TO: Committee of the Whole - Finance, Administration, and Communications
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Finance
Kelley Cochran
425-556-2748
DEPARTMENT STAFF:
Finance
David Amble
Real Property Manager
TITLE:
title
Approval of Lease Amendment for Northwest Restaurants, Inc.
OVERVIEW STATEMENT:
recommendation
The City owns the parcel at 15802 Bear Creek Parkway and leases the property to Northwest Restaurants, Inc. (NWR), which operates a Kentucky Fried Chicken (KFC) restaurant at the location. The lease is currently operating on a year-to-year basis and will expire on June 30, 2026, if no additional 1-year options are exercised. NWR's franchise agreement with KFC requires NWR plan and perform capital improvements on the property; however, NWR will forego improvements without a long-term lease. The proposed lease amendment revises the terms to two five-year periods, along with four five-year options. The profit-sharing portion of the original lease is maintained.
body
? Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
? Receive Information ? Provide Direction ? Approve
REQUEST RATIONALE:
* Relevant Plans/Policies:
N/A.
* Required:
N/A
* Council Request:
N/A
* Other Key Facts:
The lease amendment switches from a CPI-U based rate escalator to a fixed rate, providing more predictable revenues and expenses for both parties. Prior lease terms are kept, including the annual 6% profit share after deduction of annual rent expenses.
OUTCOMES:
Upon amending the lease, the property will remain occupied, and the City will continue to receive revenue from the lease and the profit-sharing agreement. NWR will also move forward with capital improvement planning to upgrade the building and property.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
* Timeline (previous or planned):
N/A
* Outreach Methods and Results:
N/A
* Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in curr...
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