Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 21-184, to approve a lease between Snohomish County (Lessor) and Pioneer Human Services (Lessee) for a portion of County Owned Property known as the Behavioral Health Inpatient Treatment Center Located at 902 Pine Street, Everett, WA
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DEPARTMENT: Facilities and Fleet
ORIGINATOR: Cherie Hutchins
EXECUTIVE RECOMMENDATION: Approve
PURPOSE: Snohomish County Council approval of the Lease Agreement between Snohomish County and Pioneer Human Services and to authorize the Property Officer or Director of the Department of Facilities and Fleet to sign the Lease Agreement.
BACKGROUND: Snohomish County constructed improvements including an addition to the County-owned Denney Juvenile Justice Center. These improvements were constructed for the purposes of operating a behavioral health inpatient treatment center to house individuals that struggle with mental health and/or substance use disorders. The constructed addition and improvements are known as the new Behavioral Health Inpatient Treatment Center with a property address of 902 Pine Street in Everett, Washington (the “Premises”). Snohomish County would like to lease the Premises to Pioneer Human Services (the “Lessee”) to operate as a behavioral health inpatient treatment center for adults with mental health conditions and/or substance use disorders including alcohol and other drug addictions. The Premises are 19,400 square feet of space. The term of the lease will commence July 1, 2021 and end December 31, 2030. The monthly lease rent is in the amount of $20,418.50 ($12.63) annual sq. ft.) for the first four and one-half years and $21,031.06 ($13.01 annual sq. ft.) per month for the remaining five years of the lease term. In addition to the lease rent the Lessee is also required to pay any applicable leasehold tax. The Property Management Division of the Department of Facilities and Fleet recommends the lease of the Premises to Pioneer Human Services for use as a behavioral health inpatient treatment center.
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 |
3rd to 10th Year |
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5113180366240 - Space Rent |
$122,511.00 |
$245,022.00 |
$1,261,863.60 |
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TOTAL |
$122,511.00 |
$245,022.00 |
$1,261,863.60 |
DEPARTMENT FISCAL IMPACT NOTES: In addition to the lease rent shown above the Lessee is required to pay leasehold tax (if applicable) in the amount of 12.84%.
CONTRACT INFORMATION:
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ORIGINAL |
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CONTRACT# |
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AMOUNT |
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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 |
7/1/2021 |
END |
12/31/2030 |
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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 (R. Guadamud) Approved/Reviewed by Finance & Risk