Item No.          6g supp
Date of Meeting       June 23, 2020
First Amendment to Lease with
Mad Anthony's at Pier 66
June 23, 2020

Maritime/EDD Tenant Relief Program
Terms approved by Commission/ED and within our Delegation of Authority
Defer all rent and other charges for four months (April-July) without interest.
" Tenant required to make commercially reasonable efforts to remain in operation
and/or reopen consistent with public health orders.
" Tenant certifies it has been significantly impacted by COVID-19
Deferred payment plan commencing on 10/1/20 with payback in 12 months  but also
negotiate payment plans to fit unique circumstances.
" Offer lease extension if tenant lease term is too short to payoff reasonably
Proposed relief consistent with what done across the Port
Extended terms
Deferred rent
Waiver of MAG (percentage rent only)

2

Background
All restaurants closed by Governor's first order, March 23
Anthony's 19 locations - Washington, Oregon, Idaho
Also fish distribution and sale, Food truck, take-out at Little Chinook's
Long-term lease (20+ years remaining)
Seriously affected by COVID-19
Participating in deferral program with hope of lease
amendment

3

Anthony's Pier 66
Current                                Proposal  effective 6/1/20
22,000+ SF, three restaurants
Built by Port 1995,              Two years
Lease expires 2041               No Minimum Rent
Minimum Rent: Greater of        6-1/2% of gross sales only
$31K+/month rent or            After two years: 6-1/4% or
6% of gross sales                    Minimum Rent for remainder
of term
Note: They have paid percentage rent annually
over the last ten years.

Risks and Benefits
Risks
Cruise is huge impact on business, uncertainty in return of cruise
Increased percentage rent may not cover waived minimum rent
Shallow recovery may not mitigate this loss
Benefits
Retains long-term tenant in very challenging property
Some revenue to Port during two year period of % rent only
Increased percentage rent provides possible upside
Mitigates risk of failure leaving the Port with a challenging and costly
property to reposition