The City Council Committee A met on December 2, 2025, at 3:00 PM to discuss seven agenda items: lease agreements for Anderson Center tenants, a supplemental agreement for the Highway 99 Revitalization Project, a stormwater capacity grant, a Microsoft Enterprise Agreement renewal, a fire ILA modification, restoration of vacation hours for a rehired employee, and parking permit fee increases. All items were unanimously recommended for placement on the consent agenda for the December 9, 2025 regular council meeting.
I got a minute still. Oh, I see. Yeah. Okay. Yeah. No, I'm not sure. Oh, time for a joke. We have enough time for a joke. I don't know. All right. Three o'clock. Welcome to the uh council committee A meeting uh here on uh December 2nd, 2025. Uh we have present uh council member Chen, Councilmember Payne, myself, Councilmember Dodge, and uh Council President Tibbet, among other um city staff that are helping us with this meeting today. Uh and the first item of business is the Total Times, Main Street Kids, Olympic Ballet Theater, and Olympic Ballet School Lease Agreements. Shannon and I assume that's you. That's me. Take it away. Thank you. Thank you so much for having me again today. Um I'm presenting two lease agreements. Well, technically three lease agreements for two tenants. Um the Anderson Center is home to six tenants here, um, and each has their own lease agreement ranging in duration from five years, one year to five years. And this year, only two of them have are expiring and need to be renewed, which is the Olympic Ballet and uh Main Street Kids. Um interestingly, these are our two highest paying tenants. They uh lease the most amount of space in the Anderson Center. Main Street Kids uh new monthly rate is $7,229.22 cents per month. And the Olympic Ballet combined lease agreements are $7,568.34 cents per month. Um, so to give you kind of a scale for what we're talking about with these two tenants, all of the lease agreements are um indicate CPIU is their annual increase. And that has been going on for quite some time for the Francis Anderson Center tenants. So um to give you an idea of the types of increases these tenants have seen over the course of time. Um in 2023, each of their leases were um increased 10.1% because that was inflation in 23. In 24, it was an additional 4.6%. In 25, an additional 3.8%. And this year it's uh 2.7%. And that is all predicated on the Seattle Tacoma Bellevue CPIU from June to June. Um and that's how the lease agreements are written. They've all been reviewed and approved by our city attorneys as well. Um a couple of things new this year, two in particular to share with you. One is that we have increased their fees for water by 30% this year in addition to the CPIU index increase. And we've increased the fee for um uh power or electricity by 15% in addition to the CPIU increase, just you know, uh as I mean it's to keep up with uh the expenditures uh in the building. Um all of our tenants receive these increases every year, regardless of if their contract needs renewed. So these are annual increases built into the agreement. So our other tenants who do not have lease agreements up for renewal right now also receive the same increases each year. Um there's really no benefit to signing a long-term lease, if you will. It increases every year. Uh the benefit is just not going through the paperwork and the time that it takes to have them approved. Um the other significant increase is or sorry, significant change this year is that the Olympic Ballet, they do operate a nonprofit and a for-profit business. Um their nonprofit, the Olympic Ballet Theater, only utilizes one room in the Anderson Center. Uh their for-profit, the Olympic Ballet School utilizes the remainder of the rooms. And Olympic Ballet is eager to um apply for and hopefully be approved for a leasehold tax exemption for their nonprofit portion of their business.