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HomeMy WebLinkAbout12-006 Use of Bond Funds for Fort Worden Lifelong Learning Center PDA Resolution 12-006 Amending Resolution 11-024 Page I of S RESOLUTION NO. 12-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON AMENDING RESOLUTION 11-024 CONCERNING USE OF BOND EXPENDITURES FOR THE FORT WORDEN LIFE LONG LEARNING CENTER PUBLIC DEVELOPMENT AUTHORITY RECITALS: A. In determining to support the Fort Worden Life Long Learning Center Public Development Authority(FWPDA), the City Council recognizes the importance of Fort Worden to the community and the fact that Fort Worden serves as an economic engine for the community, including: • 15 organizations and businesses are supported. They include: Centrum Copper Canyon Press Corvidae Press Goddard College Peninsula College Fort Worden Conservancy Jefferson County Historical Society Coast Artillery Museum Bon Appetit Synergy Sound PT Hospitality Madronna MindBody Institute PT Marine Science Center PT School for Woodworking Student Conservation Association • The Fort involves 200 employees (32 park employees) • 1.5 million visitors visit the Fort each year • 350-400 conferences and events occur at the Fort each year • 1/3 of Port Townsend Lodging Taxes is generated by the Fort. • The Fort generates $7.6 million in earned revenues (conferences, tuitions, tickets sales, merchandise, etc.) • The Fort generates $4 million in contributed revenues • There were 45,000+volunteer hours at the Fort in 2010 B. Recently, in approving an Operating Agreement between the City and FWPDA (dated Resolution 12-006 Amending Resolution 11-024 Page 2 of 5 January 18, 2012), the Council recognized these and other factors in determining to support the FWPDA with both capital support and in-kind services: 1.1 The Fort Worden State Park(the"Park") encompasses 434 acres within the City, has more than a hundred historic buildings and is designated a National Historic Landmark. The Park is unique in the State park system because it operates as a State park and as a conference and event center. It offers over 68,000 square-feet of meeting rooms and event spaces and hosts 350 to 400 conferences and events per year. The Park attracts 1.5 million visitors to the City each year. These visitors contribute to a vibrant local tourism economy. 1.2 The Park currently houses seventeen businesses and organizations and supports over 200 employees. These businesses and organizations contribute over$10 million in revenues annually to the City. Accommodations within the Park also contribute about one-third of the total hotel-motel taxes collected in the City. 1.3 A six-year planning process, supported with over $1 million in public and private funds,has resulted in an adopted Long-range Plan for Fort Worden(2008)(the"Plan")to transform the Park into a Lifelong Learning Center. The City has participated in and provided in-kind support during the planning process. Hundreds of City residents,visitors to the Park and residential partner organizations have been involved in the planning process resulting in overwhelming support for the Lifelong Learning Center vision at the Park. 1.4 As a Lifelong Learning Center, the Park is envisioned to provide space and house a variety of tenants and groups that would offer residential and nonresidential programs and classes involving, among others, performing and visual arts, environmental and natural resources, health and wellness, historic preservation, woodworking and cultural history, and culinary arts. Individuals, small groups and conferences would include people from all over the world seeking a variety of educational opportunities offered at the Park within its spectacular setting. 1.5 As part of the adopted Plan, the Commission recognized that the State did not have adequate resources to fully implement the Plan. The Plan recommended that a new management structure for the Park was needed to carry out the vision of a life-long learning center. 1.9 The State financial situation resulted in the Legislature eliminating almost all general fund support to State parks for their operations as well as significant reductions in State support for capital improvements for facility maintenance and rehabilitation. The Legislature approved a bill known as the "Discover Pass" to create funding for State park operations. The "Discover Pass"program was passed and took effect on July 1, 2011. Due to continued negative impacts to the State budget, there may be more unintended adverse effects to the park system. 1.10 Due to these pressing concerns, the Council determined that there is an urgent need to transition to a shared management responsibility at the Park sooner than anticipated. The Resolution 12-006 Amending Resolution 11-024 Page 3 of 5 Authority has expressed interest in undertaking this task, and has been conducting its own due diligence and assessment to determine the impacts to the Park and whether it should enter into negotiations with the Commission regarding a long-term lease or conveyance of property for the operation and management for a portion of, or all of, the Park. The Authority's duties would include developing the physical infrastructure of the site and forming partnerships with businesses, non-profit groups, individuals and other entities with an interest in operating programs in the Park. 1.11 The City is interested in optimizing the use of Fort Worden State Park properties to support residential programming and implementation of the Lifelong Learning Center vision in the Park through both more focused management and,if appropriate,redevelopment or adaptive reuse of historic structures in a manner that realizes important community benefits and other public purposes. 