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HomeMy WebLinkAboutVictor Improvement Club, Inc. Lease Agreement - Contract Mason County Agenda Request Form To: Board of Mason County Commissioners Item No. From: Richard Dickinson, Deputy Director Utilities and Waste Management Ext: 652 Department: Utilities & Waste Briefing: ☒ Action Agenda: ☒ Public Hearing: ☐ Special Meeting: ☐ Briefing Date(s): February 23, 2026 Agenda Date(s): March 3, 2026 Internal Review: ☐ Finance ☐ Human Resources ☒ Legal ☐ IT ☒ Risk ☐ Other (Please ensure proper internal review channels have been followed, this is the responsibility of the requesting Department) Item: Victor Improvement Club and Mason County Lease Agreement Background/Executive Summary: Mason County leases land from the Victor Improvement Club (VIC) for the purpose of operating and maintaining a sewer pump station, which is part of the North Bay Water Reclamation Facility collection system. The agreement has a provision for renegotiation and extension for an additional ten years. The end of the lease period is March 14, 2026. It is unlikely a purchase agreement or renegotiated lease will be completed by March 14th although parties have met and held productive conversations. Associated Costs/Budget Impact: Under the current lease, the county pays no rent or utilities (power), and the VIC is not charged a monthly utility fee, nor has it paid the initial connection fee. Both parties are to equally share in any well costs such as pump replacement. The VIC is interested in selling the area presently leased. If the land is acquired for $25,000 or less and the VIC agreeable to waiving an appraisal, sale could proceed relatively quickly. If the county does not purchase, the VIC proposes to charge rent. Additionally, they propose Mason County pay for the power bill and 100% of the well costs. Public Outreach: N/A Requested Action: Request the Board authorize the execution of a lease extension agreement with the Victor Improvement Club through June 23, 2026, for the purpose of allowing additional time to negotiate either the purchase of the property or revised lease terms for the sewer pump station site serving the North Bay Water Reclamation Facility collection system. Attachment(s): 1. Current Lease Agreement 2. Extension Agreement AMENDMENT TO LEASE THIS AMENDMENT TO LEASE (hereinafter called “Amendment”) is made this ___ day of _____________ 2026 between Victor Improvement Club, Inc. (hereinafter called “Lessor”) and Mason County, State of Washington (hereinafter called “Lessee”). WHEREAS, Lessor and Lessee entered into a Lease dated March 14, 2000, for the purpose of operating and maintaining a sewer pump station, which is part of the North Bay Water Reclamation Facility collection system; and WHEREAS, the agreement term is scheduled to expire on March 14, 2026; and WHEREAS, the Lessor and Lessee require additional time beyond March 14, 2026, to complete negotiations for potential purchase of the leased premises or an extension of the lease ; NOW THEREFORE, Lessor and Lessee agree as follows: 1. Extension of Term: The Lease term is hereby extended from March 14, 2026, through June 23, 2026. This Extension Period may be modified by mutual written agreement of both parties. 2. Terms During Extension Period: All other provisions of the Lease remain unchanged and continue in full force and effect. VICTOR IMPROVEMENT CLUB, INC. BOARD OF COUNTY COMMISSIONERS MASON COUNTY, WASHINGTON PRESIDENT PAT TARZWELL, Chair RANDY NEATHERLIN, Vice Chair SHARON TRASK, Commissioner ATTEST: MCKENZIE SMITH, Clerk of the Board APPROVED AS TO FORM: TIM WHITEHEAD, Ch. DPA