to Westfield Southcenter Mall
Fairway Center
Tukwila
Current building signage is
only visible on a seasonal
basis, in the summer it is
partially blocked by trees.
Yes
Distance to Tukwila City Hall 1 4 miles
Distance to Southwest King County Chamber
Located along Seattle Southside Express
shuttle s regular route
Access for RVs
City of SeaTac Preference
SeaTac Hotel /Motel Committee Preference
No
Difficult turning
No
No
3100 Building
SeaTac
Building owner will permit
exterior Seattle Southside
Visitor Center signage on
South and West facades.
Yes
0 7 miles 2.0 miles
5 5 miles 1 0 miles
4 4 miles 1 3 miles
5 5 miles 0.2 miles
5 7 miles Across Street
1 9 miles 3 0 miles
Same Building 5 7 miles
Yes
Easy turning
Yes
Yes
Tukwila Hotel /Motel Committee Preference I No Yes
We have strong preliminary indications that moving and tenant improvement costs up to $38 000 will be 100%
covered by SeaTac lodging tax.
Top Reasons for Relocating to the 3100 Building in SeaTac
1 Partnership Considerations The Cities of SeaTac and Tukwila entered into the interiocal
agreement over seven years ago Tukwila is the administrator of the partnership and clearly
has the legal authority to select the location of the offices, however, the interiocal specifies that
SeaTac and Tukwila will mutually agree upon the media campaign and marketing activities
Since SeaTac is contributing as much to the SSVS program as Tukwila (more if you include the
shuttle funding) they feel locations in SeaTac should be considered equally The City of SeaTac
and SeaTac Hotel Motel Advisory Committee (HMAC) want to continue the partnership with
Tukwila but also strongly prefer the 3100 Building Because SeaTac has about 2 5 times more
INFORMATIONAL MEMO
Page 4
hotel rooms that Tukwila, is located with the airport, car rental agencies, airport parking, etc and
has a smaller retail base than Tukwila, the travel industry is a much larger business sector in
SeaTac than it is in Tukwila. Due to the larger size of its tourism sector, SeaTac may have a
greater need for a visitor center in their city than Tukwila does At some point in the future,
SeaTac may decide they must have a visitor center presence near the airport. If we keep SSVS
in Tukwila, SeaTac may seek to have a branch office of SSVS or may decide they need their
own organization Moving the office to SeaTac now in the spirit of cooperation can solidify the
cooperative nature of the partnership and protect Tukwila in the future
2. Access to More Tourists The 3100 Building's location is located more closely to the airport,
car rental agencies, and the Hilton Convention Center It's also within the largest cluster of
hotels in the SSVS territory This proximity makes it easier to reach more tourists For example,
when business people and their spouses stay at SeaTac hotels and have free time, It will be
easier for them to stop at the visitor center and be directed to local shopping, dining, and
entertainment in Tukwila and the rest of SSVS The building will also have visitor center
signage in view of International Boulevard which may draw in additional tourists looking for
suggestions on shopping, dining, entertainment, etc In 2008 we had 1,080 visitors stop in the
Fairway Center location. The signage is better than signage at the Fairway Center We do not
know how many more tourists would visit SSVS in the new location but we believe it will be
significantly more than at the Fairway Center
3 Access to More Hoteliers Since the 3100 Building is near the largest cluster of hotels in
SSVS territory, it is easier for staff to build relationships with area hoteliers for developing travel
packages including transportation providers, restaurants, retailers, etc. These travel packages
can drive more visitors to Tukwila and the rest of SSVS
4 Better Public Image The 3100 Building offers an impressive reception area at the entrance to
the building that would make a striking visitor info/concierge desk creating a more professional
first impression
5 Better Workflow' The 3100 Building has more square footage allowing for more storage and
better workflow
6 More Opportunity for Growth The 3100 Building has more square footage and a physical
layout allowing additional workstations to be added The additional workstations would enable
adding volunteers or staff if the need arises
7 Better Location for Volunteers Highline Community College and South Seattle Community
College have tourism and hospitality management programs and the 3100 Building has better
bus service linking to those schools which would make it easier for SSVS to get volunteers and
interns
Top Challenges/Risks With Relocating to the 3100 Building in SeaTac
1 Wheelchair Access The 3100 Building currently does not have sufficient wheelchair access to
the reception area, bathrooms, and staff offices The property owner has indicated a willingness
to install necessary improvements to accommodate this need.
