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HomeMy WebLinkAboutR-2000-074 Creation of Public Facility District for expansion of the Yakima Convention Center1111 RESOLUTION NO. R-2000- 74 • A RESOLUTION of intent to create a Public Facility District for the purpose of expanding the Yakima Convention Center WHEREAS, the City Council is desirous of expanding the Yakima Convention Center to meet projected future needs of this important business and tourism facility; and WHEREAS, Second Substitute Senate Bill 5452 approved by the state legislature during their session in May 1999 authorized creation of Public Facility districts to fund the construction and expansion of regional public facilities in excess of $10 million total construction cost plus debt service; and WHEREAS, the Public Facility District program is an available funding source for the expansion of the Convention Center with minimal potential impact on the City's general fund; and WHEREAS, further feasibility analysis and design of this project will involve expenditure of funds from the Convention Center Capital Reserve; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: That by approval of this resolution, the City Council of the City of Yakima resolves its intent to proceed with the steps necessary to design, fund and construct an expansion to the Yakima Convention Center with construction to begin no later than January 1, 2003. ADOPTED BY THE CITY COUNCIL this (2 day of June 2000. ATTEST: City Clerk (ja) Resolution PFD, 05/31/00,9:00 AM 2/7 A)", Mayor BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: For Meeting of: June 6, 2000 ITEM TITLE: Consideration of: 1) a Resolution of intent to create a Public Facility District for the purpose of expanding the Yakima Convention Center, and 2) an Ordinance appropriating $50,000 from the Convention Center Capital Reserve account to the Convention Center Professional Services Account. SUBMITTED BY: am Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cook 575-6227 SUMMARY EXPLANATION: During the 1999 legislative session, with the leadership of State Senator Alex Deccio, the State of Washington adopted a new program to assist communities, such as Yakima, to build new or expand existing "regional" public facilities in their communities. "The legislative authority of a city or a group of contiguous cities located in a county or counties each having a population of less than 1 million may create a public facilities district for the purpose of building, remodeling, owning and operating a regional center. A regional center means a convention, conference, or special events center, or any combination of facilities and related parking facilities that serve a regional population and that costs at least $10 million, including debt service. The boundaries of the city -created public facilities district must be the same as the boundaries of the city or cities that establish it. A city -created public facilities district is governed by either a five -member or seven -member board of directors (depending upon whether the district is created by a single -city or multiple cities) appointed by the legislative body that created the district. All members of the board of directors are appointed by the legislative authority, but no members of the legislative authority can be members of the board of directors. A public facilities district is given authority to use various financing mechanisms to assist in the construction, rehabilitation, or operation of one or more regional convention, conference, or special event centers including: Continued to next page Resolution X Ordinance Contract:" Other Specify: Funding Source: 370 Convention Center Capital Reserve APPROVAL FOR SUBMITTAL: �� `�-. ) •----- �' City'Manager STAFF RECOMMENDATION Approve resolution of intent and read only the ordinance appropriating funds. This ordinance should be acted upon on second reading on June 27, 2000. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: • General Obligation and Revenue Bonds • Charges for; use of facility, admissions and vehicle parking • Taxes on Admissions and Vehicle Parking • Local Retail Sales and Use Tax • State Sales and Use Tax Credit The Project: In 1974 the City initiated a program to construct the City of Yakima's Convention Center (Bicentennial Pavilion) located at 10 North 8th Street. The project was built at a cost of approximately $2,250,000 with funding provided through a general obligation bond. In the early 1990's'attention turned to future expansions of the Center to meet a growing demand for convention space and take advantage of the opportunity to extend a state credit of hotel/motel bed tax utilized to pay debt service on the original building. A Phase II expansion of the Convention Center including approximately 21,000 square feet of additional space and remodeling of the existing building, was completed in 1996 at a cost of approximately $6 million utilizing a general obligation bond with repayment dedicated from the State's credit of Hotel/Motel bed tax plus a portion of the local option bed tax. The state legislature has provided a window of opportunity for cities to take advantage of the new Public Facilities District (PFD) Program, but this "open window" has a deadline. The law requires that all projects to be funded under this new provision be started construction by January 1, 2003. At a Council Study Session held on Tuesday, April 18, 2000, a staff briefing on the Public Facilitie District State enabling legislation was provided. Although additional legal issues needed further study, the consensus of the Council was to: 1. Utilize the Council's Economic Development committee to continue discussion and planning for a Public Facilities District project to expand the Yakima Convention Center 2. Invite the adjacent cities of Selah and Union Gap that benefit from the Convention Centers contribution to the local economy to join Yakima in funding this project. 3. Research options to 1) provide the required 33% match and b) to maximize the Council's ability to retain control over this project and Public Facilities District activities. The Economic Development committee has met twice, April 26, 2000 and May 17, 2000, to consider additional information from our attorney, Forest Walls of Preston, Gates & Ellis. We have briefed each Council member on our recommendation to use the city of Yakima's real property interpct in the existing Convention Center as the required project match, and transfer ownership of the existing Convention Center to the Public Facility district. In addition, it is the opinion of Forest Walls that "the City may utilize one or more of the following mechanisms for maintaining control over the Public Facilities District's development, financing, and operation of the expanded Convention Center: • The City's power to appoint the Public Facilities District board members • The Public Facilities District Charter • The contractual arrangements between the City and the Public Facilities District, and • The conditions attaching to the transfer of any real property from the City to the Public Facilities District. With your approval of the attached resolution of intent and appropriation of funds within the Convention Center budget, staff will begin work on the "preliminary action item list" attached and more specifically: 1. Contract for an updated market study for the expansion of the Convention Center. 2. Contract for preliminary architectural work to determine the feasibility of this expansion project within estimated $5 - $6 million dollar budget that will be available. 3. Begin negotiations with the Department of Revenue on the City's match contribution plan. The attached ordinance appropriating funds should be read only at the June 6, 2000 meeting and acted upon on second reading at your meeting on June 27, 2000.