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HomeMy WebLinkAboutMultipurpose King County Events Center (2007) �� Theofessional Basketball C]' -: ), LLC FOR IMMEDIATE RELEASE—April 16, 2007 1 Statement by Clay Bennett on Lack of Action on Legislation Authorizing King County to Develop a Multipurpose Events Center This a staggering and quite likely a debilitating blow to our efforts to develop a world-class arena facility. Clearly at this time the Sonics and Storm have little hope of remaining in the Puget Sound region. We believe we have gone to extraordinary lengths with significant time and resources to craft a proposal for a global caliber multi-purpose event facility that would be a valuable public asset for the region for years to come and have minimal impact on taxpayers. By its inaction the Legislature has delivered the message that they are indifferent to the notion of the Sonics and the Storm leaving the market. We remain willing and available to work with the Governor and the Legislature to explore every conceivable funding option for the building. We are also receptive to analyzing any private financing mechanisms that are brought to our attention. But at this time we have no other concepts on the table. We want to recognize Senator Margarita Prentice and Representative Eric Pettigrew for their courageous leadership in the Legislature. We also want to thank the good people of Renton who have enthusiastically supported these efforts. In addition we wish to thank the many supporters and advocates who have worked hard on our behalf. As owners we remain absolutely committed to restoring the Sonics to a championship caliber team - on this subject we will not waver. Further we are committed to delivering the very best fan experience and sponsor value that we can. We thank our fans, season ticket holders and sponsors from the bottom of our heart. We also thank our professional staff, our players and coaching staff, all of our friends who work at Key Arena and everyone who has believed in us. 351 Elliott Avenue W., Suite 500 - Seattle, WA 98119 (206) 281-5800 6A` I website:www.rentonwa.gov I (cY O ii,J , , ,, i „.,. , „ „ .,„ ,.„._ , ,, yi , ._, „,, _ iir : , ill) 11 � �i 4 .1 � a � � � ha City of Renton- 1055 South Grady Way -NT-V Renton,WA 98057 April 4, 2007 I For More information contact: Alex Pietsch, Administrator, Economic Development, Neighborhoods, Strategic Planning, 425-430-6592 apietsch@cisenton.wa.us c.i.renton.wa.us Preeti Shridhar, Communications Director 425-430-6569 pshridhar@ci.renton.wa.us 1 King County Events Center has significant economic potential Analysis shows potential for more than $400 million in annual economic activity !and 5,800 jobs statewide RENTON: A study commissioned by the City of Renton released today shows that the State of Washington will significantly benefit if the proposed King County Events Center is constructed. Berk & Associates conducted the analysis, which shows that economic activity associated with the events center has the potential to drive $257 million in stated general fund revenues over the next 25 years. The City of Renton stands to collect more than $20 million in taxes over the same time period. { I "This conservative analysis demonstrates that the King County Events Center has great economic potential for the State of Washington, King County, and the City of Renton," said Renton Mayor Kathy Keolker. "This study makes a compelling economic argument for building a world-class facility in our community." 1 "It is important that our elected leaders in Olympia take action to give King County the authority to move forward with this important facility," said King County Executive Ron Sims. "The study released today confirms my belief that that millions of dollars and hundreds of jobs are at stake here—revenue and jobs that will have a ripple effect throughout our region." I • The economic activity associated with the King County Events Center has the potential to reach $406.4 million each year and support 5,799 jobs, according to the report, which is available on the city's website at rentonwa.gov. In addition, during the three-year construction period, 8,357 people will be put to work. 1 "The 5,800 ongoing jobs with $204 million in annual wages puts an exclamation point on the importance of this opportunity for our state," said Rick Bender, president of the Washington State Labor Council. "These jobs, as well as nearly 8,400 direct and indirect construction-related jobs, will make a huge dent in our need to provide family-wage1 employment for Washington residents." The King County Events Center has been proposed by the owners of the Seattle Sonics and Storm professional basketball teams to be built in Renton. The 800,000-square-foot facility would not only be home to these teams, but a wide variety of sports, concerts, bjusiness meetings, conventions, and community and cultural events. Many of these events are not currently held in the Puget Sound region due to a lack of adequate facilities, or might leave the area entirely if a new facility is not constructed. The Berk & Associates analysis assumes a core event schedule of 153 events with annual attendance in excess of 1.5 million. Event activity would increase over time to an average annual event schedule of 223 events and 2.5 million annual attendees. This enhanced schedule assumes that a National Hockey League franchise would be added to the schedule by 2015. The conservative "core schedule" of 153 events is estimated to contribute $161.3 million in State general fund tax revenue over a 25-year period, which covers the amount the State is being asked to contribute to the project through an extension of sales tax credits already in place for Safeco Field and Qwest Field. The other proposed funding streams include the extension of existing sales taxes on restaurants, car rentals, and hotels in King County. "These are the same taxes people have been paying in King County since 1995," said Steve Leahy, presidentand CEO of the Greater Seattle Chamber of Commerce. "This study shows that even under the most conservative estimate, the state can afford to continue these existing funding streams without impacting the general fund. Under the',more likely scenario that utilizes the facility to its full capacity, millions of dollars of additional tax revenue will be generated." The study also considers the potential loss of some of this event activity if the Sonics and Storm leave the;state, as well as events such as NCAA tournaments and corporate meetings that are currently not being scheduled in the state due to the lack of an adequate venue. The economic activity associated with these "at risk" events is significant. For instance, the analysis estimates $266.8 million per'year in fan and participant spending under the full event schedule, 76% of which is "at risk" without the King County Events Center or another similar facility. These "at risk" events also - I represent a significant tourist draw. The analysis estimates that the full schedule will result in more than 1 million visitor days from people outside King County and 296,000 out-of-state visitor days each year. The analysis does not make,assumptions about potential new development the King County Events Center might spark in the City of Renton. "If the King County Events Center is built, I will need to add another 40 employees at my hotel alone," said Michael Sanford, general manager of the Holiday Inn in Renton. "This will be a boon to me and to all businesses in Renton." Legislation to authorize funding for the King County Events Center is currently being considered by the Legislature. SB 5986/HB 2264 would enable King County to create a public facilities district to develop the proposed events center. # # # RENTON AHEAD OF THE CURVE YY � i���� ,#j ✓� s.x ",i, :% � ,.�.�<„ n N � +`�'� � � �,"a%', a �`�.€.. /"n �<a�' w°°i`` 3 � f „ ,?rp,..a. X •` � ..,s"'���A,r''2" '.a ,� ' D !.;:41:...,...•.:....,,1.., 7 ',,,z----;;-014.1.0,"‘'-r4 / r .rte'� !!! �",r / ,,'; •_+nr ��/r -f- r'{.`;-..°� ; 'v"zf ,u,' ,":' ,, � � f,n'. ti, ,,_ �'� ; r ,dxa�� .:� � ��� ."tik.,.: ,'- £ �X3 s,�, ��' .'x_<,- rc<, r. .. e��.' �f`s , mss,. rAn tEca�om�c & Fiscal Be efts :Assessment ;/ �f �� . • 1 ,g ''''....'''''''....t..1.!114,.. '/ R E N T tJ N ' ■; b( P (oseo -Uw ! ,, � Pty � s'-� '!11J "' t�ar;anr TFt3 c.�air 3 � 4'� '��: �"' -----4-':-''' y+ Sys,•+ a '•-. ,, �. r /��f a't' f y {{� � , ' • <.:.3- [' ;�Jf Fj 1 ° e6 moi: ,;+ baa :ir R +t t '�,. `.,.. 'a€ h * -..,1...,....:::;..--....,.....i.._ ,... �w .. Alin �, Ar ,I "1'4 #�:-, i r � •.� i� y.,......„ ...... ,..„.,m1......,.z14,...,,,.., :, ,, ,, . „.. ... � .,s .a,• Y �"K w' iti ��april 4 >200T k • “ ��� � ' ” zt - w: r ,,,,,.+^. r i,,,,,,,,;,..1...'-'::';';£ for r �,'� ;;°' , Prepared for• � x `� � .. �- £qty of Renton • ,. . �, � F a. u` ',el a �f i Prepared by.• = � :. , ,' � 1 M, . • rep S;h, ip bk Si,X s x »� • ms •- L y : nh;_ t t } i', 'aJ IL x nt ' x. { ,a. 1 t e ,t, n" SUMMARY OF FINDINGS.-- ;,F s: µ.- 0 The purpose of this report is to summarize the results of an economic and fiscal benefit At-risk events captures the overall magnitude of the economic activity associated with only assessment of the King County Events Center conducted on behalf of the City of Renton. those events that would otherwise not take place somewhere in the region`without the The focus of this analysis was on the identification of potential benefits of the Events King County Events Center.The economic activity associated with these events represents Center from the local,county and state perspectives.It is important to note that this is not what could be affected by the loss of these events.The magnitude of the loss will depend a comprehensive cost-benefit study, as the cost implications of the project are not a part on how money that is currently spent on these events would be re-spent. It is tempting of this review. to think that locally-generated spending on At-Risk events will be recaptured through redistribution effects.In reality,however,it is almost certain that in their spending,some of The assessment is built largely on existing source documents,including the 2005 KeyArena Economic Study.The analysis relates the potential schedule of events at the new facility these dollars will miss(or"leak"out of)the local economy. with local and visitor spending plus spending related to Events Center operations, and Economic Implications Core Full Tax Revenues Core Full considers the economic and fiscal benefits of this activity.These potential benefits are segmented based on the following key factors: Total Spending $129.2 $291.6 State of WA $112.1 $205.0 Output(ex.Const) $152.5 $349.2 King County $10.9 $24.8 o Schedule. There are two schedules:one considered a core events schedule of Jobs(ex.Const.) 2,090 4,937 City of Renton $12.5 $20.5 153 event days,consisting primarily of Sonics and Storm plus miscellaneous other Wages(ex.Const.) $86.4 $184.1 Other Local $1 1.0 $28.6 events;and the other considered a full schedule of 223 event days,which adds County-level"New Money"impacts from at-risk events focuses on the effect of the spending the NHL,pro sports playoffs,a high impact sporting event every other year and two from imported dollars and represents the minimum likely economic impact of losing these high impact conventions. events.At-Risk"New Money"to King County considers the impact from the perspective of o At-Risk Events.The schedule is further split into events that could otherwise be the County and as such includes dollars that originate outside the county,such as spending hosted in the region and those that would not happen without the new Events by out-of-county visitors.The multiplier effects were adjusted to reflect only the share of Center.The latter are identified as the At-Risk events. indirect and induced effects that would likely stay in the county. o Geography and"New Money."A key consideration in economic benefit analysis is Economic Implications Core Full Tax Revenues Core Full identifying the net new demand for local goods and services.This comes down Total Spending $74.4 g173.1 King County $8.5 819.6 to identifying the"New Money"or the dollars that are imported from outside the Output(ex.Const) $81.7 $191.6 Other Local $9.9 $28.6 area.The"New Money"will vary according to the geography of the analysis-local, Jobs(ex.Const.) 1,134 2,778 county and state. Wages(ex.Const.) $49.4 $104.6 Total all events represents the overall magnitude of the economic activity associated with State-level "New Money" impacts from at-risk events considers the impact from the Events Center events.This measure captures the total output, wages and jobs but does perspective of the State and only includes dollars that originate from out-of-state, such not exclude the portion of the spending could occur in the region absent the events.The as spending by out-of-state visitors and the effects of "imported" business income such following are the key findings for the overall gross level analysis for each potential schedule. as NBA league revenues as these are spent on local wages, goods and services. This All numbers are in millions of 2007 dollars and the taxes show the present value resulting represents the minimum likely economic impact to the State of losing these events. from 25 years of Events Center operations. Economic Implications Core Full Tax Revenues Core Full Economic Implications Core Full Tax Revenues Core Full Total Spending $190.7 $358.7 State of WA $161.3 $257.1 Total Spending $41.4 $99.7 State of WA $59.8 $105.9 Output(ex.Const) $204.2 $406.4 King County $15.2 $29.5 Output(ex.Const) $68.1 $169.9 Jobs(ex.Const.) 2,875 5,799 City of Renton $12.5 $20.5 Jobs(ex.Const.) 932 2,437 Wages(ex.Const.) $104.5 $204.1 Other Local $15.3 $33.3 Wages(ex.Const.) $38.2 $84.4 4. -RE N T O -April 4,2007 Economic&Fiscal Benefits of the King County Events Center r tnenc ns rue ccaa e - 5 • TABLE OF CONTENTS - Summary Report Introduction and Purpose of Study Approach to the Analysis — - Event-Schedule-and-Attendance-Assumptions Fan and Participant Spending Ongoing Event-Related Economic Activity Construction-Related Activity Facility Development and Operating.Tax Revenues T- chnical Appendix —RE TN O N —April 4,2007 Economic&Fiscal Benefits of the King County Events Center 111[.90 06 SUE CURVE 1 NTROD U CT I 0 N AND,PURPOSE OF TUDY 1 . INTRODUCTION On February 13,2007,the Professional Basketball Club, LLC,owners of the Seattle Sonics &Storm professional basketball franchises,announced the selection of a site in the City of % d. ',.••,.`._:•_ ='a Renton as its preferred location for a new multi-purpose arena.This facility(the King County _'a .`: Events Center) would become home to the Sonics and Storm when the teams' current ; s� a,e ;.• °', ��' ' lease at KeyArena in Seattle expires, as well as to a wide variety of additional sporting, �: .;", ,;, `,�. _ , cultural,and corporate events.The funding package that would enable the proposed Events / — �. '-•,,',4.7--' F� • 'F,' ;-0'` ,.P... ; 020 --....,_:.,.,..-7—\ Center is currently under consideration by the State Legislature. With the Events Center proposal still under consideration,the City of Renton has begun its a,.',.',',.'.•:' LEV own process of evaluating the fiscal and economic merits of the proposed facility,which would be located in the heart of a prime redevelopment area. ''• • • . ;•' .'•:': •Cr `- :,,./.: 'n Toward this end, the Cityof Renton contracted with Berk & Associates to prepare an x. ' ' assessment of the potential economic and fiscal benefits of the proposed Events Center : .' . '-``' ,:::',,$; f f. o for its local tax base,as well as potential economic and fiscal benefits at the local, county ': g and state levels. • < �.' .'�' •,'. -,,$, Purpose of this Assessment vq ,• ,-44,i;?,„: • The purpose of this report is to summarize the results of Berk&Associates'economic and - =R 41tO N. fiscal assessment.The focus has been on the identification of potential benefits of pursuing • '• -, ,t,$$$,,,,-,, the development of the King County Events Center. It is important to note that this is not a complete cost-benefit study,as the cost implications of the project are not a part of this - , review. ...' ' ' • aft ,r► yrkr .6 —R E N T N —April 4,2007 Economic&Fiscal Benefits of the King County Events Center AMOS,OP 7110 00070 S ' APPROACH TO THE_ANALYSIS ECONOMIC BENEFIT ANALYSIS At-Risk Events Any positive economic benefits associated with the development and operation of the A number of events that would likely be hosted at the new Events Center ^• Events Center will be the result of increases in net local spending,which in turn increases could be hosted elsewhere in the region, while others are unlikely to the demand for local labor,goods or services.Examples of spending that will have a positive happen without the new facility. The true economic value of the new impact: building will be related only to the events that would otherwise not occur in the region.These events are identified as the At-Risk events.The magnitude o Spending by visiting teams on food and lodging that would otherwise not be spent of the economic value will likely fall somewhere between all of the activity in the region associated with the At-Risk event and the smaller"New Money"portion. o Spending by fans that come from out-of-the state or county for a specific event, such as an NCAA regional or a NBA basketball game It is tempting to think that locally-generated spending on At-Risk events will be recaptured through redistribution effects.In reality,however,it is almost o Team revenue earned from outside the area,such as shared league revenue,that certain that in their spending;some of these-dollars-will-miss(or"leak"out is spent in part on local expenditures of)the local economy. Examples of spending that will not likely have an impact: This is particularly true if the redistributed pool of dollars is quite large,as o Local expenditures for tickets or event-related activities that otherwise would be could be the case with a season ticket holder.In this case,the individual(or spent locally corporation)will have many options including some that could take a large o Local advertising and sponsorships including television and radio broadcasts,which share of the money out of the state,such as a trip to Italy,travel to nearby could be redeployed to other uses locally communities to enjoy the NBA, or any other expenditure with little or no local component. Since season tickets often account for more than 50% Total Spending Versus New Money of total ticket sales,the issue of redistributed spending is a key question in assessing the potential impact of the proposed Events Center. This study seeks to model how the proposed King County Events Center might operate, - identifying total spending and income associated with events and building operation.The Key Data Source analysis then parses the flow of money to distinguish between"New Money" (dollars that originate outside the area of study) and "local money';which originates within the study Given the importance of the spending and visitor profiles, it is fortunate area. that the 2005 KeyArena Study included original survey work that focused on narrowly defining economic activity associated with KeyArena events, Geography matters when considering economic impacts. From a state perspective the only both fan-based and business-based.These results were used extensively spending that will have a positive economic impact is (1) spending from out-of-state in the development of this analysis, which included good locally-derived visitors, (2)other imported dollars such as shared league revenues,or(3) local spending data on the following key variables: that could be diverted to out-of-area expenditures or to local uses that generate fewer economic impacts.From a King County perspective the impacts could be larger since they o Where people were coming from would be related to dollars that are imported into the County, including from other parts o How much they spent and on what of the state. Finally from the City of Renton perspective, all of the potential activity in the o The business spending of operations in the Events Center, proposed Events Center could be considered net new spending. including labor expenditures by type of employee —RE N T O N —April 4,2007 Economic&Fiscal Benefits of the King County Events Center TILE CCecL " -.._ EVENT S - =:1- TTENDANCE-. ._ AssuMii� =Sri M-,K.. , 0 Attendance Exhibit 1 presents the summary of events,average and total attendance,and the estimated `"" '-s.„''_,i, number of visitors to King County and from out-of-state. The core schedule results in s. approximately 1.5 million average attendees per year,with 590,000 visitors to King County, EXHIBIT 1: ATTENDANCE SUMMARY \N' of which 120,000 come from out-of-state.The At-Risk events are estimated to account for 53%(822,750 out of 1,546,850) of the attendance,56%(330,843 out of 592,853)of AveragenPer Event- Average %At Events Event Day Annual King County Out-of-State County visitors and 94%(112,275 out of 119,066)of out-of-state visitors. Core Events Risk per Year Days/Yr Attendance Attendance Visitor Days Visitor Days Sonia 100% 1.0 43.0 15,000 645,000 229,620 48,375 The additional events would increase total attendance to approximately 2.5 million average Storm 100% 1.0 18.0 6,000 108,000 38,448 8,100 Large Concert 0% 8.0 8.0 14,900 119,200 48,306 5,215 attendees per year,with 1 million coming from outside King County, of which 300,000 Med Concert 0% 9.0 9.0 10,000 90,000 33,489 1,575 come from out-of-state.In the full schedule,the At-Risk events are estimated to account for Small Concert 0% 8.0 8.0 5,300 42,400 14,840 0 Other Entertainment 0% 24.0 52.0 8,750 455,000 159,250 0 70%(1,749,800 out of 2,488,900)of the attendance,73%(735,832 out of 1,009,842) Corporate Meetings 100% 5.0 10.0 6,975 69,750 62,775 55,800 of County visitors and 95%(280,703 out of 296,493)of out-of-state visitors. Consumer Show 0% 1.0 5.0 3,500 17,500 6,125 0 Total 153.0 10,110 1,546,850 592,853 119,065 Event Schedule Pro Sports 61.0 753,000 268,068 56,475 Concerts/Entertainment 77.0 706,600 255,885 6,790 Conventions/Meetings 15.0 87,250 68,900 55,800 The facility event and attendance assumptions are divided into a Core Schedule,which is a High-Impact Sports 0.0 0 0 0 relatively narrow definition of the events for the new facility,and Potential Additional Events, Average Per Event- Average %At Events Event Day Annual King County Out-of-State which add incremental activity that could fill out the remaining schedule. Additional Potential Risk per Year Days/Yr Attendance Attendance Visitor Days Visitor Days o Pro Sports include the Seattle Sonics and Storm regular seasons in the core,with Sonics Playoffs t00% 0.5 2.5 17,500 43,750 15,575 3,281 Storm Playoffs 100% 0.5 2.0 12,000 24,000 8,544 1,800 the NHL and all playoffs added as potential additional events.Playoffs are assumed NHL 100% 1.0 45.0 15,000 675,000 240,300 50,625 to occur every other year(since 1990,the Sonics have been in the playoffs 11 NHL Playoffs 100% 0.5 2.5 17,500 43,750 15,575 3,281 Corporate Meetings 100% 5.0 10.0 6,975 69,750 62,775 55,800 years and hosted 54 games;more than half of all NBA teams advance to the High-Impact Convention 100% 2.0 6.0 9,300 55,800 50,220 44,640 la offs each year).The NHL is assumed to be potentially2015. Hi:h-Im'acts.orts 50% 0.5 2.0 15,000 30,000 24,000 18,000 P y added in Total 70.0 13,458 942,050 416,989 177,428 o Concerts/Entertainment could include concerts of various sizes plus assorted other Pro sports 52 786,500 279,994 58,988 Concerts/Entertainment 0 0 0 0 entertainment and regionally focused activities such as the circus,ice shows,pro Conventions/Meetings 16 125,550 112,995 100,440 wrestling,dirt shows,and high school sports.All events are assumed to be part of High-Impact Sports 2 30,000 24,000 18,000 the core schedule. Grand Total 223.0 11,161 2,488,900 1.009,842 296,493 - include conventions,consumer shows and large corporate Coo,posts 113.00 1,539,500 548,062 115,463 o Conventions/Meetings g P Concerts/Entertainment 77.0 706,600 '255,885 6,790 meetings.The core schedule includes one low-impact convention(e.g.consumer Conventions/Meetings 31.0 212,800 181,895 156,240 High-Impact Sports 2.0 30,000 24,000 18,000 show)and five large corporate meetings.The additional potential events add two high-impact conventions(80%out-of-state visitor share)and five more large Grand Total At-Risk Events 140.0 12,499 1,749,800 735,832 280,703 corporate meetings. Total At-Risk Core Events 71.0 11,588 822,750 330,843 112,275 Total At-Risk Potential Events 69.0 13,436 927,050 404,989 168,428 o High-Impact Sports are sporting events with a large visitor component and could include NCAA and other national/international tournaments and championship events for figure skating,gymnastics,volleyball,basketball or hockey.The analysis Sources:KeyArena Study,Icon Venue Group,Berk&Associates assumes one event every two years and none in the core schedule. -R E N T O "-April 4,2007 Economic&Fiscal Benefits of the King County Events Center ...O,THE CM,. FAN AND PARTICIPANTSPENDING Attendee Spending and Origin Assumptions EXHIBIT 2: ATTENDEE PER-CAPITA SPENDING (2007$)"a- ;`�., From an economic benefit perspective,the key drivers are attendee spending and visitor Origin of Attendee estimates.Event-related spending is based primarily on the spending patterns identified in Within King Rest of ', the KeyArena survey and reported in the 2005 KeyArena Study.These surveys provided County Washington Out-of-State Pro Sports a basis for identifying the purpose of the trip,where attendees where coming from, how Distribution of attendees 64%%o 28% 8% much money they were spending and on what they were spending their money. The Per capita daily spending (on-site) $55.74 $71.93 $84.37 Per capita daily spending (off-site) $21.14 $32.82 $56.19 surveys were careful to focus responses on spending that was directly related to attendance Concerts/Entertainment at an event at KeyArena.Exhibit 2 summarizes the per-capita spending assumptions. Distribution of attendees 64% 35% 1% - Per capita daily spending (on-site) $46.98 $64.03 $106.00 ( ) o Pro Sports draw primarily from within King County(64%),though there are a Per capita daily spending (off-site) $30.55 $50.32 $100.57 number of visitors from outside of King County and from out-of-state. Conventions/Meetings Distribution of attendees 15% 12% 73% O Concerts/Entertainment were divided into high=and low-impact events-based on -- -Per capita-daily-spending-(on-site)-- -- $15A4----$19.58- $10.47 - Per capita daily spending (off-site) $25.59 $201.35 $250.26 both the potential draw and average spend factors.The majority of events are High-Impact Sports assumed to be primarily regional in nature(low-impact). Distribution of attendees 20% 20% 60% Per capita daily spending (on-site) $67.29 $88.27 $103.80 o Conventions/Meetings includes primarily a mix of high-impact conventions and Per capita daily spending (off-site) $32.80 $53.18 $102.96 meetings(significant visitor shares and high per-capita spending)and one Sources:KeyArena Study,Vets Consulting,LLC,Berk&Associates consumer trade show with a predominantly regional draw and no out-of-state Note:The convention/meeting assumptions are largely based on the ExPact 2004 Convention visitors. Expenditure and Impact Study (with 2005 updates) conducted by Veris Consultingfor the International Association of Convention and Visitor Bureaus. o High-Impact Sports are sporting events assumed to draw from a wider area and have a marginally higher per-capita spend than Pro Sports. EXHIBIT 3: SPENDING SUMMARY Total Spending Estimates (2007 Dollars in Millions) Core Events Only Total At-Risk Other The per-capita spending estimates are combined with the attendance profile for each event Co ce ts/Sport67.2 0.0 8. Concerts/Entertainment 58.5 0.0 58.5 to yield total spending for event-related activities.Fan and participant spending is summarized conventions/nneetings/Consumer shows 14.2 12.9 1.3 " in Exhibit 3.The Core Schedule is estimated to generate total spending of$139.8 million, High Impact Sports/NCAA 0.0 0.0 0.0 _ ) Total 139.8 80.0 59.8 mostly coming from Pro Sports and Concerts/Entertainment.Of this amount,57%($80.0 State"New Money" 21.6 20.3 1.3 M)is provided by the At-Risk events with 15%($21.6 M)coming from out-of-state(State County"New Money" 70.9 43.4 27.5 "New Money") and 51% ($70.9 M) coming from outside King County (County "New Full Schedule Total At-Risk Other Money"). Pro Sports 150.3 150.3 0.0 Concerts/Entertainment 58.5 0.0 58.5 The Full Schedule generates $266.8 million by adding additional Pro Sports (NHL and Conventions/Meetings/Consumer shows 47.7 46.4 1.3 High Impact Sports/NCAA 10.3 5.2 5.2 playoffs), High-Impact Conventions (two per year), and High-Impact Sports Total 266.8 201.9 64.9 (one every other year). These changes increase the At-Risk share of spending to 76% State"New Money" 69.4 64.5 5.0 ($201.9 M),the spending from out-of-state(State"New Money")to 26%($69.4 M),and County"New Money" 151.1 119.0 32.1 the portion from outside King County(County"New Money")to 57%($151.1 M). Source:Berk&Associates -R E N T O N -April 4,2007 Economic&Fiscal Benefits of the King County Events Center x11LAC 4f'Mk CY0Yt ONGOING EVENT-RELATED ECONOMIC CTIVITY- - - - - '1." --- - 0 The annual operations of the proposed Events Center will support a significant amount of EXHIBIT 4: ECONOMIC ACTIVITY SUMMARY "' ',"' economic activity as the spending by fans and participants works its way through the local (2007 Dollars in Millions) ‘ ;.:, economy.To analyze the magnitude of these economic effects,the spending estimates Total-All At-Risk At-Risk were converted to industry-level inputs and analyzed using the State of Washington Input- Total At-Risk Total "New Money" "New Money" • Output model. The