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HomeMy WebLinkAbout11-024 PDA Expenditures with Limited Tax General Obligation Bonds Resolution 11-024 Approving PDA Expenditure Page 1 of 5 RESOLUTION NO. 11-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON APPROVING EXPENDITURES FROM LIMITED TAX GENERAL OBLIGATION BONDS FOR CAPITAL PROJECTS RECITALS: A. The Resolution authorizes the City Manager to use funds from Limited Tax General Obligation Bonds (approved by Ordinance 3050, passed December 10, 2010) for certain capital projects, namely, up to $50,000 for consulting services in connection with the potential Customs House renovation and the proposed renovation of Building 202 at Fort Worden, and the balance of$70,000 (rounded) to be transferred to the Public Development Authority for its use in connection with the proposed renovation of Building 202 at Fort Worden, as set forth in this Resolution. 2010 Bond. B. Council approved Ordinance 3050 on December 10, 2010 providing for the issuance and sale of$3,740,000 of Limited Tax General Obligation Bonds to provide the funds with which to pay for various capital improvements. Projects proposed for bond funding included the Way Finding Project, Seismic Phase—Library, a number of sidewalks and road projects, broadband, and (in partnership with state higher education and state parks) refurbishing Building 202 at Fort Worden. C. One sidewalk project that was identified for bond funding in the amount of$120,000 is now, since the approval of the bond ordinance, no longer in need of City funding, and will be accomplished as part of a private development. D. This Resolution approves use of$120,000 of the 2010 Bonds (that was earmarked the sidewalk project and is now no longer needed for that project) for the purposes set forth in this Resolution. Public Development Authority—Fort Worden Building 202 Renovation. E. Pursuant to RCW 35.21.730 through 35.21.755 and Ordinance No. 3018 adopted on September 8, 2009, the City Council authorized the creation of a public corporation known as the Port Townsend Public Development Authority(the "Authority"). F. Pursuant to the Enabling Ordinance, the original purpose of the Authority was to rehabilitate and preserve historic buildings, create affordable housing, and manage other public sites and assets providing public benefit to the residents of and visitors of the City. Resolution 11-024 Approving PDA Expenditure Page 2 of 5 G. As part of its charter, the Authority was charged to help implement the City's adopted economic strategy which identified For Worden State Park as one of three priorities for long-term sustainable economic growth in the City. H. On January 25, 2010, the City Council approved a motion that directed the Authority: 1) To facilitate and help implement the collaborative process between the Washington State Parks Commission and Centrum. 2) To undertake measures that could lead to the preservation of the Customs House (Post Office). Measures could involve a possible exchange of the Customs House to the PDA in return for the PDA developing a postal annex for the United States Postal Service, with the existing post office remaining at the Customs House for retail operation with bulk-sorting moved to an annex. 3) To undertake measures that could lead to the preservation of the Griffiths House. Measures could include restoration and sale with proceeds helping to fund other PDA projects. 4) To authorize the City Manager to enter into agreements for the assignment of any City interest in grants, agreements, or other interests in the above projects to the PDA, and for agreements with the PDA for reimbursement of staff time. I. Concerning the collaborative process at Fort Worden, 1. 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. 2. 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. 3. The Plan was spearheaded and supported by the Washington State Parks and Recreation Commission (the"Commission"). With extensive public outreach Resolution 11-024 Approving PDA Expenditure Page 3 of 5 and feedback, the guidance of two special advisory boards (in addition to the long-standing Fort Worden Advisory Committee), and two nationally prominent consulting teams, the Plan provides the direction to build a vital partnership economy that will preserve and enhance the extraordinary resources of the Park for generations to come. 4. 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. A task force was forined and recommended that a nonprofit management entity was best suited to manage the Park. A Request for Letters of Interest was publicized nationally and Centrum was the sole respondent. Centrum was approved to negotiate terms with the Commission to serve as the new managing entity for the Park upon completion of specific milestones. 5. In the Memorandum of Understanding ("MOU") adopted between the Commission and Centrum in March of 2010, it was acknowledged that the City, represented by the then-newly chartered Authority, would support Centrum in the development and enactment of the long-range vision for the Park. 6. On January 27, 2011, the Fort Worden Area Park Manager (the "Park Manager") presented to the Commission a progress report on the MOU with Centrum and a letter written by Centrum stating its desire to transition out of its role as lead on the implementation of the MOU. The Park Manager also stated there was expressed interest in developing a working relationship by the Authority in the management of the Park. The Commission authorized the Manager to begin conversations with the Authority and to return to the Commission with a proposal at a future date. 7. On March 24, 2011, the Commission adopted a resolution directing the Director to enter into discussion with the Authority to seek agreement on the proposal submitted by the Authority with the understanding that the intended outcome will be a request to the legislature during the 2011 session for language to facilitate the Park becoming A Lifelong Learning Center. 8. During the 2011 legislative session, the City and representatives of the Authority proposed new legislation for the long term lease or sale for a portion of, or all of, the Park. This legislation was withdrawn in favor of working with key legislators to obtain capital funding to support renovation of a building known as "Building 202" as a higher educational facility at the Park. J. Consistent with the Enabling Ordinance and the Council's January 25, 2010, the Resolution 11-024 Approving PDA Expenditure Page 4 of 5 Authority, with in-kind technical assistance provided by the City, and assistance of the Mayor and Deputy Mayor, facilitated and helped implement the MOU between the Commission and Centrum and participated extensively in seeking support from the legislature for the long term lease or sale for a portion of, or all of, the Park, and for capital funding for Building 202. K. The Authority has incurred and will incur certain consulting expenses and other expenses in connection with the proposed renovation of"Building 202" as a higher educational facility. This Resolution authorizes funds of approximately $70,000 to help meet those expenses. The funds from the City would be used for costs that can be capitalized as capital costs related to the renovation. L. Separately, the City Council has eannarked $500,000 of funds from the 2010 bonds for contribution (in partnership with state higher education and state parks) to the refurbishing Building 202 at Fort Worden. Allocation of those funds will take place by separate and future Council action, and is not part of this Resolution. Customs House Renovation M. Concerning the Customs House, the Authority reported to the City Council on January 10, 2011 its recommendation that additional funding will be necessary to facilitate the project, and recommended that additional funding be identified and if possible secured. The City Manager is currently involved and developing a public/private partnership to advance this effort. In the course of this effort, the City Manager incurred certain consulting and architectural expense related to the proposed renovation of the Customs House. All funds would be used for costs that can be capitalized as capital costs related to the renovation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: The City Manager is authorized to use $120,000 in funds from the 2010 Bonds as follows: 1. Up to $50,000 in expenses related to consulting and architectural expenses related to the proposed renovation of the Customs House and the proposed renovation of"Building 202" as a higher educational facility. . 2. The balance of the $120,000 shall be transferred to the Public Development Authority for its use in meeting consulting and other expenses related to the proposed renovation of "Building 202" as a higher educational facility. 3. All funds shall only be used for costs that can be capitalized as capital costs consistent with the teens and requirements of the 2010 Bonds. Resolution 11-024 Approving PDA Expenditure Page 5 of S 4. All funds shall be expended pursuant to agreements, which the City Manager is authorized to enter into on behalf of the City. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 6th day of September 2011. Aq d Michelle Sandoval, Mayor Attest: Approved as to form: Pamela Kolacy, MMC ' �''� John P. Watts City Clerk City Attorney