Long - Term Ground Lease with DukeaPAShilPholeABayAChowderAHouPe,ALLCA at Shilshole Bay Marina May 9, 2017 Item No. 6a_supp May 9, 2017 Shilshole Bay Marina Location of Development Site Restaurant Pad Location Shilshole Bay Marina “Central Plaza Area” Shilshole Bay Marina Office and Retail Restaurant Pad Location Leif Erikson Statue Ground - Lease Premises Shilshole Bay Marina “Restaurant Building Pad” Project Benefits • Supports MaritimeaPA goalAofAcreatingAaA“DePtinationAMarina”A • Meets marina customers desire for full - service restaurant • Creates an additional community meeting place • Proposes sustainability practices that support Port environmental goals • Draws new patrons and customers to the Marina and upland businesses • Creates additional visibility for Shilshole Bay Marina • Tenant bears construction cost, however building will become a Port asset • Generates lease revenue for the Port AddingAAmenitiePAatAtheAPortaPALargePtARecreationalAMarina Key Lease Terms • Premises: 6,500 square foot restaurant pad • Term: 20 years, with one 10 - year option to extend • Base Rent: $ 10,420 per monthly, $ 125,000 • CPI Increase: Annual increase in rent • Construction Rent: $2,605 per month until Temporary Certificate of Occupancy • Expenses: Tenant pays own utilities, share of common area costs, and Leasehold Excise Tax Ground Lease Rates Above Market Lease Terms Cont. • Surety: Equivalent to one year average base rent ($150,000) satisfies Port policy • Parking: Will create short - term parking area (133 spaces) in central marina. No reserved parking • Tenant Due Diligence: Completed before lease execution • Brokers: None • Port Site Improvement Costs: Estimated $500,000 Long Term Commitment With Little Risk to the Port