Partners, Programs, Leases & Contributions
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1 Partners, Programs, Leases & Contributions
2 Existing On-Site Partners
3 3
4 Partner Lease Negotiations: Timeline State Parks completes market-rate appraisals on historic buildings for exclusive uses 2013 State Parks executes first and only lease based on market-rate appraisals (Madrona MindBody Institute) 2014 PDA assumes leases with Partners 2016 PDA renegotiates Partner lease based on a set of key principals with intent to avoid Gift of Public Fund violations and to sustain ongoing operations and investment in Fort facilities 2017 New lease terms in place by January 31
5 Business Model Issues: Tenant Partners Several Partners pay no rent and are partially subsidized by the PDA: Friends of Fort Worden (Bldg. 200 VIC/Gift Shop) JCHS Commanding Officer s Quarters (Bldg. 1) Port Townsend Marine Science Center (shoreline/pier facilities) Puget Sound Coast Artillery Museum (Bldg. 201)
6 Gift of Public Funds Article VIII of the Washington State Constitution: State, County, and Municipal Indebtedness. Summary: These sections prohibit the state and its political subdivisions from loaning state money or credit, and prevent the gifting of public money or property, to any private entity, unless necessary to support the poor and infirm. Section 5: Credit Not to Be Loaned. The credit of the state shall not, in any manner be given or loaned to, or in aid of, any individual, association, company or corporation Section 7: Credit Not to Be Loaned. No county, city, town or other municipal corporation shall hereafter give any money, or property, or loan its money, or credit to or in aid of any individual, association, company or corporation, except for the necessary support of the poor and infirm, or become directly or indirectly the owner of any stock in or bonds of any association, company or corporation
7 Partner Lease Negotiations: Key Lease Principals The overarching goal is to define one consistent structure that balances: The current situation for each partner; and Grows lease rates over time closer to current market Common rate structures with stair-step approach to move closer to market rate over an extended timeframe Using Point Hudson as comparable market rate ($0.75/ sq. ft. average) 4-Year Fort Worden target for Founding Partners ($0.30/ sq. ft.) 8-Year Fort Worden target ($0.50/sq. ft. based on current market)
8 Our Partners 8
9 Partner Lease Negotiations: Key Lease Principals Lease term based on business planning and capital investment plans default is year-to-year leases 5-Year lease eligibility comes with Partner business plan approved by PDA 10-Year lease eligibility comes with 5-Year requirements plus capital investment plan for exclusive use buildings Standard lease earn-back opportunities to reduce lease rate evaluated every two years
10 Key Partner Earnback Factors Revenue Generated At Fort Worden Revenues generated from residential programs Conference services revenue Lifelong Learning Center Programming Days offered Incentives for shoulderseason programming and new programs offered Scholarships Capital Investment Capital improvement commitments to exclusive leased spaces Services Offered At The Fort Selling Discover Passes Interpretative services Public access tours / lectures Collaboration Cooperative fundraising Cooperative marketing
11 End of lease discussion
12 Recruitment of New Partner Types Outdoor/Adventure Leadership University Lifelong Learning Nonprofit and Leadership Development Institute Hospitality & Culinary Services Training Program Historic Preservation Trades Programs Others? Wellness & Meditation Digital Arts Robotics Cycle School K-12 Classes
13 Market Data BOAT HAVEN LEASES New Day Fisheries, Inc $0.35 Cunningham Ships Carpentry LLC $0.50 Johnson Fabrication LLC $0.50 L.A.W. Enterprises $0.50 Fine Yacht Interiors $0.55 Lowest Hadlock Shipwrights/SteelHead $0.55 Peter's Marine $0.55 Petrykowski, Rick/TAKU Marine $0.55 PT Furniture Clinic $0.55 Sands, Guy $0.55 Craftsman United Inc. $0.57 Goldstar Marine $0.58 Admiral Ship Supply $0.60 Key City Fish Co. $0.60 Sunrise Coffee Co. $0.65 Takaki, Jennifer Alys $0.65 Blue Moose Café $0.70 Port Townsend Fuel Dock LLC $0.90 POINT HUDSON LEASES Shannon Partners LLC $0.07 Washington Dept. Fish& Wildlife $0.10 Rat Island Rowing & Sculling Club $0.25 Hanson of Port Townsend Inc $0.50 Marine Resources Consultants Inc. $0.50 Point Hudson Boat Shop LLC $0.50 Brion Toss Yacht Rigging $0.55 Port Townsend Sails $0.55 Puget Sound Express $0.55 Schooner Martha Foundation $0.55 Commanders Beach House $0.62 Shanghai Restaurant $0.62 Hudson Point Café $0.65 Pygmy Boats, Inc. $0.71 Washington State University Ext. $0.72 Marine Resources Consultants Inc. $0.75 Doc's Marina Grill / TNT Restaurants LLC $0.84 Hudson Point Café Office $0.95 Leitman, Amy/Marine Surveys & Asse. $0.95 Gordon Ph.D, James B. $1.00 Washington Dept. Fish& Wildlife $1.48 US Custom $2.00
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