Municipal bond holders have agreed to give the Wenatchee Events Center Public Facilities District (PFD) one more week before entering into full-scale default to allow time for the Legislature to reach agreement on a $42 million loan to pay off the bonds. The bonds technically went into default at 10 a.m., Dec. 1, 2011.

Working through the state Treasurer’s office, the city of Wenatchee has agreed to pay the bondholders $6,100 a day to delay default for a few days. Because the default deadline has technically passed, a new bill had to be drafted because the original bill title was to prevent default. The new bill does exactly the same as the original legislation. It would provide a bridge loan to the PFD using local sales tax money from the state’s local sales and use tax account. No state money is involved. The terms of the loan also remain the same, with a high interest rate, and the ability of the state to garnish local sales tax receipts if the PFD fails to repay the state on time.

The new bill has a hearing this afternoon in the House Ways and Means Committee. Rep. Mike Armstrong said it was his hope that the House can pass the bill on Monday and send it to the Senate – and then get the legislation to the governor by early next week.