The Port of Olympia is weeks away from finalizing a lease agreement with Panattoni Development Company to develop the first parcel of a 200-acre property in the New Market Industrial Campus in Tumwater.
Concerns remain, however, if the property is free from the endangered Olympia pocket gopher (Thomomys mazama pugetensis), an issue that has long delayed the deal.
On Monday, April 14, the Port of Olympia Commission reviewed a lease agreement with Panattoni to develop a 29.27-parcel on Center Street.
Panattoni intends to develop the site for industrial use with a single 477,880-square-foot building called the South Sound Commerce Center.
Warren Hendrickson, the port’s director of operations, said potential applications for the building include warehousing, light manufacturing, and technology or life sciences. However, long-standing public concerns largely focus on its likely use as a warehouse.
Panattoni has had an agreement with the port since July 2020, granting it the exclusive rights to enter into a lease for the entire 200-acre property.
A lease agreement has not materialized, as the land is considered habitat for Olympia pocket gophers, making it subject to the port’s habitat conservation plan, which remains incomplete.
On March 10, an amendment to Panattoni’s agreement allowed the company to start a lease for two specific parcels if they could secure certification from Tumwater that the land is free from gophers.
Hendrickson said the company already secured the certification for the Center Street parcel when Tumwater approved a formal site plan in March 2023.
Tumwater’s approval letter stated though the land has soil suitable for gophers, a habitat survey by Krippner Consulting LLC showed no evidence of gopher activity on the parcel.
“That formal site plan review approval was issued on March 15 of 2023, and it's that action that memorializes the gopher-free (certification) from that point on,” Hendrickson said.
During public comments, some members of the community urged the commission to be careful of gopher-free claims, as the survey done for the property has already expired.
Betsy Norton, of the conservation group Black Hills Audubon Society, noted though Tumwater’s decision is permanent, the gopher survey it relies on is already out of date.
“(The) gopher survey is out of date per the (U.S. Fish and Wildlife Service) screening protocols, which state that surveys are only good until October 31 of the following year,” Norton said.
“From a rule standpoint, the expired survey is all they need. From a wildlife risk point of view, however, this is not so great,” added Norton before urging the port to seek an updated survey.
The lease has a maximum term of 75 years, with an initial duration spanning 55 years and an option to extend it for 10 more years twice. The lease rate is $0.48 per square foot or $50,994 for the entire lot.
The rate would increase by 10% every five years for the first 25 years. Fair market adjustments would also be made every 10 years, starting in 2026.
Rental charges would commence upon Panattoni getting a certificate of occupancy after the building is constructed or 14 months after the start of the lease contract, whichever happens first. But Panattoni would not need to make any payments for at least the first 13 months due to the terms of its contract.
Under the agreement, Panattoni will cover the costs for the Center Street improvements as required by Tumwater. The port will reimburse the company for the expenses through credits in the lease rate, excluding the cost associated with the frontage improvements on South Sound Commerce Center.
The required street improvements are estimated to cost around $675,000, which equates to 13 months of rent, so rental payments are not expected to begin until the credit expires in August 2027.
The port intends to recoup the expenses through latecomer fees with future tenants on Center Street.
The commission did not make any decision during the meeting. The contract will return to the commission on April 28 as a consent item, which would mean they could approve it without further discussion unless it is pulled from the consent agenda.
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Southsoundguy
These warehouses are going to be pointless when our country is no longer importing endless crap from China.
Wednesday, April 16 Report this
JW
I'm trying to balance out how much I despise the Port as well as how much I loathe this stupid gopher.
Thursday, April 17 Report this
Boatyarddog
@SSGuy...
You don't understand or care to try to realize..TRUMP the Menace is GRANDSTANDING for the sake of his Bullshite EGO.
You think America will benefit from a Worldwide recession?
Trade Tarriffs are ON The consumers.
TRUMP will fail.
Republicans will continue to LOSE electuons and Credibility.
And wull be replaced with Independents.
NOT A DAMN THING YOU CAN DO ABOUT IT.
The wannbe Dictator IS INSANE!
Friday, April 18 Report this
SecondOtter
Absence of evidence is not evidence of abscence. "No sign of gophers" is fairly subjective. If you pave over an area that could have hosted wildlife, of COURSE there won't be evidence.
This whole thing is just another demonstration of the Port's flexing. I do not know why they have so much power, how it is they managed to acquire land that is definitely NOT a port, and am saddened by their refusal to totally ignore those of us who protest their stupid decisions. The Port of Olympia needs to be decommissioned and dismissed.
Saturday, April 19 Report this