2 Front Desk Coverage The reception area is separated from the main staff offices by a flight of
approximately eight stairs and is not easily viewable This makes it more challenging to use
staff in offices to back-up reception desk staff These challenges may be mitigated by installing
security cameras and utilizing the intercom on the existing phone system
3 Possible Staffing Costs One of the main reasons to move to the 3100 Building is to receive
more tourists into the visitor center Providing high quality personal assistance to tourists
INFORMATIONAL MEMO
Page 5
requires a significant amount of time which could necessitate additional staff and/or extra
coordination of volunteers
Top Reasons for Remaining in the Fairway Center in Tukwila
1 More Focus on Tukwila. The tourism program started in Tukwila and having the employees
located in Tukwila gives them greater knowledge and focus on our city Over the years, Tukwila
has been able to draw on SSVS marketing expertise for other city programs SSVS staff are
very supportive and attached to Tukwila and will continue to do their best to help other City
programs but it will be more challenging if they are not as conveniently located to Tukwila.
2 Future Direction of SSVS Moving the visitor center to SeaTac increases the convenience and
access of SeaTac hotels and travel sector businesses to SSVS That increased proximity might
foster a greater sense of ownership with the SeaTac tourism sector which may then want to
grow the joint SSVS program If the program grows and Tukwila continues its current cost
sharing with SeaTac, then Tukwila will need to contribute more That could reduce the amount
of lodging tax money Tukwila has for Tukwila only tourism programs However, it's possible that
SeaTac will agree to contribute a higher percentage in the future
3 Lower Cost: The proposed new annual lease at the Fairway Center amount is $4,565 less
annually than 3100 Bldg in SeaTac. The office layout enables easier back-up support of the
reception desk.
4 Administrative Convenience Tukwila has only stationed city employees outside the city limits
on rare occasion and on a temporary basis This move would be a very new experience It is
possible to continue to administer the tourism program from outside the City limits though it may
be slightly more challenging The larger issue will come if some day the SeaTac contribution to
SSVS grows to significantly more than Tukwila's and if SeaTac desires to provide greater
direction to SSVS priorities If that situation arises, it may raise the question of whether it makes
sense for Tukwila to administer a program located outside the City limits when it is not the
largest funder
5 Less Moving Downtime. Staying in the current location saves on the staff time involved in
moving
6 Local Pride The tourism program started in Tukwila and many people feel a strong sense of
attachment and pride We should continue to dedicate a portion of our lodging tax funds for
tourism programs that support local pride such as the Centennial, marathon, etc
7 Better Proximity to Chamber' The Fairway Center site is adjacent with the Chamber of
Commerce which fosters communication and joint support. Both organizations will continue to
do referrals to each other
Top Challenges/Risks to Remaining in the Fairway Center in Tukwila
1 Flooding There is an increased risk of flooding along the Green River which could affect the
Fairway Center location in the next few years
BUDGET IMPACT.
Following is a summary of the anticipated budget impact related to the office space decision
1 Rent: Because both sites are proposing rent levels lower than the current rent, the future
rent is within the 2010 budget and no adjustment is necessary
2. Staffing and Ongoing Operations At this time no additional staffing or operational
INFORMATIONAL MEMO
Page 6
costs are anticipated for either location for 2010
3 One Time Only Expenses The 3100 Building location would cause one time moving
and tenant improvement expenses A detailed listing is attached The City of SeaTac
and SeaTac Hotel/Motel Advisory Committee have indicated a willingness to pay 100%
of the moving and tenant improvement costs up to the current estimate of $38,000 It is
unclear at this time whether that commitment extends if costs exceed the current
estimate The HMAC will meet on September 9, 2009 and we will confirm this
Depending on whether SeaTac is able to pay for these costs directly, or if Tukwila needs
to process them as the administrator of the facility, we may need to do a budget
adjustment to reflect the expenses and offsetting revenue (from SeaTac)
SUMMARY.
