HomeMy WebLinkAboutCDN 2017-09-25 Item 2C - Lease Agreement - Potential Long-Term Lease with Way Back InnCity 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.
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INFORMATIONAL MEMO
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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.
In addition, the City would need to do a budget amendment in the amount of $250,000 in order
to make up for the revenue currently found in the 2017/2018 budget.
RECOMMENDATION
Staff recommends that the City enter into a five-year lease with the Way Back Inn. If there is
consensus on the Committee to do this, staff will return with a lease for review and approval.
W:120 7 Info MemoslWay Back Inn -Gregor House Lease Memo for CSN 9-25.doc
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