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Project Background • In 2000, the High Performance Community Strategy helped define a vision for economic development in our region. Two key recommendations: 1) Improve community livability by revitalizing the waterfront and downtown; and 2) Develop an information technology industry cluster. Entertainment is vital to recruit and retain a high tech sector • In 2001, the PUD hired the JD White Company to help understand how the waterfront could be an economic development catalyst for public / private development • In 2002, the city worked with Makers on a new Vision Plan to help guide the update of our overall Comprehensive Plan. The development of the waterfront became a priority project.
Public Desires More access to the water
Waterfront Development Concept Plan and zoning adopted by Council in February 2004
Benefits • $239.5 million in building value • 1430 jobs (not including construction jobs) • $152 million in annual business income • $1.258 million in annual revenues to the city
City Implementation • Waterfront Subarea plan adopted Feb 2004, winner of 2004 APA Award of Merit • Riverwalk Crossing completed in 2001 • Orondo moorage and parking expansion project planned and funded – permits are pending • Riverside Drive planned, current grant allows for design and ROW acquisition, grant pending for construction
City Implementation • 5th Street improvements completed • Thurston Street underpass completed • Hawley/Pine/Walnut grant received • Row and Paddle Club dock completed • Private development projects materialize • 2005 - 2006 successful effort with the passage of ESSB 6230 • June 15, 2006 Interlocal agreement with 9 partners
Arena Development Riverside Drive Development Dock and Parking Expansion project
Area of Impact $1.285 million in annual revenues (Berk and Associates impact analysis) 20% = $257,000
Pending Development projects • CERB grant description: Public infrastructure project to support over $265 million in urban development creating 520 jobs and $3.7 million annual impact to the State ($1.258 to city) • Three additional projects are in the planning stages with pre-permitting conversations with community development
Wenatchee Regional Events Center Bonding: Project Cost $44.5 million Sales Tax bonds - $7 million CERB grant - $10 million Revenue bonds - $27.5 million Revenue bonds supported by Conditional Loan Agreement (CLA)
Wenatchee Regional Events Center CLA considerations: Allocate current Ice Arena funds and hold in reserve: • The fund had a $195,000 balance at the end of August 2006 • The Ice Arena renovation fund has a balance of $48,700 The General Fund reserve as of 12/31/2005 was $4,405,000 or $1,968,000 above our self imposed reserve of 14%
Wenatchee Regional Events Center CLA will be limited by: • Sales tax will increase: Current figures are based on 2005 numbers with a 4.5% escalator. From 2004 to 2005 the PFD area had a 6.41% increase and current experience is 10.32%. • Global will have contracted income available as we enter bonding (3 or 5 year signed agreements) and management contract will guarantee performance. • Anchor team will be named • Financing includes a $2 million debt service reserve
Wenatchee Regional Events Center Additional Consideration: • Department of Revenue provided initial project assessment based on a trade area of 400,000 in a 50 mile radius. Based on consumer expenditure numbers, event attendance and ticket pricing numbers were conservative. • North Central Washington receives 3 million visitors a year. • 50% of Mission Ridge season ticket holders are from the Seattle area • The building will be tax exempt, however leases will generate leasehold tax.
Global CH Johnson comments: • Market area • Fixed seat vs. maximum seat comparison • Revenue and expenses
Interlocal Agreement • Provides project backing to help guarantee revenue dependent proportion of the debt • Provides for city match • Provides for project oversight • Provides for fiscal oversight / treasury function