This is a challenging decision for the City of Tukwila since the tourism office started in Tukwila and
moving to SeaTac signals a significant transition The decision is especially challenging because it
raises the question of was the original intent and what were the original expectations for the interlocal
agreement signed in 2002 And, more importantly, we now have to ask ourselves what sort of
partnership we want to have in the future
Whether we move or not, this issue should be discussed and we should examine whether the interlocal
agreement should be updated Ideally, the future direction of SSVS and any changes to the interlocal
agreement would have been worked out prior to selecting a location, however, time does not permit
that approach We inquired into a one year extension on our current location to enable the evaluation of
the interlocal but the property owner was not interested Since we are on a month-to-month tenancy we
need to make the site location decision soon
Both locations are good sites Both would work well The 3100 Building offers greater potential for
growth, especially for marketing the region It offers an opportunity to show that Tukwila is committed to
the partnership and ensures a stronger and longer term partnership by fulfilling SeaTac's need to have
a visitor center It raises questions of whether Tukwila will always be the administrator of the program
and those questions may need to be addressed at some point in the future The Tourism staff believes
it will increase tourism revenues for Tukwila The Tukwila Lodging Tax Advisory Committee (L TAC)
prefers the 3100 Building location and voted in favor of moving on August 27,2009
RECOMMENDATION.
Staff recommends moving to the new location in the 3100 Building at 3100 South 176th Street in
SeaTac, WA. Based on Council selection of a preferred alternative staff will return to Council with a
proposed lease agreement for the preferred location
ATTACHMENTS.
Draft Letter of Intent for the 3100 Building
Photos
Plotted Street Map
Interlocal Agreement
Estimated Moving Expenses
July 30, 2009
Richard Davidson
GVA Kidder Mattews
12886 Interurban Ave. South
Seattle, WA 98168
RE: Letter of Intent
Dear Katherine:
3100 South 176th Street
Seatac, WA 98188
This letter shall serve as a non binding Letter of Intent which sets forth the basic terms and conditions
under which Dollar Development Co "Landlord would consider entering into a lease with Seattle
Southside "Tenant in the above referenced location "Office Building
1 Landlord
2 Tenant
3 Trade Name:
4 Premises
5 Area
6. Use
7 Term
8 Options
Cassan Enterprises, Inc.
2737 78 Ave SE, Suite 201
Mercer Island, Washington 98040
Seattle Southside Visitor Center
(City of Tukwila)
14220 Interurban Ave. South 130
Seattle, WA 98168
Seattle Southside
3100 South 176 Street, SeaTac, WA 98188
Estimated Square Footage:
Plus Load Factor (15
Total Rentable SF
General office use.
Five (5) years
9 Base Rent The Full Service Rent
Two (2) periods of five (5) years each. Rent during the option periods
to be negotiated and Tenant to provide 180 days prior wntten notice.
Rate shall be of fair market rent
Months 1— 6
Months 7 —18
Months 19 66
shall be:
1915 (office and reception area)
287
2202
$0 00 psf/yr, Full Service
$17 00 psf/yr, Full Service
3% annual increase
DOLLAR
DEVELOPMENT CO
1- DOLLAR
\.\ DEVELOPMENTCO
10 Security Deposit
Upon Tenant's execution of the Lease, Tenant shall pay a security
deposIt in the amount of $5000 00 and total rent for one month.
11 NNN & Cam Charges: The lease shall be a full service lease with a 2009 Base Year Electricity
is included in the full service rent.
12. Tenant Improvements: Landlord shall provide Tenant with Tenant Improvements as outlmed in
exhibit "A" which shall include:
O~~f~
A.
B.
C
D
5 private offices
1 workroom
1 storage area
1 wall across the back of the reception area with a locking
door/screen and a 1 way window
1 work area/cabinet along the back wall ofthe reception area
for mailing area with lower and upper cabinets.
Landlord shall install dishwasher and place a refrigerator in
the common lunchroom area upstairs. Phone jack is already
in place.
Relites in all private offices.
Phone room to be at existing location
E.
F
G.
H.
13 UtilitIes
Included in Full Service rent.
14 Lunchroom Area.
Tenant shall be allowed the use of the upstairs lunchroom area
throughout the term of the lease at no charge along with other office
Tenants.
