Warren G. Magnuson Park
Mountaineers

Proposed Long-term Lease Agreement with The Mountaineers
Warren G. Magnuson Park - Building 67
June 6, 2005

Requested Board Action
The Department is asking for the Board of Parks Commissioners to recommend a 30-year lease of Building 67 at Magnuson Park to the outdoor recreation and education club, The Mountaineers. Long-term leases of city property require oversight by the Board and the City Council.

Project Description and Background
The Mountaineers, an outdoor recreation club and conservation organization has made a proposal to renovate an existing building within Magnuson Park, operate classes and programs consistent with a parks and recreation mission, and to provide public access and amenities.

The Mountaineers approached the Department in late 2004. The organization was conducting a regional site selection process for the replacement of their existing clubhouse located on lower Queen Anne. Their site selection committee reviewed numerous potential locations before recommending to The Mountaineers Board of Directors in April 2005 that Building 67 at Magnuson Park be selected. The Board voted in May to move forward with negotiations with Parks for a long term lease. The organization sees a move to Magnuson Park as allowing them to focus on their core mission while also having a space which will allow them to reach out to new user groups. They see opportunities for partnerships with other non-profit organizations located at the park (Cascade Bicycle Club, Sail Sand Point, EarthCorps, etc.), and coordinating with Parks initiatives such as environmental learning. Staff in the Enterprise Division have actively supported The Mountaineers by providing encouragement and information regarding the benefits to them and the park by having their headquarters there.

Building 67 contains approximately 33,000 SF and was originally constructed as a garage for servicing navy vehicles. The building consists of two levels each with a number of vehicle bays. The second level also contains a number of storerooms, offices, and restrooms. A third level contains offices and restrooms. The Mountaineers intend to occupy only the upper two levels - approximately 14,000 square feet. Capital improvements are estimated at $1.7 million. This includes improvements to the upper level, limited improvements to the lower level which may be required to occupy the upper one, adjacent site improvements, and demolition of a lower level lean-to shed. A rock climbing wall and adjacent plaza will be constructed for use by Mountaineers classes and the general public.

The Mountaineers board approved a move to Magnuson Park in early May and we recently completed contract negotiations pending a recommendation by the Board and approval of City Council. A copy of the full lease is attached for your consideration. The key terms of the lease are:

1. Term: 30 years with two 5 year extensions possible
2. Premises: two upper floors of Bldg 67, right of first refusal for the ground floor
3. Fund-raising: Must certify to the Department that $1,700,000 is available for construction prior to applying for construction permits.
4. Management and Operations: must submit an annual plan to the Department for review and approval.
5. Rent:
   1. Minimum rent == $200/month, inflated annually based on CPI
   2. Base rent = $4,970/month, inflated annually based on CPI
   3. Additional rent = 10% of gross receipts from non-Mountaineers events and products sold
   4. Rental offset for capital improvements, public rock climbing plaza, and other public programming.
      
6. Maintenance Obligations: Annual inspections, maintain systems so that no major maintenance is required for two years after end of term.
7. Capital Improvements: Mountaineers funds all capital improvements necessary to obtain certificate of occupancy.

Public Involvement Process
A community outreach effort began in May 2005 following the decision by The Mountaineers Board. Prior to the community outreach effort several newspaper articles were published in The Seattle Times. To date Parks staff and The Mountaineers board members have made presentations to the Magnuson Park Community Communications Committee and the North East District Council. No fatal flaw issues have been raised. Other presentations will be made to community organizations in June and July.

Issues
Noise and traffic have been the only issues mentioned at community meetings, but no specifics given.

Budget
The Mountaineers will be funding renovation of the building, estimated to be $1.7 million with the proceeds from the sale of their current building. Ongoing building maintenance will also be the responsibility of The Mountaineers. Parks already provides on-site grounds maintenance for all areas at Magnuson Park, and this is not anticipated to change. Parks staff time to monitor the lease and construction has not been calculated at this time.

Schedule
We anticipate presenting a long-term lease to the City Council by September 2005. The Mountaineers intend to submit permit applications in Octobers and have construction underway by early 2006. A move-in date is anticipated for September 2006, the 100th anniversary of the creation of The Mountaineers.

Staff Recommendation (if applicable)
We are asking the Commissioners to recommend a long term lease with The Mountaineers to renovate and operate programs from Building 67.

Additional Information
Kevin Bergsrud, Planning and Development Specialist
Enterprise Division
100 Dexter Avenue North
Seattle, WA 98109
Phone: 206-683-5831
E-mail: kevin.bergsrud@seattle.gov