Revised Lodging Tax Agreement HorseParkArena

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1. Project Description: Please describe the project in detail. Indicate the major work to be completed, any milestones that need to be overcome in order for the project to move forward, and include a comparison of existing and proposed conditions. The Washington State Horse Park Authority ("the Authority") is a 501(c)3 nonprofit corporation whose mission is to develop, promote, operate, manage and maintain a first-class horse park facility in accordance with RCW 79A.30 passed 1995 (recodified 67.18 ). The Authority obtained land and funding to develop the initial revenue -generating facilities for the Washington State Horse Park in Cie Elum, Kittitas County, Washington. The Park held its first event in 2010 and has been self-sustaining since that time. However, its ability to satisfy current customer needs and host larger and more diverse horse groups is limited because all of its existing riding facilities are outdoors while many event organizers require protection from the weather. This project seeks $1.5 million from the Kittitas County Lodging Tax to construct a $4.6 million Covered Arena and Associated Build -Out (covered arena, not an enclosed arena) at the Washington State Horse Park for the purpose of equine competitions and training events, recreational riding and other uses. Background: In 1995, the State legislature passed RCW 79A.30 (recodified 67.18 ) to create the Washington State Horse Park Authority. The legislation directed the Authority to establish "3) a first-class horse park facility in Washington to meet the important needs of the state's horse industry, attract investment, enhance recreational opportunities, and bring new exhibitors and tourists to the state from throughout the region and beyond; and 4) A unique opportunity exists to form a partnership between state, county and private interest to create a major horse park facility that will provide public recreational opportunities and statewide economic and employment benefits." Upper Kittitas County was selected as the location for the Horse Park when suitable wooded acreage was donated by Suncadia LLC for the purpose of developing a horse park. The 112 -acre site is conveniently located off 1-90 at 1202 Douglas Munro Blvd in the city of Cie Elum. This location met requirements determined by earlier studies for a horse park facility, including good highway access and a dry climate. The City took ownership of the donated property and entered into a 99 -year lease with the Authority. Legislative support continued with appropriation of $3.5 million in the 2007-2009 capital budget for Phase I construction of the Horse Park. That work included design, development, permitting and engineering components, as well as site clearing, road grading, utility improvements and initial arenas and stabling to begin hosting activities and generating revenues. Ground was broken in March 2010 and the first event took place in August of that year. In an Oct 12, 2009 posting on house republicans.wa.gov, then Rep. Judy Warnick (now Sen. Judy Warnick, 13th Legislative District) included in the list of reasons for her support: "Most of all, these facilities will help the local economy and provide much-needed jobs." This view by the legislators was reinforced by Senator Holmquist Newbry on April 22, 2013 on the same website. Speaking to the importance of Senate Bill #5212, which increased the number of members on the Horse Park Authority from 7 to 11, she said, "This bill is about bringing in more tourism dollars to benefit the greater community that will lead to further private sector job creation." The bill passed both the House and Senate unanimously. Construction of the Horse Park has been divided into three phases. Phase I was completed when the Park opened for business. its cost of $3.5 million to develop the initial infrastructure 2