A Proposal for an Arena Debt Deal for Wenatchee, District Officials and the State
First of all let’s admit two facts
about the arena debt: we need a sales tax increase to avoid default but a .02
percent tax is dead on arrival without Wenatchee committing to put up any of
its debt capacity. I wouldn’t recommend East Wenatchee or Douglas County
support putting it on the ballot, and I certainly wouldn’t vote for it. It’s
not fair to the citizens of the outlying districts.
But I would support a fair sales tax increase
with three legs in an agreement between Wenatchee, PFD districts and the state.
1. Wenatchee pays a heavier share than
anyone else;
2. Every district that owns the facility
through the PFD shares part of the remainder by voting on a sales tax increase
that the political leadership would place on the ballot and support;
3. The state chips in for the remainder
of the debt to preserve bond ratings for the state and its municipalities.
How to do that? Most important of all is believe we have the
leadership to do it. Here some suggestions on how to reach agreement:
Wenatchee: Pick up 40-50 percent of the
existing debt in some way or another: a sales tax increase, part of the
non-voter approved bond capacity, increased voter approved bond capacity if
possible, whatever. Just commit to finding a way. Just start talking publicly
about what is possible.
District elected officials: Make it clear under
no circumstances will you even place a .02 percent sales tax increase on your
ballot. However commit to finding an acceptable agreement with a lower sales
tax rate that you would put on the ballot and support because it would cost
your citizens less in the long run than a default and because Wenatchee is
taking a much larger load than your district. Start talking about what you
would need to agree to those conditions.
Remember, you have another vested party in the state.
Treasury/State Officials: Understand that since a .02
percent sales tax is dead on arrival and Wenatchee and the districts need help
in resolving this crisis, commit the state to find revenue to pay for the some
of the debt because it will protect the bond ratings of the state and every
other municipality in the state. Legislative leaders, you must look for a deal
you would recommend to your other legislators and the district voters to pass
in order to get the entire deal put together. It’s not enough to recommend
putting a .02 sales tax increase on the ballot that will fail. What we need
from you is a willingness to support a sales tax increase as the best deal for
everybody in your districts and the state.
Remember, a sales tax increase would mean Wenatchee citizens would be
paying that tax also in addition to their major commitment.
Who could broker such a deal? Perhaps a master arbitrator, a municipal
bond broker, or some other person hired by the PFD to bring the parties
together and save everybody money by avoiding default.


The Town Toyota Center was dead on conception. It is too big for the community in which it is situated. It was passed by area officials without ballot input from the people. It is a socio-economic albatross which should not be visited upon the citizens who had no voice in its conception and construction.
Denver tried the concept of a multi-purpose sports-concert-arts center 40 or so years ago. It was not workable then under far better fiscal budgets then in a much larger community; it is not workable now.
So what do you do with an albatross? Sell it. Do some creative thinking and find a valid use for it. Recognize your error in it's full magnitude and default if that's your only option.
Learn this lesson well and in the future don't expect citizens to support projects they have no voice in creating and no voice in determining their responsibilities to.
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