The City Owns KFC Lot, Considers Extending Lease Five Years

NW Restaurants, Inc. operates the Kentucky Fried Chicken (KFC) restaurant located at 15802 Bear Creek Parkway on City of Redmond property under a lease that will expire on June 30, 2023. NW Restaurants wishes to continue leasing the property and has negotiated with staff for a proposed lease amendment extending the lease up to five years to June 30, 2028.  Council must approve the lease extension.

NW Restaurants, Inc. has operated the KFC restaurant under a lease with the previous property owners since 1971. In 2016 the City bought the property with the intent to facilitate the preservation of land needed to build a new street link connecting Redmond Way and 158th Ave. NE, and a new four-way intersection at Redmond Way and Bear Creek Parkway. These planned improvements are identified in the Redmond Transportation Master Plan, an element of the Redmond Comprehensive Plan.

Summary of the proposed lease amendment terms. The lease can be terminated by either party with 12 month notice.  Rent increases to $8,251/year in '23 - '24 from $6,559/year. 

Source:  Council Committee of the Whole memo, 6/12/2023