The proposed agreements between the Port of Olympia and Capitol Little League are giving the League more time to finance a new ballfield by extending its current lease of an airport property until 2028, with the annual lease rate increase only set at 5%.
The League has been leasing 10.6 acres of land located on the corner of 76th Avenue and New Market Street on Tumwater from the Olympia Regional Airport for the site of its ballfields since 1999.
The League’s current lease agreement, signed on January 26 this year, would run until 2026, but planned increases to the lease rates would make it impossible for the League to continue paying. The League currently leases the land for $9,177. As the lease agreement currently stands, the lease rate would increase to $81,224 in 2024 and $162,448 in 2025.
The Port is increasing the lease rate to comply with the requirements of the Federal Aviation Administration (FAA).
Director of Operations Warren Hendrickson said in a Port of Olympia Commission meeting on Monday, November 6, that a 2009 guidance from the FAA stated that tenants would need to pay market lease rate if they are not using airport properties for aviation-related use. The Port’s 2021 Airport Master Plan Update also confirmed the need to use the League’s parcel for aeronautical use.
“The fact that it is not places potentially the airport grant eligibility for federal funding at risk,” Hendrickson said.
“It was never, for the Port, about the money. Never. It was all about maintaining compliance with the FAA regulations and policies,” Hendrickson emphasized later on.
The Port and the League have been working to develop a solution so that they could both meet each other’s needs. The two parties reached an agreement in October, resulting in two agreements that the commission would consider approving on November 27.
The first is an amendment to the League’s lease agreement, extending the contract until January 31, 2028. Effective February 1, 2024, the annual lease rate would also increase by 5% to $9,636.
The 5% increase would take effect every year until 2028, so the lease rate would be $10,118 by 2025, $10,624 by 2026, and $11,155 by 2027.
The second agreement is a memorandum of understanding (MOU) outlining steps to be taken by both parties in a multi-year effort to help the League finance the relocation and construction of new ballfields.
According to the MOU, the League would raise funds by pursuing a variety of channels such as grants, sponsorships, fundraising events, and donations to procure a new site and build new ballfields.
To support this initiative, the League would assess whether to implement a fee of at least $10 per player for each playing season starting in Spring 2024.
The League would reserve the funds in a separate bank account so the money could not be used for daily operations.
According to the MOU, the League would agree to the following yearly targets: to raise $40,000 by 2024, $80,000 by 2025, $120,000 by 2023, and $160,000 by 2027, bringing its coffers to $400,000.
The MOU also explicitly states that the League understands that the Port may use the land it currently leases as early as 2026.
“The League understands that the Port eventually intends to develop the premises for aviation-related activity and that it may need to vacate the premises as early as 2026,” the MOU stated.
“The League has therefore begun the process of identifying a new location to provide little league play, and further, will establish a short-term relocation contingency option by 2026, should the Port need the premises prior to 2028,” it continued.
Hendrickson said that Port staff met with the FAA on October 27 to discuss the proposed agreements, which the agency would not object to.
“FAA acknowledged the constraints on both the Port and the League that this is not something new. They accept that a transitional period of time is required and they will not object to these new lease terms,” Hendrickson said.
Earlier during the public comments section of the meeting, Capitol Little League President Loris Gies spoke in support of the proposed agreements.
“I really appreciate that the Port and staff have recognized that we need the breathing space to relocate and or come up with other ways of operating for our League,” Gies said.
“We've realized that this is not just a Little League situation. This is a situation for youth sports in Thurston County. We recently learned that there are 37 baseball-softball organizations looking to use fields in our area. And the playing fields available are limited, to say the least,” Gies added.
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