KPFD Terminates Calahan Property Lease

Key Peninsula Fire District 16 terminated the lease agreement for the commercial Calahan property (formerly O’Callahan’s, Buck’s and Reed’s) at the corner of KP Highway NW and 92nd Street NW in Key Center that it purchased at the end of 2021, according to Fire Chief Nick Swinhart. 

The property was purchased as a possible site for a new fire district facility in coming years, but the district intended to keep it rented until that time, together with a second currently rented residential property just to the south of Sunnycrest Nursery. The district signed a lease with a tenant to operate a restaurant at the corner property early last year, but significant repairs are needed for it to open. After spending approximately $28,000 of an estimated $70,000 required, the district asked the tenant to consider paying for the work in lieu of rent.

The tenant declined and agreed to a lease termination in January. The district will reimburse the tenant a $6,000 deposit and pay a $2,500 “goodwill” fee to prevent further claims. The district also agreed to pay up to an additional $10,800 for any expenses the tenant incurred upon proof of same, according to Swinhart.