Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Motion 21-287, authorize the County Executive to execute the Purchase and Sale agreement for $6,630,000 with Bomarc Holdings, LLC for an office and warehouse building at Snohomish County Airport
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DEPARTMENT: Airport
ORIGINATOR: Nickolis Landgraff
EXECUTIVE RECOMMENDATION: Approve
PURPOSE: To authorize the County Executive to execute the Purchase and Sale Agreement for $6,630,000 with Bomarc Holdings, LLC for an office and warehouse building at Snohomish County Airport.
BACKGROUND: .
> Snohomish County Airport staff requires a new facility to house all its administrative staff in one location. The Airport's current administration facilities was constructed in the 1950's and has reached the end of its useful life. In addition, the current facility is not large enough to accommodate all administrative staff which are currently divided between multiple locations. The Airport would like to consolidate all administrative staff into one central building.
> Airport staff have negotiated a purchase price of $6.63M to purchase a 43,000sf office and warehouse building from an existing leasehold tenant Bomarc Holdings, LLC in the Bomarc Business Park. The County owns the land and, therefore, this purchase and sale agreement is for the improvements (building) only. The current lease for the land with the County will be terminated effective immediately.
> Two MAI certified appraisals were completed that determined the valuation of $6.63M along with the removal of all buyer's broker fees.
> Airport shall renovate the facility at an estimated $4M which is budgeted in FY2022. Previous cost estimates priced a new administration building at over two times the cost of renovating an existing building (approximately $20-$25M); therefore, the Airport is realizing significant cost savings through acquisition and renovation versus new construction.
> Airport administration shall occupy less than 50% of the...
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