Kittitas Valley Event Center Barns & Bloom Pavilion Project-Kitt Co

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e =likely applicable for at least some portion of Event Center that could be spun-off if shown to reduce operating deficits, expense especially for facilities suitable for steady year-round use. O =not as likely to be applicable for Event Center use though not out of the question Donations -could play a potentially significant role if an aggressive +=not likely applicable either for legal or financial reasons capital campaign could be organized around major donors as champions of a state-of-the-art Event Center facility.Considerable Funding sources are not necessarily mutually exclusive.For lead-time is typically required to assess feasibility and mount a example,lodging (hotel/motel)tax revenues may be used to pay for successful campaign. capital improvements either on a cash pay-as-you-go basis or with annual payments pledged to debt financing.The following Federal and state grants -can also be expected to play a role in the comments are for consideration of potential funding suitability of overall funding program,especially for smaller,stand-alone each funding source:components of the overall improvement program as in the $250,000 -$2,000,000 range.A pivotal question is whether to make Lodging tax revenues -likely play a potentially pivotal role grants a major part of the overall funding program or whether to because of their current use in supporting Event Center operations take a more opportunistic approach for initial grants to prime the plus alternative uses for other tourism promotion activities region-pump for more significant later phase funding. wide.However,lodging tax will represent,at best,just one part of the total funding equation.For example,even if 100%of all existing Public Facilities Districts (PFDs)-are proving to be the most city and county lodging tax were dedicated to debt repayment,less versatile tool for funding and management of major event centers than $24,000,000 in debt financing would be supported -assuming in Washington state.Most PFDs to date have taken advantage of a a 30 year repayment period and 3.50%annual interest rate.now-expired sales tax credit,with little track record to date of seeking or obtaining voter approval for property and/or sales tax General fund revenues -are not expected to contribute mechanisms potentially available by state statute. substantially to capital improvements,except perhaps for smaller improvements -especially as long as continuing general fund Revitalization financing -tools of a wide variety have been tried in subsidy support in the range of $200,000 is required to offset the Washington state,though with limited success to date.Applicability annual event center /fairgrounds operating deficit.to a fairground is questionable as most of the funding mechanisms rely on some form of increased tax revenue (a factor of obvious User fees -typically are viewed as a source to first defray operating limited applicability to publicly owned and/or operated facilities). expenses.New facilities may actually increase the operating deficit (at least temporarily)until added revenues capability is proven with Voted general obligation bonding -represents a source that increased marketability,attendance,and or rates with new and conceivably could play a major role -with capacity conceivably to improved facilities.Achieving operating self-sufficiency should not underwrite up to 100%of project costs.Recommended is that a be expected given the experience of most other comparable preliminary survey be conducted to assess voter interest in this facilities.option -and at what level of potential funding support. Private funding -as a for-profit venture does not appear to be a Non-voted GO or revenue bonding -is also possible but cannot be feasible option for full Event Center operations,based on the expected to carry the full cost of redevelopment -unless experience of existing fairgrounds and related event venues in the improvements are phased over a substantial time period (likely Pacific Northwest.There may be portions of fairground operations beyond 15 years).Revenue bonding is possible with pledging of 22