analysis, summarized in Exhibit 4, was conducted for both the Core CORE SCHEDULE ONLY King County State of WA Schedule and the Potential Full Schedule,and from the following perspectives: Output Total $204.2 _ $152.5 _ $81.7 $68.1 Direct-onsite(business expenditures) 50.9 49.1 31.0 21.1 Total all events represents the overall magnitude of the economic activity associated with Direct-offsite spending 56.8 34.1 21.3 15.9 Indirect and induced 96.5 69.2 29.5 31.2 Events Center events.This measure captures the total output,wages and jobs and does not Wages Total $104.5 $86.4 $49.4 $38.2 exclude the portion of the spending that could occur in the region absent the events. Direct-onsite(business expenditures) 38.9 - 38.5 243 16.5 Direct-offsite spending 21.4 13.0 8.1 6.1 o Annual economic activity is estimated to be$204.2 M for the Core Schedule to Indirect and induced 44.1 34.9 17.0 15.5 $406.4 M for the Full Schedule. Jobs Total 2,875 2,090 1,134 932 Direct-onsite(business expenditures) 204 200 126 86 o Jobs related to this activity range from 2,875 to the potential of 5,799 with the full Direct-offsite spending 1,207 727 454 329 Indirect and induced 1,464 1,163 554 517 schedule and account for wages of$104.5 M to$204.1 M. Total-All At-Risk At-Risk At-Risk events captures the magnitude of the economic activity associated with only those Events At-Risk Total "New Money' "New Money" events that would otherwise not take place in the region and represents the activity that TOTAL EVENT SCHEDULE King County State of WA would be affected by the loss of these events.The magnitude of the loss will depend on Output Total $406.4 $349.2 $191.6 $169.9 Direct-onsite(business expenditures) 91.8 89.7 54.1 how money that is currently spent on these events would be re-spent. - 35.2 Direct-offsite spending 120.4 95.5 64.4 52.7 Indirect and induced 194.1 164.0 73.1 82.0 o Annual economic activity is estimated to be$152.5 M for the Core Schedule to Wages Total $204.1 $184.1 $104.6 $84.4 $349.2 M for the Full Schedule. • Direct-onsite(business expenditures) 71.3 70.9 42.7 27.8 Direct-offsite spending 45.7 36.4 24.7 20.3 - o Jobs related to this activity range from 2,090 to the potential of 4,937 with the full Indirect and induced 87.0 76.9 37.2 36.3 schedule and account for wages of$86.4 M to$184.1 M. Jobs Total 5,799 4,937 2,778 2,437 Direct-onsite(business expenditures) 361 360 217 141 New money impacts from At-Risk events focuses on the effect of the spending from imported Indirect t and spending 2,5517 2,022 1,3701 1,094 Indirect and induced 2,887 2,555 1,191 1,202 _ dollars and represents the minimum likely economic impact of losing these events.At-Risk Sources:Berk&Associates "New Money"to King County considers the impact from the perspective of the County and as such includes spending by out-of-county visitors.The multipliers were adjusted to reflect At Risk"New Money"to the State of Washington considers the impact from only the share of indirect and induced effects that would likely stay in the county. the perspective of the State and only includes spending by out-of-state visitors and"imported"business income such as NBA league revenues. o Total economic activity is estimated to be$81.7 M for the Core Schedule and o Economic impacts are estimated to be$68.1 M for the Core $191.6 M for the Full Schedule. Schedule and$169.9 M for the Full Schedule. o Jobs related to this activity range from 1,134 to the potential of 2,778 with the full o Jobs related to this activity range from 932 to the potential of schedule and account for wages of$49.4 M to$104.6 M. 2,437 with the full schedule and account for wages of$38.2 M to $84.4 M. • --R E N T N -April 4,2007 Economic&Fiscal Benefits of the King County Events Center AIIIAO UP Silk 66011L , 1 CONSTRUCTION-RELATED-:' ttIVITY - --------- -:- /----,,, A , 6 The development of the King County Events Center will also generate economic impacts -= e associated with the construction of the facility.The analysis of the construction impacts �"` ..'a follows a similar approach as that used for the analysis of ongoing operations, with the EXHIBIT 5: CONSTRUCTION-RELATED ACTIVITY "- following adjustments: 2007 Dollars in Millions o There is no distinction based on the At-Risk events.The assumption is that either Total New Money" "New Money" p CONSTRUCTION (3-Yr Period) King County State of WA the construction will occur or not and the At-Risk events are dependent on the building and not the other way around. Output Total $794.0 $643.7 $365.2 Direct construction spending 390.5 390.5 179.6 o Accounting for the"New Money"requires assumptions about the source of Indirect and induced 403.5 253.1 185.6 i i funding for the construction.The current funding concept would include revenue Wages Total $287.0 $235.1 $132.0 from a state sales tax credit of King County sales tax collections,an extension of Direct construction spending 149.6 149.6 68.8 King County taxes thatprimarily target visitors and unspecified-local.and_private___ _ ____ Indirect and induced 137.4 85.6 63.2 contributions. Jobs Total 8,357 6,752 3,844 Direct construction spending 3,826 3,826 1,760 Based on these factors and a review of preliminary construction cost estimates,the following Indirect and induced 4,531 2,925 2,084 Sources:Berk&Associates assumptions were made in the assessment of the potential construction impacts: o Of the total estimated development costs of approximately$500 million, direct construction costs are estimated to be approximately$390 million.The construction spending is expected to be spread over a three-year period. o The entire direct construction spending amount is assumed to be"New Money"to The King County"New Money"is assumed to have the same direct impacts King County,since the sources of funding would generally be funds that represent as the overall activity estimate,but only a share of the indirect and induced imported dollars(taxes on visitors)or re-imported dollars(the state sales tax credit activity will be captured within the county. that otherwise might not be spent in King County). o Total output is estimated to be$643.7 M for the three-year period. o The direct construction cost spending is discounted by 54%(the state sales tax o Jobs are estimated to total 6,752,with wages of$235 M. 'i share of the specified proposed sources of funding).The balance is assumed to be imported dollars at the state level. The State"New Money"includes the discounted direct spending(excluding "redistributed" state investment) and the statewide indirect and induced Exhibit 5 presents the results of the economic analysis of construction. impacts resulting from this"New Money"investment. Total of all construction activity represents the overall magnitude of the economic activity o Total output is estimated to be$365 M for the three-year period. associated with Events Center development including the statewide indirect and induced relationships. u Jobs are estimated to total 3,844,with wages of$132 M. o Total output is estimated to be$794 M for the three-year period. . o Jobs are estimated to total 8,357 and account for wages of$287 M. —R E N T N —April 4,2007 Economic&Fiscal Benefits of the King County Events Center A Il LAY OP'Mk CCkYY FACILITY DEVELOPMENT-AND 0 T!NT1 ESQ0 ryrti Exhibit 6 presents estimated tax revenues for the first year of operations and as a net EXHIBIT 6: TAX REVENUE IMPLICATIONS .d.n .. present value over 25 years of facility operations based on attendee and Events Center (2007 Dollars in Millions) ., spending. The tax table includes total taxes collected on all event-related activity, taxes At-Risk '� only on the At-Risk events, and taxes collected on the "New Money" portion of the At- Total-All Events At-Risk Total "New Money" Risk events.The analysis assumes that the new facility will be exempt from property and 25-Yr 25-Yr 25-Yr leasehold taxes,commercial parking taxes and the local admissions tax. CORE SCHEDULE ONLY Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) ALL JURISDICTIONS 11.3 204.3 7.2 134.0 3.7 78.2 The potential loss of tax revenue associated with the At-Risk events will likely fall between State General Fund 9.1 161.3 6.1 112.1 2.8 59.8 Construction,direct&indirect 0.4 14.6 0.4 14.6 0.2 13.7 the At-Risk "New Money" estimate and the full At-Risk estimate. The actual loss of tax Direct Ongoing 7.0 116.0 4.5 74.5 2.0 32.8 revenues associates with losing these events will depend how the local spending on these Indirect Total 1.7 30.7 1.2 22.9 0.6 13.3 events is re-spent;in particular,what is purchased and where the purchases take place. King County 0.8 15.2 0.5 10.9 0.4 8.5 Construction,direct&indirect 0.0 0.3 0.0 0.3 0.0 0.3 Direct Ongoing-general 0.3 4.9 0.2 3.6 0.2 3.2 State General Fund collects B&O tax and sales tax on direct and indirect economic activity Direct Ongoing-transit 0.4 8.6 0.2 5.8 0.2 4.7 Indirect Total 0.1 1.4 0.1 1.2 0.0 0.3 associated with the events. - Other Local(ex.Renton) 0.9 15.3 0.6 11.0 0.5 9.9 o All event-related activity:Core Schedule$161M and Full Schedule$257M. Sound Transit 0.2 3.8 0.1 2.6 0.1 2.1 Criminal Justice sales tax 0.0 1.0 0.0 0.6 0.0 0.5 o At Risk events:Core Schedule$1 12M and Full Schedule$205M. Other Cities in King County 0.2 4.1 0.2 2.6 0.1 2.2 State Convention Center 0.4 6.4 0.3 5.2 0.3 5.1 o "New Money"share of At-Risk:Core Schedule$60M and Full Schedule$106M. CITY OF RENTON 0.6 12.5 Construction sales tax 0.0 1.7 King County would receive its share of local sales tax on direct and indirect activity plus the Direct Ongoing 0.6 10.9 Metro Transit sales tax portion. At-Risk Total-All Events At-Risk Total "New Money" o All event-related activity:Core Schedule$15M and Full Schedule$30M. o At Risk events:Core Schedule$11M and Full Schedule$25M. 25-Yr 25-Yr 25-Yr TOTAL EVENT SCHEDULE Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) o "New Money"share of At-Risk:Core Schedule$9M and Full Schedule$20M. ALL JURISDICTIONS 14.4 340.4 9.7 258.5 5.5 152.1 State General Fund 11.1 257.1 7.8 205.0 3.9 105.9 City of Renton would gain from all of the on-site spending and some of the off-site through Construction,direct&indirect 0.4 14.6 0.4 14.6 0.2 13.7 increases in taxable retail salesplus the business license tax.The analysis assumes that the Indirectect Ongoingtl8.61 50.8 15.5 42.1148.3 2.8 68.0 y Total 2.1 50.8 1.5 0.9 243 Event Center would be exempt from the current City admissions tax of 5%. King County 1.2 29.5 0.9 24.e 0.7 19.6 o All event-related activity:Core Schedule$12.5M and Full Schedule$20.5M. Construction,direct&indirect 0.0 0.3 0.0 0.3 0.0 0.3 Direct Ongoing-general 0.5 11.4 0.4 10.0 0.4 9.2 Direct Ongoing-transit 0.6 14.6 0.4 11.6 0.3 9.6 Other Local taxes in King County are a combination of local spending that would be outside Indirect Total 0.1 3.1 0.1 3.0 0.0 0.4 Renton and shares of sales taxes that are dedicated to specific purposes or jurisdictions. Other Local(ex Renton) 1.4 33.3 1.1 28.6 1.0 26.6 o All event-related activity:Core Schedule$15.3M and Full Schedule$33.3M. Sound Transit 0.3 6.5 0.2 5.2 0.1 4.3 Criminal Justice sales tax 0.1 1.6 0.0 1.3 0.0 1.1 o At Risk events:Core Schedule$11.OM and Full Schedule$28.6M. Other Cities in King County 0.4 8.6 0.3 7.0 0.2 6.2 State Convention Center 0.7 16.7 0.6 15.2 0.6 15.1 o "New Money"share of At-Risk:Core Schedule$9.9M and Full Schedule$26.6M. CITY OF RENTON 0.8 20.5 Construction sales tax 0.0 1.7 Direct Ongoing 0.8 18.8 Sources:Berk&Associates -RENTON -April 4,2007 Economic&Fiscal Benefits of the King County Events Center - t111..n}T.CVI.it • J . . ECONOMIC DEVm • A FRAMEWORK FOR ASSESSING ECONOMIC • DEVELOPMENT INVESTMENTS As currently envisioned,an investment in the proposed King County Events Center would EXHIBIT 7: be a significant public investment designed to support economic development efforts at FRAMEWORK FOR SUSTAINABLE ECONOMIC DEVELOPMENT the local, county and state level.The previous discussion of potential economic benefits addresses only one of the potential ways in which the proposed facility might support long ;' ' '"' """ "`"4' """""" :-: ( term sustainable economic development. Economic Vitality Driver - A framework for-assessing the potential value of economic development-assets-is shown schematically in Exhibit 7.This three-part framework provides a basis for a comprehensive King County review of the economic development potential of a major event center. Each part offers Events Center another perspective on the issue of assessing the potential public value of the project. - jor Events Economic Vitality Driver has been the subject of this analysis and addresses issues such as potential increases in visitor spending and changes in the demand for local goods and I/ Public Space services which can lead to direct employment benefits.As discussed previously there is an Tourism expected increase in economic activity associated with the development and operation of the proposed facilitythat will result in new jobs and additional tax revenues. Community Character& P P I Image j Livability &Identity Community Character captures the potential of the Events Center to support the overall ;.. . quality of life in the region.The biggest potential effect in this category is the ability to retain professional basketball and potentially add professional hockey to the array of cultural -� and entertainment options available to the community.The availability of a wide range of entertainment choices can enhance the ability of local businesses to attract and retain the best employees. This becomes increasingly important in a global economy where more and more skilled labor can choose where to live based on a variety of factors including The identity component relates to the way that residents view the place quality of life and amenities. where they live.Few events have greater ability to create an overall sense of community and a shared experience than a deep playoff run or a Image and Identity relates to the potential role of the Events Center in terms of promoting championship season by a local sports franchise. While it is difficult to the image of the state and region to national and international audiences through broadcast measure the value of moments such when almost 80%of Seattle Tacoma of some of the higher profile events that could be hosted. For example the NBA All-Star area televisions were tuned in to watch the Seahawks beat the Carolina game or an international figure skating championship would be seen by millions of people Panthers on January 22, 2006, they generate tremendous amounts of around the world. goodwill and become a part of the identity of a region. —R E N T O N—April 4,2007 Economic&Fiscal Benefits of the King County Events Center ,neon u•m�e cosec TECHNICAL APPENDIX • • —RENT(.3-R'—April 4,2007 Economic&Fiscal Benefits of the King County Events Center A11141,Or'MI.CrOVIt I Economic and Fiscal Benefits 1 TECHNICAL APPENDIX of the King County Events Center INTRODUCTION The purpose of this Technical Appendix is to provide a detailed description of the methodologies and results of Berk&Associates' analysis of the economic and fiscal benefits of the King County Events Center.The structure of this appendix will mirror that of the analysis, which is comprised of four separate, but interwoven, pieces of analysis: 1. Analysis of event schedule and attendance; 2. Analysis of spending; 3. Analysis of economic benefits;and 4. Analysis of fiscal (tax) benefits. Throughout the analysis,spending is divided along three different axes: Spending Axis 1: At-Risk I Not At-Risk A number of events that would likely be hosted at the new Events Center could be hosted elsewhere in the region,while others are unlikely to happen without the new facility.The true economic value of the new building will be related only to the events that would otherwise not occur in the region. A further dimension of risk revolves around redirected local spending. It is tempting to think that locally- generated spending on At-Risk events will be recaptured through redistribution effects. In reality, however, it is almost certain that some of these re-spent dollars will miss (or"leak"out of)the local economy. Spending Axis 2: Local Money I New Money Geography matters when considering economic impacts. Therefore, this analysis parses spending to distinguish between "New Money" (or dollars that originate outside the area of study) and local money (dollars spent by /oca/residents who attend Arena events). From a modeling perspective, three categories of spending generate positive economic impacts: (1) spending from out-of-area visitors; (2) other imported dollars such as shared league revenues; or (3) local spending that could be diverted to out-of-area expenditures (or to local uses that generate fewer economic impacts). To be conservative,this analysis only labels the first two of these three categories as "New Money." From a state perspective, new money focuses on event spending or league revenues that originate out of state. From a King County perspective,the impacts associated with New Money could be larger, since they are related to dollars that are imported into the County, including dollars from other parts of the state. From the City of Renton perspective, virtually all of the potential activity in the proposed Events Center could be considered net new spending. Spending Axis 3: Core Schedule I Potential Additions The facility event and attendance assumptions are divided into a Core Schedule, which is a relatively narrow definition of the events for the new facility, and Potential Additional Events, which add incremental activity that could fill out the remaining schedule.The core schedule includes the Seattle Sonics and Storm regular seasons, all concerts and entertainment events, one low impact convention (e.g. consumer show), and five large R`""—"� April 4,2007 Page 1 ENTON 4/12,0 OP rue tst TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center corporate meetings. Potential additions include Sonics and Storm playoffs, the NHL and its playoffs, two high impact conventions, five more large corporate meetings, and one high-impact sports event (e.g. NCM tournament). The overall analysis is built on a foundation of secondary sources. Key sources include: • KeyArena Economic Impact Assessment prepared for Seattle Center by William Beyers and GMA Research Corporation; • Preliminary event analysis from the ICON Venue Group; • 2004 Convention Expenditure & Impact Study produced for the International Association of Convention & Visitor Bureaus;and • Operating pro formas from the Seattle Sonics and Storm. EVENT SCHEDULE AND ATTENDANCE Event Schedule The analysis includes both a core schedule of events and potential additions to the.core schedule, all of which are shown in Exhibit 1 below. Because some events are assumed to not happen in all years (Sonics playoffs,for example),the maximum number of event days in a year will be greater than the average number of event days. The core schedule contains an average of 153 event days, and adding all 70 average potential additional event days yields a grand total of 223 average event days each year. Page 2 April 4,2007 RENTON Economic and Fiscal Benefits I TECHNICAL APPENDIX of the King County Events Center Exhibit 1: Event Schedule Maximum Average Core Events %At Risk Event Days Frequency Event Days Sonics 100% 43 100% 43.0 Storm 100% 18 100% 18.0 Large Concert 0% 8 100% 8.0 Med Concert 00/o 9 100% 9.0 Small Concert 0% 8 1000/0 8.0 Other Entertainment 0% 52 ' 100% 52.0 Corporate Meetings 100% 10 100% 10.0 Consumer Show 0% 5 100% 5.0 Total 153 153.0 Pro Sports I 61 61.0 Concerts/Entertainment 77 77.0 Conventions 15 15.0 NCAA/High-Impact Sports 0 0.0 I Total at Risk 71 71.0 I Maximum Average Additional Potential %At Risk Event Days Frequency Event Days Sonia Playoffs 100% 5 50% 2.5 Storm Playoffs 100% 4 50% 2.0 NHL 100% 45 100% 45.0 NHL Playoffs' 100% 5 50% 2.5 Corporate Meetings 100% 10 100% 10.0 High-Impact Convention 100% 6 100% 6.0 NCAA/Hi:h-lm 1 act S'orfs 50% 4 50% 2.0 Total 79 70.0 Pro Sports 1 59 52.0 , Concerts/Entertainment 0 0.0 Conventions 16 16.0 NCAA/High-Impact Sports 4 2.0 I Total at Risk 77 69.0 Grand Total 232 223.0 Pro Sports I 120 113.0 Concerts/Entertainment 77 77.0 Conventions 31 31.0 NCAA/High-Impact Sports 4 2.0 I Grand Total at Risk 148 140.0 Core events include the following: I • Sonics; • Storm; • Concerts&other entertainment; • Large-scale corporate meetings;and • Consumer trade shows. R"�'-"..„..... April 4, 2007 Page 3 nlisAo at TNL 41 C., TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center The core schedule is based in large part on a preliminary event analysis from the ICON Venue Group, with five additional event days added to account for large corporate meetings. The schedule of potential additions, developed through discussions with the City of Renton, includes: • Sonics playoffs; • Storm playoffs; • NHL regular season and playoffs; • Additional corporate meetings; • High-impact conventions;and • NCM tournaments&other high-impact sports. An important distinction among event types is whether each event type is "At-Risk" to leave the region if the new Events Center is not built.At-Risk events include Sonics and Storm games, NHL games, and large corporate meetings, none of which can currently be hosted at any of the region's facilities. Furthermore, the Seattle Convention and Visitor's Bureau cites date availability as its number one reason for lost convention room nights. Therefore high-impact conventions are considered At-Risk events, since the Events Center would add capacity during the already-full peak convention season. Attendance and Visitor Origins For the most part, average attendance per event day is based on the ICON Group's event analysis, with the following exceptions: • The assumed Sonics average attendance (15,000) is based on historical trends. Furthermore,only 2 out of the 30 NBA teams have average attendance less than 15,000 for the 2006-07 season (as of April 1, 2007). o To be conservative, no attendance increase is assumed related to the new Events Center and its corresponding larger capacity. • NHL attendance is assumed to mirror Sonics attendance. Of the 30 NHL teams, 23 have average attendance greater than 15,000 for the 2006-07 season (as of April 1,2007). • Convention and corporate meeting attendance is based on a 2004 Convention Expenditure& Impact Study by the International Association of Convention &Visitor Bureaus (IACVB). In order to determine the amount of spending that is "new" to the county or to the state, it is necessary to estimate what proportion of the total visitors to an event are visiting from outside the county or outside the state. Proportions of visitor origins for professional sports are based on a 2005 KeyArena Economic Impact Assessment prepared for Seattle Center. The assessment surveyed 601 visitors to KeyArena, and it included a question regarding the visitor's location of origin. For conventions and corporate meetings, origin proportions are based on the IACVB Study. Other visitor origin proportions are based on Berk & Associates estimates, using the KeyArena and IACVB figures to triangulate appropriate assumptions. Page 4 April 4,2007 RENTON Economic and Fiscal Benefits TECHNICAL APPENDIX of the King County Events Center Combining the event schedule, average attendance figures, and visitor origin proportions allows the development of attendance estimates for total visitors, new visitors to the state, and new visitors to the county. These attendance estimates are shown below in Exhibit 2. Exhibit 2:Attendance Average Average Average Attendance per Attendance per %Within Within King %Rest of Rest of %Out of Core Events .%At-Risk Event Days Event Day Year King County County Washington Washington State Out of State Sonics 100% 43.0 15,000 645,000 64% 415,380 28% 181,245 8% 48,375 Storm 100% 18.0 6,000 108,000 64% 69,552. 28% 30,348 8% 8,100 Large Concert 0% 8.0 14,900 119,200 59% 70,894 36% 43,091 4% 5,215 Med Concert 0% 9.0 10,000 90,000 63% 56,511 35% 31,914 2% 1,575 Small Concert 0% 8.0 5,300 42,400 65% 27,560 35x/a 14,840 0% 0 Other Entertainment 0% 52.0 8,750 455,000 65% 295,750 35% 159,250 0% 0 Corporate Meetings 100% 10.0 6,975 69,750 10a/o 6,975 10% 6,975 80% 55,800 Low-Impact Convention 0% 5.0 3,500 17,500 65% 11,375 35% 6,125 0% 0 Total 153.0 10,110 1,546,850 62% 953,997 31% 473,788 8% 119,065 Pro Sports 61.0 12,344 753,000 64% 484,932 28% 211,593 8% 56,475 Concerts/Entertainment 77.0 9,177 706,600 64% 450,715 35% 249,095 10/a 6,790 Conventions 15.0 5,817 87,250 21% 18,350 15a/o 13,100 64% 55,800 NCAA/High-Impact Sports 0.0 0 0 0 0 0 Total at Risk . 71.0 11,588 822,750 60% 491,907 27% 218,568 14% 112,275 %of Total 46% 53% '52°/a 46% 94% Average Average Average Attendance per Attendance per %Within Within King %Rest of Rest of %Out of Additional Potential %At-Risk Event Days Event Day Year King County County Washington Washington State Out of State Sonics Playoffs 100% 2.5 17,500 43,750 64% 28,175 28°/a 12,294 8% 3,281 Storm Playoffs 100% 2.0 12,000 24,000 64% 15,456 28% 6,744 8%: 1,800 NHL 100°/a 45.0 15,000 675,000 64°/a 434,700 28% 189,675 8% 50,625 NHL Playoffs 100% 2.5 17,500 43,750 64% 28,175 28% 12,294 8% 3,281 Corporate Meetings 100% 10.0 6,975 69,750 10% 6,975 10% 6,975 80% 55,800 High-Impact Convention 100% 6.0 9,300. 55,800 10% 5,580 10% 5,580 80°/a 44,640 - NCAA/High-Impact Sports 50% 2.0 15,000 30,000 20% 6,000 20% 6,000 60% 18,000 Total 70.0 13,458 942,050 56% 525,061 25% 239,562 19% 177,428 It Pro Sports 52.0 13,822 718,750 70% 506506 31% 221007 8% 58988 Concerts/Entertainment 0.0 0 0 0 0 0 Conventions 16.0 7,847 125,550 10% 12,555 10% 12,555 80% 100,440 NCAA/High-Impact Sports 2.0 15,000 30,000 20% 6,000 20% 6,000 60% 18,000 Total at Risk 69.0 13,436 927,050 56% 522,061 26% 236,562 18% 168,428 %of Total 99% 98% 99% 99% 95% Grand Total 223.0 11,161 2,488,900 59.4% 1,479,058 28.7% 713,349 11.9% 296,493 Pro Sports 113.0 13,024 1,471,750 67.4% 991,438 29.4% 432,600 7.8% 115,463 Concerts/Entertainment 77.0 9,177 706,600 63.8% 450,715 35.3% 249,095 1.0% 6,790 Conventions 31.0 � 6,865 212,800 14.5% 30,905 12.1% 25,655 73.4% 156,240 NCAA/High-Impact Sports 2.0 15,000 30,000 20.0% 6,000 20.0% 6,000 60.0% 18,000 Grand Total At Risk 140.0 12,499 1,749,800 57.9% 1,013,968 26.0% 455,130 16.0% 280,703 %of Total 63% 70% 69% 64% 95% . J� '----..-.,, j April 4, 2007 Page 5 RENTON nilxtn aP T...e4 Fee. TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center - SPENDING There are a variety of spending types tracked in this analysis, including: • Fan (or,in the case of conventions and corporate meetings,participant)spending on-site at the event; • Fan spending off-site; • Non-fan spending off-site(such as visiting NBA teams); • Business spending(and revenues);and • Spending on Events Center construction. Fan Spending Fans spend money both on-site at the event, and off-site away from the event. On-site spending categories include: • Tickets; • Concessions;and • Parking. Off-site spending categories include: • Lodging; • Local Travel; • Food/Beverage; • Retail/Entertainment;and • Other Services. The 2005 KeyArena survey asked visitors for information about spending related to their visit For nearly all events,the KeyArena spending trends are used to model fan spending for the new Events Center. The KeyArena report included one table of spending data aggregated by location of origin and another table aggregated by type of event (sports or concert). To develop spending assumptions at a level of detail that includes both location of origin and type of event,the data on spending by type of event is used as the average, and the data on spending by location of origin is used to determine the distribution of that spending across different geographic areas.The spending figures are also updated to 2007 dollars. The following four exhibits display the detailed spending assumptions for each different type of event modeled. Beneath each exhibit is a series of bullets describing any areas of adjustment to the KeyArena spending figures. One adjustment affects all event types: a discount of 400/0 is made to parking prices to reflect the fact that parking in Renton would likely be less expensive than parking in Seattle. Page 6 April 4,2007 RENTON (- Economic and Fiscal Benefits 1 TECHNICAL APPENDIX of the King County Events Center i Exhibit 3: Event Profile- Pro Sports I Storm/Other Sonics/NHL Sports Average Attendance 115,000 6,000 %of Attendees from King County 64.4% 64.4% %of Attendees from Other Washington 28.1% 28.1% of Attendees from Out-of-State 7.5% 7.5% Average Non-Fan Attendees I 59 33 Sonics/NHL Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Non-Fan Total $77.70 $105.92 $141.83 $91.29 $381.42 On-Site $56.56 $73.10 $85.64 $64.24 $0.00 Ticket $41.98 $59.45 864.44 $49.43 $0.00 Concession 810.37 $11.63 $19.20 $11.39 80.00 Parking $4.20 $2.01 81.99 . 