SENATE BILL REPORT

SB 6767

BYSenators Hayner and McDonald

Relating to public facilities.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 11, 1988

Majority Report:     That Substitute Senate Bill No. 6767 be substituted therefor, and the substitute bill do pass.

     Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bluechel, Cantu, Fleming, Hayner, Johnson, Lee, Newhouse, Saling, Zimmerman.

Senate Staff:Lynn French (786-7715)

                March 11, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 11, 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 provisions for creation of public facilities districts is new.

SUMMARY:

SB 6767 was introduced by title only.

EFFECT OF PROPOSED SUBSTITUTE:

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 SSB 6767 is $29.0 million.  $57 million in additional bonds are authorized.  $20 million of this authorization was appropriated under SB 5901.

A public facilities district may be created in counties with a population of 300,000 or more, upon voter approval.  The boundaries of the district are coextensive with those of the county, and it is governed by directors appointed by the county and largest city within the county.  The district is an independent taxing authority and may impose a 2 percent hotel/motel tax along with a $.50 admissions tax on public assembly facilities and an ad valorem property tax for the construction and operation of convention, sports, entertainment, trade and related facilities.

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

$1,000,000 for the Spokane Public Facilities District.

Revenue:   yes

Fiscal Note:    none requested

Senate Committee - Testified:   No one