Pasco staff present lease renewal, market-rate increases for Montes property behind animal shelter

Director Rice presented a proposed lease renewal for a portion of parcel 112330255 used by Lonnie and Louis Montes and asked the council to consider approving a resolution to renew the agreement at a future council meeting. "Yes. This is a lease renewal agreement for a previously leased property, that was leased previously in 2015 and had 2, 2 year renewal periods, both of which expired," Director Rice said.

The draft agreement would establish a three-year primary term with an option for two one-year extensions (described in the meeting as a "3 plus 2" arrangement) and a 3% annual increase to keep rent aligned with market rates. Director Rice said the leased portion is located "directly behind their building in between the animal shelter" and that all lease payments would include the Washington lease excise tax.

Nut graf: The renewal would continue long-standing use of a small city-owned parcel and update the rental schedule to current market assumptions; staff brought the item to the workshop for council review and to alert council that a formal resolution to renew will be brought forward for action at a later meeting.

Inverted-pyramid details: Director Rice said the original lease began in 2015 and has gone through two consecutive two-year renewals that have since expired. Staff worked with the city’s real estate representative to evaluate market rates and incorporated the 3% annual increase to the proposed schedule. No public comment was recorded on the item during the workshop.

Discussion versus action: This discussion was informational. The workshop format means no formal council vote was taken; staff indicated they will return with a resolution for council consideration at a subsequent meeting.

Ending: Staff requested council feedback and said the item will be placed on a future agenda for formal action if the council wishes to proceed.