Item Coversheet

BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT

Item No. 10.
For Meeting of: October 15, 2019

ITEM TITLE:Resolution authorizing a Lease Agreement with Food Facility Engineering, Inc. for property located at 2300 West Washington Ave, Suite 11, Yakima Air Terminal-McAllister Field
SUBMITTED BY:Robert K. Peterson, Airport Director, 509-575-6149
SUMMARY EXPLANATION:

The main terminal building located at the Yakima Airport encompasses approximately 38,000 feet in order to accommodate passenger air service, ground transportation, and the occasional local business who wish to operate at the airport.  In 2009, Barnstormers restaurant closed and vacated the building's second floor leaving approximately 7,200 square feet of leasable space.  The area has been toured by interested entrepreneurs in an effort to revive the restaurant but have been deterred by the overall expense to bring the restaurant back to operations.  Additionally, City staff contacted Traho Architects to conduct a site visit in order to determine an estimated cost to rehabilitate the space.  Preliminary reports from Traho indicated an estimated $650,000 investment in order to bring the space and kitchen up to operational standards.  Provided this extensive investment would be challenging to receive a return on investment, City staff explored alternative options in order to lease the area. 

 

Recently, Food Facility Engineering (FFE) contacted the airport office seeking office space for their growing engineering business.  FFE was provided a tour and conducted an internal feasibility study and determined the space requires approximately $145,000 of improvements prior to occupancy.  These tenant improvements will be amortized throughout the lease by reducing FFE’s rent until the construction credit is fulfilled at which time the rent will return to its full amount charged under the lease agreement.  This agreement benefits both parties by allowing empty space to be renovated and utilized until 2025 when the main terminal building is slated to be demolished and rebuilt in phases.     

ITEM BUDGETED:Yes
STRATEGIC PRIORITY:Economic Development
APPROVED FOR SUBMITTAL: Interim City Manager

STAFF RECOMMENDATION:
Adopt Resolution.
BOARD/COMMITTEE RECOMMENDATION:
At the June 27, 2019 Council Economic Development Committee meeting, members Hill and White recommended this be brought forward for full Council consideration.
ATTACHMENTS:
DescriptionUpload DateType
Resolution10/4/2019Resolution
Lease Agreement10/4/2019Contract