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Port of Bremerton approves three Steelhead Group Holdings lease actions, adds 1‑acre lease for washdown and paint booth
Summary
The commission approved two lease amendments and a new 1‑acre lease for Steelhead Group Holdings, owner of the building being constructed for Inventech Marine. Leases are 50 years with three 10‑year options; first 10 years have no CPI increases and a catch‑up CPI adjustment is applied at the 10‑year anniversary for the prior five years.
The Port of Bremerton Commission approved three lease actions for Steelhead Group Holdings, advancing site development tied to a 60,000‑square‑foot building being developed for Inventech Marine.
Port staff described the package as two lease amendments and a new one‑acre lease. The amendments establish a lease commencement date of June 1, 2025, for an existing 4.41‑acre parcel and for a 1.39‑acre parcel (the former P‑patch). The newly approved 1‑acre lease is for undeveloped land immediately adjacent to existing facilities; port staff said Steelhead plans to add a washdown station and a paint booth on that parcel.
Terms and fiscal details: staff said all leases are 50‑year terms with three 10‑year renewal options. The port described a negotiated rent structure in which the first 10 years avoid annual CPI increases to help the business grow; at the 10‑year anniversary the lease applies a cumulative CPI adjustment equal to the sum of the prior five years of CPI changes, then resumes annual CPI adjustments thereafter. Port staff said the unimproved land rate used by staff was $5,400 per acre per year but the negotiated lease rate for the new acre is $6,000 per acre per year.
Construction and environmental requirements: staff said site development was completed in March 2025 and the tenant will apply for a temporary certificate of occupancy this week. Staff said Steelhead (the building owner for Inventech Marine) has invested about $13.5 million so far in the building and expects to spend an additional $2.0–$2.5 million for the washdown station and paint booth. Staff said environmental review is complete, that the tenant must submit a SEPA checklist and obtain required permits, and that substantial filtration/NPDS controls will be required for washwater and any discharges.
Employment and operations: staff reported Steelhead's local employment had grown from 42 to 97 employees and that the company expects to grow to roughly 200–250 employees while remaining under 300 employees. Staff also said the building includes roughly 120 parking stalls and that ADA access and bicycle rack installation remain to be completed.
Commission action and votes: commissioners moved and seconded three separate motions to approve the lease amendment and lease agreement items presented on the screen. For each motion the clerk recorded votes as Commissioner Bozeman: yes; Commissioner Anderson: yes; Commissioner Strickland: yes. All three motions carried.
What to watch: staff said the tenant is responsible for design, permitting and installation of environmental controls for the washdown and paint operations; the port will not install utilities or improvements to the new acre beyond what was negotiated. Staff also said signage and a proposed showroom on the 1.39‑acre parcel were part of the tenant's plan.
Documentation: meeting materials listed parcel addresses and monthly rent figures; staff summarized fiscal impacts in monthly terms during the discussion. The commission did not alter insurance requirements (the original lease insurance requirement remained $2,000,000).
