Lynnwood Recreation Center’s $21 million makeover is city’s biggest financial project ever

Published 11:17 pm Sunday, August 3, 2008

LYNNWOOD — Work to renovate and expand the aging Lynnwood Recreation Center is expected to begin next year.

The project is estimated to cost between $21 million and $25 million, making it the largest in the city’s history.

“In terms of dollars, this is the biggest thing we’ve done in 50 years,” Mayor Don Gough said.

The City Council approved the project to expand and renovate the 30-year-old recreation center last week on a 6-1 vote.

The plan, which adds 15,380 square feet to the recreation center, includes a new aquatics center, locker rooms, a weight room and a cardio area. It is the first of two planned phases and is expected to be completed by 2010 or early 2011.

Construction and financing for a second expansion phase has not been decided on.

In approving the plan, the council decided against going with a less expensive option to simply renovate the recreation center at a projected cost of $9 million.

Funding for the first phase — renovation and partial expansion — will come from a variety of sources, none of which voters will weigh in on.

Those sources include a loan payable over 20 years with general obligation bonds, plus increases in utility taxes to service that debt.

John Moir, the city’s finance director, said the finance plan calls for increasing one utility tax and imposing two others.

An existing tax on telephones and pagers will increase from 3 percent to 6 percent. There also will be a new 1 percent utility tax on cable service and a new 6 percent tax on solid waste hauling.

“Those sources will help pay for the operation of the center after it is expanded and opens,” Moir said. “The user fees never pay for the operation of the recreation center.”

The new aquatics center will include a family pool and a smaller “wellness” pool, which is typically warmer and shallower.

Councilman Jim Smith cast the lone dissenting vote.

“I am not opposed to renovating the recreation center,” he said. “I’ve been in this business too long to realize there are going to be some decisions people aren’t going to like. But a lot of times I do what I think is the right thing. I think it’s important for citizens to declare war on out-of-control taxes.”

Smith was in the minority.

“I feel we need to make an investment in this facility,” said councilwoman Stephanie Wright.

Councilwoman Ruth Ross said residents have told the city they’re ready for a revamped recreation center.

“We have been very fiscally responsible here,” she said, adding that she is “amazed” the city doesn’t have to draw on $1 million in money saved when it turned library operations over to the Sno-Isle Library District after an annexation vote in 2006.

She said the plan to increase utility taxes is sensible because the city won’t be raising taxes on essential items such as water, electricity or sewer.

Moir said tax increases will pay the bond debt and that as existing debt on current bonds is retired, the city will be able to use that money beginning in 2011.