Legislative Committee Report: Renewing our DNR leases

by Sheri Greaves, Chair - Amalia Walton, Co-Chair. -

Since we are currently in the process of renewing our DNR leases, it may be helpful to provide a brief overview of how DNR lease rates are determined and some key background information.

Background

In the mid-1990s, Bill Keasler (former long-time FHA President), and I—serving as Legislative Chair at the time—worked closely with our FHA attorney, Peter Eglick, and our lobbyist, Mike Ryherd. Together, we spent nearly three years negotiating with representatives from DNR to establish the lease framework that most moorages currently operate under.

These negotiations resulted in a 30-year lease term specifically designed for floating home moorages. This was a significant improvement over the previous 10-year leases, which made it difficult for homeowners to obtain financing. Most banks were unwilling to issue loans with such short lease terms, or if they did, they limited loan periods to 10 years.

Another major achievement was securing recognition of floating home moorages as water-dependent uses, which provides a 30% discount on lease rates. In my view, this effort remains one of the most important accomplishments of the Floating Homes Association for its members, second only to the Equity Ordinance.

Current Lease Renewal Process

The new lease application you are completing may appear more complex than previous versions. This is because DNR has moved away from lease forms designed specifically for floating homes. Instead, the new format is intended to apply broadly to marinas and over-water residences, with details customized during individual lease negotiations.

For now, the most important step is simply to submit the lease application along with the $25 fee.

Many sections of the application relate to improvements on leasehold lands and are not relevant to lease renewals. DNR understands this and has advised applicants to write “N/A” for most of these sections.

I previously provided a sample completed application at the Dock Leaders meeting last fall and would be happy to share it again with anyone who needs it.

What Happens After Submission

After submitting the application, the process largely involves waiting. Most existing leases do not expire until 2027, so DNR will prioritize renewals as expiration dates approach.

If DNR has not contacted you before your lease expires, the current lease will simply continue on a month-to-month basis until a new lease is finalized.

Environmental Improvements

Many moorages have asked what types of environmental improvements DNR may require during lease renewal. At this time, there is no definitive answer.

During a meeting with DNR a few months ago, Amalia and I were told that requirements will be site-specific and negotiated individually. However, DNR indicated they are generally flexible regarding timelines for any improvements that may be required.

For that reason, we recommend not making assumptions or undertaking major improvements in advance. It is best to wait and see what DNR requests during your specific negotiation process.

How DNR Lease Rates Are Determined

DNR calculates lease rates using the following formula:

Definitions

Upland Parcel: The adjoining property that contains upland characteristics (i.e., some dry land).

KCA Value: The King County Assessor’s valuation of the upland parcel, established through state statute and based entirely on the Assessor’s Office property valuation.

Because floating home moorages are classified as water-dependent uses, they receive the maximum 30% discount on the calculated lease rate.