Parks committee recommends one-year Olympic Ballet lease at Frances Anderson Center

The Parks & Public Works Committee of the City of Edmonds on Jan. 21 recommended placing a one-year lease with Olympic Ballet for space at the Frances Anderson Center on next week’s consent agenda, after staff described the lease as a short-term trial while the company evaluates use of an added room.

Committee members heard that the city currently has six tenants at the Frances Anderson Center that provide recreation services the parks department would otherwise deliver. Shannon Burley, Parks and Recreation staff, told the committee, “in your agenda packets, we have the lease for Olympic Ballet. At the Frances Anderson Center, we have 6 tenants.”

Burley said the Olympic Ballet is seeking a one-year agreement because it is adding a new room and wants to determine whether it needs the space long term. Staff highlighted steady revenue from the tenant and the administrative practice that all center leases increase annually for inflation. “For over $7,000 a month, we’re incredibly incredibly appreciative of the Olympic Ballet for choosing to work with us,” Burley said.

The memorandum and discussion noted that the city has not completed a formal market-rate study for comparable spaces but that staff monitors local examples. Burley compared the lease’s square-foot rate with a recently opened Mukilteo studio, saying staff’s current fee is about $1.20 per square foot versus roughly $0.72 per square foot for the Mukilteo commercial studio. She also told the committee the building is aging and has ongoing mechanical and heating issues that make direct comparisons imperfect.

Committee members asked about how utilities are charged and whether the leasehold tax exemption had been filed. Burley said utility charges are wrapped into the square-foot fee for most tenants and that the city requires a copy of the tenant’s leasehold tax-exemption authorization before adjusting rent. She told the committee the Olympic Ballet qualifies for a state leasehold tax exemption and must have a signed agreement in place to complete that exemption; staff said the company paid the full amount in January and staff requested committee consideration to move the item quickly so the group would not incur additional state tax charges in February.

The lease being considered covers Room 301 on the third floor (described in the staff report as the upstairs yoga/studio space), and the change gives Olympic Ballet full use of the third floor rather than a single room. Committee members agreed the one-year term is appropriate for a test period. A committee member said the lease could be placed on the city council consent agenda and another member replied, “Yeah. That’s fine.”

Staff indicated it will forward the lease for council consideration on consent and will not change tenant charges until it receives the tenant’s state exemption paperwork.

The item will appear on the council consent agenda for formal approval.

Ending: The committee did not take a formal roll-call vote on the item during the committee meeting; staff will present the finalized lease to the full council on consent for formal action.