83.42 $0.00 Off-Site I $21.14 $32.82 $56.19 $27.05 $381.42 Lodging $0.21 $3.05 $17.60 $2.31 $250.00 Local Travel $0.54 $1.02 $2.99 80.86 $25.42 Food/Beverage $9.32 $16.49 $16.17 $11.85 $106.00 Retail/Entertainment $6.40 $9.70 $12.32 87.77 $0.00 Other $4.67 82.56 87.11 $4.26 • $0.00 Storm/Other Sports Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Non-Fan Total $60.74 $81.90 $115.79 $72.15 $345.42 On-Site $39.60 $49.08 $59.60 $45.10 $0.00 Ticket $25.02 $35.43 838.41 830.29 $0.00 Concession 810.37 $11.63 819.20 $11.39 $0.00 Parking I $4.20 $2.01 $1.99 $3.42 $0.00 Off-Site $21.14 $32.82 $56.19 $27.05 $345.42 Lodging $0.21 83.05 $17.60 $2.31 $250.00 Local Travel $0.54 $1.02 $2.99 $0.86 $25.42 • Food/Beverage $9.32 816.49 $16.17 $11.85 870.00 Retail/Entertainment $6.40 $9.70 $12.32 $7.77 $0.00 Other $4.67 $2.56 87.11 $4.26 $0.00 • Adjustments are made to Sonics and Storm ticket prices to reflect the differentials in ticket prices for these two events, and NHL ticket prices ire assumed to mirror those of the Sonics. • Playoff tickets are assumed to have an average cost 15%higher than regular season tickets. R`'-"" April 4, 2007 Page 7 TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center Exhibit 4: Event Profile- Concerts/Entertainment High-Impact Low-Impact Average Attendance 14,900 7,435 Wo of Attendees from King County 42.9% 65.0% %of Attendees from Other Washington 39.6% 35.0% • %of Attendees from Out-of-State 17.5% 0.0% Average Non-Fan Attendees 0 0 Event Distribution High-Impact Low-Impact Large Concert 25% 75% Medium Concert 1096 90% Small Concert 0% 100% High-Impact Origin of Visitor Within King Rest of Average Spending per Visitor County Washington Out of State Total $178.97 $256.88 $324.86 On-Site $151.42 $211.49 $234.16 Ticket $140.48 8198.93 $215.62 Concession 88.98 810.99 $16.97 Parking $1.97 81.57 $1.56 Off-Site $27.55 $45.39 $90.71 Lodging $0.47 $6.95 $40.14 Local Travel $0.56 $1.06 $3.09 Food/Beverage 810.08 $17.84 817.49 Retail/Entertainment $11.07 816.58 821.56 Other 85.36 $2.97 $8.42 Low-Impact Origin of Visitor Within King Rest of Average Spending per Visitor County Washington Out of State Total $63.96 $94.01 $148.32 On-Site $36.41 $48.62 $57.61 Ticket $25.46. $36.06 $39.08 Concession 88.98 810.99 $16.97 Parking 81.97 81.57 81.56 Off-Site $27.55 $45.39 $90.71 Lodging $0.47 $6.95 840.14 Local Travel 80.56 81.06 $3.09 Food/Beverage 810.08 817.84 817.49 Retail/Entertainment $11.07 816.58 821.56 Other $5.36 $2.97 88.42 Composite Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Total $77.53 $114.35 $206.57 $91.75 On-Site $46.98 $64.03 $106.00 $53.56 Ticket $34.84 $50.10 $85.46 840.71 Concession $9.95 $12.18 $18.82 $10.82 Parking 82.18 $1.74 $1.73 $2.02 Off-Site $30.55 $50.32 $100.57 $38.19 Lodging $0.53 87.70 844.51 $3.48 Local Travel $0.62 81.17 83.43 $0.84 Food/Beverage 811.18 819.78 819.39 814.29 Retail/Entertainment 812.28 818.38 823.90 $14.54 Other $5.94 $3.29 89.34 $5.04 • Adjustments are made to high-impact and low-impact concert ticket prices. Because two of the three concerts surveyed as part of the KeyArena Study were high-impact concerts (U2 and Paul McCartney), the data are available to support differential ticket pricing for these different types of concerts. Page 8 April 4,2007 '~---- `,, RENTON f Economic and Fiscal Benefits i TECHNICAL APPENDIX of the King County Events Center 1 . Exhibit 5: Event Profile- Conventions/Corporate Meetings Consumer •Corporate High-Impact Shows Meetings Average Attendance I 9,300 3,500 6,975 %of Attendees from King County 10.0% 65.0% 10.0% %of Attendees from Other Washington 10.0%, , 35.0% '10.0% %of Attendees from Out-of-State 80.0% 0.0% 80.0% Average Non-Fan Attendees 0 0 0 High-Impact Conventions Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Total $43.07 $405.59 $405.59 $369.34 On-Site $5.03 $16.29 $16.29 $15.17' Ticket $0.00 80.00 $0.00 80.00 Concession 80.00 $0.00 $0.00 $0.00 Parking 85.03 $16.29 816.29 $15.17 Off-Site $38.04 $389.29 $389.29 $354.17 Lodging $0.00 $219.49 8219.49 $197.54 Local Travel $4.60 814.90 814.90 $13.87 Food/Beverage 833.44 $108.35 $108.35 $100.86 Retail/Entertainment $0.00 846.55 $46.55 $41.90 Other , 80.00 80.00 $0.00 $0.00 Consumer Shows Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Total I $63.96 $94.01 $148.32 $74.48 On-Site $36.41 $48.62 $57.61 $40.68 Ticket 825.46 $36.06 $39.08 829.17 Concession 88.98 $10.99 $16.97 $9.68 Parking $1.97 81.57 81.56 81.83 Off-Site I $27.55 $45.39 $90.71 $33.79 Lodging 80.47 $6.95 840.14 $2.74 Local Travel 80.56 $1.06 83.09 $0.73 Food/Beverage 810.08 817.84 $17.49 812.80 Retail/Entertainment $11.07 $16.58 821.56 $13.00 Other $5.36 82.97 88.42 84.52 Corporate Meetings Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Total I $21.53 $202.79 $202.79 $184.67 On-Site i $2.51 $8.15 $8.15 $7.58 Ticket $0.00 80.00 $0.00 $0.00 Concession 80.00 80.00 $0.00 $0.00 Parking $2.51 $8.15 $8.15 $7.58 Off-Site $19.02 $194.65 $194.65 $177.08 Lodging $0.00 $109.74 $109.74 $98.77 Local Travel $2.30 $7.45 $7.45 $6.93 Food/Beverage $16.72 854.18 854.18 $50.43 Retail/Entertainment $0.00 $23.28 823.28 $20.95 Other 80.00 80.00 80.00 $0.00 • Consumer show spending patterns are assumed to mirror those of low-impact concerts and other entertainment. • Spending patterns for high-impact conventions and corporate meetings are not based on the KeyArena figures, but instead on the IACVB Study.To be conservative, attendees at corporate meetings are assumed to spend half the amounts spent b',y attendees at high-impact conventions. RENT )CT April 4,2007 Page 9 TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center Exhibit 6: Event Profile- High-Impact Sports Average Attendance 15,000 %of Attendees from King County 20.0% S of Attendees from Other Washington 20.0% %of Attendees from Out-of-State 60.0% Average Non-Fan Attendees 0 Origin of Visitor Within King Rest of Implied Average Spending per Visitor County Washington Out of State Composite Total $100.09 $141.45 $206.76 $172.36 On-Site $67.29 $88.27 $103.80 $93.39 Ticket $47.85 $67.76 $73.45 $67.19 Concession $13.95 $16.12 $26.00 $21.61 Parking $5.49 $439 $4.34 $4.58 Off-Site $32.80 $53.18 $102.96 $78.98 Lodging 80.51 87.44 $42.98 827.38 Local Travel $0.76 $1.42 84.17 $2.94 Food/Beverage $13.01 $23.00 $22.55 $20.73 Retail/Entertainment $11.59 $17.48 $22.42 $19.26 Other $6.95 $3.84 $10.84 $8.66 • While the distribution of spending at NCAA tournaments and other high-impact sports events mirrors the distribution of spending at the KeyArena, overall spending figures for these events are based on an average from three economic impact studies related to NCAA tournaments. • Page 10 April 4 2007 RENTON • ✓ Economic and Fiscal Benefits : •TECHNICAL APPENDIX - of the King County Events Center I Non-Fan Off-Site Spending Non-fan participant spending is off-site spending by persons other than fans. For example, when visiting teams come to the region to play the Sonics; the players, coaches, and staff all spend money oh lodging, food, and other items. I Because pro sports is the only event type where data is available regarding the number of potential non-fan participants and their spending, pro sports is the only event type where any non-fan spending is assumed. These spending figures are contained in Exhibit 3 above. Overall non-fan spending estimates are likely conservative, considering that other events (such as concerts) will also have non-fan participants who will spend money on lodging,food and beverage,and other local goods and services. Total Event Spending Total event spending (shown below ini Exhibit 7 and including both fan and non-fan spending) is calculated for each event at three levels of geography: inside King County; other Washington; and out-of-state. Spending is calculated using the attendance and spending patterns described above for each event and geography. Exhibit 7: Event-Related Spending Detail Event Spending-One Year of Core Events(2007$M) 1 ' = Total I Pm Sports Concerts Conventions NCAA/High-Impact Sports IAO AtRhk All Al Risk All At R6k All Al Rlsk All At Risk E Fonts• °1' Events Events Events Events Events Events Events Events Newts•1NAYts New to Newts New to New to New to New to New to New to °T .°'oTote RC WA 1 Total Total KC WA Total Total KC WA Total Total KC WA Total Total KC WA Total 1 179.1 ' W.0 43.4 203 ( 613 673 30.7 9A 565 0.0 0A 00 14.2 12.9 12.7 113 0.0 0.0 0A 0.0 On-She DIA ^46t t9.9><AI 43b 45.6 19.4 tO 3/.1 0.0 0.0 0.0 1.2 0.5 03 03 40 0A 0.0 0.0 Ticket 609 ; 343 809 3.4 34.5 345 153 3.4 259' 0.0 0.0 00 0.5 0.0 0.0 OA 0.0 0.0 0.0 0.0 Concession 1 13.6 - 99 33 ,1.1. 8.6 86 3.5 1.1 69 0.0 0.0 0.0 0.2 00 0.0 0.0 0.0 0.0 OA 0.0 Parking 4.9 31 1.1 8 2.6 26 0.5 OI 13 0.0 0.0 0.0 0.6 05 0.5 050.0 0.0 0.0 0.0 Of(•SKe E1 S9.$ 339 ••.'A3.1 . 113 213 11.3 4.3 24.3 0.0 0A 0.0 I].9 12.4 122 10.9 OD 0.0 0A 0.0 Lodging . 11.7 ' 4.4 93' 14 25 2.5 2.4 1.8 2.2 00 00 00 6.9 6.9 6.9 6.1 0.0 0.0 00 0.0 Local Travel 7'i.e . ,12. , 09 ^c;0.7 0.7 X0.7 0.5 0.2 0.5 0.0 0.0 0.0 0.5 0.5 0.5 0.4 ' 0.0 0.0 0.0 0.0 Food/Beverage 22,1;.,.,.1241,".e.l x'42"" 9.2 ,9.2 4.7 1.2 9.1 0.0 00 0.0 3.7 3.5 34 30 OA 0.0 0.0 0.0 Retad/Entertainment 'l09 Y3"`.4.2', 2A 5.9 5.9 2.7 0.7 93 Q0 0.0 0.0 1.7 15 1.5 13 0.0 0.0 OA 00 Other1''95-'•'32 09 '04' 3.2 3.2 Q9 0.4 32 0.0 00 0.0 0.1 OA 0.0 0.0 OA 00 OA 00 Event Spending-One Year of Potential Extras(2007$M) I • Total" "l Pre Sports Concerts Conventions NCASI/NIRh•Impact Sports _= AR ' • At6iski_„.' All At Risk All At Risk All Al R0k All JO PIA i Covets' roods < Events Events Events Events Events Events Events Events 7�• +� -Naw KCI*NawW I 6ewt' Newts Newts Newts Newts Newts Newts Newts I Tnlaf ToW"`' • WA'- Total Total KC WA Total Total KC WA Total Total KC WA Total ToW KC WA Total- j�Tsav; 9.II :i:SF ,:E 1 63.2 633 37.9 11.0 QO OA 0.0 0.0 33.5 33.5 33.1 29.4 103 53 45 3.7 On-One Tear d Site 1,444 = 61fI.2 t49, 57.5 575 24.5 53 60 0.0 0.0 00 IA 1.4 1.3 1.2 5.6 2.6 2.4 1.9 Ticket I'49„2 462^ 213 •57 442 442 19.6 4.4 00 00 0.0 00 0.0 00 0.0 0.0 4.0 20 1.7 13 Concession 11.5, '10,9_ 4.9, 14 10.2 102 4.2 1.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 13 0.6 0.6 0.5 Parkg_____ 1.4.7 45- 2l ="194'1 3.1 31 0.6 0.1 0.0 OA 0.0 00 1.44 1.4 13 12 0.3 0.1 0.1 0.1 Off.One Year of SKe 42.6 40.2- 47.19 ,35.5, 25.7 25.7 13.5 5,2 QO 0.0 0.0 0.0 32.1 321 31.6 262 4.7 2.4 2.2 1.9 Lodging n 226 ;219 213 19.9 3.1 3.1 2.9 2.2 0.0 OA 0.0 0.0 17.9 17.9 17.9 15.9 1.6 08 08 0.8 Local Travel23 '.22.''19 13 0.9 0.9 06 03 0.0 0A 00 00 13 13 12 1.1 02 0.1 0.1 0.1 Food/Beverage ( 21,4 297.' ,159':9.9„ 110 110 56 1.4 00 00 00 00 9.1 9.1 88 7.9 1.2 0.6 05 04 Retad/Entenakment119 ' 11,4,''°7.6.", 4,6 70 =70 33 0.8 0D 00 00 00 38 3.8 3.8 3.4 1.2 0.6 05 0.4 Other l 4.3• 4.1 I° T",3 07 s 3.8 3.8 1.1 05 00 00 0.0 00 00 00 00 00 05 03 02 02 Event Spending-One Year of Grand Total(2007$M) 1 #: •.".T ^ ° �. Pro Sports Concerts Conventions NCAA/Nloh-lmpact Sports 1' .,'a':».'. '1 I II 931 e,..At .,,;'1 All At Risk All At Risk All At Risk All At Risk Cv�gtt Events Events Events Events Events Events Events Events "•'-'^ N9w1p'N41KRi New to New to New to New to New to New to New to New to TOW TMa1 .KC ,'WA'( Total Total KC WA Total Total KC WA Total Total KC WA Total Total KC WA Tot -- .261.9' : 2019 179.0 '44.5 I 150.3 150.3 666 208 365 0.0 00 0.0 43.7 46.4 45.6 40.7 163 5.2 4.6 3.7 On-Site 9(5,4=^ 1021 41.} -11.9 10].1 1113.1 43.8 LOA 34.1 OA 0.0 0.0 2.6 1.9 I.8 Ib 5.6 2.8 2.4 1.9 Oaks IA9.8' .8Q0- 368 9,1 ]B.6 78.6 34.9 7.8 259 0.0 00 0.0 QS OA OA 0.0 40 20 1.7 13 Concession k 27.2 .19.3 8.3. '28 18.8 188 7.8 2.4 6.9 0n 0.0 00 02 00 0A 00 13 0.6 06 0.5 Parking ) 92 7. 5.7 5.7 12 02 13 OA 00 00 1.9 1.9 18 1.6 03 0.1 0.1 0.1 ON 1.1-Slte 72 . -.1 -^'70.9!; '3 47.3 47.3 24.6 9.6 24.3 .0.0 0.0 0.0 45.1 44.5 44.0 39.1 4.7 24 2.2 1.9 Lodging €949:11.£`312 314 , 26.8 5.6 5.6 5.4 3.9 22 00 00 00 24.8 248 24.8 220 1.6 0.8 0.8 0.8 Local Travel g4.1 a '3.4 q,24-'q 2.l, 1.6 1.6 10 0.5 0.5 00 00 0.0 1.8 1.7 1.7 1.5 0.2 0.1 0.1 0.1 Food/Beverage i 435 339 232, 13.8 202 202 103 2.7 9.1 00 0.0 00 12.9 12.7 122 10.9 12 0.6 0.5 0.4 Retal/Entertainment I.20.7 , ',)BT ',.115< 6,9', 12.8 12.8 60 1.5 93 00 00 00 55 53 53 4.7 12 0.6 0.5 0.4 Other 1158 ' 7.3 23 '1,9 70 70 2.1 0.9 32 00 00 0.0 0.1 00 00 00 0.5 03 02 02 RENT() April 4,2007 Page 11 • TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center Business Spending and Revenues) g � For the purposes of calculating tax revenues, it is necessary to calculate both the spending and the revenue associated with operating the Events Center. Revenue in the form of tickets, concessions, and parking is already captured in the fan spending described above. However, the Events Center operator will also receive the following revenues: • Naming and sponsorship rights; • League revenue-sharing;and • Local media agreements. While all naming rights and revenue-sharing revenues are considered new to the state and county (because these revenues would not flow into the area in the absence of an NBA franchise operating in the state), none of the local media revenues are considered new to either area. Estimates of these revenues are developed using operating pro formas from the Seattle Sonics and Storm. A potential NHL franchise is estimated to generate 50% of NBA league revenue-sharing and local media revenues, and 10% of naming and sponsorship rights revenues. Due to confidentiality agreements,no detailed tables of these revenues are contained in this report. A large number of categories of business spending are estimated as well,and they fall into two major categories: 1.Spending Related to Sports Franchises This spending includes the following sub-categories: • Staff salaries and benefits; • Contract employees; • Marketing; • Press and public relations; • Photographic/art services; • Professional services; • Transportation;and • Lodging. For the core schedule, which includes the Sonics and Storm, estimates of most of these expenditures are developed using operating pro formas from the Seattle Sonics and Storm. An exception is the estimate for contract employees (players and coaches),which are developed using salary information from ESPN.com.While contract employees make up the majority of total business spending, it is assumed that only 25% of these salaries are spent locally and have economic impacts. If an NHL franchise comes to the Events Center, the expenditures listed above are expected to increase. Recognizing the potential for large economies of scale in staffing, an increase of just 20% is assumed for staff salary and benefit expenditures related to an NHL team. This assumption is based on a common ownership group for both the NBA and NHL franchises in the Events Center. Estimates for NHL contract employees are also developed using salary information from ESPN.com. For the remaining sub-categories, an 80% expenditure increase is assumed, recognizing the potential for small economies of scale. Page 12 April 4,2007 RENTON Economic and Fiscal Benefits TECHNICAL APPENDIX of the King County Events Center 2.Other Events Center Operating Expenditures This spending includes the following srb-categories: • Banking; • Printing; • Insurance; • Production materials; • Janitorial/protective; • Supplies; • Food and beverage service; • Maintenance; • Set/costume/exhibit rental; • Other; • Equipment rental; • HVAC;and • Other services; • Utilities., For both the core schedule and potential extra events, these expenditures are estimated using the current rates of spending per event day.As event days increase,these costs increase correspondingly. Spending on Events Center Construction Estimates of construction spending are developed using figures provided by the ICON Venue Group, including direct construction costs of$390 million out of a total development cost estimate of$500 million. Construction spending is then allocated over a three-year period (2008-2010). To be conservative, no ongoing capital investments in the Events Center are considered in this analysis. ECONOMIC IMPACTS Approach The economic impact analysis estimates the direct, indirect, and induced economic effects associated with the potential construction of a King County] Events Center. The economic impact analysis is evaluated from three major perspectives, representing combinations of the spending axes described above: • All Economic Activity (Total Money). This perspective identifies the total statewide economic activity associated with operations at and around the proposed Events Center. This measure captures the total economic effects but does not exclude the spending that would occur regardless of whether the Events Center is constructed. • At-Risk Economic Activity (Total Money). The At-Risk perspective identifies the total economic effects of the activities of the proposed Events Center that are tied to the construction of the Events Center. In other words, this perspective excludes those activities that are likely to occur in the state regardless if the proposed Events Center is constructed. • At-Risk Economic Activity (New Money). The At-Risk estimate is further evaluated to account for the portion of New Money impactsthat originate outside the region and would not flow to the region if the activities at the proposed Events Center are not present in the economy. This At-Risk, New Money perspective is evaluated for both the King County and Washington State,study areas. • " N T O April 4,2007 Page 13 RENTONN TECHNICAL APPENDIX • Economic and Fiscal Benefits of the King County Events Center o King County Study Area. Since the site is proposed for King.County, most of the effects identified in the statewide analysis will be experienced in communities around the proposed facility. As a result, potential economic effects are assessed from a County perspective—identifying the distribution of Events Center-related spending within the County.The County New Money spending includes spending from outside the county, both within and outside the state, as these dollars are all new to the county. o Statewide Study Area.The Washington State perspective,identifies the effects of new demand from outside the state; however, it does not count transfers of demand from one part of the state to another as new impacts to the state. The Distinction Between Expenditures and Economic Impacts If the goal of an economic impact analysis is to get a realistic view of how a given action will affect a regional economy, then it is important to understand the mechanisms by which that effect will be felt in the region. Input-output models are designed to identify impacts of newly introduced demand in a local economy. In other words, input-output models show economic impacts at the point of production, translating new demand into additional sales (and production)of local goods and services. This focus on economic effects means that input/output models make a clear distinction between new expenditures in an area and new demand for local goods and services. In economic terms, expenditures only impact the local economy to the extent that those expenditures drive demand for some local economic component of production. For example, a new dollar spent has a direct economic effect in a region only to the extent that some portion of the production of the good or service purchased occurs in that same region. The difference between the dollar spent and the amount that accrues to local entities is referred to in input/output models as the margin. This analysis includes two areas where margins come into play—where a difference exists between expenditures and economic effects.These two areas are (1) expenditures that take place at the proposed Events Center and (2) expected retail expenditures. In the case of the Events Center, estimates of economic effects are based on estimates of expenditures or revenues that flow out of the Events Center and accrue to local entities. These Events Center expenditures or revenues include: • Expenditures for day-to-day operation; • • Local salaries paid by the Events Center and tenants, both full-time and part-time; • Wholesale purchases for concession and merchandising sales at the track;and • Other local goods and services. Analysis of Economic Effects The estimate of economic effects (output,jobs, and labor income) of the proposed King County Events Center is based on estimates of expenditures and revenues that flow out of the activities at the Events Center and accrue to local, county, and state entities. Within this framework, direct economic effects stem from the spending of two groups: Page 14 April 4,2007 RENTON s � Economic and Fiscal Benefits TECHNICAL APPENDIX of the King County Events Center 1. Off-site visitors/fans spending.)This category includes the off-site Events Center spending of fans and visitors to the Events Center and accounts for spending on lodging, local travel,•food/beverage, entertainment, and shopping. Included in this descripfon is the spending of non-fan participants,such as visiting sport teams. 2. On-site Events Center expenditures. Thiscategory accounts for the operational expenses of the Events Center. Included in this description are the purchases for goods and services, and wage income made by the businesses. • The expenditures of these two groups are used as the inputs for the various scenarios of input-output models created for the analysis. The impacts of their expenditures are evaluated for the four combinations described above: • All Economic Activity(Total Money ; • At-Risk Economic Activity(Total Money); • King County At-Risk Economic Activity(New Money);and • Statewide At-Risk Economic Activity(New Money). Statewide and County Impacts Statewide economic impacts are modeled using the Washington State Input-Output Model developed for the Washington State Office of Financial Management(NAICS, Simple Analysis). The county-level impact estimates are made by using a King County-specific version of the statewide model. The county-specific model is created using a procedure designed to scale the total statewide economic output relative to the King County economy. Total jobs and wage income are calculated in the same fashion as the State model. The King County specific input/output model is based on the Washington State Input-Output model, with the economic impacts for each segment of the economy scaled to the King County level based oh IMPLAN economic modeling software (Type II Multipliers). Utilizing the same direct inputs for both the State and the County, industry sector-specific economic outputs are produced. The outputs are then used to generate a total economic output ratio that compares the figures for King County and for Washington State. The IMPLAN industry-specific ratios are used to scale the total economic outputs generated in the Washington State Input-Output Model to a CouI ty version. This design scales the multiplier effects to a level that approximately captures the county-level share of the multiplier effects. Multiplier effects refer to the indirect effect of new demand (purchases made by the source industry from suppliers and service providers) and induced effects (demand for locally produced goods and services that stems from re-spending of income earned at each stage in the process). Thus, the County multipliers are substantially smaller than the State version. IMPLAN's sectoring scheme is more diffuse than the Washington Input-Output Model but can be aggregated to the same level of the State model by aggregating NAICS industry codes for the respective industry sectors. Retail Margins The Washington State Input-Output Miodel requires the input of changes of industry output to be stripped of their retail margins. Typically only a small portion of a dollar spent for a retail purchase in a store goes to local i April 4,2007 Page 15 RENTON TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center producers. IMPLAN is used to estimate the margin for retail sales of general merchandise. The IMPLAN model estimates that 59%of the average retail expenditure accrues to producers outside of Washington State and the Puget Sound Region.The remaining 41%accrues to local production factors. This analysis uses IMPLAN's 41% local margin factor to allocate retail purchases to the State and County economies. This analysis uses margin on retail expenditures by businesses at the Events Center and off-site retail purchases by fans/visitors. Ongoing Event-Related Activity Direct Economic Activity:Off-site Visitor/Fan Spending Exhibit 8 summarizes the distribution of direct off-site spending made by fans and visitors to the Events Center. This spending is then assigned to the appropriate industry sector in the input-output model as a change to total economic output.The spending is organized by both the Core and Potential Events Schedule. Lodging and Food/Beverage account for the majority of total spending and represent an even larger share of the total At-Risk spending, reflecting the greater average spend for out-of-county and out-of-state fans/visitors. The distributions of off-site fan spending for all three At-Risk New Money scenarios highlight the impact of the spending patterns of out-of-county and out-of-state fans/visitors. Page 16 April 4,2007 REQ NTC N Economic and Fiscal Benefits TECHNICAL APPENDIX of the King County Events Center Exhibit 8: Direct Off-site Fan/Visitor Spending Distribution of'Direct Off-site Spending Core Events Potential Events Total All Actvity Total Total Direct Spending $56.8 $63.7 4120:4 Lodging 22.8% 39.4% 31.6% Local Travel 3.4% 4.0% , 3.7% Food/Beverage 43.1% 37.2% 40.0% Entertainment 7.6% 5.6% 6.5% Shopping 10.3% 6.2% 8.2% Other Services 12.7% 7.6% 10.0% At-Risk Total Total Direct Spending $34.1 $61.3 . $95.5 Lodging 30.6% 39.4% 36.2% Local Travel 3.9% 4.0% 4.0% Food/Beverage 41.4% 37.5% 38.9% • 'Entertainment 6.7% 5.5% 6.0% Shopping 7.0% 6.1% 6.4% Other Services I 10.4% 7.4% 8.5% County At-Risk(new money) Total Direct Spending $21.3 $43.2 $64.4 Lodging 43.7% 50.0% 48.0% Local Travel 2.4% 2.4% 2.4% Food/Beverage 38.1% 34.6% 35.70/a Entertainment 5.5% 4.6% 4.9% Shopping 5.9% 5.3% 5.5% Other Services 4.4% 3.1% 3.5% State At-Risk(new money) Total Direct Spending $15.9 $36.8 $52.7 Lodging ,55.2% 56.8% 563% Local Travel 4.6% 4.4% 4:5% Food/Beverage 29.7% 29.2% 29.3% Entertainment 3.4% 3.2% 3.3% Shopping 4.3% 4.4% 4.4% Other Services 2.8% 2.0% 2.3% Source:Berk&Associates Direct Economic Activity:On-site Events Center Spending Exhibit 9 summarizes the distribution of direct business expenditures made by businesses operating at the Events Center.The expenditures are assigned to the appropriate industry sector in the input-output model as a change to total economic output The spending is organized by both the Core and Potential Schedule. The amount spent on labor income accounts for the majority of total business spending. Labor expenditures include both salaries and benefits paid to staff,and the salaries paid to contract employees. Contract employee salaries represent the contract payments made to professional sports players and coaches. A 75% discount is applied to the total salaries of the contract employees to account for the fact that many players are not full-time residents of the county or the state and are unlikely to spend a high percentage of their income in the region.A similar discount on contract employee income was used in the KeyArena Report. All Other Business Expenditures is a roll-up of business expenditure categories described in the KeyArena Report. Estimates of these expenses are estimated using operating pro formas from the Seattle Sonics and Storm. While the pro formas do not use the exact same categories as the KeyArena Report, there is sufficient overlap at a general level to make the conversion. Once converted, the expenses are allocated to more specific spending categories using the distribution pattern described in the KeyArena Report. These include the categories described in the Business Spending section of this appendix. RENTC)N April 4, 2007 Page 17 nf1YAd tii Tile t.tRvr. TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center All At-Risk on-site business expenditures are discounted to account for the fact that some business expenditures (such as equipment rental) are likely to transfer to other venues in the region if the Events Center is not developed.Therefore, not all of these expenditures are At-Risk. On-site business expenditures (both labor and other expenses)for both the County and the State At-Risk, New Money scenarios are further discounted to reflect a percentage of imported business revenue from the league revenue, naming rights, non-local media, ticket sales, concessions, and parking tied to those events. The discount attempts to scale the on-site business expenses to reflect only the portion that is likely to be funded from fan/visitor spending that originates outside the respective study area (County or State). Exhibit 9: Direct On-site Business Expenditures Distribution of Direct On-site Business Expenditures Core Events Potential Events Total All Actvity Total Total Direct Spending $50.9 $40.9 $91.8 Labor Income $31.5 $26.8 $58.3 All Other Business Ex.enditutes $19.5 $14.1 $33.6 At-Risk Total Total Direct Spending $49.1 $40.6 $89.7 Labor Income $31.5 $26.8 $58.3 All Other Business Ex.enditutes $17.7 $13.8 $31.5 County At-Risk(new money) Total Direct Spending $31.0 $23.1 $54.1 Labor Income $19.8 $15.2 $35.1 All Other BusinessS.endin: $11.2 $7.9 $19.0 State At-Risk(new money) Total Direct Spending $21.1 $14.1 $35.2 Labor Income $13.5 $9.3 $22.8 All Other Business Expenditutes $7.6 $4.8 $12.4 Source:Berk&Associates Summary Economic Impacts Exhibit 10 through Exhibit 13 present detailed summaries of the direct, indirect and induced effects on economic output, employment,and income of the four perspectives analyzed: • All Economic Activity(Total Money); • At-Risk Economic Activity(Total Money); • King County At-Risk Economic Activity(New Money);and • Statewide At-Risk Economic Activity(New Money). Page 18 April 4,2007 RENT ON i i . Economic and Fiscal Benefits ; TECHNICAL APPENDIX of the King County Events Center i Exhibit 10:'All Activity Economic Impacts:All Economic Activity Total Core Events Extra Events • Total Output $406,400,689 $204,236,009 ,$202,164,680 Direct-off-site spending $120,422,473 $56,767,996 $63,654,477 , Direct on-site arena expenditures $91,849,730 $50,938,053 $40,911,677 Induced and Indirect ; $194,128,486 $96,529,959 $97,598,527 Total Jobs 5,799 2;875 2,923 Direct-off-site spending2,551 1,207 1,344 Direct-on-site arena expenditures 361 204 157 Induced and Indirect I 2,887 1,464 1,423 Total Wages $204,061,483 $104,467,557 $99,593,926 Direct-off-site spending $45,729,302 $21,429,984 $24,299,318 Direct-on-site arena expenditures $71,300,254 $38,915,131 $32,385,123 Induced'and Indirect 1 $87,031,927 $44,122,442 $42,909,485 Source:Berk&Associates Exhibit 11:At-Risk Activity Economic Impacts:All At-i isk Economic Activity Total Core Events Extra Events Total Output $349,182,549 $152,535,193 $196,647,355 Direct-off-site spending $95,463,903 $34,147,697 $61,316,207 Direct-on-site arena expenditures $89,747,775 $49,144,995 $40,602,780 Induced and Indirect j $163,970,870 $69,242,502 $94,728,368 Total Jobs 4,937 2,090 2,847 Direct-off-site spending 12,022 727 1,295 Direct-on-site arena expenditures 360 200 161 Induced and Indirect 1 2,555 1,163 1,392 Total Wages $184,138,579 $86,395,435 $97,743,145 Direct-off-site spending I $36,364,275 $12,962,697 $23,401,578 Direct-on-site arena expenditure $70,909,802 $38,514,097 $32,395,705 Induced and Indirect 1 $76,864,502 $34,918,641 $41,945,862 Source:Berk&Associates Exhibit 12: King County At-Risk Activity Economic Impacts:King Ci unty At-Risk Economic Activity(new money) Total Core Events Extra Events Total Output $191,585,924 $81,713,049 5109,872,875 Direct-off-site spending i $64,447,705 $21,252,302 $43,195,403 Direct-on-site arena expenditures $54,082,858 $30,981,516 $23,101,342 , Induced and Indirect I $73,055,361 $29,479,231 $43,576,131 Total Jobs 2,778 1,134 1,644 Direct-off-site spending 1,370 454 916 Direct-on-site arena expenditures 217 126 91 Induced and Indirect j 1,191 554 636 Total Wages $104,623,785 $49,430,462 $55,193,323 Direct-off-site spending 1 $24,747,076 $8,134,092 $16,612,983 Direct-on-site arena expenditures $42,711,535 $24,279,688 $18,431,847 Induced and Indirect $37,165,174 $17,016,682 $20,148,492 Source:Berk&Associates , RENTONApril 4, 2007 Page 19 TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center - Exhibit 13: Statewide At-Risk Activity Economic Impacts:Statewide At-Risk Economic Activity(new money) Total Core Events Extra Events Total Output $169,892,223 $68,122,336 $101,769,887 Direct-off-site spending $52,691,671 $15,870,003 $36,821,668 Direct-on-site arena expenditures $35,197,927 $21,080,897 $14,117,030 Induced and Indirect $82,002,625 $31,171,436 $50,831,189 Total Jobs 2,437 932 1,506 Direct-off-site spending 1,094 329 764 Direct-on-site arena expenditures 141 86 56 Induced and Indirect • 1,202 517 686 Total Wages $84,377,125 $38,158,723 $46,218,402 Direct-off-site spending $20,327,374 $6,118,039 $14,209,335 Direct-on-site arena expenditures $27,784,283 $16,520,741 $11,263,542 Induced and Indirect $36,265,468 $15,519,943 $20,745,525 Source:Berk&Associates Page 20 April 4,2007 RE�. Economic and Fiscal Benefits . TECHNICAL APPENDIX of the King County Events Center ' FISCAL (TAX) BENEFITS Spending flows into different tax bases in different ways, depending on both the taxing entity and the type of spending.Those tax bases are then to led at the appropriate rate for each jurisdiction and tax type. • 1 Analysis of Tax Base Impacts: Allocation by Taxing Entity . In order to properly calculate tax revenues, it is necessary to estimate what proportion of off-site spending is happening in the City of Renton arid in King County (it is assumed that all off-site spending occurs in Washington state). Exhibit 14 displays assumptions about the location of off-site spending and the effects of those assumptions on each jurisdiction's share of off-site spending: . Exhibit 14: Off-Site Spending Allocation by Taxing Entity Off-Site Event Spending by Spending Location:One Year of Core Schedule(2007$M) Out of Out of Rest of Rest of County County County County ' Total In Ren.