
Port of Bremerton
commissioners approved lease extensions Tuesday night
for SAFE Boats
International, the port’s largest industrial tenant.
Though the rough terms of the deal
had been hammered out months ago, commissioners were
clearly elated to have the agreement formalized. SAFE Boats
employs nearly 200 workers in the port’s Olympic View Industrial
Park.
“We’re very proud to have a relationship with SAFE Boats,
and to have you in our industrial park,” Commissioner Axel
Strakeljahn said. “At the end of the day it’s about the people who
live in our community and the people who work at safe boats.”
SAFE Boats CEO Dennis Morris (pictured above) thanked
the port for crafting lease extensions that meets
the company’s changing needs.
“I think we’ve reached an
agreement that will work for all of us,” Morris said.
The extensions lock in SAFE Boats as a tenant through mid 2017.
After that, the manufacturer has the option of signing one-year
extensions for up to four successive years on any or all of the
four properties it leases.
The agreement requires a generous nine-month notice if SAFE
Boats decides to not renew a lease.
The variable terms of the lease extensions could help
SAFE Boats scale up or down to meet
fluctuating demand for its small military and law enforcement
boats.
“It does give us that flexibility in this dynamic business
environment we find ourselves in,” Morris said.
As I reported last week, the agreement also gives SAFE Boats a
steep discount on rent, to the tune of about $200,000 a year, or 41
percent.
SAFE Boats has leased space at the Port of Bremerton since
2000. The company is manufacturing a line of larger patrol
boats at a Port of Tacoma facility.
With its main leases in Bremerton expiring at the end of June,
SAFE Boats executives had looked for a way of consolidating
operations. A search for suitable industrial space in Kitsap didn’t
yield a ready solution
The company had the option of relocating its entire operation to
the Port of Tacoma, but finally opted to stay in
Bremerton.
With SAFE Boats sticking around, the Port of
Bremerton’s industrial buildings are are largely full. The
port still has a large number of vacant industrial pads it
needs to find tenants for.
Commissioners may discuss a plan for creating spec buildings to
attract more tenants at their next meeting.
SAFE Boats lease extension documents are embedded below:
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