Three different plans have been presented for a regional solution to the Town Toyota Center default. The Public Facilities District board met Tuesday, January 3rd with elected leaders from all nine jurisdictions that comprize the arena’s ownership. They came together to hear three plans put forward by the Cities of Wenatchee, East Wenatchee and Douglas County that are designed to not only to pay off the 42 million dollar arena debt but also to help provide a revenue stream for addressing future maintenance and operation costs.
The three proposals all have one common thread, a voter-approved sales tax increase and enabling State legislation that would change the statute that created the PFD in 2005. The changes could include restructuring the PFD governing board so that all nine jurisdictions have equal representation.
Tuesday’s meeting had a sense of urgency as the nine entities scramble to find a way to pull the arena out of debt while at the same time try to avoid the legal costs associated with potential lawsuits from bond holders.
The PFD has scheduled another meeting for this (Wed) morning to discuss the three proposals in advance of making a request to the legislature which convenes its regular session next Monday.
PFD Board Chairman said he feels good about the outcome of the meeting.
"All three plans have some aspect that can provide a solution," "I'm excited to see what comes down the road," said Cetto.
Cetto reported at the start of Tuesday’s meeting with budget report that shows the arena is losing money due to legal costs associated with the default. He said the facility is expected to be 400-thousand dollars in the red by the March. He warned that the arena could fall into bankruptsy if a solution cannot be found.
Newly elected Wenatchee Mayor, Frank Kuntz remains cautiously optimistic that the entities can come together on a workable plan going forward, "It's great that we're all talking, we still have some major hurdles," said Kuntz.
The City of Wenatchee has already budgeted 2.1 million dollars in this year’s budget to pay interest on the loan. The city is also spending about 100-thousand dollars this year on legal costs.
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