% In Ren. County% County Total% Total Total% Total Total 33.9 I 15.9 14.1 30.0 3.9 Lodging 9.4 40% 3.8 50% 4.7 .90% 8.5 10% 0.9 Local Travel 1.2 25% 0.3 25% 0.3 50% 0:6 50% 0.6 Food/Beverage 12.8 60% 7.7 30% 3.8 90% 11.5 10% 1.3 Retail/Entertainment 7.3 40% 2.9 50% 3.7 90% 6.6 10% 0.7 Other . 3.2 40% 1.3 50% 1.6 90% 2.9 10% 0.3 Off-Site Event Spending by Spending Location:One Year of Potential Extras(2007$M) Out of Out of Rest of Rest of County County County County Total In Ren.% In Ren. County% County Total% Total Total% Total Total 60.2 i 27.9 25.4 53.3 6.9 Lodging '"21.8 40% 8.7 50% 10.9 90% 19.6 10% 2:2 Local Travel 2.2 25% 0.6 25% 0.6 50% 1.1 50% 1.1 Food/Beverage 20.7 60% 12.4 30% 6.2 90% 18.7 10% 2.1 Retail/Entertainment 11.4 40% 4.5 50% 5.7 90% 10.2 10% 1.1 Other 4.1 40% 1.6 50% 2.0 90% 3.7 10% 0.4 Off-Site Event Spending by Spending Location:One Year of Grand Total(2007$M) .Out of Out of Rest of Rest of County County County County . Total In Ren. % In Ren. County% County ,Total% Total 'Total% Total Total 94.1 I 43.8 39.5 '83.3 10.8 Lodging 31.2 40% 12.5 50% 15.6 - 90% 28.1 10% 3.1 Local Travel 3.4 250/a 0.9 25% 0.9 50% 1.7 50% 1.7 Food/Beverage 33.5 60% 20.1 30% 10.0 - 90% 30.1 10% 3.3 Retail/Entertainment 18.7 40% 7.5 50% 9.3 90% 16.8 10% 1.9 Other 7.3 40% 2.9 50% 3.6 90% 6.6 10% 0.7 . IRE TN O N April 4,2007 Page 21 TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center Analysis of Tax Base Impacts: Allocation by Spending Type The following types of spending are tracked in this analysis: Retail Spending This spending flows into both the taxable retail sales base, as well as the retail portion of the gross business income tax base.The following categories of spending/revenue are included: • Visitor spending:Concessions; • Business spending: Purchases food and beverage service; • Visitor spending: Parking; • Business spending: Set/costume/exhibit rental; • Visitor spending: Lodging; • Business spending: Equipment rental; • Visitor spending: Local travel; • Visitor spending: Food/Beverage; • Business spending: Printing; • Visitor spending: Entertainment; • Business spending: Production Materials; • Business spending:Supplies;and • Visitor spending:Shopping; • Business spending:Janitorial/protective; • Business spending:Other. • Business spending: Lodging; Only 50%of the visitor spending on local travel is included in gross business income,and none of this spending is counted in the taxable retail sales base. Furthermore, lodging is tracked separately in the taxable retail sales base because it is taxed at a different rate than non-lodging retail sales. Services Spending This spending flows into the service portion of the gross business income tax base and does not flow into the taxable retail sales base.The following categories of spending/revenue are included: • Visitor spending:Tickets; • Business spending: Photographic/art services; • Visitor spending:Other; • Business spending: Banking; • Business revenue: Local media agreements; • Business spending: Insurance; , • Business revenue: League revenue-sharing; • Business spending: Professional services; • Business revenue: Naming rights/sponsorship; • Business spending:Other services; • Business revenue: Miscellaneous Revenue; • Business spending:Maintenance;and • Business spending: Marketing; • Business spending: HVAC. • Business spending: Press and public relations; Construction Spending Construction expenditures flow into the gross business income tax base in the year those expenditures take place.These same expenditures flow into the taxable retail sales base more slowly, under the assumption that Page 22 April 4,2007 RENTON' • Economic and Fiscal Benefits TECHNICAL APPENDIX of the King County Events Center sales tax payments will be deferred until five years after they are incurred, and then paid back over a ten-year period. Admissions Tax(City Level) While an admissions tax base is developed in the analysis using visitor spending on tickets, it is assumed that tickets to the King County Events Center will be exempt from any admissions tax. Therefore, the local admissions tax rate is assumed to be 0%for the purposes of this analysis. • Utility Tax(City Level) Estimates of the Events Center's utility spending are based on operating pro formas from the Seattle Sonics and Storm. Utility spending is then adjusted)depending on the number of event days in a given year. Business License Tax(City Level) Renton's business license tax is based on the number of employees working at each business. The number of jobs is estimated using current average wages per staff employee (provided by the Seattle Sonics and Storm) and total wages from the operating pro forma.The number of jobs is only expected to change in the future if an NHL team is added. In that case, a 20% increase in the number of jobs is assumed, which matches the expenditure assumptions discussed previously. Calculating Taxes With the tax bases properly allocated by taxing entity and spending type, calculating tax revenues becomes a matter of applying the proper tax rates;to each spending type.in each jurisdiction. Exhibit 15 (shown over three pages below) displays these tax revenues for the first year of operations and as a net present value over 25 years of facility operations based on attendee and Events Center spending. The tax table includes total taxes collected on all event-related activity,taxes only on the At-Risk events, and taxes collected on the "New Money" portion of the At-Risk events. The analysis assumes that the new facility will be exempt from property and leasehold taxes,commercial parking taxes and the local admissions tax. The following taxing entities are analyzed: • The State General Fund collectsB&O tax and sales tax on direct and indirect economic activity associated with the events. • King County receives its share of local sales tax on direct and indirect activity plus the Metro Transit sales tax portion. • The City of Renton gains from all of the on-site spending and some of the off-site spending through increases in taxable retail sales, plus the business license tax and utility taxes.Theanalysis assumes that the Event Center would be exempt from the current City admissions tax of 5%. • Other Local taxes in King County represent a combination of local spending that would be outside Renton and shares of sales taxes that are dedicated to specific purposes or jurisdictions. Along with the direct ongoing taxes, taxes on indirect and induced effects are also estimated. Estimates of the tax impacts of indirect and induced spending were made using the industry outputs from the Washington Input- Output model and reports of actual statewide tax collections by industry. For taxable retail sales impacts, the Department of Revenue reports total gross business income and taxable retail sales by industry. State Business April 4,2007 Page 23 KENTON - TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center & Occupation (B&O) taxes are treated similarly. Since there are multiple B&O tax rates it was necessary to calculate an effective average B&O tax rate for each industry using actual gross business income and B&O collections by industry from DOR. Exhibit 15: Fiscal (Tax) Benefit Detail Taxes:All Events-Core Schedule(2007$M) Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year TOTAL Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) All Jurisdictions 11.3 204.3 7.8 146.5 4.3 90.7 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year STATE Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 9.1 161.3 6.1 112.1 2.8 59.8 Direct One-lime Construction 0.4 14.6 0.4 14.6 0.2 13.7 B&O Tax 0.4 1.7 0.4 1.7 0.2 0.8 Sales Tax 0.0 12.9 0.0 12.9 0.0 12.9 Direct Ongoing 7.0 116.0 4.5 74.5 2.0 32.8 B&O Tax 2.6 43.2 2.0 33.0 1.2 18.9 Sales Tax 4.3 72.7 2.5 41.6 0.8 13.9 Indirect Total 1.7 30.7 1.2 22.9 0.6 13.3 B&O Tax 0.6 8.4 0.4 5.4 0.2 2.1 Sales Tax 1.1 22.3 0.8 17.5 0.4 11.2 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year COUNTY Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 0.8 15.2 0.5 10.9 0.4 8.5 Direct One-lime Construction 0.0 0.3 0.0 0.3 0.0 0.3 Sales Tax 0.0 0.3 0.0 03 0.0 0.3 Direct Ongoing 0.3 4.9 0.2 3.6 0.2 3.2 Sales Tax 0.3 4.9 0.2 3.6 0.2 3.2 Indirect Total 0.1 1.4 0.1 1.2 0.0 0.3 Sales Tax 0.1 1.4 0.1 1.2 0.0 0.3 Transit 0.4 8.6 0.2 5.8 0.2 4.7 Arena-Related Gross/N 25-Year CITY Year I NPV(6%) Total 0.6 12.5 Direct One-Time Construction 0.0 1.7 Sales Tax 0.0 1.7 Direct Ongoing 0.6 10.9 Admissions Tax 0.0 0.0 Sales Tax 0.4 8.8 Business License Tax 0.0 0.5 Utility Tax 0.1 1.6 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year Other Local Taxes Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 0.9 15.3 0.6 11.0 0.5 9.9 Sound Transit 0.2 3.8 0.1 2.6 0.1 2.1 Criminal Justice 0.0 1.0 0.0 0.6 0.0 0.5 State Convention Center 0.4 6.4 0.3 5.2 0.3 5.1 Other Cities in King County 0.2 4.1 0.2 2.6 0.1 2.2 Page 24 April 4,2007 "'� RENTON • 9 Economic and Fiscal Benefits ; TECHNICAL APPENDIX of the King County Events Center Taxes:All Events-Potential Extras(2007$M) Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year TOTAL Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) All Jurisdictions 3.1 136.1 2.7 132.4 2.0 81.9 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year STATE Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 2.0 95.8 1.7 93.0 1.1 46.2 • Direct Ongoing 1.6 75.6 1.4 73.8 0.8 ' 35.2 B&O Tax 0.3 21.8 0.2 21.4 0.1 9.0 Sales Tax 1.3 53.8 1.1 52.4 0.7 26.1 Indirect Total 0.4 20.2 0.4 19.2 0.3 11.0 B&O Tax 0.1 5.5 0.1 5.2 0.0 2.4 Sales Tax 0.3 14.7 0.3 14.0 , 0.2 8.6 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year COUNTY Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 0.4 14.3 0.3 13.9 0.3 11.1 Direct Ongoing 0.2 6.5 0.2 6.4 0.2 6.0 Sales Tax 0.2 6.5 0.2 6.4 0.2 6.0 Indirect Total 0.0 1.8 0.0 1.7 0.0 0.2 Sales Tax 0.0 1.8 0.0 1.7 0.0 0.2 Transit 0.2 6.0 0.1 5.8 0.1 4.9 Arena-Related Gross/N 25-Year - CITY Year 1 NPV(6%) Direct Ongoing 0.2 8.0 Admissions Tax 0.0 0.0 Sales Tax 0.2 7.4 Business License Tax 0.0 0.1 Utility Tax 0.0 0.5 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year Other Local Taxes Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 0.5 18.0 0.5 17.6 0.4 16.7 Sound Transit 0.1 2.6 0.1 2.6 0.1 2.2 Criminal Justice 0.0 0.7 0.0 0.6 0.0 0.5 State Convention Center 0.3 10.3 0.3 10.0 0.3 10.0 Other Cities in King County ! 0.1 4.5 0.1 4.4 0.1 4.0 RENTONApril 4, 2007 Page 25 iss_ 1 • TECHNICAL APPENDIX Economic and Fiscal Benefits of the King County Events Center -- 1 Taxes:All Events-Grand Total(2007$M) Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year TOTAL Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) All Jurisdictions 14.4 340.4 10.5 279.0 6.3 172.6 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year STATE Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 11.1 257.1 7.8 205.0 3.9 105.9 Direct One-lime Construction 0.4 14.6 0.4 14.6 0.2 13.7 B&O Tax 0.4 1.7 0.4 1.7 0.2 0.8 Sales Tax 0.0 12.9 0.0 12.9 0.0 12.9 Direct Ongoing 8.6 191.6 5.9 148.3 2.8 68.0 B&O Tax 2.9 65.0 2.3 54.3 13 27.9 Sales Tax 5.6 126.6 3.6 94.0 1.6 40.1 Indirect Total 2.1 50.8 1.5 42.1 0.9 24.3 B&O Tax 0.6 13.9 0.4 10.6 0.2 4.5 Sales Tax 1.5 37.0 1.1 31.5 0.7 19.8 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year COUNTY Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 1.2 29.5 0.9 24.8 0.7 19.6 Direct One-lime Construction 0.0 0.3 0.0 0.3 0.0 0.3 Sales Tax 0.0 03 0.0 0.3 0.0 0.3 Direct Ongoing 0.5 11.4 0.4 10.0 0.4 9.2 Sales Tax 0.5 11.4 0.4 10.0 0.4 9.2 Indirect Total 0.1 3.1 0.1 3.0 0.0 0.4 Sales Tax 0.1 3.1 0.1 3.0 0.0 0.4 Transit 0.6 14.6 0.4 11.6 0.3 9.6 Arena-Related Gross/N 25-Year CITY Year 1 NPV(6%) Total 0.8 20.5 _ Direct One-Time Construction 0.0 1.7 Sales Tax 0.0 1.7 Direct Ongoing 0.8 18.8 Admissions Tax 0.0 0.0 Sales Tax 0.6 16.2 Business License Tax 0.0 0.5 Utility Tax 0.1 2.1 Total-All Events Total-At-Risk Events New-At-Risk Events 25-Year 25-Year 25-Year Other Local Taxes Year 1 NPV(6%) Year 1 NPV(6%) Year 1 NPV(6%) Total 1.4 33.3 1.1 28.6 1.0 26.6 Sound Transit 0.3 6.5 0.2 5.2 0.1 4.3 Criminal Justice 0.1 1.6 0.0 1.3 0.0 1.1 State Convention Center 0.7 16.7 0.6 15.2 0.6 15.1 Other Cities in King County 0.4 8.6 0.3 7.0 0.2 6.2 Page 26 April 4,2007 _ '`,,., RENT()N • RENTON CITY COUNCIL Regular Meeting April 2,2007 Council Chambers Monday,7 p.m. MINUTES Renton City Hall CALL TO ORDER Mayor Kathy Keolker called the meeting of the Renton City Council to order and led the Pledge of Allegiance to the flag. , ROLL CALL OF TONI NELSON, Council President; RANDY CORMAN; DON PERSSON; COUNCILMEMBERS MARCI1PALMER; DENIS LAW; DAN CLAWSON. MOVED BY CLAWSON, SECONDED BY CORMAN, COUNCIL EXCUSE ABSENT COUNCILMEMBER TERRI BRIERE. CARRIED. CITY STAFF IN KATHY KEOLKER,Mayor; JAY COVINGTON, Chief Administrative ATTENDANCE. Officer;ZANETTA FONTES,Assistant City Attorney;BONNIE WALTON, City Clerk; GREGG ZIMMERMAN, Planning/Building/Public Works Administrator;ALEX PIETSCH, Economic Development Administrator; JAN CONKLIN,Engineering Plans Reviewer; ARNETA HENNINGER, Engineering Specialist III; CHIEF KEVIN MILOSEVICH, COMMANDER • CHARLES MARSALISI and MANAGER PENNY BARTLEY, Police Department. SPECIAL PRESENTATION Karee Boone presented a video showcasing the American Cancer Society's Community Event: American. Relay for Life event. The video highlighted their public awareness campaign to Cancer Society Relay For Life encourage people to donate time and money to the fight against cancer. Ms. Boone sated that approximately 33 teams and 500 participants raised over $125,000in Renton last year. She concluded by introducing Jan Conklin and Arneta Henninger, City employees and Team Captains at this year's Relay for Life event to be held June 8th and encouraged everyone to join in the ceremonies. ADMINISTRATIVE Chief Administrative Officer Covington reviewed a written administrative REPORT report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2007 and beyond. Items noted,included: The.11th Annual Hip Hoppin' Egg,Hunt&Carnival for children ages six and under took place at the Renton Community Center on Saturday,March 31. Despite the rainy weather, over 600 children attended the event. The 3rd Annual Community Garage Sale will be held at the Renton Community Center from 9:00 a.m. to 2:00 p.m. on Saturday,April 7. Over 60 vendors have already registered,but vendor space is still available. Admission is free for shoppers. For more information, call 425-430-6700 or visit www.rentonwa.gov. AUDIENCE COMMENT Victor Eskenazi, 17628 109th Ave. SE,Apt. H, Renton, 98055, expressed Citizen Comment: Eskenazi— concerns about traffic and parking impacts related to the projects being S Lake Washington Projects, developed at the south end of Lake Washington, including The Landing, the Traffic, Parking&'Tax Seahawks training facility and the proposed King County Multipurpose Events Concerns Center. He stated that parking in the area has not been well planned and will (600%4 evkitlA become a major problem. Mr. Eskenazi also expressed concerns about the types of jobs the new developments would create. 'MOVED BY LAW, SECONDED BY PERSSON, COUNCIL ALLOW THE SPEAKER THREE ADDITIONAL MINUTES. CARRIED. ( ' pri12,2007 Renton City Council Minutes Page 117 Continuing,Mr. Eskenazi voiced concern aboutthe taxes for the projects. In conclusion,he asked that one person respond to his concerns and that these issues be addressed in the public arena. Councilmember Clawson stated that the City had taken a serious look at these concerns, and no commitments had been made regarding the events center. Mr. I Clawson'also stated that the property in question is zoned for development and short of purchasing the property,the area would be developed. Economic Development Administrator Alex Pietsch confirmed Councilmember Corman'js statement that the new Seahawks facility only allows visitors during the month of August, and they will be shuttled to the facility. Mr. Pietsch suggested that people review the City's website to learn more about the King County Multipurpose Events Center proposal. CONSENT AGENDA Items ori the consent agenda are adopted by one motion which follows the listing. • Council Meeting Minutes of Approval of Council meeting minutes of 3/26/2007. Council concur. '3/26/2007 AJLS: City of Renton Business Administrative,Judicial and Legal Services Department recommended Plan,2008-2013 acceptance of the 2008-2013 City of Renton Business Plan. Refer to Committee of the Whole. -Lease: LSI Logic Corporation, Community Services Department recommended approval of an amendment to 200 Mill Bldg(3rd Floor), the lease with LSI Logic Corporation(LAG-00-002) for the 3rd Floor of the LAG-00-002 200 Mill Building to extend the lease for an additional year. Refer to Finance Committee. Court Case: State of Court Case filed by the State of Washington seeking an order declaring that the Washington, CRT-07-001 property sought by condemnation petition,relating to the improvements of SR- 1,67 and I-405, is necessary for public use. Refer to City Attorney and Insurance Services. Court Case: Alliance for South Court Case filed on behalf of Alliance for)South End by Peter L. Buck,Buck& End, CRT-071002 Gordon,LLP,2025 1st Ave., Suite 500, Seattle, 98121, requesting review of the land use decision made by the City of Renton regarding The Landing project (LUA-05-136). Refer to City Attorney and Insurance Services. Annexation:New Life—Aqua Economic Development,Neighborhoods and Strategic Planning Department Barn, Reduction of recommended approval to reduce the annexation application fee, from$2,500 to Application Fee $500;for the proposed New Life—Aqua Barn Annexation; 240 acres in the vicinity of Maple Valley Hwy. Council concur. Finance: Water Utility Balance Finance and Information Services Department recommended approval to amend Search Fees the water utility balance search fees by eliminating the$25 fee for Internet searches and reducing the fee for searches requested by fax,messenger, or letter from$50 to $25. Refer to Finance,Committee. Finance: Delinquent Utility Finance and Information Services Department recommended approval to allow Bills Lien Filing Fees the City to claim its collection costs and attorney's fees for the filing and Collection foreclosure of liens for delinquent utility bills. Refer to Finance.Committee. Latecomer Agreement: Technical Services Division requested final approval of the 15-year latecomer Vineyards Construction, Sewer agreement(LA-06-002)submitted by Vineyards Construction,LLC for sewer Extension(NE 7th P1), main extension along NE 7th Pl., and authorization to finalize the agreement per LA=06-002 City Code. Refer to Utilities Committee. March 26,2007 Renton City Council Minutes 11l AUDIENCE COMMENT Raymond A. Breeden, Sr., 15279 Maple Dr., Renton, 98058, resident of the Citizen Comment: Breeden- Wonderland Estates Mobile Home Park, expressed appreciation for the City's Wonderland Estates Mobile support. Home Park Citizen Comment: Holman- Steve Holman, 95 S. Tobin St., Renton, 98057, expressed support for the Airport, Multipurpose Events Renton Municipal Airport and any jet ports that may be placed there,noting that Center Soni & Storm the airport is essential to the economy. On the subject of the proposed King Basketball) County Events Center in Renton,Mr. Holman indicated that King County taxpayers will pay$.50 on a$100 restaurant bill. He acknowledged people's concerns regarding traffic, and pointed out that the event traffic can be managed very efficiently and without a lot impact to the neighborhoods. Mr. Holman stated that the benefits of the events center far out weigh the concerns. Citizen Comment: Pyeatt- Steven Pyeatt, PO Box 2622,Kirkland, 98083, spoke on the subject of the Multipurpose Events Center proposed King County Events Center in Renton. Mr. Pyeatt said he is the co- (Sonics & Storm Basketball) founder of Save Our Sonics and Storm, and complimented Renton on figuring out how to recreate itself. He stated that some are scared by change,but change is inevitable and Renton is growing and becoming an even better city than it was before. Mr. Pyeatt indicated that he looks forward to coming to Renton to attend Sonics games, and offered his assistance towards that end. 'ADJOURNMENT MOVED BY NELSON, SECONDED BY PERSSON, COUNCIL ADJOURN. CARRIED. Time: 8:03 p.m. 66-14,1%,e;4. U/Gr+Lto-7) Bonnie I. Walton, CMC, City Clerk Recorder: Michele Neumann March 26, 2007 RENTON CITY COUNCIL Regular Meeting March 26, 2007 Council Chambers Monday, 7 p.m. MINUTES Renton City Hall CALL TO ORDER Mayor Kathy Keolker called the meeting of the Renton City Council to order and led the Pledge of Allegiance to the flag. ROLL CALL OF TONI NELSON, Council President; DENIS LAW; MARCI PALMER; DON COUNCILMEMBERS PERSSON. MOVED BY NELSON, SECONDED BY LAW, COUNCIL EXCUSE ABSENT COUNCILMEMBERS DAN CLAWSON,TERRI BRIERE, AND RANDY CORMAN. CARRIED. CITY STAFF IN KATHY KEOLKER, Mayor; JAY COVINGTON, Chief Administrative ATTENDANCE Officer; LAWRENCE J. WARREN, City Attorney; BONNIE WALTON, City Clerk; GREGG ZIMMERMAN,Planning/Building/Public Works Administrator; ALEX PIETSCH, Economic Development Administrator; SUZANNE DALE ESTEY, Economic Development Director; MARTY WINE, Assistant CAO;PREETI SHRIDHAR, Communications Director; DEPUTY • CHIEF CHUCK DUFFY,Fire Depaiintent; CHIEF KEVIN MILOSEVICH and COMMANDER DAVID LEIBMAN, Police Department. SPECIAL PRESENTATION Clay Bennett, Seattle Sonics and Storm owner, gave a presentation on the Planning: Multipurpose Events proposed King County Events Center in Renton. He reported that his Center(Sonics & Storm organization is more encouraged and more pleased every day since the decision Basketball) was made to locate to Renton, and he thanked everyone at the City for their hard work. Mr. Bennett indicated that the events center will host not only professional sports, but other types of sports and entertainment as well. Stating that the building is envisioned to be active 200 days per year with various events, he pointed out that the vibrant and dynamic regional economy suggests that the events center will do very well operationally. Continuing, Mr. Bennett stated that the proposed events center will create many jobs, increase the tax base, and help build the City of Renton. He noted his organization's vision of a public and private partnership in the development of this project, and described the efforts being made towards that end. Mr. Bennett pointed out that although the Sonics and Storm will only be a tenant in the building, the building will be a public building and serve the greater good. He further pointed out that the franchise aspires,to be the best in the league,to win championships, and to reach out and bond with the community. Mr. Bennett announced that the organization will open an office in Renton this Wednesday in order to interact with citizens, answer questions, and provide information. He noted the uniqueness of the whole experience and praised the Renton community's willingness to find a way to make this significant economic development happen. MOVED BY NELSON, SECONDED BY LAW, COUNCIL SUSPEND THE RULES AND ADVANCE TO AUDIENCE COMMENT. CARRIED. AUDIENCE COMMENT Ben Simon,27111 41st Pl. S., Kent, 98032, said he has had a lot of interaction Citizen Comment: Simon- with the Sonics and Storm teams, and noted the good that the teams bring to the Multipurpose Events Center community. He indicated that the positive energy and community support that (Sonics& Storm Basketball) is provided is vital to any major city, and entices corporations to move into the March 26,2007 Renton City Council Minutes 106 area. Mr. Simon pointed out that the proposed King County Events Center in Renton will spur new business, clean up neighborhoods, and increase land values. Citizen Comment: Taylor- Bill Taylor, Greater Renton Chamber of Commerce President/CEO, 517 Chelan Multipurpose Events Center Pl. NE, Renton, 98059, stated that one of the strengths of Renton is the unique (Sonics &Storm Basketball) stakeholder relationship that exists, consisting of Renton Technical College, Valley Medical Center, Renton School District, City of Renton, and Chamber of Commerce. He relayed that the stakeholders had written a letter to Clay Bennett, Seattle Sonics and Storm owner, encouraging him to locate the King County Events Center in Renton and be part of Renton's transformation. Mr. Taylor noted the economic development opportunities and community building prospects the events center will provide to Renton and its residents. Citizen Comment: Sens- Gene Sens,410 Burnett Ave. S., Renton, 98057, expressed his excitement about Multipurpose Events Center the prospect of a new King County Events Center in Renton, which will aid in (Sonics& Storm Basketball) making Renton a world-class city. Speaking as a businessman, he indicated that the events center is an opportunity that cannot be duplicated. He pointed out that as long as the process is careful and respectful of the affected neighborhoods,he does not see why this opportunity cannot come to fruition. Citizen Comment: Searing- Kimberly Searing, 2100 SE 2nd Pl.,Renton, 98056, speaking as a partner in the Multipurpose Events Center Melrose Grill located in downtown Renton,pointed out that the proposed King (Sonics&Storm Basketball) County'Events Center in Renton will have a positive financial impact on the community extending to the downtown area. Ms. Searing noted that the City's past hosting of the Cirque du Soleil significantly increased patronage at her restaurant. She indicated that the events center will provide the same type of exposure for local businesses in the Renton community. Citizen Comment: Sanford- Michael Sanford, Holiday Inn General Manager, One S. Grady Way, Renton, Multipurpose Events Center 98057, expressed support for the proposed King County Events Center in (Sonics&Storm Basketball) Renton. He stated that the events center will be a tremendous asset to the City, and for his hotel alone,he will need to hire 35 new employees if the center is located in Renton. Mr. Sanford pointed out that the events center will help attract conferences and conventions, which will benefit from Renton's close proximity to Seattle-Tacoma International Airport and from lower costs as compared to downtown Seattle. He also pointed out that the events center will improve the quality of life by generating additional jobs. Citizen Comment: Secord- Alan Secord, 375 Union Ave. SE,#152, Renton, 98059, stated that at first he Multipurpose Events Center opposed the proposed King County Events Center,but after