City halts conference center plan

Legislative help unlikely, developer says

MICHAEL BURNHAM THE OLYMPIAN

OLYMPIA -- A Spokane developer's hopes of building a downtown conference center now rest with the state Legislature.

The Olympia City Council voted shortly after 11 p.m. Tuesday to shelve Spokane developer David Brubaker's proposal to build a 110,000-square-foot conference center at the foot of Budd Inlet's East Bay.

The council's vote was unscheduled and didn't appear on the agenda.

At the request of Mayor Stan Biles, City Manager Dick Cushing asked the council Tuesday whether it wanted to vote to discuss the conference center at its March 12 meeting.

However, Brubaker's tight timeline -- which included a Dec. 16 groundbreaking -- killed the deal for the city.

Too fast for the law

City Attorney Mark Erickson and the city's bond counsel, Preston Gates & Ellis, determined that state law requires the project to go through a formal construction bidding process or request for qualifications -- a formal solicitation for architects and builders.

The request for qualifications process would take a minimum of 30 to 40 days, and the formal bidding process would take even longer, Erickson said.

"It appears that, given the time constraints, it was not possible to meet those kinds of deadlines," Cushing said Wednesday.

Rather than schedule the meeting, Councilman Doug Mah made a motion for the council to cease pursuing the proposal. The motion passed by a 6-0 vote. Councilwoman Jeanette Hawkins abstained, saying she hadn't reviewed the developer's proposal.

Brubaker, who learned of the council vote from a reporter Wednesday morning, said he was surprised and disappointed.

Brubaker's development team initially had contended the project could bypass the formal review processes.

Proposal history

At the council's Feb. 26 meeting, Brubaker proposed the creation of a publicly owned and privately operated conference center with 100 guest rooms. Previous proposals had called for an adjacent full-service hotel.

The project was estimated to cost $18 million to $20 million to build.

Brubaker proposed to build the project on a 3.7-acre Port of Olympia parcel using state sales tax money.

The public money could be used because the region as a whole would benefit from the convention center, proponents said.

Previous studies have estimated a center would bring millions of dollars annually to boost the local economy both through expenditures for facility operations and by conference center users spending their money locally.

The cities of Olympia, Lacey and Tumwater would need to form a public facilities district -- a board-operated district with borders matching the cities -- Brubaker said.

The district could direct about $10.5 million of state sales tax money toward construction, and Brubaker suggested the remaining construction cost be covered through a public bond issued by Olympia.

Development of the center must start by Jan. 1, 2003, to receive state money.

The city could have found a way to make the project work -- if there were more time, Brubaker said.

"I'm disappointed. I would have hoped that they would have been more entrepreneurial in trying to utilize that funding," said Brubaker, who will receive a letter explaining the council's decision.

Legislative help?

Those hoping to salvage the project must now look toward the state Legislature, Cushing said.

Senate Bill 5514, sponsored by Sen. Dan Swecker, R-Rochester, would give municipalities with public facilities districts an additional year to break ground on new projects.

The city's lobbyists started an amendment to the Senate bill, which would allow municipalities which have created public facilities districts by July 31 to take advantage of the one-year extension.

"It's not a lot of time, but it does give (Olympia) a window," said Sharon Case, a legislative lobbyist for the city.

House Bill 2849, which would have extended the public facilities district deadline by one year, died in committee last month. It was sponsored by Rep. Gary Alexander, R-Olympia.

Still, Alexander said he is hopeful that SB 5514 will pass through the House by the session's end.

Brubaker isn't holding his breath for legislative help this year.

"I expect that it's probably unlikely, given that there's a huge hole in the state budget," Brubaker said, referring to the state's $1.6 billion budget shortfall.

"But if there were a way ... we'd be back in a heartbeat," added Brubaker, who said his team has spent more than $100,000 preparing the proposal. "It's a great site; we think we have a great team and a great concept."

Developing a conference center was the Olympia Port Commission's top preference for the 3.7-acre property.

However, port officials have discussed developing something else on the property with Brubaker and others.

While Brubaker confirmed that he has discussed alternative project plans with another development team, he would not elaborate.

"It's not at a point for us to make any announcements," Brubaker said.

Port Commissioner Bob Van Schoorl said he was equally surprised and disappointed by the council vote. But he conceded it might be time to consider other options for the site.

The port set aside funds this year to design and plan the East Bay district, which is largely vacant. That design could include mixed developments of retail and housing, port officials have said.

"This gives us a signal that maybe a conference center isn't in our immediate future," Van Schoorl said.

Michael Burnham covers Olympia for The Olympian. He can be reached at 360-704-6869 or mpburnha@olympia. gannett.com.

On the Web:

-City of Olympia

- Washington State Legislature

- Summary Page for Senate Bill 5514

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Summary Page for House Bill 2849

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