Port of Olympia Commission has agreed to revise a lease form indicating that the port will credit Panattoni Development Company for the construction of road improvements along Center Street in Tumwater.
The port and the real estate developer currently have a lease option agreement that grants the company exclusive rights to potentially enter into a ground lease for up to 199 acres of the port’s property in the New Market Industrial Campus.
The form is not a formal ground lease and only shows to Panattoni’s lenders that the port has agreed to share the cost of the road improvements, Port Real Estate Senior Manager Clarita Mattox told the commission on Monday, December 11.
Most of the land covered by the agreement is subject to completion of the Bush Prairie Habitat Conservation Plan except for a 29.27-acre lot along Center Street, which Panattoni is already planning to develop.
The development would be known as the South Sound Commerce Center and could potentially be used as a warehouse, distribution center, and/or a light manufacturing facility, according to documents prepared for the Monday meeting.
The City of Tumwater is requiring road improvements to mitigate the traffic impact of the planned development. The city requires improvement along 3,000 feet of Center Street between Tumwater Boulevard and the southern end of the development. Only 576 feet of the road is frontage for the South Sound Commerce Center, while the rest is frontage for the port’s other tenants.
Panattoni intends to cover the full cost of the road improvements, but the port would credit the company’s actual share of the cost if a lease agreement is finalized.
The port plans to cover the remainder of the construction cost through latecomer agreements with future tenants along Center Street.
Mattox said that the lease for the South Sound Commerce Center would be at $0.48 per square foot every month – totaling $611,930 annually – with the rate set to increase 10% every five years.
Most of the port commissioners expressed support for the proposed reimbursements. Commissioner Joe Downing said that nearby tenants would benefit from the road improvements, particularly Industrial Wood Products, which uses trucks along the road to transport lumber.
Commissioner Amy Evans Harding excluded herself from the discussion due to her professional relationship with Kidder Mathews, the real estate firm that represents Panattoni.
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TonyW33
Their mop calls out Tumwater Blvd as Hwy 101. Does the Port even know where Tumwater is?
Thursday, December 14, 2023 Report this
TonyW33
#map, obviously not mop* Not that Panettoni isn't panning to mop upon on the old deal at the tax of the taxpayers.
Thursday, December 14, 2023 Report this
JW
The Port exists to launder money from taxpayers to private corporations.
Thursday, December 14, 2023 Report this
RobRichards
What was the vote breakdown?
Thursday, December 14, 2023 Report this
johngreen
When do our new commissioners take office?
Friday, December 15, 2023 Report this
Camille
Two of the three new commissioners have been seated. The third will be seated Jan. 1.
This also might be a helpful clarification: The map says Exit 101, not Hwy 101.
The vote was unanimous.
Friday, December 15, 2023 Report this