conducting research (Sonics & Storm Basketball) and asking questions,he now favors the proposal. He suggested that the media refer to the facility as the King County Events Center rather than the Sonics Arena, and that people be better informed about the project. Mr. Secord asked the City to do whatever it takes to get the events center built. Citizen Comment: Runge- Ryan Runge, 3016 Benson Rd. S., Renton, 98055, noted the amazing changes Multipurpose Events Center that the arts and heritage communities have made in Renton over the past couple (Sonics&Storm Basketball) years. He stated that many people are excited about the opportunities the proposed events center will provide to Renton, but noted that the funding (lodging tax) also helps arts committees. He explained that King County's 4Culture receives funding and offers grants to over 200 arts, historical, and • heritage organizations. Mr. Runge emphasized that the Renton community benefits from these organizations and they should not be forgotten. March 26,2007 Renton City Council Minutes 107 Citizen Comment: Hanson- Roxanne Hanson, 120 Union Ct. NE,Renton, 98059, representing GSG Multipurpose Events Center Corporation,owners of Diamond Lil's and Freddie's Clubs,voiced support for (Sonics & Storm Basketball) the proposed King County Events Center in Renton. She explained that since smoking was banned in public places,business has decreased, layoffs have resulted, and now Freddie's Club is unable to sponsor this year's 4th of July celebration. She pointed out that the additional revenue from the events center will provide the service industry the added income needed to be able to continue supporting events in Renton. Ms. Hanson urged Council to do whatever it can to support bringing the King County Events Center to Renton. Citizen Comment: Maxwell - Marcie Maxwell, PO Box 2048, Renton, 98056, said she is proud to call Renton Multipurpose Events Center her home and place of business, and now the rest of the Puget Sound area is (Sonics& Storm Basketball) learning to appreciate everything Renton has to offer. She noted that new and diverse businesses and activities are now a reality due to economic development • work and marketing partnerships. Ms. Maxwell stated that although the events center will benefit Renton and the region,the scheduled events will cause an increase in traffic from all directions and on all roadways. Pointing out that solving transportation issues should be given high priority, she asked that consideration be made for Renton neighborhoods, and for employees and customers of Renton businesses who will continue to use the roadways. PUBLIC HEARINGS This being the date setand proper notices having been posted and published in City Clerk: Cable Franchise, accordance with local and State laws, Mayor Keolker opened public hearings to Basic Programming Service consider the.following: Rate&Permitted Equipment • Basic(limited)cable service rates, as calculated by Comcast Cable &Installation Rates Communications, LLC, in its March 1999 and March 2006 rate filings,and proposed settlement of disputed issues: FCC(Federal Communications Commission)Form 1235 filed by Comcast on 3/1/99, and FCC Form 1240 filed by Comcast on 4/1/2006; and e Cable equipment and installation rates, as calculated by Comcast, in its FCC Form 1205 rate filing of 4/1/2006, and proposed settlement of disputed issues. Assistant Chief Administrative Officer Wine stated that the purpose of the public hearings is to receive public comment on whether Renton should approve settlements with Comcast for cable television rates and adopt revised FCC rate orders. She explained that the City grants Comcast the right to operate and provide cable television services in Renton. Since the franchise is due to expire in September 2008, Renton is conducting its due diligence to determine whether Comcast is in compliance with the City's current cable franchise and applicable laws and regulations. Included in this process is a review and audit of three rate forms that Comcast files with the City and the FCC. Starting with FCC Form 1205,which is used to justify the maximum permitted rates for installation and equipment, Ms. Wine stated that Comcast is unable to justify some of their rates. Therefore,Comcast proposes a settlement whereby a refund plan and rate reduction will be offered to cable subscribers,which entails: one-time refunds for most types of installation and equipment services, and in some cases, lower-than-current rates. Ms. Wine then reviewed FCC Forms 1235 and 1240. Form 1235 focuses on the cable system's ability to recoup the cost of upgrading the system as it is being expanded. She explained that the initial form filed in 1999 allowed Comcast to charge subscribers $1.16 per month for 14 years. However, Comcast failed to file a final FCC Form 1235. Form 1240 justifies the maximum permitted rates that Comcast can charge for the basic cable programming. Ms. Wine noted that King County III Events Center II ill' 11111 THE FACTS ARE CLEAR • No new taxes or tax increases are needed • 4. for this regional public facility. fli+ ler _ — • Taxes would be collected in King County only. I r _ `MP-4..r r • Impact on King County taxpayers will be minimal-for example, only 50 cents on a $100 \.."""1••.......__ restaurant bill. .. = _ • A significant portion of the revenue will I come from visitors via taxes on rentals cars, hotel/motel rooms and restaurant meals. • More than just a home for the Sonics, this is truly a multipurpose, regional facility for business meetings, conventions and entertainment as well as professional '' basketball, hockey and NCAA events. PI44, �`�♦'"""' '� • The center has strongsupport from state and --- T 4, local elected officials, business leaders, labor 3= i ' i I , , , and many others in addition to sports fans. s A • The King County Events Center will create jobs and generate significant tax revenue for the state, King County, Renton and the surrounding region. CONTACT YOUR LEGISLATOR TODAY! Washington State Legislature Toll-free Hotline: 800-562-6000 or www.leg.wa.gov/legislature Get all the details at: www.EventsCenterFacts.com King County 00.011 ..,,, Events Center PM II THE FACTS ARE CLEAR • No new taxes or tax increases are needed . 4 for this regional public facility. t# iii — • Taxes would be collected in King County only. ief: • Impact on King County taxpayers will be '� minimal-for example, only 50 cents on a $100 I • . : restaurant bill. 1 ,' • A significant portion of the revenue will f =` , ,41 1 comefrom visitorsvia taxes on rentals cars, - hotel/motel rooms and restaurant meals. A .4111r • More than just a home for the Sonics, this is truly a multipurpose, regional facility for business meetings, conventions and entertainment as well as professional -1= basketball, hockey and NCAA events. t " ".••"1""� ;�; 4 • The center has strong support from state and ;, • local elected officials, business leaders, labor ' f== 1, -' ____ __ v,,,,r . and many others in addition to sports fans. y, _ i•AtIC • The King County Events Center will create jobs and generate significant tax revenue for the state, King County, Renton and the surrounding region. CONTACT YOUR LEGISLATOR TODAY! Washington State Legislature Toll-free Hotline: 800-562-6000 or www.leg.wa.gov/legislature Get all the details at: www.EventsCenterFacts.com - - r - - r - nrr -1 -..,- 00011111111111111.0 :111111.14111111111.1W, ' IN King County 111111 ', Events Center THE FACTS ARE CLEAR • No new taxes are needed for this arena. I . • Taxes would be collected in King County only. • Impact on King County taxpayers will be minimal — for example, only 50 cents on a $100 restaurant bill. • Most revenue will come from visitors via taxes on rental cars, hotel/motel rooms and restaurant meals. • King County funds come from existing taxes,already dedicated to sports facilities (Safeco Field, Kingdome, Qwest Field) when bonds for those other facilities are paid off. • More than just a home for the Sonics, this is truly a multi-purpose facility, for business, meetings, conventions and entertainment as well as professional basketball, hockey and NCAA events. • The events center has strong support from state and local elected officials, business leaders, labor and many others in addition to sports fans. • This facility will generate tax revenue for the state, King County and the city where it is located. r r r L - - - - - - - .4 _ _ L. _ L _ _ _ _ - _ .I What People Are Saying ... About the Sonics and Storm' . "The Sonics have been a part of the region for 40 years. The state should not jeopardize that by denying the 'team and its home county the chance to come up with a deal that ensures many more decades of professional basketball." -- The Seattle Times,.March 11, 2007 " ... my interest— end appeal— isn't aboutthe few on the floor, it's about how this team can energize a community. It's about a legacy, a tradition, a dream that started long before me with people like; Spencer Haywood, Lenny Wilkens, Freddie Brown and Jack Sikma, and it needs to continue long after." -- Detlef Schrempf, The Seattle Times, March 2, 2007 "We are extremely excited about the economic development opportunities and community building prospects that the addition of the Seattle Supersonics and Storm would provide the City of Renton and our residents." -- Renton Community leaders (citation? Where is this from?) "Therefore, be it resolved that the Renton Chamber of Commerce Board of Directors, on behalf 6f the six hundred and fifteen members of the Renton Chamber of Commerce, supports the concept of the City of Renton becoming the future holm of.the Seattle Supersonics and Storm basketball teams and urges the Renton Mayor and.City Council to continue to support tiis project while exercising due diligence." -- Renton Chamber of Commerce Board Resolution (date passed) "The Sonics/Storm franchises should receive similar treatment as our other pro sports teams. As far as I can tell, an extension of the current hotel/restaurant tax being used to pay for Safeco Field, Qwest Field and the retirement of Kingdome debt would be the majority of funds needed. This same tax would also support various,arts programs in the area as well." -- Matt Edwards, public school teacher, Kenmore, Wash. (where is this from, a news article?) The Importance of the King County Events Center "For even ifthe region lets the Sonics go now, it may well find itself debating a similar convention-expansion initiative only a couple of years down the road." -- Emory Thomas Jr., Puget Sound Business Journal, March 2, 2007 "No new tax. No tax increase. And after the arena's debt gets paid off?All the tax ' revenue generated by.the arena and territory around it pours directly into government coffers. What's not to like about that?" -- Dan Voelpel, The News Tribune, Tacoma, Feb. 28, 2007 "We're talking about a world-class venue that could house a National Hockey League team, draw major national sports events like the NCAA basketball tournament and even host national politicaliconventions. A world-class arena and convention center offering multiple benefits with.little effect on taxpayers, especially outside of King County. That's an opportunity lawmakers throughout the region should seize." -- The Herald, Everett, Feb. 11, 2007 F ` The proposed arena "...is a worthy investment, particularly when you consider that the public's share of the cost will require no new taxes and most of the cost will be paid by out-of-area visitors, not local taxpayers." -- Sen. Margarita Prentice, The Seattle Times, Feb..9, 2007 "In fairness to King County, it should be noted that a diversion of sales taxes built the Cowlitz County Regional Conference Center at the fairgounds. And it's the funding method the city of Longview hopes lawmakers will approve this session to fund Columbia Theatre improvements." -- Don Jenkins, The Daily News, Longview, Wash., Jan. 21, 2007 "Renton is extremely ex ited about the possibilities this arena would help create for our community. The Rento r community leadership, from the Renton Chamber of Commerce board to the superi I tendent of the Renton school district to the president of Renton technical College, has also expressed unified support for the development of a world-class venue in Renton." -- Renton Mayor Kathy Keolker, letter to Gov. Chris Gregoire, Jan. 17, 2007 About the Economic Development Benefits "We follow the work, and if the proposed new multipurpose arena is built in Renton it will provide significant opportunity for us in terms of more events, more event days and the opportunity to do better financially for our families and ourselves ... We hope you will recognize that the proposed arena is about more than professional athletes— it is about a source of jobs, economic return and opportunity for working people, as well as the city, King County and the state." -- KeyArena ARAMARK employees (letter to Speaker Frank Chopp, Feb. 20, 2007) "This will be a valuable community asset that will create jobs and promote the development of new hotels and great restaurants. Examples of projects benefiting our area's economy are the.Washington State Convention and Trade Center, Benaroya Hall, and Qwest and Safeco fields." -- Sen. Margarita Prentice, The Seattle Times, Feb. 9, 2007 "The economic benefit of such an asset would spread far beyond King County. ... it's a good deal for the region." -- The Herald, Everett, Feb. 11, 2007 About the Sonics' Community Contributions "Every year your organization is quick to provide for us— everything from ticket donations for kids and staff to suite donations and signed paraphernalia for our auctions. Your players have donated their time to visit our Clubs and inspire our youth. For Thanksgiving some players served turkey dinners to our kids and their families while others provided whole turkeys for hundreds of families that would have gone without. You've hosted fundraisers at your arena, like the `Shirts off our backs'event, and you've written checks to our Clubs in support of our programs. "You are truly a community partner in every sense of those words. To list all of your support here would be too,daunting a task. Please accept this letter as a heartfelt thank you from our entire organization to yours." -- Daniel Johnson, President and CEO, Boys & Girls Clubs of King County "This past December the Seattle Sonics answered our call for help and agreed to spend some time with our kids and their families by hosting a holiday brunch and gift .1 distribution for 40 Atlantic Street Center families. Every active Sonics player was in attendance. As you can imagine, meeting and sharing a meal with a Sonics player meant a great deal to the kids there. When it was all said and done,,the Sonics players had spent three hours with our;families! "We now count the Sonics among our most caring and trusted friends." -- Edith C. Elion, MSW, Executive Director, Atlantic Street Center "While the other major sports franchises certainly do the support (is this underlined part accurate — it seems confusing) school kids, none has made from our perspective as much of an impact as the Sonics and Storm organization. "Whether it was new uniforms for Cleveland High School when theirs were stolen, new tennis shoes for `needy'young ladies at our Middle Schools or their willingness to become the Presenting Partner for Team Seattle Athletics'Breakfast of Champions, a new Initiative just underway supporting Middle & High School athletics, whatever we have asked, they lave been there for us." - Richard J. Lee, President, Schoolkidscomefirst.com About Funding for the Arts . "The bill would do more than just build an arena if enacted by King County. Money would be diverted to an account for the arts and to fund for future repairs and upkeep of Safeco Field. ... Spreading the money around is a good idea. For King County to remain a vibrant urban center, it needs a functioning arts scene. It also makes sense to ensure the stadiums we have are cared for." -- The.Seattle Times, March 11, 2007 "Today there are over 250 (arts and heritage) organizations in King County alone that benefit from hotel/motel revenue. ... We consider this piece of legislation to be very important .:. to continuing this f'iabiIity and this growth." -- Louis Miller, board vice president, 4Culture (legislative testimony, Feb. 13, 2007 ### • OeSeattlealtnes Editorials & Opinion: Sunday, March 11, 2007 Editorial Sonics/Storm home should be in Renton The best way for Seattle's professional basketball teams to remain a Seattle franchise is to move to Renton. The only way for the move tothe south end of Lake Washington — the preferred site of Clay Bennett, Sonics owner and Oklahoma City businessman — is for the Legislature to approve a bill that would allow King County to negotiate an arena deal with the SuperSonics and Storm. This is a decision that should be made locally. If legislators pass Senate Bill 5986 and its counterpart in the House, the state is not on the hook for a new arena. The bill is rightly designed to leave that decision to King County. The county would be asked to pay $300 million, or more than half the arena costs. The bill extends taxes mostly directed at tourists who are already being used to pay for Safeco and Qwest fields, and commonly used sales-tax credits to pay for the arena. The tax with the most impact on residents, a restaurant tax, would stop in 2015, the year it was scheduled to end. The tax has preformed well enough to retire its portion of the bond payment for Safeco Field three years early and is expected to raise $75 million for the arena in its final three years. The Washington Restaurant Association supports the tax. The bill would do more than just build an arena if enacted by King County. Money would be diverted to an account for the arts and to a fund for future repairs and upkeep of Safeco Field. Spreading the money around is a good idea. For King County to remain a vibrant urban center, itneeds a functioning arts scene. It also makes sense to ensure the stadiums we have are cared for. The Sonics' owners will provide a minimum of $100 million to the. estimated $500 million-plus project. It will be up to the county to negotiate with the owners about cost overruns and what to do with the revenue generated by non-Sonics events such as conventions and concerts. The Sonics have been a part of the region for 40 years. The state should not jeopardize that by denying the team and its home county the chance to come up with a deal that ensures many more decades of professional basketball. Copyright ©2007 The Seattle Times Company Burg SIT IOINO mess JP o Mows,louder;&r Ir. Publisher's Notebook Sonics arena needed for tourism Puget Sound Business Journal (Seattle) - March 2, 2007 by Emory Thomas Jr. In the unpredictable world of Olympia politics, it's hard to tell whether the Sonics arena issue is about to gain intensity or simply fizzle. On his 15th visit to the Puget Sound area in just a handful of months, owner Clay Bennett must labor to keep an optimistic outlook while negotiating the streets of a city that recently voted by a landslide not to subsidize professional sports enterprises. But in many corners of the local business world, support for the Seattle SuperSonics remains very much alive. Don Welsh, head of Seattle's Convention and Visitors Bureau, is unequivocal: "I think we'll keep 'em," he says. Like many in Washington's hospitality industry, Welsh is pressing an agenda that the industry has been working toward for some time: increased funding for tourism promotion. Despite the size of the industry, Washington remains one of the nation's most passive promoters of its assets. Industry leaders want to triple state promotional spending to help lure both recreational visitors and business conference goers. But there's another change that the tourism industry is backing that's germane to the Sonics arena debate. Welsh and others are jockeying to transfer tens of thousands of square feet of downtown space controlled by the Museum of History and Industry to the Washington State Convention & Trade Center, which is adjacent. Here's why it's relevant to the Sonics' situation: It serves as evidence of demand for exhibition space in the Puget Sound region. And if Bennett & Co. flesh out their arena plans by creating 200,000 or so more square feet of exhibit space (which they are planning to do), the Seattle metro area would be able to compete for some of the events it now simply has to let go -- for the Convention Center is quite small by big-city standards. And this is key: Many trade associations rely on the sale of exhibit booth space as their key generators of revenue. Herein lies a reason for state legislators and taxpayers to perk up and pay attention. For even if the region lets the Sonics go now, it may well find itself debating a similar convention-expansion initiative only a couple of years down the road. John Christison, president and general manager of the convention center, is also rooting for Bennett and his Sonics, but from a slightly different angle. "These buildings," he says, "are like important pieces of civic furniture." By that, he means an arena would be one of many notable amenities serving the region. "Qualitatively, it's important," he says, "as important as the view looking out the window at the Sound...as important as the vibrant arts offerings...it's part of that mix." Then there's Jim Ellis, who spends his winters in warmer climes. Perhaps no one has more influenced the evolution of this region's amenities -- from the convention center to the cleanliness of Lake Washington -- than Ellis. Speaking on the phone from Southern California, Ellis declines to comment on Sonics politics with any specificity. He doesn't even get the Seattle papers there. But his general position is pretty clear: "The Convention Center has always counted among its attractions a metro area which has huge general magnets - - universities, major league sports, and of course, our scenic and business capacities. "I would hate," he says, "to see us lose any major league sport." Ellis is hardly alone. glie Seattle times Editorials &Opinion: Friday, March 02, 2007 Guest columnist A local hoop hero's plea to keep the team here By Detlef Schrempf Special to The Times This past week, I was able to read up on most of the material in the newspapers in regards to the future of the Sonics. The discussion has been long-running and I would like to express my opinion and personal feelings, not as a current member of the Sonics staff, but as a committed and active member of this community. I was deeply saddened by what I read and I was almost resigned to the fact that we might actually lose the team. My wife, Mari, then remarked on the absence of public support for the.Sonics from people within our community who have deeply rooted connections to the Sonics and to the city of Seattle and its suburbs, which pointed directly to me. She asked, where are the voices of the people whom the community can identify with? Why don't we hear from the people who know firsthand why this franchise is such an important element to our city and region? Mari challenged me to put upor shut up, and she is right. No matter what will happen, I want you, Seattle, to know what this city and this franchise have meant to me and to my family. I, for one, think it would be a huge mistake to let the Sonics depart. Thank you for embracing me 27 years ago when I came to this area as a 6-foot 6-inch skinny kid from. Germany and was welcomed to Centralia High School by Coach Ron Brown. Mary Harshman then gave.me a chance to play for the University of Washington Huskies when no other school was interested in me. Many people have come up to me over the years and told me stories they remembered from those days in Centralia or at the UW. To this day, I can't believe how fortunate: I was to play for the Sonics in the city that I had chosen as my home. I played in the NBA for 16 years and I know how rare and special it is to actually play for the city you call your home. Not many professional athletes ever get that chance. I've played in front of fans in cities all over the world and one thing is very clear to me: What. sets Seattle apart is the loyalty of its people. When you embrace this city, the city embraces you. I probably know this better than anybody. I feel a tremendous connection to this community. My wife and I have tried to show this through our foundation, which has raised more than $7 million for children's charities over the past 13 years, due to that same loyalty. Your support has kept us going long after my name was on a Sonics roster. This is our home and the place where our kids are growing up. I have the same concerns as any other citizen, but I also had the privilege to be a pro athlete in this city and have witnessed the impact a player, a team and an organization can have on an individual and on a community. This is about us, our city and our community. There are reasons why some people feel the Sonics are not relevant to our community, but I was privileged to have been part of something that cannot be measured by dollars and cents. It's very easy to become disinterested in the few — the millionaire players and the billionaire..owners. The money in the game is threatening the relevancy ofthe game itself. But, my interest — and appeal — isn't about the few on the floor, it's about how this team can energize a community. It's about a legacy, a tradition, a dream that started long before me with people like Spencer Haywood, Lenny Wilkens, Freddie Brown and Jack Sikma, and it needs to continue long after. It is not about this year or this team, but it is about many other people: the fans, the 100-plus Sonics employees, all the volunteers, ushers and police officers who have attended and worked the games for many years. How awful would it be if we were unable to take our kids or grandkids town NBA basketball game, or had to watch our Seattle team play for another city. Many cities are lined up to take in an NBA franchise. They havegood reasons to pursue a team. Like the other professional teams in Seattle, the Sonics have enjoyed some great years and some trying years. Those great years unite the community and.create visibility for Seattle in a completely unique way. Just reflect back on the Mariners' "Refuse to Lose" season, the Seahawks' run to the Super Bowl or the Sonics' 1979 championship. Those times boost our. community, our:pride and our economy. What if we had let the Seahawks leave town before the new stadium was built? I appeal to our business leaders. to get involved, to our politicians to come together, and to the Sonics fans to keep showing their support. Once the team is gone, it will be impossible to get another franchise. The Sonics have been a huge part of this community for 40 years. The Seattle area without the Sonics is something I can't and don't want to imagine. Be positive and speak up, because we can make this work! Detlef Schrempf played for the SuperSonics from 1993.to 1999 and currently is an assistant coach with the team. The views in this guest column are his expressions as a private citizen only. Copyright ©The Seattle Times Company -,, .