The Poulsbo City Council is looking into raising rent to market-rate at The Coffee Oasis location on NE Iverson Street, and the nonprofit is trying to find solutions in order to afford the monthly increase.

The topic was discussed at council’s Jan. 14 meeting.

The Coffee Oasis rents a city-owned building (the former Public Works administration building) to run a coffee shop and provide youth services. The location opened in 2012 with large support from the Poulsbo Rotary Club. The City Council initially approved a three-year lease with a rent of $400 a month. Today, the nonprofit pays $835 a month.

“We have a city obligation to rate-payers to charge market-rate rent because the…building is located as part of the water utility,” Kim Hendrickson said, the city’s Housing, Health and Human Services director. “At $835, we are charging dramatically under what the market rate is for that property. The estimated market value for that property is around $13-35 per square foot. At the very low-end…we estimate market rate at between $3,000-$3,500 per month (over $2,000 increase).

Bryce Clark, The Coffee Oasis executive director, said he believes the nonprofit could afford to pay somewhere between $1,000-$1,500 a month for rent.

Two options have been proposed to help with increased rent costs. One would be to increase the rent to market price and increase it over several years. The other would be increase rent to market price and subsidize a portion of rental costs.

“The general fund might be the natural place to look,” Hendrickson said. “I have thought a bit about whether our local housing tax dollars could be used to supplement Coffee Oasis, and in its current function, I don’t think it could.”

Councilmember Rick Eckert added, “This is a health services support. Mental health sales tax should be able to support it, versus the general fund. If that’s something we can do…it feels to me that’s a worthy investment. We do need to figure out future plans for the building. I don’t know how long it’s sustainable. There might be a better location for Coffee Oasis.”

Services that The Coffee Oasis provides include a drop-in center and outreach; mentorship/case management; self-sufficiency and well-being services; help in crisis; and job experience, per a presentation to council. About 170 youth used the facility in 2025.

The topic will be placed on the business agenda for council’s Feb. 11 meeting.