Local organizations to divide bond money for new facilities

Deciding to avoid a public scrap, six Yakima Valley tourism-related groups have agreed to share a pot of sales tax money for new facilities.

It took state Sen. Curtis King bringing them together to work it out. The deal was worked out Monday.

The tentative agreement provides the six groups will share in the money, with State Fair Park and the Yakima Convention Center receiving the largest amounts.

State Fair Park will receive $3 million and the convention center, represented by the Yakima Valley Visitors and Convention Bureau, will receive $1 million in bond proceeds to make improvements to facilities.

The other four groups -- The Capitol Theatre, The Yakima Valley Museum, The McAllister Museum at the Yakima Air Terminal and The Seasons Performance Hall -- will each receive $250,000 of bond funding.

"As the discussion took place, a few proposals were presented. We were able to get consensus," said King, a 14th District Republican. "My hope is we will begin a process to show we can work together."

The $5 million for new facilities will come from a county bond sale. That debt will, in turn, be paid off by sales tax coming from hotel and motel room rentals in the city of Yakima.

The agreement must still be approved by county commissioners. That decision is expected early next month.

The agreement was announced Tuesday just as an advisory committee was about to wade into the approximately $12 million in requests.

Jake Jundt, a member of the Lodging Tax Advisory Committee, offered to adopt the agreement as a recommendation to county commissioners.

"Each gave up a little bit," Jundt told the committee.

Greg Stewart, president and general manager of the nonprofit Central Washington Fair Association, said the fairgrounds plan to use the money to upgrade Pioneer Hall.

The fairgrounds also needs funding to complete the State Fair Room at the SunDome and upgrade electrical service at the fairgrounds recreational vehicle park.

The convention center proposal involves a covered outdoor pavilion and a rerouting of North Eighth Street to accommodate the new facility.

The project is another phase of the Yakima Downtown Futures Initiative that includes new sidewalks, period street lights and other improvements on Yakima Avenue and the north-south streets in the downtown area.

County officials had projected the sales tax revenues, 2 percent of the state sales tax on hotel and motel room rentals, will generate enough money to support a $5 million bond issue. The room tax is estimated to generate at least $500,000 per year that will be used to retire the bonds. By 2019, the tax could generate nearly $600,000 annually, according to county projections.

Under a bill passed by the Legislature in 2007, the bonds must be paid off by 2020.

County Commissioner Rand Elliott, who chaired the Lodging Tax Advisory Committee, said commissioners will authorize preparation of a bond sale next week. Other details on how the money will be spent and the committee's recommendation will be before commissioners next month.

Gary Lukehart, a committee member representing the lodging industry, told fellow committee members the community should work together to find money to market tourism.

"Other communities have sources of income that allows them to advertise and market their areas. When we don't have money to market facilities, we are at a disadvantage," he said.

*  David Lester can be reached at 577-7674 or dlester@yakimaherald.com

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