Tenant shall be allowed signage, subject to Tenant's compliance with all
applicable govenunental codes, regulations, and Landlord's approval.
Signage and LCD/Plasma type screens above the reception area.
Exterior signage above the south door and on the west facing wall of the
building. All signage to be approved by Landlord.
15 Signage
Tenant shall have the use of six (6) parking stalls in common with other
tenants and an addItional four (4) stalls that will be marked as visitor
parking for Seattle Southside. Tenant may use additional parking as
available after 6pm and on weekends. Landlord, at Landlord's discretion,
may police the parking and may make adjustments to hours and
availability as necessary There shall be no less than four (4) visitor
parking stalls.
16. Parking
17 Term Commencement The later of: substantial completIOn of improvements or September 1,
2009
Landlord shall maintain, repair and replace all of the structural elements
and exterior surfaces of the office building and the Premises, including
but not limited to the roof, exterior walls, exterior glass, concrete slab,
footmgs, electrical, and plumbing exterior to the Premises at Landlord's
18. Maintenance:
.jr \ DOLLAR
\\ ' DE VEL 0 P MEN T C 0
sole expense. Tenant shall maintain, repaIr and replace the interior walls,
interior ceiling, and doors of the Premises at Tenant s sole expense.
19 AssIgnability
No assignment or sublease will be allowed without the Landlord's prior
written consent.
20 Guarantor
Tenant shall provide financial statements for the principals of the
incorporated entity and shall sign a personal guaranty
21 Lease Fonn.
Landlord's lease form acceptable to Tenant shall be used for this
Transaction.
22. Broker's Commission.
Both Parties acknowledge and agree that David Hall and Cleavon Steele
of Fursse & Hall Realty, Inc. represents the Landlord and Richard
Davidson of GV A Kidder Matthews represents the tenant and represent
that no other brokers are involved in this transaction. Landlord agrees to
pay a leasing fee to Fursse & Hall Realty, Inc. and a commission as per
the listing agreement of which4% of the gross aggregate rent shall be
paid to GV A Kidder Matthews. All parties acknowledge receipt of the
pamphlet "Law of Real Estate Agency" and
~,~
~.'>'\\
n .j;;" ')
y.."
This offer shall expire on August 6, 2009, ifnot accepted by the Tenant.
The letter of intent is intended solely as a preliminary expression of general intentions and is to be used for
discussion purposes only This letter of intent is not a lease for the property
The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred
to in this letter of intent unless and until a defInitive lease agreement has been fully executed and delivered by all of
the necessary parties. The parties agree that this letter of intent is not intended and does not create any agreement or
obligation by either party to negotiate a definitive lease agreement and does not impose any duty on either party to
continue negotiations, including without limitation any obligation to negotiate in good faith or in any other way
other than at ann's length. Prior to due execution and delivery of a definitive lease agreement, and without liability
to the other party either party may propose different terms from those summarized herein; enter into negotiations
with other parties; andlor unilaterally terminate all negotiations.
Agreed to by:
Tenant
By
1/ Pr
Date 7fofrp y
Its
Date
DATE
3100 BLUILDING Floor Plan
DEVELOPMENT CO. SOuth SEATTLE VISITORS CENTER / SSVS
OPTION 1 1915 SF
PHONG
RU0t1
BASE CAen1ETS V/ Tom'
Southside visitor Center Services (SSVS)
Photos
Southside visitor Center Services (SSVS)
Photos
Southside visitor Center Services (SSVS)
Photos
Southside visitor Center Services (SSVS)
Photos
Southside visitor Center Services (SSVS)
Photos
r
s*I As.t.ttN t''.
ie
U) 46
SW 139th St
a :?i
g./S ..1th St.
7
4 Ii.
,1
rs Iil, a
SVg -146t1T-St'S-4!'.W.6tIT'St.- -I
o-
SW 148th-St--. -c.---77-',-.1-----. 5
CO (1)
SW -152fid St S 52iiti St 1
a
Burien
SW. 15.4th-St-,,---Surit
0
.6 06tti St" i
Five comers
'9 '-'-'1 509
,.5, 'SV\ir \60th St tight Ral1 Route
cs,
7- Ct-
s■t'
cose 6.
