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HomeMy WebLinkAboutPS 2018-03-19 Item 2A - Public Safety Plan - Resolution Relating to Lease AgreementsCityof Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Public Safety Committee FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: March 13, 2018 SUBJECT: Public Safety Plan, Leasebacks with Impacted Businesses ISSUE Adopting a City Council Resolution authorizing the Mayor (or designee) to enter into short term leases on properties acquired by the City for the new Justice Center and combined Public Works Shop. BACKGROUND On November 6, 2017, the City Council adopted Tukwila Ordinance No. 2554, which identified the locations for the City's new Justice Center, combined Public Works Shop, and a fire station. There are currently about two dozen businesses located on the preferred locations for the Justice Center and combined Public Works Shop. The City is currently working to acquire the land through voluntary purchase and sale agreements with the various property owners and eminent domain proceedings as necessary, as previously authorized by the City Council. Because of the nature of the acquisition proceedings, properties will be acquired on a rolling basis. As such, the City would like to be able to serve as a commercial landlord for some businesses for a short period of time, so that businesses can continue to operate in their current locations as long as possible. The Revised Code of Washington (RCW) 35A.11 vests the City Council with the authority to lease City owned land, however, the City Council may delegate its authority. DISCUSSION Staff has been working with the impacted businesses to try and reduce the impacts associated with the City's Public Safety Plan. Economic Development staff has been tasked with trying to reach agreements with the businesses on the Justice Center site and combined Public Works Shop site. The attached resolution temporarily delegates the City Council's lease authority to the Mayor (or designee). The delegation is only for the properties identified for siting of the Justice Center and Public Works Shop. The delegation will automatically expire on December 31, 2020. Staff is requesting this delegation in order to facilitate potential settlement agreements with tenants. FINANCIAL IMPACT The City would likely generate a nominal amount of rent income from the commercial leases. INFORMATIONAL MEMO Page 2 RECOMMENDATION The Committee is being asked to forward the draft resolution to the March 26, 2018 Committee of the Whole meeting and April 2, 2018, Regular Council meeting. ATTACHMENTS • Draft Resolution 2 Z:\Council Agenda Items\Mayors Office\Leasing PropertylInfoMemo.doc A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE MAYOR TO ENTER INTO LEASE AGREEMENTS FOR THE PROPERTIES ANTICIPATED TO BE ACQUIRED AS PART OF THE CITY'S PUBLIC SAFETY PLAN PROJECT. WHEREAS, on November 6, 2017, the Tukwila City Council adopted Ordinance No. 2554, which identified locations for siting of the City's new combined Public Works shops facility and a Justice Center ("the Properties"), both of which are part of the City's Public Safety Plan projects; and WHEREAS, the City is currently in the process of acquiring the Properties, either through voluntary agreements or condemnation proceedings; and WHEREAS, there are businesses currently operating on many of the Properties; and WHEREAS, the City desires to lessen the impacts to the businesses operating on the Properties; and WHEREAS, the Revised Code of Washington (RCW) Chapter 35A.11 grants the Tukwila City Council the authority to lease City -owned property; and WHEREAS, the Tukwila City Council desires to delegate its authority to lease to the Mayor, in limited circumstances set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Lease Authority Delegated. The Tukwila City Council delegates its authority to lease City property to the Mayor or his or her designee. W:\Word Processing\Resolutions\Lease agreements authorized on PW shops and Justice Center 3-12-18 BM:bjs Page 1 of 2 3 Section 2. Property Limitation. This delegation of authority to lease City property from the Tukwila City Council to the Mayor shall only apply to the Properties acquired for the new combined Public Works shops facility and the Justice Center, as identified in Ordinance No. 2554, adopted by the City Council on November 6, 2017. Section 3. Expiration. Unless extended by the Tukwila City Council, the authority granted to the Mayor herein shall terminate on December 31, 2020. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this - day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: W:\Word Processing\Resolutions\Lease agreements authorized on PW shops and Justice Center 3-12-18 BM:bjs 4 Page 2 of 2