Response to Request for Proposal for Lease of
THOMAS STREET SHOP
SPACE AT SEATTLE CENTER
TABLE OF CONTENTS
Organization General Overview . . . . . . . . . . . . 1
Plan and Proposed Use. . . . . . . . . . . . . . . . . . . . 3
Management and Operations. . . . . . . . . . . . . . 4
Proposed Term and Financial Return . . . . . . . . 4
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Implementation Schedule . . . . . . . . . . . . . . . . . 5
Working With Seattle Center. . . . . . . . . . . . . . . 5
Organization Financial Condition. . . . . . . . . . . 6
A. PROVIDE A GENERAL OVERVIEW OF YOUR ORGANIZATION,
INCLUDING THE ORGANIZATION’S STRUCTURE AND PURPOSE.
Space Needle
As the most visible icon in the Pacific Northwest, the Space Needle has become a symbol of our
City around the world. Privately-owned by the family of its builder, Howard S. Wright, the Space
Needle is a reflection of Seattle and is operated and maintained as a world-class attraction.
The Space Needle has been a significant attraction and tourism driver for more than 53 years.
The Space Needle is well-experienced in the sustainable operation of an attraction, restaurant
and retail business, having served over 50 million guests since it opened in 1962. We have
over 300 team members with substantial average tenure, several surpassing 30 years of service.
We have a solid management team with varying years of Space Needle history, coupled with
experience from some of the most recognizable and respected names in our industry.
As a cornerstone of Seattle Center, we have joined in the celebrations of our region’s success in
government, sports, education and the arts. When the 2008 Century 21 Committee was formed,
Space Needle board member Jeff Wright was named as co-chair of the Committee that created
the Century 21 Master Plan to make Seattle Center a more vibrant and exciting part of our
community.
The Space Needle has played a role in our City’s growth through support of local businesses
and non-profit organizations. The Space Needle has been used as an inspirational symbol and
our facilities have been made available at no cost to numerous non-profit organizations for
fundraising opportunities. We are now focusing on our role in the City’s development for the
next 50 years. We strive to nurture and maintain this world-class status as we move ahead into
the “Next-50” in partnership with Seattle Center.
The family-owned Space Needle is a proud neighbor and consistent supporter of the
development of Seattle Center, aligned with the best interests of our community. As the 2008
Century 21 Committee’s report was released, the Space Needle’s board and management were
actively exploring the possibilities in and around the Needle to add vitality to Seattle Center and
draw additional visitors to the campus. We believe strongly that the concept of “Public / Private
Partnership” is necessary to support the long-term success of Seattle Center.
CHIHULY GARDEN AND GLASS
In partnership with the City of Seattle and Seattle Center, Chihuly Garden and Glass opened
in 2012 and has provided millions of guests with the exceptional experience of art influence,
immersion, delight and surprise with Dale Chihuly’s most comprehensive exhibition of his
greatest works.
The exhibition has become one of the must see staples of Seattle, earning the ranking of the #1
attraction on TripAdvisor. We believe that visitation on campus has grown with the addition of
the exhibition, providing additional strength for campus resident groups.
Chihuly Garden and Glass actively employs 150+ Team Members; offering living wages and a
benefit package that substantially exceed the Seattle $15 Minimum Wage schedule.
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Chihuly Garden and Glass continues to operate with a focus on further refining guest
experience, seeking opportunities to support and showcase local artists, education and cultural
organizations, and collaboration on continued improvements to Seattle Center campus. Notable
annual impacts include:
• More than $1.5 million in financial benefit to the City, County, and State – from admission taxes,
sales taxes, lease tax, rent paid, county taxes, and state taxes.
• Donations of more than 10,000 free tickets to local youth, education, social works, and
community organizations throughout the year.
• Support in excess of $100,000 to community partners – Pratt Fine Arts Center, Pilchuck Glass
School, ArtsFund, and Seattle Public Schools – to further arts engagement for youth and adults
within Seattle and the Northwest.
• Admissions discounts in excess of $500,000 to King County residents.
• Ongoing employment of more than 150 Team Members.
