Lease of unused highway land

AN ACT Relating to modifying allowable terms for the lease of 1
unused highway land; amending RCW 47.12.120; and creating a new 2
section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature recognizes that certain 5
property owned by the state of Washington under the jurisdiction of 6
the department of transportation that is not presently needed for 7
highway purposes could be used to serve pressing community purposes. 8
The legislature believes that the department should be enabled to 9
execute lease agreements with governmental entities and nonprofit 10
organizations that can help serve these community purposes using 11
lease terms that take into account the community benefit these leases 12
will provide. Therefore, the legislature is establishing a framework 13
for the department to use in developing lease agreements in this 14
context. The legislature intends for the department to consider the 15
authorization of these lease agreements urgent in light of the 16
compelling needs that can be served by the leasing of certain 17
properties under the jurisdiction of the department, and encourages 18
the department to move forward developing the lease agreements it 19
determines are appropriate, based on the factors provided below, as 20
expeditiously as possible.21
H-0871.1
HOUSE BILL 1774
State of Washington 69th Legislature 2025 Regular Session
By Representatives Fey, Parshley, Ramel, Wylie, Paul, Peterson,
Bronoske, Reed, Doglio, Taylor, Ryu, Gregerson, Fosse, Ormsby, Nance,
Springer, Zahn, Morgan, Macri, Hill, Obras, Leavitt, and Thomas
Read first time 02/03/25. Referred to Committee on Transportation.
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Sec. 2. RCW 47.12.120 and 2022 c 59 s 1 are each amended to read 1
as follows: 2
The department may rent or lease any lands, improvements, or air 3
space above or below any lands that are held for highway purposes but 4
are not presently needed. The rental or lease: 5
(1) Must be upon such terms and conditions as the department may 6
determine; 7
(2) Is subject to the provisions and requirements of zoning 8
ordinances of political subdivisions of government;9
(3) Includes lands used or to be used for both limited access and 10
conventional highways that otherwise meet the requirements of this 11
section; 12
(4) In the case of bus shelters provided by a local transit 13
authority that include commercial advertising, may charge the transit 14
authority only for commercial space; ((and))15
(5) In the case of the project for community purposes established 16
in RCW 47.12.380, must be consistent with the provisions of that 17
section; and18
(6)(a)(i) In the case of a lease agreement with a public agency, 19
special purpose district, or community-based nonprofit organization, 20
the department's process for determining adequate consideration for 21
renting or leasing lands, improvements, or air space, may incorporate 22
identified social, environmental, or economic benefits to be provided 23
by the lessee for community purposes as a component of the 24
consideration to be provided by the lessee when the use of the 25
property by the lessee is for a community purpose. Use of this 26
methodology is at the department's discretion. The following factors 27
shall be considered by the department in its evaluation of a 28
potential lease agreement under this methodology:29
(A) The extent to which the community purpose will benefit 30
overburdened communities and vulnerable populations, as these terms 31
are defined in RCW 70A.02.010;32
(B) The benefit of the community purpose to a broad number of 33
members of the public;34
(C) The likelihood that, during the term of the potential lease 35
agreement being considered, the property has practical and 36
economically feasible uses for which the department could obtain 37
economic rent during this period; and38
(D) The lessee's qualifications to perform the community purpose 39
and to fulfill its terms of the lease agreement, through 40
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consideration of factors that include, but are not limited to, the 1
lessee's prior performance related to the community purpose and the 2
financial feasibility of the lessee performing the obligations 3
required under the lease agreement. 4
(ii)(A) To the extent the department finds all or a portion of 5
costs associated with the leasing process to be undertaken for 6
community purpose projects identified under this subsection (6) 7
cannot reasonably be assumed by the lessee, the department may use 8
funds specifically appropriated for this purpose for these costs.9
(B) To the extent specifically appropriated funds are 10
unavailable, the department shall include a budget request to the 11
legislature during the next legislative session for sufficient funds 12
the department determines are necessary to complete a leasing process 13
under (a)(ii)(A) of this subsection.14
(b) As part of the consideration to the department, a lease 15
agreement under (a) of this subsection must require the lessee to 16
maintain and secure the premises.17
(c) A lease agreement under (a) of this subsection must include:18
(i) A requirement that the use of the premises shall be limited 19
to the designated community purposes;20
(ii) Remedies that apply if the lessee of the property fails to 21
use it for the designated community purposes or ceases to use it for 22
these purposes;23
(iii) To the extent applicable, a requirement that the lessee 24
assumes liability for the lessee's uses of the property to which the 25
requirements of 23 U.S.C. Sec. 138 and 49 U.S.C. Sec. 303, commonly 26
known as section 4 (f) of the department of transportation act of 27
1966, or 54 U.S.C. Sec. 200305, commonly known as section 6 (f) of the 28
land and water conservation fund act of 1965, apply; and29
(iv) Evidence of commercial or self-insurance at levels deemed 30
sufficient by the department, as well as appropriate indemnification.31
(d) The department must provide an annual report to the 32
transportation committees of the legislature by December 1st of each 33
year with information on the active lease agreements authorized under 34
this subsection, including the community purposes being served and a 35
summary of relevant lease terms.36
(e) For the purposes of this subsection (6):37
(i) "Community purposes" means providing one or more of the 38
following for public benefit purposes:39
(A) Housing, housing assistance, and related services;40
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(B) Shelter programs including, but not limited to, indoor 1
emergency shelters; transitional housing; emergency housing; 2
supportive housing; and safe spaces, such as tiny home villages, 3
pallet home villages, and recreational vehicle lots;4
(C) Parks;5
(D) Enhanced public spaces including, but not limited to, public 6
plazas;7
(E) Public recreation; or8
(F) Public transportation uses.9
(ii)(A) "Adequate consideration" means consideration that is 10
comprised of:11
(I) The performance of activities that fulfill the community 12
purpose designated in the lease agreement;13
(II) Maintenance and security of the premises to be provided 14
under the lease agreement; and15
(III) May include additional monetary or nonmonetary 16
consideration as provided in (e)(ii)(B) of this subsection.17
(B) The department may require additional monetary or nonmonetary 18
consideration be provided to the extent it determines that 19
consideration to be provided under (e)(ii)(A)(I) and (II) of this 20
subsection are insufficient consideration for use of the property and 21
that additional consideration is necessary. 22
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