KPQ News Report on Town Toyota Center Debt Proposal
The state Treasurer's Office is rushing to prevent the Town Toyota Center from defaulting on $42 million in debt. The fear is that a swift bond-market reaction could jack up financing costs for other local governments.
Officials with the Treasurers office are meeting today in Wenatchee with local elected leaders and members of the PFD to discuss the proposed legislation.
The deal would require approval by state lawmakers during the first three days of a special legislative session, which starts Nov. 28, because the entire $42 million is due Dec. 1. The special session was called by the governor to deal with a nearly $2 billion shortfall in the state budget.
In a Seattle Times article today Senate Ways and Means Committee Chairman Ed Murray, D-Seattle, was skeptical about the state getting involved, even if local governments must pay the money back.
Murray told reporters, "I'm very concerned about any state resources ... being used for what basically appears to be a bailout." Murray added it could set a precedent where other local governments turn to the state to pay off debt.
Murray's counterpart in House Ways and Means, Chairman Ross Hunter, D-Medina, said he thinks the Treasurer's Office is taking the right approach, though he noted no legislation has been drafted yet.
Hunter said "The fundamental issue is, are we doing this just for Wenatchee, or are we doing it for the whole state? He said he thinks its being done for the whole state.
The treasurer's proposal would force the public-facilities district that owns the arena to borrow money from the state and pay it back with local tax dollars.
E-Mail
Print