• Creation, implementation and improvement upon Seattle Public Schools STEAM curriculum,
impacting district 6th grade students.
• Continued commitment to operate according to LEED Silver Certification by USGB.
• More than $1 million invested in improvements to common areas at Seattle Center campus,
including Artists at Play and Enhanced Pedestrian Access.
Space Needle and Chihuly Garden and Glass are financially solvent and operate profitably. If our
proposal advances, further proof of financial stability can be provided if needed.
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B. PRESENT A DETAILED PLAN OF YOUR PROPOSED USE OF
THE THOMAS ST. SPACE. INCLUDE ANY PRE-CONCEPT DESIGN
AVAILABLE SUCH AS SKETCHES OR FLOOR PLANS AND AN
ESTIMATE OF PLANNED CAPITAL INVESTMENT INCLUDING AND
IDENTIFYING BOTH HARD AND SOFT COSTS. IDENTIFY DETAILS ON
ANY PROPOSED ALTERATIONS TO THE THOMAS ST. SPACE.
Featuring specialties and icons of the Pacific Northwest, Expressly Northwest will continue to
operate with the same use as it has for the last eighteen months.
Expressly Northwest proudly supports Northwest companies, designers and artisans. The
following is a sampling of a few of those companies:
LolideAmy Bengston
Choke Casual Industries
Clear Creek Lantern Press
Spokandy Johnson’s Smokehouse
Almond Roca Chocolati
Seattle Chocolates Baleen
Foamy Wader
Our local and tourist market have demanded for items that are locally crafted and made/
designed in the USA. Expressly Northwest has answered that call perfectly, offering a wide
variety of gifts and collectibles at an approachable price point.
In addition to the assortment listed above, Expressly Northwest features sport apparel and
sideline gear from Seattle’s best professional and collegiate teams, local wines and craft beers,
apparel and memorabilia from Seattle’s greatest musicians as well as products that feature the
Space Needle, Mount Rainier, and the City of Seattle.
Public Benefits
The Space Needle will continue to employ permanent, full-time Team Members for this location
that earn well above the current minimum wage and are provided with a full benefit package;
including medical, dental, vision, 401k, profit sharing, meals and transportation subsidies.
Additionally, the Space Needle will pay Seattle Center what we believe to be an aggressive and
above market rate rent for the location.
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C. IF RELEVANT, DESCRIBE HOW YOUR PROPOSAL WILL BE
MANAGED AND OPERATED, INCLUDING DAYS AND HOURS OF
OPERATION, STAFFING AND ACTIVITY PLAN AND/OR EVENT
SCHEDULE.
As the current tenant, the Space Needle would anticipate operating hours and conditions to be
very similar to the operations of the past eighteen months. Any adjustment to store hours would
be in response to guest demand.
For the past year, Expressly Northwest was open to the public 9 a.m. to 9 p.m. during peak
tourist season and 10 a.m. to 6:30 p.m. during shoulder months – 7 days a week.
The Space Needle has created and implemented enhanced positions and rolls throughout
the organization in 2015. The addition of “FLEX” team members has shown a significant
improvement in the quality and dependability of our Team Members in these roles. Expressly
Northwest would operate utilizing the majority of staff from the FLEX pool, resulting in service
and support provided at a high level for Seattle Center guests.
Our new model also incorporates a higher wage, one that is ahead of the City of Seattle
minimum wage law – both in wage and timing.
The Space Needle will continue to manage the operations with the experience and strength of
its retail management and front line team members.
D. OUTLINE THE PROPOSED TERM AND FINANCIAL RETURN TO
SEATTLE CENTER.
Proposed Rental Breakdown
• The term of the Lease shall be two years
• Years 1 and 2: annual flat base rent of $108,000.
We are willing to make reasonable adjustments to this proposal as requested by the City so long
as the total economic cost to us is consistent with the above terms.
Public Benefits – Taxes Collected
• City Tax Revenue
This benefit is made up of the 3.0% local Sales and Use Tax and a 0.215%
Business License Tax.
• Leasehold Excise Tax Income
The 12.84% of excise taxes are split as determined by the State of Washington between the
City of Seattle and the State.