44
Normandy Park
City Hall
Park
Bus Route 174
Route tO SSVS
Hotels
Car Rentals
1-5 Information Signs
El
in t
11)
40
CO
j
co
3-100 Building map
North Seatac
Park Sunset
S --138th
140ttt._
co ..6 441:e0a:le, snuzz:0:e4,\ sfry
56 a„
PIayfielcis
S 144th
Foster GS1:1\othe,\SJ
Fort Dent
-SW 16th St
St St
R t
a
1 Prk
.46th' S i Ti Cl- c'.■3
'a
04 &413
o th
e
a
6ffi' 8
iverton S 1 50th
Heights 6 O'
.A
4i1
St S 4171-.,_-,---:St d
''''*5''':-::1 "--V''
tf
l
--,:-.0 4Mestreld■, p: a
s_ ;'104.) Renton Cl j o
Springs Park 1 1 ,..5, 4 Longacres
1 i st
'1:trirSr r..• 1, Inustril 43
SW 27th St
t
V.
4-- Crystal
1 5$th-
a
1[1. Slander B1v 6 d
1. 0
i
17 i S--164th-St C'-/lsal:
-9= a ti)
S 166th St
(1 IL
co
:litS3
1 ,,O. :....c,-..._.„ --;;..s-Sts176087:2- s (o
-V-)-.4- -F6
t''
II
0
cli
o
C
SW 34th St
i
a
C
a
a. 4 ,1
o 181
IL
7:3 Orillia
t S8V\101,5 St
qeh A
01- A
,!44-S--116ttr'S t
''100 Building
9. a)
i
sZ'
I CU
-73 c Tac a il St -.c) Ts
o
S 182-nd St vr c
qp S 18l\ st
(
Va
0
Ridge Park 1 I
;1! cst
c a)
.-F-
co
9,_ 509
C(soy C), a) P --S-t8Oth-Si
co CD
di
Oa cr) Within 2 miles access of 1-5
c°c) Within 1.5 Miles acces of 518
.84 miles from Seatac International Airport
2 miles from Seata ntown
c Light Rail Station
'CI .2 miles from Metro bus 174 to dow
colvt•V IV:X:0:Z .13,742:::::>2;10■-NAVIEfaV4Zr:::::: Tms dem mckults min...non aken wan ;Canaan, Icarn Canacnan annweines a Nunes,/ n. Onamn
Inighlot Canada.
'It
(r),_
irot St
CD S NC Angle Lake
CO ca
0) Briscoe
21 Park
u.. s 1s4th St
0.5
(
CO
a
co
CO
SW
900
Kent
2
,
AG D2 -0/3
INTERLOCAL AGREEMENT FOR TOURISM AND MARKETING SERVICES
BETweEN THE CITY OF TUKWILA AND THE CITY OF SEAT AC
This Interlocal Agreement, made and entered into this January ..3.L, 2002, by and
between the City of Tukwila, a municipal corporation, hereinafter called Tukwila and the City of
SeaTac, a municipal corporation, hereinafter called SeaTac
RECITALS
WHEREAS, SeaTac desires to purchase professional tourism & marketing services for
the purpose of increasing awareness of SeaTac and the surrounding area as a tourist
destination,
WHEREAS, Tukwila is willing to expand the scope of its existing tourism and marketing
services to include SeaTac;
WHEREAS, it is agreed that the most desirable arrangement for conducting this operation
is an Interlocal Agreement,
NOW THEREFORE, for the reasons recited above, and in consideration of the mutual
covenants contained in this agreement, the parties agree as follows
SECTION ONE
SCOPE AND DESCRIPTION
Pursuant to Chapter 3934 RCW, Tukwila and SeaTac agree to jointly provide Tourism
and Marketing services for the combined cities beginning February 1,2002 This Interlocal
Agreement shall be conducted under the program title of Seattle's Southside Visitor Services
(SSVS) from-a- pi ace -of service at464f)(} Southcenter- P-arkway, -City ofT ukwi I a~- Co u nty .of- King;--- -------.. -
and State of Washington Services include but are not limited to providing comprehensive visitor
information services to tourists and facilitating input from area tourism businesses for the
purpose of developing, implementing and evaluating an annual marketing and media plans The
marketing and media plans includes budget information, implementation schedule and
__ evaluation strategies Tukwila is designated as Administrator responsible for administering this
joint agreement.
