The Port of Seattle Commission has approved the lease of more than 42 acres in the Des Moines Creek Business Park (DMCBP), located just south of Seattle-Tacoma International Airport.
The agreement will see Puget Sound Energy (PSE) and developer Benaroya Capital build a new PSE operations centre that is expected to create over 200 construction jobs and 250 permanent jobs for the area.
Gael Tarleton, president of the Port of Seattle Commission, said: 'This project helps create much-needed local jobs.
'It advances our strategic goals to support sustainable development in Sea-Tac Airport's neighboring communities, producing economic benefits while protecting our environment.'
The lease term is for 20 years with 10-year options to extend the initial term to as long as 50 years.
PSE will pay an initial base rent of approximately $920,000 annually, while every five years the rent will be adjusted based on the Consumer Price Index (CPI).
The present value of the annual lease payments over the 20-year term equals approximately $11.4 million.
According to the Port of Seattle, these funds will go to the Airport General Fund to support other projects at the airport.
Elsewhere, the City of Des Moines will receive approximately $676,000 in ongoing revenue annually.
The DMCBP lot is located south of the Seattle-Tacoma International Airport runways and west of 24th Avenue South between South 208th Street and South 216th Street.
The operations centre will initially include a 281,000sqft warehouse and approximately 21 acres for an outdoor storage yard. A multi-story office building may be built in the future.
Phil Bussey, senior vice president and chief customer officer at Puget Sound Energy, said: 'We thank the Port of Seattle Commission and staff for working to ensure we reached an agreement that will allow Puget Sound Energy to be the first tenant at the Des Moines Creek Business Park.'
The 89-acre DMCBP was originally a combination of residential lots acquired in the City of Des Moines as part of the airport's noise mitigation programme and abandoned street purchased from the City, King County and the Washington State Department of Transportation. The site has been vacant since 1993.