„__ . .,,,,T -----\., ,,, . ,the tT1ibüné � Tax breaks for Sonics as worthy a cause as all these DAN VOELPEL; THE NEWS TRIBUNE Published: February 28th, 2007 01:00 AM How would you react if news broke that a popular global corporation might move its clean industry here with 159 jobs, $230 million in annual economic impact and growth projections that could double in five years? How far backward do you think our political and civic leaders would bend over to kiss up to a headline-making corporation like that? Remember, in 2003 our state legislators gave away tax breaks valued at roughly $3.2 billion over 20 years to keep an industry that builds jets. Then why so much political angst over contributing one-tenth of that to help finance a new regional arena in Renton for the Seattle SuperSonics of the NBA, the Seattle Storm of the WNBA and, potentially, a National Hockey League franchise? Philosophically, perhaps, you don't think tax dollars should leverage any private investment. can understand that argument. Then you would have opposed tax breaks for The Boeing Co., Safeco Field for the Seattle Mariners, Seattle Center, the Washington State Convention &Trade Center, the Greater Tacoma Convention &Trade Center, Union Station Federal Courthouse, the University of Washington's downtown Tacoma campus, the Pantages Theater, Ruston Way's restoration, biodiesel plants in Ellensburg and Aberdeen, the Winthrop Hotel restoration, the Tacoma Dome and the recent wave of downtown condominiums in Tacoma. None of those projects would have happened without sizable infusions of tax dollars. But they did happen, because enough people and politicians recognized the long-term economic and cultural payoffs. So far the primary option for paying the public's proposed $300 million share of the $500 million basketball arena project has centered on an extension of King County hospitality taxes — set to expire —that helped finance stadiums for the Mariners and the Seattle Seahawks. Not a bad option; mostly painless. I'll bet you've barely noticed it, if at all. But what if our state's contribution to a regional event center in Renton didn't cost you a penny? It has worked in other cities across the country that have financed major and minor league sports arenas and stadiums. The formula goes like this: First, you look at the proposed location of the arena, then identify the territory around that • location that can reasonably expect to benefit from the arena's presence. Second, the county assessor draws a boundary around that territory and freezes the assessed value of all the properties inside the boundary. Third, the state Department of Revenue records the amount of sales taxes generated within that same boundary to establish the current baseline amount of tax that territory generates. Finally, after the arena gets built and the assessed value and retail sales inside the boundary grows, only the growth in property and sales taxes helps pay off the arena's debt. The state, county and local governments still collect their baseline amounts. No new tax. No tax increase. And after the arena's debt gets paid off?All the tax revenue generated by the arena and territory around it pours directly into government coffers. What's not to like about that? Legislators and King County leaders, so far, don't like anything that might brand them as playing loose with tax money. The future of the Super- Sonics in the Northwest seems doomed to a historical footnote. With our state leaders' minds and pocketbooks closed, the team's owners can move our SuperSonics to their hometown of Oklahoma City. Taxpayers there voted to raise their sales tax temporarily by a penny to pay for the Ford Center basketball/hockey arena and a minor league baseball stadium. I have a bias in favor of keeping the SuperSonics here. In the 1960s, my dad worked on Boeing's Supersonic Transport (SST), the namesake of the basketball team. Dad also took me to a number of NBA games in the early years of the Seattle franchise. When we reminisced Tuesday afternoon, Dad and I both remembered a game against the Cincinnati Royals in January 1971. With five seconds remaining and the Super- Sonics trailing by a seemingly insurmountable margin, we decided to beat the traffic. By the time we got to the car and turned on the radio, play-by-play announcer Bob Blackburn recapped a flurry of action, including a sparkling steal and dunk by Don "The Kangaroo" Smith, with two seconds left that sent the game into overtime. Dad and I drove all the way home to Auburn — kicking ourselves the whole time — before the wild game ended in a 132- 131 Sonics victory.The next day's News Tribune story started, "Lenny Wilkens called it poise. Tom Meschery called it magic. Lee Winfield called it luck." Since then, I detest leaving any sporting event early. Just because a team faces a seemingly insurmountable margin doesn't mean it's over. Thirty-six years after I learned that lesson, it looks like the SuperSonics will need some of that old poise, magic and luck once again. Dan Voelpel: 253-597-8785 dan.voelpel@thenewstribune.com J Id\r- Editorials Published: Sunday, February 11, 2007 Arena for Sonics, NHL looks worthy support su ort Allowing current King County taxes to continue is a smart investment with a potentially big return for the region Now that details are known,a tax package to help fund a new multi-purpose arena complex for the Seattle Sonics and Storm will be a hot topic in Olympia this week. It matters not only in King County,where the arena would be built and where all the taxes for it would be collected,but throughout the Puget Sound region -and not just because Sonics and Storm fans want their basketball teams to stay here. We're talking about a world-class venue that could house a National Hockey League team,draw major national sports events like the NCAA basketball tournament and even host national political conventions. The economic benefit of such an asset would spread far beyond King County. We encourage legislators from Snohomish County to recognize that benefit and take an active role in supporting the funding package. If the details remain as presented last week,it's a good deal for the region. Sen. Margarita Prentice (D-Renton), chair of the Senate Ways and Means Committee,is sponsoring the plan,which would allow the extension of existing King County taxes currently paying for Safeco Field and Qwest Field,the homes of the Mariners and Seahawks - a combination of taxes chiefly on restaurant tabs,rental cars and hotel rooms. Extending those taxes past their current expiration dates figures to raise more than the $300 million public investment Sonics owners say they're seeking for the estimated $500 million project. Excess dollars would be earmarked first for arts and cultural activities,then to maintenance of existing stadiums. Leaders must take a long-term view of our growing region and make appropriate investments now. Primarily,that means investing in education and transportation, and we have a long way to go on both. But those needs don't preclude making smart investments in economic development and regional pride. Significant public investments in assets such as the Everett Events Center,the Lynnwood Convention Center and Edmonds Center for the Arts are paying off in both. It's an unfortunate reality that professional sports don't survive in most regions without substantial public investment,but it's reality nonetheless. This plan would keep the Sonics and Storm in the area,playing either in Bellevue or Renton,just as the stadiums in Seattle kept the Mariners and Seahawks here. And the possible addition of an NHL team would create thousands of new hockey fans,enhancing the already strong interest in the Everett Silvertips. A major convention and meeting center could help draw new major businesses to the area. A world-class arena and convention center offering multiple benefits with little effect on taxpayers,especially outside of King County. That's an opportunity lawmakers throughout the region should seize. The Herald--Everett F , glieSeattleaimes Editorials & Opinion: Friday, February 09, 2007 Guest columnist Sonics' proposal is about much more than a b-ball court By Margarita Prentice Special to The Times Many have spoken out against the $300 million of public financing for a new home for the Seattle SuperSonics, saying it is too much to spend. However; the proposal is for. much more than just a basketball court. The proposal is for a true multipurpose complex that will offer a prime venue for concerts, large conventions, large corporate meetings, NCAA regionals, an NHL hockey team, arena football and, of course, the Sonics and Storm — the only two teams that have brought world championships to Seattle.. That is why there is so much interest in what impact the project can have on local economic-development efforts. It's true I am a basketball fan, but more appealing to me is the economic activity the new center will bring to the region and to whichever city is chosen for it. This will be a valuable community asset that will create jobs and promote the development of new hotels and great restaurants. Examples of projects benefiting our area's economy are the Washington State Convention and Trade Center, Benaroya Hall, and Qwest and Safeco fields. In addition to all the sporting events the Sonics arena could accommodate, it could also host a Democratic or Republican national convention. The Pepsi Center in Denver, site of the 2008 Democratic gathering, is very similar to the type of building that is being proposed here. Today, there is no building in our region that can handle such an event, and that includes KeyArena. Virtually every leading.city in the country already has a multipurpose complex or is in the process of building one. Such an arena will help serve the large-meeting needs of major corporations whose headquarters or operations are located in our area, including Costco, Boeing, Amazon, Microsoft and others. Those meeting dollars will be captured here, rather than going to Las Vegas; Orlando or Los Angeles. The proposed building is expensive, but it is a worthy investment, particularly when you consider that the public's share of the cost will require no new taxes and most of the cost will be paid by out-of-area visitors., not local taxpayers. One funding idea is to redirect the existing restaurant tax in King County alone = once the bonds for Safeco Field are paid off ahead of schedule. This King County-only tax will have a very modest impact on local people when they:go out to eat, representing 50 cents on a $100 dinner bill. Other tax sources, like the hotel/motel tax and the rental-car tax, are levied:primarily on out-of-area travelers visiting King County. I am convinced that none of the funding proposals will place a burden on King County taxpayers. And, if you live in Pierce, Snohomish or other surrounding counties, you will reap the economic benefit of a nearby world-class venue, at no cost. The 700,000-plus-square-foot building may be near $500 million when all costs are taken into account, but the price of not acting would be far..greater. We would likely lose the Sonics and Storm. There would be no major-league hockey and no world-class venue for concerts and conventions. Jobs would be lost. Then, in five or 10 years, when it would become clear we do need such a building, the cost would be far greater and we wouldn't have anchor tenants like the Sonics and Storm. To sum up, these are the main reasons to support a new arena: • The Sonics and Storm have many fans, and there simply is no good reason for those fans to lose their teams; • The funding proposals will have almost no impact on King County taxpayers, and no new general taxes are even being considered to pay for the arena; • The arena plan will lead to new opportunities on the sports and business scenes that can create jobs and help promote this region worldwide; • The benefits will be shared by all of the surrounding cities; • The longer we wait to act, the greater the total cost will be. Given this information and perspective, I know people in our region will realize the opportunity this represents and support a new, world-class arena. Sen. Margarita Prentice, D-Renton, is chairwoman of the Senate Ways and Means Committee and sponsor of an arena financing bill. Copyright© The Seattle Times Company K. i n ou nt E ven s en er Ground View - Renton , Washington ..1„..1: ..„4„.„_. : 4iel ‘..'l ' likilik Altaki b*--"VtIg ^; 4 - 1^crva► , .1 w. 1 - r " I I' "�f•"'I• __ t `^- lit.. ',._... •.. �.. _ N1 `5 �` ropy ]s 6 •- aAt ---fir/ s`- 011seh King Center Aerial View - Renton , Washington . .. • ' AllinV ••.. 41111111.- .4.111111W- 4.111111.0 0 a111"1 - _aii‘le ' ter- 46 ,_ 011111111V• 3401111111ft i /. ,_:,. - _ /4 , lei J ' f . 4. `' f f1 J r I i Y ' f 1 Tti f 1 ' P _J f' 7;-„wignimiligioir KiPnil 1 1 ng County Events Center All across the country, top-tier communities have either built or are building world-class multipurpose events centers to host major business, cultural, sports and other events. Here are a few examples of some of the facilities that have been or are being developed to provide significant economic and other benefits to their communities. Toyota Center Houston , Texas -,;44" • . . . 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III ' gr . 700 1 II , .iiii 1' ' ti I . .., 1 1 i id ,,� ir A p • le .. i , . .4 Projects, Cost (millions) , Fundingl, 1.Regional Center/ Cultural District 7 ____ 2.McIntyre Hall Performing Arts Center- 1.Whatcom $17 M:57% public,43%private ti 3.Snohomish County San e- Okanogan - Ferry Pend -Lynnwood Convention Center-$31 M -Edmonds Center for the Arts-$18.5 M Juanr :r 2. Skagit Oreille -Everett Events Center-$71.5 M:100%public Stevens —Future of Flight Aviation Center&Boeing Tour-$23.7 M:75% public,25% private Island 4.Greater Tacoma Regional Convention& Clallam 3. Snohomish Trade Center-$89.7 M:100% public 11. -~ 5.Capital Area Jefferson 6. Chelan Douglas 13 -Hands on Children's Museum -Regional,Athletic,Recreation&Special Ki:; • Lincoln Spok Events Complex II King 7. Kitsap Conference Center at Bremerton `- Harborside-$42M Grays Grant Harbor c - - — Kittitas 7.Ocean Shores Convention Center-$10 M: 5. 4. Pierce Adams Whitman 100% public Thurston 8.Cowlitz Regional Conference Center-$7 M 9.Clark County Pacific Lewis Franklin Garfiel•,, -Exhibition Hall-$18.5 M:100% public 10. Yakima -Vancouver Conference Center&Hotel- Columb i $72.8 M 111111 12. Benton Walla Asotin Yakima$6.7M Convention Center expansion- Walla Skamania 1 Wahkiakumr ,1. Greater Wenatchee Regional Events Center- Klickitat , -- $44.5 M 9 Cla.rk12.Benton County -Three Rivers Convention Center-$17 M: 100%public Washington State Public Facilities -Hanford Reach Heritage Center-$40.5 M: Districts ' Projects 49% public,51% private (hi i- r Am V »n nes,r i-ss 13.Spokane Convention Center&INB Performing Arts Center-$91 M: (voter approved)99.84%public,.16% private *Information received from public facilities districts and city personnel Proposed public financing for a world-class multipurpose events center in King County — S B 5986 The public portion of financing for the proposed multipurpose facility would come from existing tax sources — no new taxes — levied entirely in and as approved by King County. All the taxes sources are already in place and being used to finance facilities. Revenues above $300 million will be available for other purposes. King County Tax Explanation "Added" Consumer Impact Total Yield Source 25-yr. bonds Sales Tax Credit for This credit against the 6.5% state sales tax has NONE $150 million Safeco Field — .017% already been approved by the Legislature (along with a similar tax credit in the box below) for every county in the state to use for economic development. Expected to begin in 2012 after Safeco Field bonds paid off.) Sales Tax Credit for As with the tax credit above, this credit against NONE $77 million Qwest Field — .016% the 6.5% state sales tax has already been approved by the Legislature for every county in the state to use for economic development. Will begin in 2021 after Qwest Field bonds are paid off). • Restaurant Sales Tax This tax is generating revenue at a quicker pace From 2012 through 2015, $75 million for Safeco Field — 0.5 % than anticipated which, along with the tax credit 25 cents on a $50 restaurant (above), is enabling the Safeco Field bonds to be bill or 50 cents on a $100 paid off early. restaurant bill. Car Rental Tax for As with the first tax credit (above) and restaurant From 2012 through 2015, $2 2% = $18 Safeco Field, 2%, and tax, the 2% tax is helping pay off the Safeco Field on each $100 for a car rental million; the Kingdome, 0.75% bonds. The 0.75% pays off Kingdome bonds. in King County; starting In 0.75% = $22 2016, 75 cents on each $100. million Hotel/Motel Tax for This is currently a 2% tax, but the proposal seeks Starting in 2021, $1 per $100 $81 million Qwest Field, 1% only 1% of it; the remaining 1% would be directed of a lodging bill. Paid to fund the arts beginning in 2021. primarily by out-of-county visitors. (Note: This is total revenue with the first priority for arts and facility maintenance.) TOTAL $423 million Summary of SB 5986, An Act Relating to Public Facilities The bill introduced by Sen.Prentice allows construction of a new multipurpose arena that would be owned by a public entity in which the Seattle Supersonics and Storm would play their home games. First, it modifies the existing public facilities district statute to allow any county to create more than one such district to develop a multipurpose arena. King County's existing public facilities district owns Safeco Field. Second, it modifies existing statutes to allow taxes and tax credits previously adopted by King County to continue once the bonds for Safeco and Qwest Fields and the Kingdome are retired—subject to approval by King County. These sources include credits on the state sales tax, a restaurant food and beverage tax,rental car taxes and a hotel/motel tax. Some of the revenue from these existing sources may be directed by King County to pay for cultural activities and facilities and the maintenance of major sports facilities. The measure also provides for an exemption from the state sales tax for construction-related activities and from leasehold taxes. The location of the multipurpose arena,the specific amount and form of the private contribution and terms of the relationship between tenants and the public entity are not addressed in the bill. They will be negotiated between the team and King County. Here is a section-by-section summary of the bill: Sec. 101: Amends the existing public facilities statute to allow a county to create more than one such district,with the details of the district's scope and purpose defined by the county. Sec. 102: Amends the existing public facilities statute to give the district more flexible powers for building and financing a multipurpose arena. Sec. 201: Allows King County to extend the sales tax credit that is helping to pay Safeco Field bonds to pay for a new multipurpose arena,once those bonds are paid off. Sec. 202: Allows King County to extend the sales tax credit that is helping to pay Qwest Field bonds to pay for a new multipurpose arena, once those bonds are paid off. Sec. 203: Allows King County to extend two local taxes,the food and beverage tax on restaurants, taverns and bars and the 2%car rental tax that are helping to pay Safeco Field bonds to pay for a new multipurpose arena,once those bonds are paid off. Sec. 204: Allows King County to extend the lodging tax that is helping to pay Qwest Field bonds to pay for a new multipurpose arena and cultural activities and facilities, once those bonds are paid off. The current arts and cultural endowment account is converted to a reserve account. Sec. 205: Allows King County to extend the 1%car rental tax that is helping to pay Qwest Field bonds to pay for a new multipurpose arena, once those bonds are paid off. Sec. 206 exempts construction activities for a new multipurpose facility from the state sales tax and Sec. 207 exempts the facility from state leasehold taxes. Sec. 301: Directs funds collected from the local taxes extended by the county to pay for cultural activities and facilities,maintaining major sports facilities and the new multipurpose arena. Sec. 302: Authorizes the county,public facilities district or city in which a new multipurpose arena is located to issue bonds to pay for the arena or related infrastructure; Sec. 303 describes the process for the issuance and repayment of the bonds by the county. Sec. 304 creates an account for the maintenance and improvement of public facilities. Secs.401-403 are technical drafting provisions and Sec. 404 is an emergency clause. The Professional Basketball Club, LLC Clayton I. Bennett is Chairman of the Professional Basketball Club, L.L.C. (PBC), the owner of the Seattle Sonics and Seattle Storm professional basketball teams. Highly involved in civic and charitable affairs, Mr. Bennett currently serves as a director of numerous local, state and national organizations. He is the Chairman of Dorchester Capital, a diversified private investment company and serves as an investor, officer and director of numerous business entities. During the 2005-2006 season, Bennett, along with several other members of the PBC ownership group, partnered with the city of Oklahoma City and the state of Oklahoma in providing a revenue guarantee for the NBA's New Orleans/Oklahoma City Hornets. Lenny Wilkens is Vice Chairman of the Professional Basketball Club and also serves as commentator for TV broadcasts of Sonics on Fox Sports Northwest. Wilkens spent 45 years in the NBA as a coach and player and also has significant broadcast experience. Wilkens served two season as player-coach for Seattle and in his first full season as Head Coach, Wilkens led the Sonics to the 1979 NBA Championship. He is the all-time winningest coach in NBA history with a career record of 1,315-1,133 (.537) over 32 seasons. He was inducted into the Naismith Memorial Basketball Hall of Fame as both a player (1988) and coach (1998), sharing that unique double honor with John Wooden and Bill Sharman. During the NBA's 50th Anniversary celebration in 1996, Wilkens was named one of the NBA's 10 Greatest NBA Coaches and 50 Greatest Players. Wilkens earned Olympic gold medals as an assistant coach with the original 1992 "Dream Team" and as head coach of the American squad at the 1996 Games. A nine-time NBA All-Star and MVP of the 1971 Game at San Diego, Wilkens averaged 16.5 points and 6.7 assists over a 15-year NBA playing career. The Sonics retired his #19 jersey in 1979. 351 Elliott Ave. W., Suite 500 • Seattle, WA 98119 (206) 281-5800 210 Park Avenue, Suite 3121 • Oklahoma City, Oklahoma 73102 (405) 236-5179 Proposed public financing for a world-class multipurpose events center in King County - SB 5986 The public portion of financing for the proposed multipurpose facility would come from existing tax sources — no new taxes — levied entirely in and as approved by King County. All the taxes sources are already in place and being used to finance facilities. Revenues above $300 million will be available for other purposes. King County Tax Explanation "Added" Consumer Impact Total Yield Source 25-yr. bonds Sales Tax Credit for This credit against the 6.5% state sales tax has NONE $150 million Safeco Field — .017% already been approved by the Legislature (along with a similar tax credit in the box below) for every county in the state to use for economic development. Expected to begin in 2012 after Safeco Field bonds paid off.) Sales Tax Credit for As with the tax credit above, this credit against NONE $77 million Qwest Field — .016% the 6.5% state sales tax has already been approved by the Legislature for every county in the state to use for economic development. Will begin in 2021 after Qwest Field bonds are paid off). Restaurant Sales Tax This tax is generating revenue at a quicker pace From 2012 through 2015, $75 million for Safeco Field — 0.5 % than anticipated which, along with the tax credit 25 cents on a $50 restaurant (above), is enabling the Safeco Field bonds to be bill or 50 cents on a $100 paid off early. restaurant bill. Car Rental Tax for As with the first tax credit (above) and restaurant From 2012 through 2015, $2 2% = $18 Safeco Field, 2%, and tax, the 2% tax is helping pay off the Safeco Field on each $100 for a car rental million; the Kingdome, 0.75% bonds. The 0.75% pays off Kingdome bonds. in King County; starting In 0.75% = $22 2016, 75 cents on each $100. million Hotel/Motel Tax for This is currently a 2% tax, but the proposal seeks Starting in 2021, $1 per $100 $81 million Qwest Field, 1% only 1% of it; the remaining 1% would be directed of a lodging bill. Paid to fund the arts beginning in 2021. primarily by out-of-county visitors. (Note: This is total revenue with the first priority for arts and facility maintenance.) TOTAL $423 million Summary of SB 5986, An Act Relating to Public Facilities The bill introduced by Sen.Prentice allows construction of a new multipurpose arena that would be owned by a public entity in which the Seattle Supersonics and Storm would play their home games. First, it modifies the existing public facilities district statute to allow any county to create more than one such district to develop a multipurpose arena. King County's existing public facilities district owns Safeco Field. Second, it modifies existing statutes to allow taxes and tax credits previously adopted by King County to continue once the bonds for Safeco and Qwest Fields and the Kingdome are retired—subject to approval by King County. These sources include credits on the state sales tax,a restaurant food and beverage tax,rental car taxes and a hotel/motel tax. Some of the revenue from these existing sources may be directed by King County to pay for cultural activities and facilities and the maintenance of major sports facilities. The measure also provides for an exemption from the state sales tax for construction-related activities and from leasehold taxes. The location of the multipurpose arena,the specific amount and form of the private contribution and terms of the relationship between tenants and the public entity are not addressed in the bill. They will be negotiated between the team and King County. Here is a section-by-section summary of the bill: Sec. 101: Amends the existing public facilities statute to allow a county to create more than one such district,with the details of the district's scope and purpose defined by the county. Sec. 102: Amends the existing public facilities statute to give the district more flexible powers for building and financing a multipurpose arena. Sec. 201: Allows King County to extend the sales tax credit that is helping to pay Safeco Field bonds to pay for a new multipurpose arena, once those bonds are paid off. Sec. 202: Allows King County to extend the sales tax credit that is helping to pay Qwest Field bonds to pay for a new multipurpose arena,once those bonds are paid off. Sec. 203: Allows King County to extend two local taxes,the food and beverage tax on restaurants, taverns and bars and the 2%car rental tax that are helping to pay Safeco Field bonds to pay for a new multipurpose arena, once those bonds are paid off. Sec. 204: Allows King County to extend the lodging tax that is helping to pay Qwest Field bonds to pay for a new multipurpose arena and cultural activities and facilities,once those bonds are paid off. The current arts and cultural endowment account is converted to a reserve account. Sec. 205: Allows King County to extend the 1%car rental tax that is helping to pay Qwest Field bonds to pay for a new multipurpose arena, once those bonds are paid off. Sec. 206 exempts construction activities for a new multipurpose facility from the state sales tax and Sec. 207 exempts the facility from state leasehold taxes. Sec. 301: Directs funds collected from the local taxes extended by the county to pay for cultural activities and facilities,maintaining major sports facilities and the new multipurpose arena. Sec. 302: Authorizes the county,public facilities district or city in which a new multipurpose arena is located to issue bonds to pay for the arena or related infrastructure; Sec. 303 describes the process for the issuance and repayment of the bonds by the county. Sec. 304 creates an account for the maintenance and improvement of public facilities. Secs.401-403 are technical drafting provisions and Sec. 404 is an emergency clause. 4 The Professional Basketball Club, LLC Clayton I. Bennett is Chairman of the Professional Basketball Club, L.L.C. (PBC), the owner of the Seattle Sonics and Seattle Storm professional basketball teams. Highly involved in civic and charitable affairs, Mr. Bennett currently serves as a director of numerous local, state and national organizations. He is the Chairman of Dorchester Capital, a diversified private investment company and serves as an investor, officer and director of numerous business entities. During the 2005-2006 season, Bennett, along with several other members of the PBC ownership group, partnered with the city of Oklahoma City and the state of Oklahoma in providing a revenue guarantee for the NBA's New Orleans/Oklahoma City Hornets. Lenny Wilkens is Vice Chairman of the Professional Basketball Club and also serves as commentator for TV broadcasts of Sonics on Fox Sports Northwest. Wilkens spent 45 years in the NBA as a coach and player and also has significant broadcast experience. Wilkens served two season as player-coach for Seattle and in his first full season as Head Coach, Wilkens led the Sonics to the 1979 NBA Championship. He is the all-time winningest coach in NBA history with a career record of 1,315-1,133 (.537) over 32 seasons. He was inducted into the Naismith Memorial Basketball Hall of Fame as both a player (1988) and coach (1998), sharing that unique double honor with John Wooden and Bill Sharman. During the NBA's 50th Anniversary celebration in 1996, Wilkens was named one of the NBA's 10 Greatest NBA Coaches and 50 Greatest Players. Wilkens earned Olympic gold medals as an assistant coach with the original 1992 "Dream Team" and as head coach of the American squad at the 1996 Games. A nine-time NBA All-Star and MVP of the 1971 Game at San Diego, Wilkens averaged 16.5 points and 6.7 assists over a 15-year NBA playing career. The Sonics retired his #19 jersey in 1979. t 351 Elliott Ave. W., Suite 500 • Seattle, WA 98119 (206) 281-5800 210 Park Avi Suite 3121 • Oklahoma City, Oklal a 73102 (405) 236-5179 .March 19,2007 Renton City Council Minutes Page 99 Separate Consideration Councilmember Palmer noted a correction to the Council meeting minutes of Item 7.a. March 12, 2007, as follows: Her comments on page 87, 11th paragraph,2nd Council Meeting Minutes of sentence; change the statement from"...does not want the arena in Renton" to 3/12/2007 �'A, "...does not want the arena on that site." N�ULOPOI° v`�V' MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL APPROVE P O THE MINUTES OF 3/12/2007 AS CORRECTED. CARRIED. Separate Consideration Utility.Systems Division recommended approval of an agreement with a Item 7.i. coalition of government entities to fund the legal services associated with Utility: Phase II Municipal appealing the Western and Eastern Washington National Pollutant Discharge Stormwater Permit Appeal, Elimination Phase II Municipal Stormwater Permits issued by the Washington Interlocal Agreement State Department of Ecology. City's cost share is $8,333.33. Councilman Clawson requested that Councilmembers be kept apprised of this matter so as to make sure that the policies in this litigation are actually the policies of the Council. Assistant City Attorney Fontes assured that Council will bekept informed of the specifics,noting that the focus is being placed on regulations that go beyond the Council's vision. MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL APPROVE AGENDA ITEM 7.j. ASPRESENTED. CARRIED. (See later this page for resolution.) UNFINISHED BUSINESS Community Services Committee Chair Corman presented a report Community Services recommending concurrence in the staff recommendation to approve the Committee appointment of Peter Hartley to the Library Board for an unexpired term Appointment: Library Board expiring on 6/1/2010. MOVED BY CORMAN, SECONDED BY PALMER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES Resolution#3864 A resolution was read supporting the countywide 2008-2013 Medic Fire: King County Medic One/Emergency Medical Services levy. MOVED BY BRIERE, SECONDED One/Emergency Medical BY LAW, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Services Levy,2008-2013 Resolution#3865 A resolution was read authorizing the Mayor and City Clerk to renew an Fire: Station#14,King County . interlocal cooperative agreement to lease space to King County Medical Emergency Medical Services Services Division. MOVED BY LAW, SECONDED BY BRIERE, COUNCIL Lease ADOPT THE RESOLUTION AS READ. CARRIED. Resolution#3866 A resolution was read authorizing the Mayor and City Clerk to sign an Utility: Phase II Municipal interlocal agreement regarding legal services, among the cities of Anacortes, Stormwater Permit Appeal, Auburn, Bellevue,Bellingham, Bothell,Bremerton,Buckley,Burien, Interlocal Agreement ' Burlington, Camas, Des Moines, Ellensburg,Everett, Federal Way, Fircrest, Kennewick,Kent, Longview, Marysville, Mount Vernon,Normandy Park, Orting, Port Angeles,Pullman,Puyallup, Renton, Richland, Sammamish, SeaTac, Sumner,University Place,Vancouver, and Kitsap County and any other Phase II permittees that might join this coalition,of governmental entities (collectively, "coalition"). MOVED BY LAW, SECONDED BY BRIERE, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. The following ordinances were presented for second and final reading and adoption: March 12,2007 Renton City Council Minutes Page 90 NEW BUSINESS MOVED BY PERSSON, SECONDED BY LAW, COUNCIL REFER THE Finance: Fund Balance FUND BALANCE RESERVES AND THE ANNUAL CAPITAL Reserves,Annual Capital IMPROVEMENT PLAN TO THE FINANCE COMMITTEE. CARRIED. Improvement Plan AUDIENCE COMMENT Diane Paholke,243 W. Perimeter Rd., Renton, 98057, stated that as a result of Citizen Comment: Paholke- the potential changes at the Renton Airport, her business, Pro-Flight Aviation, Jet Center at Airport, Gangs in receives numerous questions and requests for information. In response,she Neighborhood developed a website, which provides basic aviation information and information regarding the potential changes. On another subject, Ms. Paholke thanked the Police Department for helping to eliminate the gangs in her neighborhood. Citizen Comment: Duffie- Joe Duffie, City of Tukwila Councilmember, 5332 S. 140th St., Tukwila, Council Meeting 98168, indicated that it was a great pleasure to attend the Council meeting tonight, and he encouraged everyone to keep up the good.work. Citizen Comment: McOmber- Howard McOmber, 475 Olympia Ave. NE, Renton, 98056, stated that the Multipurpose Events Center Council is wise to use a measured approach in regards to the potential siting of a (Sonics & Storm Basketball) multipurpose events center in Renton. ADJOURNMENT •MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL ADJOURN. CARRIED. Time:X�8:5596 p.m. )6474 stt I. (.1/G • Bonnie I. Walton, CMC, City Clerk Recorder: Michele Neumann . March 12, 2007 March 12,2007 Renton City Council Minutes Page 87 Separate Consideration Economic Development,Neighborhoods and Strategic Planning Department Item 8.f. recommended adoption of a resolution regarding the proposed King County Planning: Multipurpose Events Events Center.