HOUSE BILL REPORT

HB 2297

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Substitute Bill

Authorizes the State Convention and Trade Center to proceed with certain activities associated with expansion of the Convention Place Station.
Requires the State Convention and Trade Center to submit interim and final reports to the Legislature with cost information.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 14 members: Representatives Dunshee, Chair; Ormsby, Vice Chair; Warnick, Ranking Minority Member; Pearson, Assistant Ranking Minority Member; Anderson, Blake, Grant-Herriot, Hope, Jacks, Maxwell, McCune, Orwall, Smith and White.

Background:

The Washington State Convention and Trade Center (Center) is a public nonprofit corporation created by the Legislature in 1982 for the purpose of constructing and operating a nationally competitive convention and trade facility in the City of Seattle. The Center is governed by a nine-member board of directors appointed by the Governor. Initial construction of the Center facility was completed in 1988 and financed through state-issued general obligation bonds which are projected to be retired by Fiscal Year 2020. Expansion of the Center, authorized by the Legislature in the 1995-97 biennium, was completed in Fiscal Year 2002 and financed through the use of Certificates of Participation which are expected to be paid off by Fiscal Year 2017.

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Summary of Substitute Bill:

The State Convention and Trade Center Corporation (Center) is authorized to proceed with the Convention Place Station Expansion, including: planning; environmental studies; design; construction plans and specifications; exploration of potential co-development; construction contracting; acquisition of options in real and personal property; and other activities. The Center is authorized to pay the costs of these activities with appropriated funds or by obtaining interim financing, and may proceed with long-term financing for the construction and equipping of the expansion project upon authorization by the Legislature.

The Center must submit interim and final reports to the Legislature with information related to the cost of the expansion project.

The "Convention Place Station Expansion" is defined as the expansion of the Center located in the City of Seattle, primarily in airspace above the Convention Place Metro Transit Station, between certain streets, and with connections to the existing Center.

"Long-term financing" is defined as any type of long-term financing authorized by the Legislature for the expansion, including bonds, notes, and financing contracts.

Substitute Bill Compared to Original Bill:

The substitute bill specifies that construction contracting is for bidding and contingent construction contracting. Final reports to the House of Representatives Capital Budget Committee and the Senate Committee on Ways and Means about the costs to construct and equip the proposed Convention Place Station Expansion are required.

Staff Summary of Public Testimony:

(In support) The Convention Center has been extremely successful over the past 20 years. It has been operating at capacity and turns business away because not enough free dates or space are available to accommodate all requests. This is a good time for expansion because Seattle is a destination city and construction of the expansion will be complete in 2014 or 2015, just as the economy is recovering. The expansion will support approximately 3,200 jobs.

(Opposed) None.