2019-01-14-minutes-public-works-study-session

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KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: TOPIC: ACTION REQUESTED: LEAD STAFF: Mark R. Cook January 14, 2019 FISH Proposal Identify Follow up Actions RECOMMENDATION: Identify desired Commission actions for staff follow up. BRIEFING SUMMARY: • FISH desires relocating their existing facility to our Elm View facility at the airport • The existing building requires significant investment meeting FISH needs • Is there a viable financial plan assisting FISH improving our existing facility? BACKGROUND: Recently, Public Works and Commissioner Osiadacz met with a FISH representative touring our Elm View facility. FISH is entertaining the idea of constructing improvements supporting a commercial kitchen and dining area. Improvements will likely be built with conventional funding. DISCUSSION: It is anticipated that conventional lenders will need to see some collateral from FISH when underwriting a loan supporting Elm View building improvements. The building is owned by the County (1974 construction with the turn back taking place in 1994). The cost of anticipated initial improvements is estimated at approximately $250,000. FISH is suggesting that they have existing funds to construct the initial improvements and a lease payment structured to retire the cost of improvement. FISCAL IMPACTS: Utilizing our current land lease rate of $0.14/SF, $250,000 in tenant investment from FISH, and 2.24 acres of land lease (current Elm View lot); it will take approximately 18 years to recover the lost land lease revenue. This is a similar approach to that taken with Midstate Aviation tenant improvements to our main hangar at ELN. ATTACHMENTS: None Page 1 of 1 PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT