Title
History of the Washington Center Funding Strategy Briefing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a briefing on the history of the Washington Center funding strategy.
Report
Issue:
Whether to receive a briefing on the history of the Washington Center funding strategy.
Staff Contact:
Mike Githens, Finance Director, 360-753-8465
Presenter(s):
Mike Githens, Finance Director
Background and Analysis:
The City of Olympia has a long-standing partnership with the Washington Center for the Performing Arts (WCPA). The City owns the facility at 512 Washington Street SE, which reopened in 1985 following significant renovation.
Under a long-term operating lease, WCPA functions as an independent nonprofit organization responsible for programming, operations, and day-to-day management of the facility. This public-private partnership has enabled the City to preserve a valued civic asset while leveraging nonprofit management and private philanthropy to support arts programming and community access.
The City’s role has included maintaining ownership of the facility, providing capital stewardship, and contributing financial support consistent with the Center’s public purpose.
Historically, City financial support for the Washington Center has consisted of:
• Lodging Tax Funding - 2% of Lodging Tax revenues have been dedicated to support facility operations and capital needs.
• Capital Investment - Periodic investment in major building maintenance, preservation and capital improvements to protect the public asset.
o Approximately 1980-1985: Acquisition, renovation and construction through State appropriations, City funding, sale of City-owned surplus property, local fundraising and private donations.
o 2008-2014: Building rehabilitation including replacement of the exterior, roof replacement, HVAC and mechanical systems replacement through issuance of a General Obligations Bond, Building Repair and Maintenance Funds and other capital resources.
The long-term operating lease agreement and contract between the City and WCPA is in effect from 2018 to 2034. A part of this operating agreement contains a section on “compensation”. As state in Section C, 4, “...the City shall pay or allocated, as provided herein, to the Washington Center during each calendar year of the agreement an amount equal to the 2% Lodging Tax authorized by RCW 67.28.180 and collected by the City from all lodging establishments located within the city limits.”
The city determined that the proceeds from the sale of the surplus land in West Olympia (originally proposed as the site of the WCPA) can be used for the WCPA organization in the future.
The WCPA facility is located in the heart of downtown Olympia and serves as an important cultural anchor for Olympia’s downtown and surrounding arts community.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
One of the goals of the City’s budget process is to ensure that city services are provided equitably to our residents and business communities, as well as the greater Olympia community. This agenda item is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with transparency, City finances and fiscal governance.
Financial Impact:
There is no financial impact associated with this agenda item.
Options:
1. Receive a briefing on the history of the Washington Center funding strategy.
2. Do not receive a briefing on the history of the Washington Center funding strategy.
3. Receive a presentation on the funding strategy for the Washington Center at a future date.
Attachments:
None