By Janice Podsada
Herald Writer
EDMONDS — The city council approved a request about midnight Tuesday by the Edmonds Public Facilities District for $2 million in city funds.
Council members voted unanimously to conditionally approve the PFD’s request. Council member Richard Marin was absent.
Under conditions set by the council, no money will be given until the PFD provides the city with detailed information on its plans to convert a local auditorium and gymnasium into a performing arts center, and submits a viable business plan.
"We are proclaiming our intent for the PFD to go forward," council president Dave Earling said.
Council members also learned that the purchaser of the former Puget Sound Christian College, where the auditorium and gym are located, plans to build affordable senior-housing on the remainder of the site.
Now the Edmonds PFD will be able to show the Snohomish County Public Facilities District Friday that it has a conditional $2 million guarantee from the city.
Under the county’s PFD deadline, the Edmonds PFD had until Friday to come up with the $2 million. Without that, the Edmonds PFD wouldn’t have been eligible to receive $5.7 million from the county PFD. The county district was formed to distribute state sales tax rebate funds to local PFDs, including Lynnwood, Everett and Edmonds.
Edmonds PFD board member Jan Conner told the council that the total PFD revenues — $7.7 million — will be used to purchase and renovate a 925-seat auditorium and gym on the campus of the former college near downtown Edmonds.
The two facilities will form the centerpiece of the PFD’s planned performing arts center.
The PFD plans to develop the former college in concert with the purchaser, Covenant Construction Management, a Lynnwood developer, which paid $6.5 million for the property.
Peter Frame, a partner with Covenant, told the council his firm plans to construct a 160-unit affordable senior housing complex and 240-unit underground parking garage on the site; 160 of those stalls will be available for arts center patrons.
Covenant is asking the PFD for an estimated $3.8 million for the auditorium and gym, and another $2.7 million to construct the underground parking garage.
On the down side, the council discovered that if the PFD collects the $2 million, the city is then legally obligated to make up any annual operating deficit from the performing arts center.
But Conner said making the city pay would be the "last resort."
"We would solicit revenues from the arts community and grants to cover any deficit," Conner said.
She said the operating deficit would run about $50,000 the first few years. The PFD wants to open the arts center by 2004.
Bill Trenkamp of Edmonds, who opposed the PFD’s plans, reminded council members that the city’s debt is the taxpayer’s debt.
"Revenues are iffy. Otherwise you folks are on the hooks for it (the deficit) and, thus so are we," Trenkamp said.
The $2 million would come from the city’s long-range capital fund, whose balance is generated by a percentage of the state’s 1.78 percent Real Estate Excise Tax.
"It would have been a shame to let this $5 million, basically free rebate money, leave our town," PFD Chairman Terry Vehrs said.
You can call Herald Writer Janice Podsada at 425-339-3029 or send e-mail to podsada@heraldnet.com.
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