Council to place lease termination and $1 million infrastructure grant acceptance for Plymouth Housing on consent agenda

City staff asked the Committee of the Whole on April 1 to place two items related to the 16725 Cleveland Street project on the April 15 consent agenda: (1) a lease termination agreement so the property can transfer unencumbered to Plymouth Housing for development of permanent supportive housing, and (2) acceptance of a $1,000,000 Connecting Housing to Infrastructure Program (CHIP) grant administered by the Washington State Department of Commerce and a contract with Plymouth Housing to apply the grant toward utility and infrastructure costs.

Director Carol Helland summarized the lease termination request. The city approved a land transfer to Plymouth Housing in February of the prior year; the lease (held by Omni/Amlee for construction staging and haul routes) would be terminated eight months early so Plymouth Housing can take the site free of lease restrictions. Staff said terminating the lease early will forgo $32,000 in lease revenue but is timed to match Plymouth Housing’s readiness and the current contractor’s reduced staging needs.

On the CHIP grant, Helland said Plymouth Housing applied for and received a $1,000,000 grant that will fund utility connections and infrastructure construction; the grant is state‑administered and staff added details to FAQs to clarify the grant is state funds for Plymouth Housing, not new city general fund money. Councilmember Fields asked whether the city planned to add additional local funding; staff said no additional city funding is requested for this grant and that the city has previously provided gap funding in other projects when grants covered only part of costs.

Councilmember Nueva Camino asked whether the grant carries stipulations; staff replied the only requirements are entering the required contract with Plymouth Housing and providing Commerce bookkeeping showing contractual obligation and appropriate use of funds. With no objections, the committee agreed to place both the lease termination and the CHIP grant acceptance/contract on the April 15 consent agenda.