Council approves higher lease for city parcel at Mill Pond Road; councilmember Benson votes no

The Snoqualmie City Council approved a lease on April 28 with Northwest Landscape Services LLC for a city-owned parcel adjacent to the water reclamation facility on Mill Pond Road, increasing monthly rent from $1,917.86 to $4,932.

Deputy Parks and Public Works Director Phil Bennett told council that the new rent recommendation followed a CBRE real-estate appraisal completed in November of last year and presented comparable-market analysis. The council considered concerns about the size of the increase and whether the city should phase in higher rent.

Councilmember Benson spoke against the immediate, large increase, saying a 157% rise could be onerous to a local business despite the appraisal’s conclusion. "Suddenly have a 57% increase in your rent seems onerous," Benson said.

City Attorney cautioned the council about the constitutional prohibition on gift of public funds and said the city had an obligation to correct a long-standing below-market lease. Councilors noted the tenant had indicated it could pay the proposed amount and that the parcel is unimproved gravel land.

Council moved to adopt Resolution 1715 authorizing the mayor to sign the lease agreement; the motion carried with one dissenting vote from Councilmember Benson. Councilmembers expressed concern about the optics of a steep increase but agreed correcting a below-market rental was necessary to avoid potential constitutional issues.

The new lease will be executed by the mayor as authorized by the resolution; staff noted the tenant had not indicated inability to pay the proposed new rate.