City, WTDA expected to renew leasing deal
Published 12:46 am Monday, April 24, 2017
Washington’s City Council, during its meeting today, will consider authorizing the mayor to sign a new lease agreement between the city and the Washington Tourism Development Authority for its use of the Civic Center.
The current one-year lease expires June 30. The new lease agreement is for one year, sets the city’s subsidy to operate the Civic Center at $35,000 and includes a 50/50 profit-sharing provision between the city and WTDA. Those conditions are the same ones included in the current lease.
The authority will pay no rent for use of the Civic Center as its offices, but will responsible for all management and operations of the facility. The city will pay its subsidy in 12 monthly payments of $2,916.67 due on the 10th of each month.
The authority may submit funding requests to address specific maintenance costs, with the city, recognizing budget restraints, making its best efforts to fund such requests. Under the new lease, the city is responsible for major structural maintenance of the Civic Center, including decks, floors, roofs and plumbing and electrical systems.
On or before Oct. 31 of each year, beginning in 2017, the change in the net position of the Civic Center, as reported in the auditor’s report, will be shared equally between the city and authority, whether a gain or loss. If a gain, the authority will remit payment — half of the gain — to the city by Oct. 31, and if a loss, the city will remit payment — half of the loss — to the authority by Oct. 31.
The proposed lease makes it clear WTDA will not be responsible for maintenance, operation and any liability associated with the lease between the city and Sound Rivers for the spaces of the Civic Center building used by Sound Rivers. Should the lease between the city and Sound Rivers be terminated, WTDA has the right of first refusal to include those spaces, unless the city decides to use those spaces for city purposes.
WTDA is to use its leased areas to promote tourism and tourism-related projects, according to the proposed lease. WTDA has the right to set policies concerning use of the Civic Center and establish rates for use of the Civic Center and its facilities.