Council authorizes purchase agreement for 1333 Lloyd Parkway; council also declares intent to reimburse from future borrowing
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Summary
The council authorized a contingent purchase and sale agreement for a Public Works facility at 1333 Lloyd Parkway and adopted a reimbursement resolution declaring intent to finance the acquisition with future bond proceeds; staff said the purchase price is roughly $2.5 million and that a budget amendment and financing documents will return to the
Port Orchard — The City Council authorized the mayor to execute a purchase and sale agreement and associated documents for 1333 Lloyd Parkway, a commercial property proposed to serve the city’s Public Works operations. Council also adopted a reimbursement resolution that declares the city’s intent to pay acquisition costs from available funds and later reimburse itself from future borrowing.
City staff said the property includes an office building and workshop that would meet current and near‑term operational needs at lower cost and on a faster schedule than constructing a new facility. The purchase is contingent on appraisal, environmental review and council approval of financing; staff said they will return to council with a budget amendment in September to capture about $2.5 million for the purchase and with financing documents in October to pursue pooled financing in time to fund by February 2026.
Finance staff described a likely financing path using the state treasurer’s pooled program (described in staff remarks as a ‘local program’ or lease/purchase asset lending program) that would allow the city to participate with the state’s credit rating and obtain a competitive tax‑exempt rate; staff estimated an all‑in cost near 4.25% for a 20‑year borrowing.
Council members praised the acquisition as a cost‑effective, near‑term way to increase capacity for Public Works operations, noting the city’s current equipment and vehicle storage needs and deferred sheltering for specialized vehicles. The council discussed due diligence tasks (appraisal, environmental site assessment, survey, building inspections) and directed staff to return with final funding approvals after contingencies are satisfied.
Councilmember Trenary moved to authorize the mayor to sign the purchase and to ratify prior actions consistent with that authority; the motion was seconded and passed unanimously. Later, Council adopted the reimbursement resolution by unanimous vote. Staff said the city will treat the purchase funding as a separate budget amendment in September and expects to bring financing documents to council later in the fall.
