Title
Consideration of Hands On Children's Museum Funding Strategy Recommendation
Recommended Action
Committee Recommendation:
Move to approve the Funding Strategy Recommendation and Bond Sale for the expansion of the Hands On Children's Museum and forward to the full City Council for consideration.
City Manager Recommendation:
Move to approve the Funding Strategy Recommendation and Bond Sale for the expansion of the Hands On Children's Museum and forward to the full City Council for consideration.
Report
Issue:
Whether to approve the funding strategy and bond sale for expansion of the Hands On Children's Museum.
Staff Contact:
Jay Burney, City Manager, (360) 753-8740
Presenter(s):
Jay Burney, City Manager
Patty Belmonte, Executive Director, Hands On Children's Museum
Scott Bauer, Northwest Municipal Advisors
Deanna Gregory, Partner, Pacifica Law Group
Background and Analysis:
The Hands On Children's Museum (HOCM) was opened in 2012. A large portion of funding for the HOCM comes from Public Facilities District (PFD) funding, which is making payments on the current bond. The PFD, formed in 2003, provides a .033% state sales tax diversion, and currently funds the HOCM and the Regional Athletic Complex (RAC) in Lacey. The initial PFD funding had a 25-year timeframe from 2003-2028.
Phase I of the museum was constructed with $9 million in bonds, repaid with PFD revenues, and $9 million in private fundraising. The current bond for Phase I is paid off in 2029. A bill that passed in the 2017 Legislative Session extended PFD revenues until 2043. A bill that has been sent to the Governor in the 2025 Legislative Session, would extend the PFD revenues until 2058.
Phase II construction is estimated at $30 million, with $20.5 million provided from the bond sale, and $10 million in private fundraising. The bond sale terms are described below in the Financial Impact portion of the staff report.
Staff and the HOCM Executive Director will provide an overview of...
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