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City proposes modest rent bump for ICOM dispatch center; council supports CPI-tied 3'5% cap
Summary
Oak Harbor staff proposed adjusting the ICOM dispatch center lease that sits next to police headquarters from $0.93/sq ft to $1.29/sq ft for the remainder of 2026 and indexing future increases to CPI bounded by a 3% floor and 5% cap; staff estimated roughly $56,000 in additional annual revenue and said negotiations will continue with ICOM.
Deputy City Administrator and Finance Director David Goldman briefed council on the ICOM (Island County Emergency Communications) lease for the dispatch building adjoining the police station. The current rate is $0.93 per square foot; the city proposed holding the first half of 2026 at that rate and adjusting to $1.29 per square foot for the remainder of 2026 (a split-the-difference approach compared with current market indicators). Staff proposed indexing future annual increases to the October CPI with a bounded range of 3% to 5%.
Goldman said the proposed change would modernize the lease and generate roughly $56,000 per year in additional revenue, based on the building's 4,200 sq ft. Council members asked about utilities and tenant improvements; staff said ICOM currently pays utilities and that a $75,000 budget allocation is in place to replace the emergency generator, timed with police department equipment work.
Council members indicated general support for a fair-market-aligned adjustment and for anchoring increases to a published CPI with reasonable bounds rather than an uncapped schedule. Goldman said staff will continue negotiations with ICOM and return to council with a formal agreement for approval.
Ending: No final lease was approved at the workshop. Staff will negotiate terms consistent with the council's guidance and present a formal lease or amendment for council action at a later meeting.