SECTION DNO
CONTRIBUTIONS
Basic Operational Expenses Tukwila and SeaTac will share basic operational
expenses for the SSVS The basic operational expenses shall be based on a valuation denved
from the final Tukwila Tourism & Marketing Budget SeaTac's contribution for the first year's
(eleven months) basic operational expenses is valued at ONE HUNDRED AND FOUR
THOUSAND FIVE HUNDRED DOLLARS ($104,500) to be paid to Tukwila in eleven equal
payments of NINE THOUSAND AND FIVE HUNDRED DOLLARS ($9,500) SeaTac will pay
Tukwila at the beginning of each month beginning February 2002 The basic annual operational
cost contribution for SeaTac for 2003 and subsequent years will be determined annually during
Jst~ 2- ~
ORlblNALV
the budget process
Joint Media Campaign Tukwila will implement a mutually agreed upon annual media
campaign Tukwila and SeaTac will share media campaign expenses equally for the SSVS
SeaTac will reimburse Tukwila for 50% of all media campaign commitments for the duration of
the Interlocal Agreement. Tukwila will invoice SeaTac 50% of actual media commitments
incurred at the end of each month
Joint Special Projects Tukwila will implement mutually agreed upon supplemental
marketing activities (special projects) Tukwila and SeaTac will share special project expenses
equally SeaTac will reimburse Tukwila for 50% of all special project commitments for the
duration of the Interlocal Agreement. Tukwila will keep expense records of all special projects
(including but not limited to web site development, printed materials, professional creative
services, and direct mail campaigns) Tukwila will invoice SeaTac 50% of actual special projects
commitments incurred at the end of each month
SeaTac Specific Projects SeaTac will implement SeaTac specific projects SeaTac will
manage and assume 100% financial responsibility for all SeaTac specific projects At such time
as SeaTac and Tukwila mutually agree, Tukwila may advise or assist SeaTac regarding SeaTac
specific projects
SECTION THREE
CONDUCT OF INTERLOCAL AGREEMENT
Tukwila shall have following responsibilities as administrator of this Interlocal Agreement.
Tukwila will
(a) conduct, manage, operate, and arrange all the business affairs of the tourism and
_ _ marketing-ser:vicesrto -hire- other-employees-needed -to--carry-on-the-bblsiness, determine------
the wages and make contracts with the employees, enter into other contracts in the name
of and for the SSVS, and in general do anything ordinarily done by the manager of a
business
(b) facilitate the involvement of SeaTac tourism businesses into the existing Tukwila Tourism
Networking Committee and hereafter the committee will be known as Seattle's Southside
Tourism Networking Committee for the purposes of creating awareness, support and
participating in SSVS various marketing activities
(c) regularly attend SeaTac's Hotel Motel Tax Advisory Committee meeting
(d) coordinate joint SeaTac and Tukwila Lodging Tax Advisory Board meetings (at least but
not limited to two times annually)
(e) prepare and implement annually approved marketing and media plans by the Tukwila
Lodging Tax Advisory Board and SeaTac Hotel Motel Tax Advisory Committee and the
Tukwila and SeaTac City Councils
(f) prepare and submit quarterly outcome reports to the Tukwila Lodgmg Tax Advisory Board
January 17 2002
Page 2
and SeaTac Hotel Motel Tax Advisory Committee
(g) select subcontractors and vendors
(h) ascertain creative production (typed layouts, type specs, mechanical assembly)
Such authority may be increased or decreased from time to time on mutual written
agreement of the cities
SECTION FOUR.
RECORDS AND ACCOUNTING
Tukwila shall maintain or cause to be maintained books of accounts concerning the total
operation of the Interlocal Agreement, in which books shall be entered, fully and accurately, each
transaction pertaining to the Interlocal Agreement. All the books will be open at any reasonable
time for inspection and examination by SeaTac.
