Council authorizes city manager to negotiate short‑term leases for two city‑owned buildings in Hollywood District

Woodinville — The council authorized the city manager on May 6 to negotiate and enter short‑term, month‑to‑month leases for two small commercial buildings the city acquired adjacent to the Harvest project in the Hollywood District.

Staff said the city received approximately one‑sixth of an acre via a development‑agreement amendment. The two buildings currently house Jensen Design Architects (north building) and a winery tenant with some Wood Mountain office space (south building). Leases are time‑sensitive: Jensen's lease expires June 1 and the winery tenant planned to vacate in early June; staff proposed month‑to‑month arrangements that expire April 1, 2026, to accommodate tenant timing while preserving the city's flexibility for future demolition or redevelopment.

City staff recommended as‑is, triple‑net style leases with clauses to limit the city's obligation for significant repairs and to require tenant insurance and leasehold tax payment. Staff estimated potential combined rent of approximately $7,500 per month and noted that leasehold tax would be remitted per state rules. Council members emphasized the need to document building conditions, to keep liabilities limited and to consider short‑term parking or shared use when events increase downtown demand.

The motion to authorize the city manager to negotiate and execute the leases passed unanimously. Staff will return with finalized lease documents and continue working on a long‑term plan for the parcel, including possible demolition and redevelopment decisions once workload and planning priorities allow.