TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Finance
Kelley Cochran
425-556-2748
DEPARTMENT STAFF:
Finance
Terry Marpert
Real Property Manager
TITLE:
title
Approval of the NW Restaurants, Inc. 2023 Lease Amendment
OVERVIEW STATEMENT:
recommendation
NW Restaurants, Inc. operates the Kentucky Fried Chicken (KFC) restaurant located at 15802 Bear Creek Parkway on City of Redmond property under a lease that will expire on June 30, 2023. NW Restaurants wishes to continue leasing the property and has negotiated with staff for a proposed lease amendment extending the lease up to five years to June 30, 2028. Attachment A summarizes the proposed lease amendment terms, and Attachment B has the proposed lease amendment. Staff support the proposed amendment and recommend that it be submitted for City Council approval.
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:
N/A.
OUTCOMES:
NW Restaurants, Inc. has operated the KFC restaurant under a lease with the previous property owners since 1971. In 2016 the City bought the property and assumed the lease, with the intent to facilitate the preservation of land needed to build a new street link connecting Redmond Way and 158th Ave. NE, and a new four-way intersection at Redmond Way and Bear Creek Parkway. These planned improvements are identified in the Redmond Transportation Master Plan (TMP), an element of the Redmond Comprehensive Plan.
In 2018, the City and NW Restaurants Inc. signed a five-year lease amendment that will expire on June 30, 2023. The amendment set the "fixed rent" at $6,588.77 per month for the five-year lease period, plus an annual "percentage rent" based on sales. During the lease period from 2018 to 2023, the Consumer Price Index for Ur...
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