The fiscal year of the Interlocal Agreement shall commence on January 1 and close on
December 31 of each year of operation All accounting based on fiscal year figures shall be
completed within 45 days after the close of the fiscal year
SECTION FIVE
TERM
The effective date of the Interlocal Agreement shall be February 1, 2002, and this
Interlocal Agreement shall continue in effect for a period of three years from that date On or
before April 30, 2004 the cities will determine if this Interlocal Agreement may be continued for
another period of three years, or for such time as the parties may then see fit.
SECTION SIX.
TERMINATION OF INTERLOCAL AGREEMENT
It is agreed that either SeaTac or Tukwila may terminate this Interlocal Agreement with 60
days notice prior to the beginning of each new calendar year, and such termination shall be in
writing However, the party initiating the termination shall be responsible for paying 50% of any
remaining office lease obligation The agreement can be terminated at any time provided both
parties are in agreement on the terms of such termination Tukwila maintains ownership of all
SSVS capital assets at the termination of this Interlocal Agreement except any such assets
purchased by SeaTac with its own funds
SECTION SEVEN
HOLD HARMLESS OF INTERLOCAL AGREEMENT
Tukwila and SeaTac agree that each party shall defend, indemnify, and hold harmless the
other party and its officers, officials, agents employees, and volunteers from any and all claims,
January 17 2002
Page 3
injuries, actions, damages, losses or suites including reasonable attorney's fees, which arise out
of, are connected with, or due to any errors, omissions or negligent acts in the performance of
this agreement, except for each party's own comparative negligence
In witness whereof, the parties have executed this Interlocal Agreement at the day and
year first above written
CITY OF TUKWILA CITY OF SEATAC
4 03 IAAIAA LAQC4A----
Steve Mullet, Mayor
Attest:
_abaf 3a.
City Clerk
January 17 2002
Approved as to Form
SrQR�, uiity Attorney
a(Hol an; Acting City Manager
Attest:
Judith L Cary, City Clerk
Approved as to Form
r
otaj
Robert L. McAdams City Attorney
Page 4
INTERLOCAL AGREEMENT FOR TOURISM AND MARKETING SERVICES
BETWEEN THE CITY OF TUKWILA AND THE CITY OF SEATAC
Pursuant to Section Five of the Interlace! Agreement between the City of Tukwila
and City of SeaTac, the parties agree to extend the Agreement beyond the three
year expiration date of January 31, 2005, until terminated.
CITY OF TUKWILA
By:
Steven Mullet
Mayor
Approved as. to Form:
EXTENSION OF AGREEMENT LETTER OF INTENT
ILzy
Apprc Ccx..c.ncc.p mofUr) t ht.1
64--ra-oLf, °A- me-dulc
City of Tukwila
Bob Baker, CMC
Deputy City Clerk
Administrative Services Department
206 433.1854
02-01,5 (cL)
CITY OF SEATAC
By
race Rayburn
City Manager
Approved. as to Form:
Mary MIrarat City Attorney
01 el,
Seattle Souths ide Office Space
Estimated Moving Expenses
End Tables $400 00 2 00
Coffee Table $550 00 1 $550 00
Lobby Chairs $800 00 3 $2,400 00
Potted Plants $100 00 2 $200 00
Certified Kiosk $000 2 $000
3-D Logo Sign $1,600 00 1 $1 60000 Estirnate
Outdoor Building Sign $3 000 00 2 $6 000 00 Estimate
Sign Install $600 00 3 $1 80000 Estimate
Computers Stations $1 00000 3 $3,00000
Phones $200 00 4 $800 00
Head Sets $250 00 2 $500 00
Security Monitors $300 00 1 $300 00
Flat Screen $1,20000 1 $1,200 00
TV Wall mount $100 00 1 $100 00
Exhibit Stands $500 00 4 $2 000 00
Spot Lighting $15000 1 $150 00
Desk Chairs $200 00 4 $800 00
Stationary Re-design $1,80000 1 $1 80000
Stationary Printing $3,200 00 1 $3,200 00 Estimate
Phone/Cable Install $3 000 00 1 $3 000 00
Lease Holdover $1 50000 2 $3 000 00
Moving Cost $111770 1 $111770 Estirnate
$3431770
Sales Tax 10% $3431 77
Grand Total $37,74947
Draft 9/3/09