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Avenue 55, LLC – LeaseSecond Reading
Presenter:
Scott Francis
Director, Real Estate
Port of Tacoma
Authorize Chief Executive Officer or his designee
to enter into a 50-year lease with a 25-year
extension option with Avenue 55, LLC for the
Premises located at 1514 Taylor Way and 3401
Lincoln Avenue, Tacoma, WA.
Action Requested
Avenue 55 – Lease Location
Avenue 55 – Lease Premises
1514 Taylor Way & 3401 Lincoln Avenue
1514 Taylor Way:
This 10.56 acre parcel was purchased in 2007.
Property is vacant and has minimal lease opportunity
without development.
Property is currently subject to invasive snail
restrictions.
Regarding existing contamination issues, Ecology will
require an Agreed Order to cap this property as part
of development.
Development is the best way to address the Port’s
environmental responsibility for this site.
Avenue 55 will build a new warehouse on this parcel.
Background
3401 Lincoln Avenue:
This 9.13 acre parcel was purchased in 2008.
The 183,000 SF Educator Building is located on this
property.
The Educator Building is at the end of its useful life and
will need to be vacated soon without major repairs and
improvements.
The building is currently leased on a month-to-month
bases to multiple tenants.
Avenue 55 will build a new warehouse on this site.
Background Continued
Avenue 55 – Puyallup West
Avenue 55 – Puyallup West
Avenue 55 – Sumner West
Lease Effective date is estimated at November 1, 2016.
Fifty (50) year lease term with one twenty-five (25) year
lease extension.
Monthly Rent about $44,200 plus excise tax.
Deposit is $150,000.
Inspection Period is 90 days.
Entitlement Period is 90 days with three 30-day extensions
available.
Rent Commencement is at SEPA approval and the fully
executed Ecology Agreed Order.
Avenue 55 – Lease Terms
Avenue 55 – Lease Terms Continued
Rents escalate by CPI not to exceed 3% per year.
Rents reset to market at 15 year intervals.
Security deposit is one-year’s rent plus leasehold
excise tax.
Insurance coverage
o $2 Million general liability
o $2 Million auto liability
o $2 Million pollution liability
Utilities are paid by Lessee.
All building and site maintenance is the responsibility
of Lessee.
• Warehouse development on these properties is the highest
and best use.
• Development puts an underutilized property to work.
• Creates new warehouse space that supports the Port’s
core business and Strategic Plan.
• Addresses the Port’s environmental responsibility for the
1514 Taylor site.
• Development reduces the invasive snail habitat.
• New warehouses will produces dozens of new jobs.
Lease Benefits
Authorize Chief Executive Officer or his designee
to enter into a 50-year lease with a 25-year
extension option with Avenue 55, LLC for the
Premises located at 1514 Taylor Way and 3401
Lincoln Avenue, Tacoma, WA.
Action Requested:
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