1.13 The Lifelong Learning Center vision provides the Park and resident and nonresident organizations a unique and timely opportunity to develop an integrated economy, dramatically increasing the overall capabilities through coordination, centralization, and consolidation of marketing, fundraising and business management functions. The FWPDA will partner with organizations currently residing at the Park and other public, private and nonprofit entities to manage and lease buildings and property, including the Park or portions of the Park; lease or acquire real property; promote and brand the Park as a Lifelong Learning Center; and, secure funding and financing to undertake the (re)development, construction and maintenance of structures and facilities located at the Park; 1.14 Jefferson County is currently underserved with regards to higher education. Peninsula College has demonstrated that there is significant demand to expand its enrollment at the Fort Worden campus. In addition, Goddard College currently offers two Masters of Fine Arts Programs at Fort Worden and intends to expand its presence with the addition of a Bachelor of Arts program. Peninsula College is partnering with Goddard College, and both of these institutions are actively exploring the potential of including other educational providers to create a shared learning higher education center in Building 202. 1.15 The success of this college center is critical to the future development of the Park as a Lifelong Learning Center. The Legislature has allocated $4.37 million in State capital dollars for the Building 202 project, and the City has set aside $500,000 to assist with its redevelopment. This funding could be passed through to the Authority to assist Peninsula College in the rehabilitation of Building 202. C. This Resolution modifies the source of some $73,433.01 in funding previously approved by the Council for the Fort Worden Life Long Learning Center Public Development Authority (FWPDA) from the 2010 capital bond to the general fund, and reduces the amount to $63,000. D. By Resolution 11-024 (Sept. 6, 2011), Council authorized approximately$73,433.01 from Resolution 12-006 Amending Resolution 11-024 Page 4 of 5 the 2010 capital bond to be transferred to the FWPDA for Building 202 rehabilitation. This $73,433.01 was freed up when a$120,000 capital project—a sidewalk earmarked for funding in the 2010 capital project- was accomplished by a private developer. E. The reason for the re-sourcing of funds is the limitation in the tax code and bond requirements that limits the use of bond funds to a"capital project." This could mean certain FWPDA start up costs (for example, negotiating management agreements between Parks, Peninsula and the FWPDA) would not be"bond eligible." To avoid any IRS or bondholder question(and potential loss of tax exempt status of the bonds), it is prudent to replace the funding source with general fund dollars. F. The Resolution: 1. Does not increase funding to the FWPDA. 2. Does not affect the separate transfer of$500,000 from the 2010 bond to the FWPDA for Building 202 rehabilitation. Council authorized this transfer by agreement with the FWPDA on January 17, 2012. By the tenns of the agreement with the FWPDA, this money is specifically earmarked for the actual Peninsula capital project to rehabilitate Building 202 (so the considerations leading to this Resolution—to avoid any question that monies are bond eligible - do not apply). 3. The general fund monies that would now be allocated to the FWPDA would come from savings in 2012 personnel costs of$63,000 that are not already accounted for in the 2012 budget. As part of the 2012 budget, two police clerks were eliminated (one of whom had been providing backup clerical assistance to the Prosecutor). The 2012 budget provided for a replacement Prosecutor assistant with funding in the City Attorney budget. By relocating the Prosecutor to the City Hall and re-assigning some duties currently provided by the assistant to the City Attorney to the City Clerk (so the City Attorney assistant will provide assistance to both the City Attorney and Prosecutor), the backup clerical assistant position to the Prosecutor can be eliminated. Also, there are savings in the 2012 budget from Jeremy Bubnik's early departure effective January 31, 2012. 4. The allocation of funds does not require a budget amendment and can be accomplished by line item transfer. 5. Authorizes the $73,433.01 from the capital bond (previously earmarked for the FWPDA by Resolution 11-024) to be used for other capital projects, subject to City Council approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: Resolution 12-006 Amending Resolution 11-024 Page 5 of 5 1. The $73,433.01 in funding for the Fort Worden Life Long Learning Center Public Development Authority(FWPDA) from the 2010 capital bond to the general fund, authorized by Resolution 11-024, is cancelled. These bond monies will used for other capital projects, subject to City Council approval. 2. The City Manager is authorized to enter into agreements for the transfer of$63,000 in general fund monies to the FWPDA for purposes consistent with the FWPDA's purposes, namely, costs related to the development of the Lifelong Learning Center at the Park, including but not limited to the rehabilitation of Building 202. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 21St day of February 2012. i Davi King, Mayor Attest: Approved as to form: i t t Pamela Kolacy, MMC John P. Watts City Clerk City Attorney