King County committee gives due-pass to sale of Federal Way public health clinic to HealthPoint with 10-year leaseback

The Metropolitan King County Council's Budget and Fiscal Management Committee on March 12 gave a unanimous due-pass recommendation to proposed Ordinance 2025-539 to convey the county-owned Federal Way Public Health Clinic property to HealthPoint, a nonprofit community health center network, under a negotiated purchase-and-sale agreement. The committee vote was 6 ayes, 0 noes (Councilmember Balducci excused).

Council legislative staff described the agreement as an installment sale in which HealthPoint will pay $800,000 over 10 years at 5% interest (staff said that the payments plus interest total just over $1,000,000). HealthPoint must invest no less than $8,000,000 in capital improvements and will lease back approximately 7,500 square feet of dedicated space plus about 1,200 square feet of shared space for use by Public Health at no base rent or operating expense for an initial 120-month term. The transaction package includes a purchase-and-sale agreement, a consideration agreement, a lease agreement and a restrictive covenant that requires operation of a federally qualified health center (FQHC) at the site for 15…