Committee recommends leasehold deed of trust for Cultural Space Agency at King Street Station

On July 1, 2025, the Seattle City Council Transportation Committee voted 5-0 to recommend passage of Council Bill 120989, an ordinance authorizing the director of the Seattle Department of Transportation to execute and record a leasehold deed of trust reflecting the Cultural Space Agency's leasehold estate at King Street Station. Committee members recorded the recommendation to send the bill to the full Council for final consideration.

Presenters described the ordinance as authorizing SDOT to formalize the Cultural Space Agency's existing 30-year leasehold interest as a deed of trust, a procedural step required for the agency to secure a Department of Commerce funding mechanism that covered a substantial portion of more than $4,000,000 in renovation costs to the station's second floor. "We would actually probably see a windfall if that happened," a presenter said, describing the city's rent bump if the leasehold were repurposed to non-arts uses after a potential default.

Bill Abord of the Seattle Department of Transportation and Calvin Chao of council central staff briefed the committee. Staff provided a brief history: the city purchased King Street Station from BNSF in February 2008, completed restoration and seismic rehabilitation in 2013, and SDOT has partnered with arts and culture organizations since 2015. The Cultural Space Agency, a public development authority created by the city, moved arts organizations into the second floor in late 2023 under lease agreements; Amtrak occupies the first floor and arts and culture organizations occupy the third floor.

Councilmembers spoke in support and highlighted community value. Councilmember Rink said the ordinance "comes in no financial risk to the city" and noted the measure would allow youth-serving nonprofits at King Street Station—including Totem Star, Red Eagle Soaring and Jackson Street Jazz Project—to continue operating in the space. Councilmember Kettle and Councilmember Strauss described the station as a historic city asset and said preserving community arts programming there is important to post-pandemic community building.

Staff told the committee there is no financial risk to the city from the deed of trust and that if the Cultural Space Agency were to default, the state Department of Commerce would assume the leasehold interest as security for its funding; staff said, in that scenario, the city's rent could increase by $12 per square foot if the space were converted to office uses.

The committee moved and seconded passage of Council Bill 120989; the clerk called the roll and recorded five votes in favor (Councilmember Kettle, Councilmember Rink, Councilmember Strauss, Vice Chair Hollingsworth and Chair Sacca) and zero opposed. The committee's recommendation will be transmitted to the full City Council for final action at its upcoming meeting.

Background and next steps: Staff framed the ordinance as an administrative, legal step to enable a funding arrangement and to secure long-term tenancy for arts and youth-serving nonprofits at King Street Station. If approved by the full council and if SDOT executes the deed, the Cultural Space Agency will be positioned to complete the funding conditions tied to the Department of Commerce support.