SENATE BILL REPORT

SB 6757

BYSenators McDonald and Vognild

Changing provisions relating to the Washington state convention and trade center and authorizing construction of the Washington coliseum in Spokane.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 2, 1988

Majority Report:     Do pass.

     Signed by Senators McDonald, Chairman; Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Saling, Vognild, Zimmerman.

Minority Report:     Do not pass.

     Signed by Senators Bauer, Moore, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Lynn French (786-7715)

                March 6, 1988

AS PASSED SENATE, MARCH 5, 1988

BACKGROUND:

The Washington State Convention and Trade Center was formed as a public nonprofit corporation under Chapter 24.03 RCW.  The State Finance Committee was given authority to sell general obligation bonds totalling $99 million in order to design and construct a state convention and trade center in Seattle.  Senate Bill 5901, passed by the Legislature in 1987, established a joint House and Senate committee to study the history, governance, operational and fiscal problems concerning the center.

A study was commissioned by the Joint Committee and it indicated that the center would yield a greater long term benefit to the state if it were completed with full state funding and ownership rather than through a contemplated private/public partnership.  The study also stated that the center would be a more competitive facility if it had additional meeting rooms and exhibit space.

The Washington (Spokane) Coliseum is a new project proposal which provides for state ownership similar to that of the Washington State Convention and Trade Center.

SUMMARY:

The appropriation for the Washington State Convention and Trade Center is increased to include the following:

     -$13.0 million for conversion of retail space to additional meeting rooms.

     -$300,000 to secure the Eagles Building.

     -$13.3 million for expansion in the 900 level area of the facility.

     -$10.4 million for purchase of the McKay parcel.

$37.0 million TOTAL

The above appropriation is to be funded by general obligation bonds to be repaid from hotel/motel tax revenues.  The appropriation under SB 5901 of $8 million for full rehabilitation of the Eagles is eliminated under this bill.  Thus, the total net appropriation under SB 6757 is $29.0 million.  $57 million in additional bonds are authorized.  $20 million of this authorization was appropriated under SB 5901.

The appropriation for the Washington (Spokane) Coliseum is as follows:

     -$15.0 million in state general obligation bonds to be matched by an equal amount in private contributions of money and land.  There is a 2 percent hotel/motel tax and a $.50 entertainment facilities admissions tax imposed in the county of Spokane to pay the debt service on the $15 million in state bonds. $15 million in bonds are authorized.

Appropriation:  $29,000,000 new appropriation from WSCTC Account

$15,000,000 Washington Coliseum Account

Revenue:   yes

Fiscal Note:    requested March 2, 1988

Senate Committee - Testified:   No one