* Center Sonics & Storm Councilmember Persson stated that he does not understand why this resolution asketball) has to be adopted this evening, as it is premature. He explained that it will appear as though the Council has already made a decision and then will proceed to ask for input on the matter, which is the wrong message to send to citizens. *Moved by Briere, seconded by Nelson, Council approve item 8.f. as presented.* Councilmember Corman indicated that the matter deserves further discussion. He stated that the City is paying a consultant to conduct an economic analysis to learn whether this project is suitable for the City, and yet some of the whereas statements in the resolution already assume the answer to the question. Mr. Corman pointed out that the resolution may be appropriate in the future; however, the data is not yet available. *Roll call on motion: two ayes: Nelson, Briere; four nays: Law, Palmer, Persson, Corman. Failed. Mayor Keolker noted that the matter was discussed by Council at its retreat, and that no comments were received regarding the resolution, which was sent out in advance of this meeting. Councilmember Persson stated that the resolution does not reflect the comments he made at the retreat. He indicated that language stating that Renton has not committed any money should be listed first. Councilmember Briere pointed out that the resolution states the fact that the proposed site is already zoned to allow arenas. She noted that the resolution also communicates that the City will not do anything until it is known how the proposal affects the fiscal health of the City, thus providing reassurance of that to the public. Ms. Briere stated that the resolution establishes a base for what the City will and will not do. Counci]President Nelson stated that she was under the impression that Councilmembers were to submit their comments regarding the resolution prior to the Council meeting, and she expressed her disappointment that this did not occur. She questioned whether it is the resolution that is not wanted or the proposed stadium itself that is not wanted. Councilmember Briere suggested that the matter be put on hold for another week to allow for the submittal of comments to the City Attorney. exiles ec . Councilmember Palmer stated that the feedback she is receiving from citizens is 2,00overwhelming against having the arena on that site. She asserted that it does SAI V� e 5 tv) �(� not matter what the resolution states, as she does not want the arena in Renton. Councilmember Briere noted that the feedback she has received from people is excitement for this potential opportunity. Councilmember Corman questioned the need for a resolution at all,pointing out that the site is already zoned for a stadium and the City cannot prevent someone from building one if they have the capital to do so. He stated that he is undecided and wants to revisit the matter when more information is available, such as the results of the City's economic study and whether King County citizens',vote to provide a subsidy. •March 12,2007 Renton City Council Minutes Page 88 t Councilmember Law pointed out that some people may think that a decision has been made by the way the resolution is written. Mr. Law stated that there is not • enough information to make that decision, and he does not want to send out the • wrong message. Mr. Law indicated that he is willing to work on the resolution, with the emphasize that the City has yet to know anything about infrastructure • dollars,revenues, and impacts. Council discussion ensued regarding the whereas statements in the resolution, the placement of the language in the resolution, the hurdles that need to be crossed before it is known whether the stadium is even possible,the discussion of this matter at the Council retreat, and the requests for more information. Mayor Keolker expressed her hope than an appropriate resolution can be crafted,:as it will provide direction to the Administration. • UNFINISHED BUSINESS Planning and Development Committee Chair Briere presented a report Planning&Development recommending concurrence in the staff recommendation to accept the appraisal Committee submitted by Jack Alhadeff for the vacation of a ten-foot walkway, Vacation: Walkway,NW 6th approximately 163 feet in length, located between NW 6th St. and Rainier Ave. St&Rainier Ave N,AHBL, N. The'Committee further recommended setting compensation at$9,800 for the VAC-06-001 walkway vacation. MOVED BY BRIERE, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. • Vacation: Walkway,NW 6th Planning and Development Committee Chair Briere presented a report St&Rainier Ave N, JDA recommending concurrence in the staff recommendation to accept the appraisal Group, VAC-05-002 submitted by Jack Alhadeff for the vacation of a ten-foot walkway, approximately 187 feet in length, located east of NW 6th St. The Committee further recommending setting compensation at $6,000 for the walkway vacation. MOVED BY BRIERE, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Vacation: Field Ave NE, ESM Planning and Development Committee Chair Briere presented a report Consulting Engineers, VAC- recommending concurrence in the staff recommendation to accept the appraisal 06-004 submitted by Matt Cyr, ESM Consulting Engineers, for the street vacation of a 30-foot by 30-foot portion of Field Ave. NE, approximately 318 feet north of NE 2nd St. The Committee further recommended setting compensation at $6,850 for the street vacation. MOVED BY BRIERE, SECONDED BY PALMER, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Transportation (Aviation) Transportation(Aviation) Committee Chair Palmer presented a report Committee recommending concurrence in the staff recommendation to authorize the Mayor Transportation: Trails and and City Clerk to execute the contract with MacLeod Reckord in the amount of Bikeways Study and Map, $158,131.20 for a trails and bikeways study and map. MOVED BY PALMER; MacLeod Reckord SECONDED BY BRIERE, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Finance Committee . Finance Committee Chair Persson presented a report recommending approval of Finance: Vouchers Claim Vouchers 257571 - 257962 and three wire transfers totaling $4,626,332.03; and approval of Payroll Vouchers 67932 -'68063, one wire transfer, and 789 direct deposits totaling$2,127,185.67. MOVED BY • PERSSON, SECONDED BY LAW, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Puled -kr sep�ara/e dOn5,d&rat'On Com. _' OF RENTON COUNCIL AGENDE'` ,.'LL /VO f ado,de / 7 AI#: Submitting Data: For Agenda of: Dept/Div/Board.. EDNSP March 12, 2007 Staff Contact Alex Pietsch (x 6592) Agenda Status Consent X Subject: Public Hearing.. Resolution regarding the City's consideration of the Correspondence.. proposed King County Events Center Ordinance Resolution X Old Business Exhibits: New Business Resolution Study Sessions Information Recommended Action: Approvals: Councilcur Legal Dept Finance Dept Other Fiscal Impact: Expenditure Required... 0 Transfer/Amendment Amount Budgeted Revenue Generated Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The City is evaluating the proposed King County Events Center. A resolution is required to set forth principles and guidelines for how the City should move forward with this proposal. STAFF RECOMMENDATION: City Council adopt a resolution. Rentonnet/agnbill/ bh • CITY OF RENTON, WASHINGTON 'RESOLUTION NO. A RESOLUTION OF THE CITY OF ' RENTON, WASHINGTON, REGARDING THE PROPOSED KING COUNTY EVENTS CENTER. WHEREAS,the Professional Basketball Club, LLC, owners of the Seattle Sonics and Storm professional basketball teams, has proposed that a multipurpose events center be built in Renton on property anticipated to be sold by The Boeing Company within the Urban Center— North Comprehensive Plan designation; and 1 WHEREAS,the Comprehensive Plan directs the transformation of the Urban Center— North to a vibrant mixed use district if and when Boeing deems property no longer necessary for its operations; and WHEREAS,the adopted zoning for this area, Urban Center North 1, allows development of indoor sports arenas, auditoriums, and exhibition halls with certain conditions; and WHEREAS, a development agreement between the City and The Boeing Company, adopted in 2003, directs that a portion of anticipated new tax revenue generated by redevelopment of these properties be used to finance public infrastructure to support redevelopment; and WHEREAS,the Washington State Legislature is considering legislation that would authorize the King County Council to extend certain existing taxes and tax credits to generate a significant portion of the events center funding; and 1 • RESOLUTION NO. WHEREAS,if the Legislature adopts the authorizing legislation, the King County Council has the authority to create a public facilities district for the purpose of constructing and operating a multipurpose events center such as that being proposed; and WHEREAS, either the King County Council or the Legislature may require that the extension of the taxes and tax credits be subject to a vote of the people; and WHEREAS, development of an events center such as that being proposed has the potential to catalyze additional development that will bring new jobs and revenue to the City; enhance shopping and dining options at The Landing and expedite build-out at Southport; create a new, accessible regional entertainment venue that Renton residents will be able to enjoy; and generate activity that will support existing restaurants, pubs, and shops in downtown Renton and throughout the City; and WHEREAS,the presence of professional sports teams in Renton would be a source of pride and inspiration for the youth of the City and the charitable contributions of the teams and their players would have a positive impact on the community as a whole; and WHEREAS, development of a regional facility such as that being proposed would further Renton's emergence as a regional economic hub, and has the potential to ensure the timely construction of regional road and transit improvements benefiting Renton; and WHEREAS, development of an events center such as that being proposed will likely have significant impact on the City and its neighborhoods and residents have already expressed concerns about traffic, public safety, changing neighborhood character, demands on city services, negative impacts to Boeing, The Landing, and other adjacent businesses, the expectation of a demand for a significant financial contribution from the City, the potential for lack of local control 2 RESOLUTION NO. of a King County public facilities district, and uncertainty about the long-term commitment of the Sonics and Storm to the region even if an events center is constructed; and WHEREAS,the City Council is not willing under any circumstances to impose new taxes at the city-level, leave our neighborhoods unprotected from negative impacts, subsidize cost of events center operations to the detriment of other city services, or put the City's fiscal health at risk; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION L The above findings are true and correct in all respects. SECTION II. The City will perform due diligence to determine economic benefits, potential impacts to neighborhoods and traffic, and anticipated demands on City services; engage professional assistance to protect the City's interests;work with the Professional Basketball Club, LLC, to ensure quality design and sufficient mitigation of impacts; consider City investment in the project based on anticipated new revenue from the events center itself and development directly resulting from its construction; provide results of the City's due diligence to the Legislature and King County Council to aid those(bodies in their decisions; and work to identify and secure additional funding sources. PASSED BY THE CITY COUNCIL this day of , 2007. Bonnie I. Walton, City Clerk • 3 • RESOLUTION NO. APPROVED BY THE MAYOR this day of , 2007. Kathy Keolker, Mayor Approved as to form: Lawrence J. Warren, City Attorney RES.1247:3/6/07:ma 4 1)1/1,Dtiq_.) n___)41.,/ -- IA/0,1. :r_ _ S,),) -__ i___0._ _o-I-c2 __ v 0. go_______T.07,7 ! ��/Y h, �S -L, O C.1...?.,M-.)-'=-7 1 al( JTZ= Q--- iL L :71.1.10.5 v® .).-L( -D - --j V--i, - d i- I ,.AVO 2 aQ1 S(9 -i,0 -Ttt -40 j Co IAA I-"D ,_,/, 5-121A9ut4 -)37')Nci odo Ic--7) fli ar-D 1 \ v' '', laV 1 C --.aff-4 Ill e.1 —.)w-Vni -914-_L -n---)gc_ --)-)1 rn _±.--- /Y06-----D 1,1)1 Ili 1-V-1-)_L. -71 NOLL-WY I LA--1. r 11 Y-) 9D --6 I\ _l_ i - — 1(s1: fti-- od Q O _ 6 S 1 i -A not 1, b{-N ry-i 5 �� ify o s--/o.Srr(26(5 _)_i 01 Dd )/07 0 -L ?'" /1 1 Q-},tic -D-}fL -d-4 II 4p Shod c -- ; O ! DNmo D. III lY O E j-al ----. Q ,u-) -9)41_ /y ( Ili 5 ()/ 7/Y> z./ 0 -d A fY 1,7 07 9ivi -7/ -6 a/ C2InAW --f0 • ).- --i-JD r 1 l CY/O -V 0 V 0/1-V--_—/ (11 l iii- --7' 1 i ps 1 IG 1l �ry Q4-79 /)5(Yh S .-e i +1 Silo') )d h c _Los rd n 11 - -- - �� 0 � rvm 0) ii - - - - - -- if .5---P3%tWN3- 5 _I-D in I )0 0 D y 4 _Lip .--.6 - 1-C) kV 1M 911-1— - - - — nLOOK 4 933 - - I 'eta` PPrvi p3Ap33a ? February 26,2007 Renton City Council Minutes Page 61 • Citizen Comment: Hope- Jerry Hope, 17016 128th Ave. SE, Renton, 98058, indicated that there is strong Benson Hill Communities support for the Benson Hill Communities Annexation, noting that annexation of Annexation, S 200th St& this area to Renton is in the best interests of the community, King County, and 128th Ave SE Renton. Citizen Comment: Reiter- Tom Reiter, 18001 113th Ave. SE, Renton, 98055, described the effort that has Benson Hill Communities been made towards the annexation of the Benson Hill communities to Renton. Annexation, S 200th St& Mr. Reiter said the signatures for the annexation petition were quickly obtained, 128th Ave SE and he thanked the City for its consideration of the matter. Citizen Comment: Linton - Richard Linton, 17041 130th Ave. SE, Renton, 98058, stated that Renton has Benson Hill Communities grown over the years and has the potential to be even more fantastic than it is Annexation, S 200th St& now. Mr. Linton indicated that he and others in the Benson Hill and Renton 128th Ave SE Park areas are interested in annexing to Renton. He noted that the turnout at the election'would be very good if the issue were to be placed on the ballot. Citizen Comment: Leviton- Jay Leviton, 18204 143rd Ave. SE,Renton, 98058, speaking on behalf of the Multipurpose Events Center Renton Chamber of Commerce Board of Directors, conveyed the chamber's (Sonics& Storm Basketball), enthusiasm for Renton being chosen as the preferred site for the Sonic's Chamber Support Resolution multipurpose event center. Mr. Leviton read a Renton Chamber of Commerce • Board Resolution, which supports the concept of Renton becoming the future home of the Seattle Supersonics and Storm basketball teams and urges the Mayor and Council to continue to support this project while exercising due diligence. Citizen Comment: Johnson- Steve Johnson, Renton Chamber of Commerce Vice President, 139 Union Ave. Multipurpose Events Center NE, Unit 1, Renton, 98059, stated that the siting of the Sonic's multipurpose (Sonics& Storm Basketball), event center in Renton will benefit the business community, and he asked Chamber Support Resolution Council'to pursue this opportunity while exercising due diligence. Citizen Comment: Rider- Susan Rider, 1835 NE 20th St., Renton, 98056, expressed her desire that the 2006 Comprehensive Plan City base its decision regarding the Kennydale Blueberry Farm rezone on facts. Amendments, Kennydale She displayed photographs of the area showing the development occurring on Blueberry Farm property across from the blueberry farm and the damage to that property's wetland. Ms. Rider indicated that due to the lack of hydrology studies, the extent of the wetland is unknown. She stressed that accurate information is needed prior to a decision being made on the rezone, and asked the City to keep track of activities in this area. Citizen Comment: Puckett- Jerry Puckett, 15260 Oak Dr., Renton, 98058, reported that the New Life Wonderland Estates Mobile Church is making progress in obtaining signatures for the annexation-to-Renton Home Park,Annexation and petition for his area. He further reported that the owner of the Wonderland Permit Process Estates Mobile Home Park property, where he resides, has started the permit process in King County to build homes on the site. Mr. Puckett inquired as to whether the permit process will conclude in King County or be taken over by Renton if the property were to annex to Renton. Planning Manager Lind stated that if the area is annexed and a King County- approved preliminary plat exists,Renton will recognize the plat. Up until the time of preliminary plat approval, Renton would start over again with the review process. In response to Councilmember Corman's inquiries regarding the annexation process, Ms. Lind said the annexation proponent is using the property owner petition process. She noted that residents of the mobile home park cannot participate. Ms. Lind reported that signatures are currently being gathered for the 10% annexation petition. iuclience CO/24,14e47 R E N TO N / , : .. : CHAMBER -~ O.F COMMERCE YOUR FIRST CALL RESOURCE --/. Renton Chamber of Commerce Board oResolution WHEREAS, the City of Renton continues to make significant progress at diversifying and strengthening its economy and quality of life for its business community and its residents; and, WHEREAS, the Puget Sound region has been the home to the Seattle 'Supersonics for 40 years, a history which included a world championship and several division titles, for the Supersonics and a world championship far its sister team, the Seattle Storm;and, WHEREAS, a world-class, multipurpose sports andentertainment, facility, anchored by the Sonics and Storm, would spur tremendous economic development opportunities — enhancing existing businesses, attractingnew, high quality businesses, and increasing, living wage and family wage jobs thr'oughout.Renton; and, WHEREAS, a sports and.entertainment arena would generate significant government revenue, through admissions taxesand sales taxes, that could be reinvested in.the Renton community, without imposing new:taxes to be borne exclusively by Renton residents.; to finance the arena; and, WHEREAS, theSdnics and Storm have a winning record off the court'and a proud tradition of participating in:: community events, contributing to local- nonprofit organizations, and demonstrating`their commitment to the community through the Sonics and:Storm Foundation, Hip to Be Fit Program; and Read to Achieve Program, to name just a few;:and, WHEREAS, generations-of children continue to beinspired professional athletics to increase their physical activity, enjoy positive lifestyles, and,value.teari work. THEREFORE;;:00,11t`.RESOLVED that.the:.Renton Chamber of-Commerce Board of Directors, on behalf of:the:;;six`hundred and :fifteen members; of the,:Renton .Chamber of Commerce, supports the conceptof the Cityofl,Renton"becoming the,future,horneP.of'the:Seattle Supersonics and Storm basketball teams and urges the Renton Mayor and City Council to continue to support this project while exercising its due diligence. Renton Chamber of Commerce Board Chairman ....;:ci______. . 77 Steve Holman (2006) ` j ' ` ''`'w '6'1'— Greg Taylor (2007) ��--Z/- 300 Rainier Ave N • Renton,WA 98055•425.226.4560 •fax:425.226.4287•email:info@GoRenton.com•www. GoRenton.com ed: eptindil mayor, cAO/ 6D/V5Y) /1dininrska�or February 26,2007 Renton City Council Minutes Page 59 abutting street right-of-way) generally bounded by Union Ave.NE(132nd Ave. SE) on the east, SE 95th Way, if extended, on the north, SE 96th St., if extended, on the south, and 128th Ave. SE, if extended, on the west(Perkins). Senior Planner Erickson reported that three single-family dwellings currently exist on the site and over 80 percent of the site is vacant. He noted the following: the site drains to May Creek,most of the site slopes down to the north, and a 65-foot change in elevation exists between the southern and northern boundaries. Reviewing the public services, he said the site is served by FireDistrict#25, Renton water and sewer, and the Renton School District. Continuing, Mr. Erickson stated that the site's existing King County zoning is R-4 (four dwelling units per gross acre), and the City's Comprehensive Plan designates the site as Residential Low Density, for which R-4 (four dwelling units per net acre)zoning is recommended. He stated that the fiscal impact analysis indicates a surplus of$11,403 at full development, assuming 43 new single-family homes with an average assessed value of$450,000, and a one- time parks acquisition and development cost of$15,213. In conclusion,Mr. Erickson pointed out that the annexation proposal is consistent with the City's annexation policies and business plan. Public comment was invited. There being none, it was MOVED BY BRIERE, SECONDED BY LAW, COUNCIL CLOSE THE PUBLIC HEARING. CARRIED. MOVED BY BRIERE, SECONDED BY CLAWSON, COUNCIL ACCEPT THE PERKINS ANNEXATION AS APPROVED BY THE BOUNDARY • REVIEW BOARD AND ADOPT THE RELATED ORDINANCES. CARRIED. (See page 66 for ordinances.) Planning: City Code Amends This being the date set and proper notices having been posted and published in re R-4 Zone&Tree Retention accordance with local and State laws, Mayor Keolker opened the public hearing &Animal Regulations to consider City Code amendments pertaining to: R-4 zone development clustering; R-1,R-4, and R-8 zone design standards; tree retention; and animal regulations. MOVED BY NELSON, SECONDED BY CLAWSON, COUNCIL POSTPONE THE PUBLIC HEARING UNTIL 3/12/2007. CARRIED. ADMINISTRATIVE Chief Administrative Officer Covington reviewed a written administrative REPORT report summarizing the City's recent progress towards goals and work programs adopted as part of its business plan for 2007 and beyond. Items noted included: * The Crisis Clinic's 211 Community Information Line provides information and referral services to all King County residents about the social service system. The service can be accessed from a land line by dialing 211 and from a cellular telephone by dialing 206-461-3200 or 1-800-621-4636. The Annual "Play it Safe" Festival, held on February 22 at the Community Center, was attended by over 150 kids ages 12 and under and their parents. Planning: Multipurpose Events Mayor Keolker reported that the ownership of the Sonics and Storm Center Sonics &Storm professional basketball teams have chosen Renton as their preferred site for a Basketball) multipurpose events center. She noted that the potential economic opportunities of the arena go beyond Renton's borders. The Mayor stated her belief that the "No New Taxes" proposal laid out for the State Legislature is sound and worthy of City support. February 26,2007 Renton City Council Minutes Page 60 Mayor Keolker assured that no commitments have been made regarding City investment in the facility. She stated that if the City can be assured of new revenue to the City, the Council will be asked to consider making an investment at a level proportionate with those new revenues, as done with other economic development projects in the City. Mayor Keolker indicated that a dialogue with the community has started and will continue in order to consider the opportunities, challenges, and impacts that the facility poses. She noted that information about the potential events center is available on the City's website. The Mayor reported that as an initial step, a consultant will be hired in the amount of$20,000 to conduct an economic analysis, and a strategic advisor will be retained for the amount of$10,000. She stated that working with the neighborhoods most impacted by the development is another significant component during this evaluation process. Mayor Keolker pointed out that Council will discuss the proposed neighborhood study during its upcoming retreat. She indicated that regardless of the final outcome, the City is benefiting by being selected as the preferred site. AUDIENCE COMMENT Karen Finnicum, 1302 Aberdeen Ave. NE, Renton, 98056, spoke on the topic of Citizen Comment: Finnicum- the Kennydale Blueberry Farm rezone. She displayed photographs of the area, 2006 Comprehensive Plan and expressed concerns regarding the accumulation of water and the damage to Amendments, Kennydale the wetland. Saying that the wetland damage must stop, Ms. Finnicum asked Blueberry Farm that zoning decisions regarding the farm property not be made until the situation is fully understood. Citizen Comment: Collins -Jet Bill Collins, 420 Cedar Ave. S., Renton, 98057,voiced concern regarding the Center at Airport proposed jet center at the Renton Airport. He stated that since specific types of aircraft;cannot be excluded from using the airport,the likelihood of extremely loud jetaircraft take-offs and landings is certain. Mr. Collins asked that Councili consider the noise impacts on the community when making a decision on the matter. Citizen Comment: Hicks - Barb Hicks, 10402 151st Ave. SE,Renton, 98059, expressed opposition to the 2006 Comprehensive Plan rezone of the Kennydale Blueberry Farm,noting the following: the rezone is Amendments, Kennydale solely for the personal gain of the applicant,R-4 zoning has not ensured Blueberry Farm protection on adjacent property, the exact location and extent of the wetland on the site is unknown, a majority of citizens have spoken against the rezone, and jurisdictional wetlands are protected by the federal Clean Water Act. Ms. Hicks stated that this resource and its protection should be valued higher than the benefit received by one property owner. Citizen Comment: Gabrielson- Karol Gabrielson, 2001 NE 20th St., Renton, 98056, displayed photographs of 2006 Comprehensive Plan the Kennydale Blueberry Farm and adjacent property, expressing concern Amendments, Kennydale regarding the accumulation of water. She stated her fear that rezoning the farm Blueberry Farm property to R-4 will not protect the wetland, as R-4 zoning has not protected other areas in the artesian system. Ms. Gabrielson asked that the City become more familiar with the area and deny the rezone request. Citizen Comment: O'Connor- William O'Connor, 10402 151st Ave. SE, Renton, 98059, stated that rezoning 2006 Comprehensive Plan the Kennydale Blueberry Farm property to R-4 will only raise expectations for Amendments,Kennydale more development, resulting in the City being pressured to issue variances and Blueberry Farm waivers. He indicated that the property is appropriately zoned at Resource Conservation. S • ECONOMIC DEVELOPMENT, U 0 NEIGHBORHOODS, AND STRATEGIC hag ® ` PLANNING DEPARTMENT v‘P,4'NTO ' MEMORANDUM DATE: February 