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State Parks says Fort Wharton is stabilizing; plans business review and long‑term leases

Washington State Parks and Recreation Commission · July 8, 2026
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Summary

Staff reported a year of stabilization at Fort Wharton after receivership and tenant transition: limited lodging has resumed, Centrum signed a 35‑year lease, and staff are developing a business plan and metering work to better understand operating costs and energy use. Staff said partnering tenants' investments reduce capital burden for the agency.

State Parks staff presented a multi‑month report on Fort Wharton operations, leasing and stabilization work, saying the priority since taking over the campus has been to stabilize operations, protect tenants and reintroduce limited lodging as a pilot.

Chris Holm (speaker 17) and Michael Hankinson (speaker 11) told commissioners that after the PDA receivership ended and leases became month‑to‑month, staff implemented a rent‑credit policy to encourage tenant investments and signed a long‑term lease with Centrum. Holm said, “Centrum was the first one to take advantage of that with a 35‑year lease, that you guys approved in January,” noting the lease included commitments to invest in building improvements. Staff reiterated that leased, occupied buildings generally age better and that partner investment helps preserve campus fabric without the agency shouldering all capital costs.

Operations staff said they are documenting utility use and implementing metering to create a baseline for future energy‑efficiency investments and possible electrification. Staff also described contracted services (housekeeping, elevator/fire‑system certifications) and a modest staffing footprint for the campus pilot; they proposed a business plan and facility‑asset management software to clarify costs and to guide future leasing and capital priorities.

Commissioners urged careful sequencing of capital work, clearer estimates of Fort Wharton revenue versus operating costs, and caution about expanding private residential uses without a broader policy discussion.