• State Tax Revenue
In addition to the City of Seattle’s direct tax revenues, this proposal will provide additional tax
income to the State of Washington. The major driver of the State’s benefit of this proposal is
the 6.5% Sales and Use tax as well as the 0.471% Business and Occupation tax.
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E. EXPLAIN HOW YOUR PROPOSAL CONTRIBUTES TO SEATTLE
CENTER’S PURPOSE STATEMENT AND ADDRESSES THE THREE
PRIMARY GOALS OUTLINED ON PAGE 1 OF THE RFP.
Expressly Northwest is a perfect fit for Seattle Center, showcasing great products made or inspired by
what Seattle, and its surrounding areas, represent. It offers locals and visitors the opportunity to take
a piece of their experience home with them. Locals have frequented Expressly Northwest for its wide
variety of sports apparel and local artisan products. Visitors have taken advantage of the above, as
well as, the assortment of Seattle branded keepsakes, local craft beers and wines as well as a variety
of apparel and collectibles from famous Northwest musicians, offered to compliment those featured
at the EMP.
The store compliments the current tenants of Seattle Center, providing a unique product that is
underserved anywhere else onsite.
Under the Space Needle umbrella, Expressly Northwest is financially solvent and is managed by
a seasoned retail team. This team is led by a director with 25+ years of senior retail management
experience. The store also has the benefit of a dedicated veteran buying team, an operations
manager and a visual merchandising manager.
F. PROVIDE A PROPOSED IMPLEMENTATION SCHEDULE, ASSUMING
YOUR PROPOSAL IS SELECTED BY THE END OF 2015.
As Expressly Northwest is currently in full operation, we would envision entering into a new lease on
January 1, 2016 with no down time or lapse in rent and/or royalties paid to Seattle Center.
G. IDENTIFY HOW YOUR TEAM PROPOSES WORKING WITH SEATTLE
CENTER. ELABORATE ON THE ROLES THAT YOU WOULD ANTICIPATE
SEATTLE CENTER AND YOUR TEAM PLAYING IN COMMUNICATIONS,
DECISION MAKING, MARKETING, BRANDING AND OTHER
ELEMENTS OF YOUR PROPOSAL.
As always, the Space Needle team is open and willing to collaborate with Seattle Center in any of
their marketing efforts. Expressly Northwest already has approved branding from Seattle Center and
we envision no change to the name or exterior design of the store. We have partnered with CocaCola and expanded their line and footprint in the store, bringing the total to three large coolers of
product that supports Seattle Center’s partnership. As campus partners, we are willing to engage
and support any new programs or initiatives.
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H. PROVIDE SPECIFIC INFORMATION ON YOUR ORGANIZATION’S
FINANCIAL CONDITION, INCLUDING ANTICIPATED LOANS OR
FUNDING EFFORTS NECESSARY TO IMPLEMENT YOUR PROPOSAL.
IF YOU HAVE EXPERIENCE WITH THE TYPE OF PROGRAMMING
BEING PROPOSED, SUBMIT RELATED FINANCIAL DATA FOR THE
PAST EXPERIENCE. PROPOSERS DO NOT NEED TO SUBMIT A
COMPLETE PROPOSAL PRO-FORMA AS PART OF THE INITIAL RFP
SUBMITTAL, BUT ANY PROPOSER WHOSE PROPOSAL IS SELECTED
FOR SHORT LIST PRESENTATIONS MUST PREPARE AND SUBMIT A
FULL PRO-FORMA AND PROOF OF FINANCIAL VIABILITY AS PART OF
THE INTERVIEW/PRESENTATION.
If our proposal is selected, the Proposer with an ownership structure substantially similar to the Space
Needle will execute a lease with the City of Seattle.
The Space Needle will provide management and oversight to the operation. It has been a significant
attraction and tourism driver for over 53 years and is well experienced in the profitable operation
of restaurant, attraction and retail businesses having served over 50 million guests since it opened
in 1962. We have a history of attendance growth and of adding substantial family wage jobs to the
local economy.
Over four decades of profitability and a strong balance sheet provide the Space Needle owners the
financial capacity to implement the proposal.
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