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Home My WebLink About01/20/2026 09.A. Update on Capitol Theatre Capital Improvements 2026 !, 1';''A'44 ki e I IN ": • l'.4‘ , F s BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.A. For Meeting of: January 20, 2026 ITEM TITLE: Update on Capitol Theatre Capital Improvements 2026 (Public Facilities District Fund) SUBMITTED BY: Bill Preston, Community Development Director *Charlie Robin, Capitol Theatre CEO SUMMARY EXPLANATION: The Capitol Theatre is owned by the City of Yakima. The Theatre is run through an operating agreement with the Capitol Theatre Committee (CTC). Graham Baba Architects was hired to design multiple projects to improve the Theatre (R-2025-081), including the 4th Street Terrace, House Renovations, and Facade Remodel. The City of Yakima and the Capitol Theatre will provide an update on the design progress. The discussion will include allowing CTC to fund raise for capital improvements as well as directing staff to work with CTC on construction funding options. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Approve CTC to proceed with fundraising activities. Direct staff to work with CTC to develop funding options for the construction phase of the project. ATTACHMENTS: 012026_CTC_City_Council_Presentation 102 CAPEITOL THCity Council Presentation JANUARY 20, 2026 Three Requests of Yakima City Council Overview Approve the Capitol Theatre Committee to solicit funds from individuals, corporations, foundations, and government agencies as part of a capital campaign for the purpose of funding the proposed capital improvements to the Capitol Theatre facilities. Approve the next phase of the current Capital Improvements Project (the Design Phase), directing staff to extend agreement with Graham Baba Architects to create the required designs for the project. Direct City staff to review legal and financial pathways with Capitol Theatre Committee, to define the partnership and responsibilities of each party, including timing for a new bond issue to secure access to the .025% sales tax credit used to pay Capitol Theatre obligations for 20 years past the current expiration date of 2032. 8 Capitol Theatre Committee Annual Report (Fiscal year ending June 30, 2025) 100 Events 155,000 Total Ticketed Attendance I Additional Non-Ticketed Attendance CTC FY25 Capitol Theatre Committee events: Capitol Best Total Income $2,529,660 Capitol Kids Total Expenses $2,489,867 ° Capitol Global Voices u Capitol Theatre Tours Resources Local Organizations Served: Program & Services 31.5% Yakima Symphony Orchestra Yakima Town Hall Speaker Series Facility Rentals 24% Pacific Northwest University Management Fees 14% Yakima Youth Symphony Orchestra Yakima Salsa Dance Fundraising/Underwriting 15.5% Yakima Valley Comedy Festival Investments 10.5% Melody Lane Studio u Footlights Dance Studio Other 3.5% - Broadway Bound Dance Academy tri Capitol Theatre Committee Annual Report Continued FY26 Highlights 4 Pre-tour Tech Events: ffin , j_w_ , , Book of Mormon 7. �� ; 14.E 4� - '!� �. � _''j1 l� � �.q6� Suffs ,_ Chicago _ ,,,k4:, ,a, , ,. ie‘ ,, Stomp '' 1r F 10 Weeks, 25-75 cast & crew per production .. Students and the company of Stomp after a workshop in the 4th Street Theatre November 10,2025 0 0 jFundraising Ca ital ProJects Authorization Request#1 Approve the Capitol Theatre Committee to B. RESPONSIBILITIES OF CITY. solicit funds from individuals, corporations, foundations, and government agencies as 1. The City shall perform, or cause to be part of a capital campaign for the purpose of performed by contract, the major upkeep, funding the proposed capital improvements maintenance, and repair of THEATRE premises to the Capitol Theatre facilities. and fixtures as indicated on the schedule attached hereto marked Exhibit "A", to this agreement, which items of expense shall be borne directly by the City and which will not be included within the CTC obligation of maintenance, management and operation responsibility. In order to assure that necessary repairs, maintenance and upkeep are provided when required, CTC shall advise the City of necessary repairs, upkeep and maintenance on systems identified in Exhibit "A", in writing, as soon as any such deficiencies are identified. - Capitol Theatre Operating Agreement 0 Capital Improvements Project: Design Phase Request#2 Approve the next phase of the current Pre-Design Support capital projects (the Design Phase), PFD Allocation $500,000 directing staff to extend agreement with State of WA, Capital Allocation $100,000 Graham Baba Architects to create the Total Pre-Design Resources $600,000 required designs for the projects. Pre-Design Expenses Graham Baba Architects: $224,415 Post Pre-Design Phase Total Resources Task Order 1 —Primary $184,240 Value Engineering Services $32,500 $308,400 Reimbursable Expenses $7,675 DBI Consulting: 3-D Laser Scan $46,375 Pacific Rim Environmental: Hazardous Materials $14,310 PLSA Surveying: Site Survey $6,500 Total Pre-Design Expenses $291,600 0 co Capital Improvements Project: Design Phase Continued Design Phase Graham Baba Architects Task Order 2: $1,415,766 A/E Design Services SD-Bidding $1,287,060 A/E Design Services Cont. (10%) $128,706 Other Services (Owner Direct) $80,333 Permits & Inspections (Estimate) $50,000 System Development Charges (Estimate) $25,000 Advertising for Bid (Estimate) $5,333 Design Phase Total I $1,496,099 0 co Capital Improvements Project: Design Phase Continued Other Expenses Construction Phase (Estimate) Escalation To SOC-June 2027 (6.5%) $650,950 Construction Net Cost $6,401,329 WA State/Yakima County/Special Tax (8.3%) $885,243 Phasing and Temporary Work $160,036 A/E Services for CA-Closeout (Task Order 3) $483,498 General Conditions & General Reqs $1,181,045 A/E Services Contingency (10%) $48,350 Bonds and Insurance $232,273 Management Reserve Contingency (2.5%) $266,639 Overhead and Profit $318,988 Change Order Reserve (5%) $533,278 Design and Estimating Contingency $1,244,048 Owner Provided FF&E $622,725 Design and Estimating Contingency $476,888 Testing (0.15%) $21,949 Construction Subtotal111 $10,014,607 CT Operational Contingency $1,000,000 Cost to Remodel 4th St. Theatre $50,000 Other Expenses Total $4,562,182 Construction Phase Total $14,577,239 Design & Construction Phases Total $16,073,338 0 Explore Financial Pathways Request#3 Direct City staff to review legal and financial pathways with Capitol Theatre Committee, to define the partnership and responsibilities of each party, including timing for a new bond issue to secure access to the .025% sales tax credit used to pay Capitol Theatre obligations for 20 years past the current expiration date of 2032. Timeline , Ler,t Overall Project & Fundraising Timeline 2026 2027 2028 2029 2030 2031 2032 2033 2034 JAN JUN NOV Current Bond Obligation Pledges Payment Period Fundraising Period Bid Contracting Construction Phase 7* Grand Reopening marking 50th Anniversary of Reopening after Fire