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Kraken/ice‑plex team flags large cost, schedule impacts for proposed roof; city, team to bring lease and development agreements back for council review
Summary
City negotiators and Kraken project engineers told the council July 15 that adding a third‑level roof to the proposed Eastside Ice arena would require major structural redesign, roughly $9 million or more in additional work and a six‑to‑eight‑month schedule delay.
Kirkland staff and project partners on July 15 briefed the council on the status of the Eastside Ice arena (the Kraken project) and the sequence of legal documents staff plan to bring to the council in August.
Deputy City Manager Jim Lopez summarized the Kraken team’s review of a council request to incorporate a third level (a roofed community‑use floor) into the developer’s building design. Lopez said the Kraken’s engineers determined adding a third level would require substantial structural work and effectively “build a second box,” increasing design complexity and cost. He said the Kraken estimated structural changes for a roofed third level could exceed $9 million and add roughly six to eight months to the project schedule.
Lopez said the developer declined a request to share those marginal roof costs as a capital contribution, noting the developer believes its needs are met by the current proposal. Council members said they appreciated the Kraken team’s effort to test the feasibility but expressed disappointment at the cost and schedule impacts.
Separately, staff described the set of transactions and agreements they are preparing: an executed early‑access agreement (already in effect), an agreement to lease (a purchase‑and‑sale style document that will set core commercial terms), a development agreement (entitlements, design and construction standards), and a ground lease leading to a leaseback/operating agreement. Lopez said the city intends to bring the agreements to council on Aug. 6 for detailed review; the ground lease and attachments (including the operating lease model) may require additional time to finalize but will be presented as part of the package.
Lopez emphasized that the proposed operating lease model is designed so the tenant’s payments cover bond debt service and major maintenance; staff said safeguards will be included so the city is protected if the operator changes or is sold. Councilmembers asked clarifying questions on schedule, risk and whether any partial‑build approach could keep a future roof option feasible; staff said Kraken’s engineering feedback indicated a retrofit would be complex and costly.
Ending: Staff said they will return with the full set of agreements and supporting financial and legal analyses at the Aug. 6 study session and that they had relayed council direction and concerns to the Kraken project team.
