By Warren Cornwall
Herald Writer
Everett is near to clinching a deal for $16 million worth of taxes to help pay for a new hockey arena and events center.
The Snohomish County Council on Wednesday approved a four-way agreement with the city and two other agencies that would funnel millions in state sales tax dollars to the project.
The money would go toward construction of the arena, renting parking spots in a new county garage and paying the interest on debts accrued to build the proposed 10,000-seat arena.
Council approval was a key to locking in a deal that would virtually assure the project a steady stream of money accounting for roughly 20 percent of the cost, said Don Hale, executive director of the Everett Public Facilities District. That agency is leading the construction effort.
"It’s another one of the really important steps," Hale said following the 4-1 vote by the council.
The project is expected to cost approximately $75 million, including interest payments on debt, Hale said. But he cautioned interest rate fluctuations could change that number.
County council chairman Dave Somers welcomed the agreement as a way to get a local benefit from sales taxes that would otherwise go to the state. He pointed specifically to a part of the deal that would channel $2.7 million in sales taxes to the county for a yet-to-be-built parking garage.
In a somewhat convoluted process, the county’s public facilities district would give Everett’s district the money, which would then pay the county to lease up to 500 spaces in the garage for events that don’t conflict with regular county operations.
"The whole project lets us capture some dollars that are generated here and put them to our use," Somers said.
County council member Gary Nelson cast the lone dissenting vote. He said the deal gave Everett’s district an unfair advantage over other construction projects in the county by giving it first shot at the sales tax pot.
If sales tax revenues fall below expectations, "any other PFD in the county has to take the reduction and Everett doesn’t," he said.
The money comes from an estimated $40 million in state sales taxes that can be tapped by the county’s public facilities district. The PFDs have their roots in a state law designed to help finance construction of two Seattle sports stadiums by making a portion of state sales taxes available for such projects.
The county’s PFD is considering other applications for a portion of that money, including a Lynnwood district’s proposal to build a convention center there. Edmonds also has created a district.
The Everett deal still needs approval from the county and city districts, and the city council, Hale said. But he predicted those would meet it with similar support.
You can call Herald Writer Warren Cornwall at 425-339-3463 or send e-mail to cornwall@heraldnet.com.
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