Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 21-430, authorizing the Executive to execute an option to lease land to Capstone Partners NW, LLC at the Snohomish County Airport
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DEPARTMENT: Airport
ORIGINATOR: Andrew Rardin
EXECUTIVE RECOMMENDATION: Approve - Kendee Yamaguchi
PURPOSE: To authorize the Executive to execute an Option to Lease Land to Capstone Partners NW, LLC for 57.8 acres at Snohomish County Airport.
BACKGROUND: .
Ø Capstone Partners NW, LLC (Capstone) desires to obtain an exclusive option to lease land at Snohomish County Airport at Paine Field for the purpose of developing 57.8 acres of land on the west side.
Ø Capstone is a developer, and longtime tenant, who desires to develop the site for uses consistent with the FAA-approved Airport Layout Plan.
Ø The Option allows Capstone to conduct wetland, engineering, soil, and sustainability studies on the land before developing the land and entering into a final lease.
Ø The term of the Option is one year with three one-year extensions, provided certain milestones are accomplished.
Ø A final lease, if executed, will be at the current appraised fair market value. If the Option was exercised immediately, it would generate $1,404,955.99 per year for the Airport Fund.
Ø Compliance with the State Environmental Policy Act must be completed prior to Capstone’s exercise of the Option and execution of a final lease.
Ø County shall provide credit for wetland permitting fees and up to three (3) acres from our Wetland Mitigation Bank.
Ø County shall also reserve the right to take back 50% of the final permitted site for future development if needed.
FISCAL IMPLICATIONS:
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EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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TOTAL |
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REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
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410.3216801.6250 - Aviation Rents/Leases |
$140,495.64 |
$421,486.92 |
$561,982.56 |
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TOTAL |
$140,495.64 |
$421,486.92 |
$561,982.56 |
DEPARTMENT FISCAL IMPACT NOTES: All wetland permitting fees shall be applied only as credits to their account. No funds shall be expended.
CONTRACT INFORMATION:
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ORIGINAL |
X |
CONTRACT# |
Lease Option |
AMOUNT |
$561,982.56 |
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AMENDMENT |
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CONTRACT# |
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AMOUNT |
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Contract Period
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ORIGINAL |
START |
Effective |
END |
12/31/2025 |
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AMENDMENT |
START |
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END |
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Approved as to form by PA Michelle Corsi 11/16/21/Approved - Risk, Sheila Barker/Approved- Finance, Nathan Kennedy 11/23/21