26, 2007 TO: Toni Nelson, Council President Mei bers of the Renton City Council VIA: Kathy Keolker,Mayor'0 FROM: Alex Pietsch, Administrator(x6592) Avve SUBJECT: Due Diligence for Proposed Regional Events Center The purpose of this memorandum is to provide you with information regarding the Administration's intended approach to due diligence regarding the multipurpose events center proposed by the owners of the Seattle Sonics and Storm, the Professional Basketball Club LLC ("PBC'). Two consultant contracts are necessary to provide an essential evaluation of the potential benefit of this proposal and to protect the City's interests as discussions, and eventually negotiations, with PBC advance. Economic Benefit Analysis The attached letter and scope of work from Berk&Associates describes an initial effort to determine the potential economic impact of the proposed facility. The scope of work includes five key tasks: 1. Information Gathering—The consultant will determine the existing economic activity underway in Renton as a baseline, review literature regarding the impact of similar facilities on communities around the country, and compile data provided by PBC regarding potential uses and activities at the facility; 2. Analyze direct local tax benefits—The information gathered in Task 1 will be used determine the anticipated local economic impacts of the proposal; 3. Analyze indirect and induced impacts—It is assumed that development of a facility such as the one,proposed will catalyze additional and ancillary development(retail,hotel, residential, etc.) in the City. The consultant and City staff will work with the PBC,Harvest Partners, SECO Development, and other nearby property owners and make reasonable assumptions about how an events center might enhance and/or expedite development opportunities and the potential economic impact of that activity; 4. Work with City staff to determine revenues and costs—The activity generated by this facility will likely impact demands for city services. The consultant will work closely with City staff to determine the costs of these newly required services; and 5. Summarize findings and report to the City Council. h:\ednsp\council\city council\2007\arena consultant memo 2-26-07.doc ti Nelson fi Page 2 of 2 February 23,2007 • The proposed project schedule calls for this work to be completed in three to four weeks from engagement. For this initial work, the consultant is proposing billing on a time and materials basis through a contract not to exceed$20,000. If the state legislation requested to establish the proposed events center advances through the Legislature and if and when the City begins actual negotiations with PBC and King County about the structure of a public facilities district, it is likely that a more refined analysis will be required through an additional or expanded scope of work. Berk&Associates is well respected regionally for its extensive public sector work performing economic analyses and has done previous work for the City of Renton. The firm is pre-qualified for work in the City through its inclusion in a professional services roster approved by the City Council March 13, 2006. Strategic Advisor If this events center proposal moves forward, it will certainly be the largest public/private partnership in which this City has ever been involved. As the discussions with PBC, the Legislature, and eventually King County in the structuring of the actual public facilities district move forward, it is essential that we have the assistance and guidance of a professional who has significant experience establishing partnerships of this magnitude and,more specifically, in negotiating with professional sports franchises. Based on the recommendation of a number of established professionals who have worked with professional sports teams in the development of new facilities,•we have identified Paul Jacobs,who is willing to work with the City as a strategic advisor. Mr. Jacobs is an attorney from Denver, Colorado, who has significant experience in this area. He had primary responsibility for structuring and organizing the ownership group that brought the Colorado Rockies to Denver. More recently, he has represented the City of San Diego in the development of Petco Park and its current efforts to build a new stadium for the San Diego Chargers, as well as the cities of Sacramento and Fremont, California as they work on new facilities for the Sacramento Kings and Oakland Athletics. Mr. Jacobs would work for Renton on a time and materials basis under an initial agreement not to exceed$10,000. During this preliminary stage, he would serve as a sounding board, helping City staff understand the possible motivations and implications of PBC's actions and determine what questions the City should be asking of PBC as conversations transpire. If and when the proposal is approved by the Legislature and a more formal negotiation with PBC and King County begins in earnest, it is likely that the Administration would seek approval from the City Council to engage Mr. Jacobs in a more extensive contact, potentially serving as the City's representative. Attachments: Berk&Associates letter of proposal and proposed scope of work Biography of Paul A.Jacobs h:\ednsp\council\city council\2007\arena consultant memo 2-26-07.doc °' ! BERK & ASSOCIATES ] MAU Strategic and financial planning•Public finance Policy development•Facilitation February 16, 2007 Alex Pietsch N City of Renton 1055 S Grady Way Renton,WA 98055 cl RE: Fiscal Analysis Advisory Services C, • Dear Mr. Pietsch i Further to our conversations, I am pleased to submit the following proposal to provide technical assistance to the City of Renton oin fiscal impact and public funding issues related to the potential for 77, a multi-use entertainment facility in the City of Renton. I would be the primary analyst on this project and wanted to highlight a few recent projects that most relate to the City's current needs: N • For the International Speedway Corporation, analyzed state and regional economic and fiscal • impacts from the proposed development of a NASCAR track in Kitsap County. r • Estimated fiscal impacts of a proposed annexation and development of a major mixed-use campus on 300 acres south of Tukwila. Analysis included identifying net tax revenues that could be used for project-supportive-capital investments. L‘,1 • For the City of Everett, evaluated potential fiscal impacts and conducted an investment analysis of the Everett Riverfront project,as$500 million development project and public-private partnership. 0 • For the Bellevue Downtown Association, estimated the "development dividend", the incremental net revenues from new downtown development projects that could be made available to fund downtown infrastructure projects. ▪ Attached to this letter you will find a suggested approach for this engagement, which follows the ▪ general outline that we have discussed. We understand that time is of the essence and we are E, available to begin right away. • Thank you again for considering us for this project. rn co N Sincerely, N BERK&ASSOCIATES, INC.. LL ▪ 1/Wc l , co M Michael Hodgins cd o Principal a PROPOSED SCOPE OF WORK LOCAL FISCAL BENEFITS OFA PROPOSED MULTI-USE EVENTS CENTER THE CITY OF RENTON Project Understanding and Approach The City of Renton has been selected as the preferred site for the proposed multi-use sports and entertainment complex that would be home to the Seattle Sonics and Storm. Now that the Renton location has been selected, there is an expectation from the ownership group that the City will be a financial partner in the development of the facility. Given this expectation, the City is beginning the process of understanding how the proposed facility might impact City tax revenues and estimate the potential range of future City investments that could be financed from these revenues. The purpose of this scope of work is to provide the City with preliminary analyses of potential tax benefits from the development and operation of this facility and to estimate the range of potential investments that could be supported. The analysis will consider both tax benefits associated with the activity on-site as well as estimate potential benefits from other ancillary and related development activity that might follow the sports and entertainment complex. Task 1: Gather information. In this task we will gather all of the information necessary from a variety of sources to describe the project at the appropriate level of detail, given what is known at this time. This task will include: • Literature search on the economic impacts of similar, recently constructed facilities • Gather project details-and information from the Seattle Sonics/Storm ownership group: o Construction cost estimates of the facility (including details of land costs and other components, if available) o A description of the current facility program (seating capacity under different configurations, luxury boxes, concession spaces, on-site retail and restaurant spaces, parking, meeting/exhibition spaces, etc...) o Event schedule showing number and type of expected events (should differentiate between probable and potential events) o Attendance projections for each event or event-type o Any analyses of the fiscal and/or economic impacts of the project conducted by the ownership group • Data necessary for existing conditions understanding and for model development (local tax revenues, retail and restaurant establishments and other relevant data) Task 2:Analyze direct local tax benefits. This task will involve taking the information gathered in Task 1 to analyze the direct tax effects of the proposed project. Direct impacts will differentiate among on-site and off-site impacts. Sensitivity analysis will be conducted on the key economic drivers which will likely include: • Number and type of events ! BERK & ASSOCIATES )! February 16, 2007 J • Attendance levels • Amount and type of potential ancillary development • Spending levels of attendees • On-site versus off-site capture of event-related spending Task 3: Analyze indirect and induced impacts. A key potential benefit from the location of this type of facility within the City is the potential to spur ancillary supportive developments, such as additional retail, restaurant and hotel development. Also, the development of this facility may have an impact on the timing of development on the rest of the "Boeing site". All of these issues could potentially have additional fiscal benefit for the City. Berk & Associates will perform a preliminary assessment of the potential for this type of activity, examining the range of possible benefits for the overall project Task 4: Coordinate with City!Staff on tax revenues and costs. It will be necessary to work closely with City staff on the development of the fiscal impact analysis, in particular in terms of the potential for the new activity to increase City service costs. These potential costs will reduce the availability of tax revenues that could be dedicated to a City investment in the project. Given the project schedule, this task will by' necessity be a conceptual-level assessment, with further detail to potentially follow in a future phase of the project. Task 5: Prepare summary of findings and present to Council.A memorandum will be prepared which will summarize the approach, key assumptions and findings of the analysis. This task will also include a Council presentation:, including appropriate summary-level materials to support this presentation and discussion. Products and Schedule Initially, our products will be focused on supporting internal discussions regarding options for responding to the Sonics/Storm ownership group. The ultimate products of this phase will be a memorandum summarizing the findings of the analysis, as well as a presentation packet appropriate for Council discussion. Based on our current availability and the scope described above, we estimate that the draft findings and Council packet would be complete 3-4 weeks from notice to proceed. This schedule is premised on an assumption of no delays in the data gathering task. We also understand that time is of the essence on this project and are prepared to begin work immediately. Budget Our budget estimate, summarized in Exhibit 1, is based on our current understanding of the City's needs and the scope described above. We propose billing for this project on a time andmaterials basis, not to exceed $20,000.The following hourly billing rates would apply: Principal $225 Senior Associate $150 Associate $90 IBERK & ASSOCIATES ! February 16, 2007 lam,' Exhibit 1 Estimated Level of Effort and Budget Berk& Associates, Inc. Principal Sr.Assoc. Associate $225.00 $150.00 $90.00 Totals Data gathering and background research 4 20 24 Direct tax impacts 16 4 46 66 Indirect and induced impacts analysis 6 4 14 24 Meetings and coordination 12 8 20 Report preparation (draft and final) 6 0 4 10 Total Hours 44 8 92 144 Labor budget $9,900 $1,200 $8,280 $19,380 Expenses @ 2.5% $500 Fiscal Impact Analysis Report Total $19,880 '" BERK & ASSOCIATES ! February 16, 2007 A 't /� i 1 ' C ., . , ^ .. .,JAeO ,S£ S .»--- - S -- ^s, , � ufi, 4pEs }}}�yy,,, s stt.A * xi :•;•-•,-,` Partners - Bios o Partners El Of Counsel r � r,..4-4 Paul A.Jacobs ,. Associates '4.'""'�, ':..t.4). �"'''s Partner Z Paralegals I. ak : Ar . Alphabetical Listing ' -'- , Contact Information: -.',,x °k" ' E-mail: pjacobs@jcfkk.com ilN ,-/-40, �.• ; ) , ' Telephone: (303) 892-4420 (Direct) , (303) 685-4800 (Main) ' Fax: (303) 685-4869 N,, r .. , _>° Address: 1050 17th Street F, Suite 1500 Denver, CO 80265 Practice Groups: Business and Real Estate Jacobs Chase Frick Principal Practice Areas: Business Kleinkopf&Kelley LLC Real Estate Sports I Finance Independence Plaza Bar Admissions: Colorado, 1968 1050 17th St. Education: , J.D. (magna cum laude), Universityof Denver Sturm College of Suite 1500 ( 9 9 Denver, CO 80265 Law, 1968 303.685.4800 TEL 1 B.A. (magna cum laude),Tufts University, 1960 303.685.4869 FAX ' Biography: ' 1 The Firm's senior member brings to the Firm more than 40 years of legal and business experience and is one of Denver's best-known dealmakers. Paul practiced at Holme Roberts& Owen for 24 years representing a variety of businesses and entrepreneurs in corporate finance, mergers and Ilacquisitions, business planning and real estate matters. I Generally acknowledged as the driving force behind Denver's 1990 Major League Baseball Expansion bid, Paul had primary responsibility for structuring and organizing the ownership group, processing the National League Franchise application and negotiating and documenting all major agreements of the franchise, including the partnership agreement, National League Membership Agreement, loan agreements, ballpark leases, concession agreements, broadcast rights agreements and major sponsorship agreements. He served as Executive Vice President and General Counsel of the Colorado Rockies from the award of the franchise in 1991 through January, 1995. Paul continues to be involved with major league sports and has parlayed his experience and negotiating skills into a national practice.Since 1997, Paul has served as the lead negotiator for the City of San Diego in connection with Its$1 billion urban redevelopment project that includes a new ballpark for the San Diego Padres. Paul also represents the City of San Diego in connection with its lease and stadium negotiations with the San Diego Chargers. Paul represented the City of Denver and the Regional Transportation District in connection with the acquisition of Denver Union Terminal for the proposed development of an intermodal transportation center. Paul represents Joseph Freed&Associates, LLC, which recently contracted to purchase and redevelop approximately 25 acres of the Estates Redevelopment Project in Denver. 1 Paul has been married to Carole for 43 years and they have four grown children and three grandchildren. He is an avid sports fan and enjoys skiing and golf. In 2004, Paul was honored with the Outstanding Alumnus Award by the University of Denver Sturm Collegejof Law. 1 http://www jcfkk.com/attpro/partners/jacobsp.html 2/26/2007 1 Frequently Asked Questions about the Events Center Why is the City of Renton interested in seeing this multipurpose events center built? If the events center is not built, could these taxes and tax credits oe otherwise spent on other For more than a decade,Renton's leaders have been working to diversify the city's job base and enhance the local economy. In ,priorities such as education and health care? fact,the City Council's adopted vision for the city is"Renton.The Center of Opportunity in the Puget Sound region where Not really.These hotel,car-rental, and restaurant taxes will expire if not extended through state legislation,so that money businesses and families thrive." would not be available for other priorities.While the sales tax credits could be put back into the state general fund,counties A facility such as the one being proposed by the owners of the Sonics and Storm has the potential to bring unprecedented across the state use such credits for economic development projects like convention centers, performing-arts halls, and economic activity to Renton by-- museums, so it is likely that other projects will be proposed to use this revenue stream. Beyond King County there are 13 public facilities districts in other counties across the state,and many of their projects are largely or entirely publicly funded • Creating a catalyst for new development in and around the events center site that will generate new jobs and new revenue through sources that include these tax credits. that will allow the city to maintain,and hopefully enhance,services citywide Would the events center be used only for professional basketball? • Enhancing the shopping and dining options at The Landing(a 68-acre shopping,entertainment,and residential complex currently under construction) No. The events center would be a multipurpose public asset for the entire region.It could attract a National Hockey League • Generating activity that will bring new customers to existing restaurants, pubs and businesses throughout the city team, other sports activities, conventions, trade shows, concerts, corporate meetings, and other events. Additionally,the events center has the potential to ensure that planned regional transportation and transit improvements on I- How would the public benefit? 405 and elsewhere in the city occur in a more timely way.All of this should further Renton's emergence as a regional eco- The events center would spur economic development and create jobs in several sectors, including construction, service, and nomic hub. administration. The facility is expected to host more than 200 events a year, from concerts to trade shows, conventions, and In addition to many potential benefits, the events center could also bring about negative impacts, as well, such as traffic and sporting events.And,of course,the lease for the Sonics and Storm at Seattle's KeyArena expires in 2010, and this project public safety concerns. If the proposal moves forward, the city will work to ensure that these impacts will be alleviated to the would create a state-of-the-art NBA facility that is needed to keep the Sonics and Storm in Washington State and potentially fullest extent possible. attract a National Hockey League franchise to the area. Where is the site that is being considered for this multipurpose events center? What is the City of Renton doing to work with the Renton community regarding the impact of a The 21-acre site is just south of N. 8th Street on both sides of Park Avenue N. and immediately south of the 68-acre shopping, potential events center on traffic, public safety, and economic benefit to Renton? entertainment, and residential complex known as The Landing that is now under construction. Events center patrons would be Renton officials are engaging in an open and honest dialog with the community about this opportunity. Prior to the February 13 able to enjoy the new shops and restaurants being built in this emerging urban district.The events center could also serve as a announcement of Renton as the Sonics' preferred site,the city met with leaders of the North Renton and Kennydale neighbor- catalyst for additional retail,hotel, and office development nearby. hood associations to discuss their concerns as neighborhoods immediately adjacent to the site.Immediately following the announcement,city representatives held a meeting with a diverse group of community and business leaders to hear their Who owns the potential events center site in Renton and are they supportive of the Sonics' plan? thoughts.As the opportunity unfolds, other community meetings and public forums are anticipated. The Boeing Company owns the land.A private developer,Harvest Partners,has a right of first refusal to develop the land and City representatives are available to speak to Renton neighborhood groups,businesses, and other organizations about the has planned to develop a big-box home-improvement store and other retail shops there. Sonics owners have been in negotia- benefits and significant impacts of the potential events center. To arrange for a speaker or to see if one is already scheduled in tions with top Boeing executives and Harvest Partners and are confident a deal will be worked out soon. your area,please call 425-430-6580. How much would the events center cost? The city is embarking on a thorough analysis of potential impacts and benefits of the events center. To capitalize on lessons The Sonics estimate the events center,including land and parking, could cost approximately$500 million.Depending on the learned across the country, the city will also be consulting with other communities that have been impacted by events centers availability of nearby existing parking,the cost could be reduced by as much as$100 million. and have negotiated with professional sports franchises. How much would taxpayers pay? What about traffic? Isn't I-405 already congested? The Sonics and Storm ownership group is seeking$300 million through an extension of existing state-authorized taxes and tax Regardless of the events center proposal, help is on the way.Already nearly$500 million is committed to improve I-405 and credits,collected only in King County.No new taxes or tax increases are required.Visitors to King County would provide a SR 167 in and around Renton, with construction scheduled to begin this summer. significant share of the revenue through taxes on rental cars, hotel/motel rooms, and meals at restaurants. The cost of events This November, voters will be asked to approve a Regional Transportation Investment District(RTID)proposal that will bring center construction would be exempted from state and local sales and excise taxes, similar to most major public works nearly $1.5 billion more to I-405 in Renton. If approved,the RTID plan will expand I-405 by adding two new lanes in each projects in the state. direction,as well as expanded interchanges between SR 169(Maple Valley Highway)and Interstate 90.Additionally,if a Sound The Sonics organization has asked the City of Renton to consider contributing a portion of the remaining costs, but no corn- Transit funding package is approved, a new HOV direct access interchange will be constructed at N. 8th Street,essentially mitments have been made. The ownership group is continuing to assess the total cost of the project and determine whether landing at the front door of the proposed events center site. The events center proposal could help ensure that these transporta- costs can be reduced to well below$500 million.They have indicated they will be responsible for private funding of the tion improvements are prioritized and completed in a timely way. project, and, depending on the project's final cost,this could reach or exceed$100 million. Where can I get more information? The city will conduct an economic benefit analysis to determine what, if any, city investment is appropriate. Renton city The city's website, www.rentonwa.gov, will have the most up-to-date information about the city's actions regarding the events officials will not support a subsidy from the city general fund or any new city taxes for the events center. Mayor Kathy center proposal. For details about the proposed legislation,go to the State Legislature's website, www.leg.wa.gov, and click on Keolker has indicated a willingness to ask the City Council to contribute local funding proportionate to revenues generated by "Bill Information." To reach Sonics supporters, see the Save our Sonics and Storm Web site, www.saveoursonics.org. To see the events center and related development.The city will also seek intergovernmental grants in support of the project. These approaches are consistent with other economic development projects successfully undertaken by the city. the opponents'perspective, look at Citizens for More Important Things: www.citizensformoreimportantthings.org. Would the facility require a tax increase? How can I let Renton city leaders know how I feel about this issue? Go to the city's website (www.rentonwa.gov) and click on the link to "Latest Information on Proposed Multipurpose Events No. King County taxpayers are already paying the taxes to pay off debt from Safeco Field, Qwest Field, and the Kingdome. Center." Send your opinion to city officials by clicking the Sound Off button. From here you can send an e-mail that will be However, the Sonics'proposal would extend the life of some taxes and tax credits that would otherwise expire. shared with Renton Mayor Kathy Keolker and the Renton City Council. Would that money go only to the events center? No. In addition to $300 million for the events center,the proposal would raise tens of millions of dollars a year for arts and heritage programs in King County and pay for future maintenance at Safeco Field. • t :- y'A, _. •` ^ ,ac¢., 1 51 - • + 'l 1fi �>? . 8Miles fromJ_`!„._.... i.'i• } f'{ C� • Bellevue + . 1 �` 1 15 Miles from R �, J. - Potential Passenger •'X ,' < . ": J 4' -3:42: + • EAHAWK Redmond Ferry Routes from V ' • Seattle and Bellevue -v- l�! +# w `Q', E � a � � ra j ' About the Proposed Renton r: �T� • � � ' . ' . • Multi ur ose Events Centero Lake Washington k.. ;r $ -- •/rte u •, sit • 3;r"y a^r fi.•• �� z '�» moi, 4 r . Statement from Renton Mayor Kathy Keolker isz , • aR • �, • ,'` _ . ;, • „''.'3f- qv. _ ;iron Renton being selected as the preferred site Bn Kln Courtt � -� _-1' a t, -..1..1-..• > ,, f , IRRI�rEvents Cenier iv.,-'. _ ' a• fora Regional Events Center f r -- ' ,:,,,,:.:;t,.*. ' (.doElNc 3!<_ `s r" '-) 10 Miles 1 �. 1.:'..t.,',4 ' 6411 ^ _ •/ �.� >,. '' ' from .nSta si ` �, _ % _ iy�;��.y,eats - Issaquah -_ We are excited that the ownershipof the Sonics and Storm have chosen 47 � ' - • ' �. Renton as their preferred site for a world-class sports and entertainment 3 Mlles R r ,Ilic,r, , $ `-iv,,, ,.,. 4h- t �".i F 4,4 ( t ,. vi. 4* venue. This is definitely a great moment for Renton. The economic oppor- A'� from � ,. � � --, r: .- � 7 1. , Seattle +. , - , a . , a•.. .l,�.,.� i d~� rtiii n • ,. 4.,• tunities that this arena promises go far beyond Renton's borders. All of `P': = n`s.Aid7 King County and the State of Washington will benefit. �, ' Y - -, m • rr . • ,; ,. - - 1 f*am"' Y'= We look to the Legislature to authorize King County to extend this package lib ,4 , :,•,i., '' -'v - rte ....':'4,,,,,1 :4:‘,... • „ of visitor and user taxes—taxes we are already paying. I believe the "No Seattle-Tacoma am'eeTaf oma 1..11-r :. • - - "' =r� ' i "R • ' New Taxes" proposal laid out for the Legislature is and a_- - A► r, p p 9sound, reasonable, International Airport = t -r: �� :s . �., ;/ "p, js worthy of broad support. % ;.s. -,-----,74x. .,1a _®i .1 r L,. - of 1. ... ... ___ -- ) ict-) .. . :,,-, .,, ,,. ..:i -44,-4r:,,,, -.*:, .-4,,,,, ' ' .l�i1 ; ' 1 ' ' �) �' . The real work and discussions begin now. In order for us to determine if it 1 .. it '` ,,t' --. _ -f-••---"•4A-1'a .` ; a ' ' makes sense for Renton, we need to have an open and honest dialog BOE/N[J r 4 • `_`_ MapKe Mt 2.,_ IC ■ ; . �� t - y with the City Council and the community to consider the opportunities and 'L__,---1 ' , -. 1 ;_"jf t. 1 The Landing/Urban Center North-1 , -, E ,.•.,:,,:• 2 Southport impacts. No commitments have been made regarding the possibility of ' •' , `- .+ 3 Gene Coulon Memorial Beach Park I -<<i' 1 • a Boeing Plant/Urban Center North-2 city investment in the facility. If we can be assured of new revenue to the a� .: s Renton Municipal Airport city, I will ask the CityCouncil to consider makingan investment at a level • i a ,-... Na -,, r' 6 Kennydale `> -,�'''' _ r � ,, ' . „ :r 7 Port Quendall commensurate with those new revenues, just as we have done with other 1K EAC r ;` ,�a• f- 1 t` Seattle Seahawks Headquarters&Training Facility _ _ , (• ® -_ -r Barbee Mill economic development projects in our community. • Quendall Terminals hi, t, - #� i; ,.;;_,-.1, t ,ms,::4,';-...-4.:,... 8 Newcastle it ,.. �"`' 9 Northeast Renton . . — ....,—.:1.-- - � We are also committed to working with the neighborhoods that would be 11. c t ps_ � T .l .510 Downtown Renton - '�" _' �, i 11 Cedar River Parks Complex _i„ �; - `A _ xa -.. most impacted by the development including North Renton and �,� i •f 12 Boeing Longacres la ` : 41. - , -- ,1' - ti: ,. ., Boeing Commerical Airplanes Group Headquarters Kennydale. One of my first priorities is to engage a consultant to work - `yr • 1 s' F, i#, "1 '� , .`' Boeing Customer Services Training Center .�.. -. -�•a. Federal Reserve Bank Seattle Branch directly with the residents of these neighborhoods to help them identify •. r. � , i'�-,�7 Miles � ,, t� ;.'^ 7 . '4 Sound Transit Commuter Rail ! from '' � � _ t " -` • and protect what they love about their neighborhoods, as well as to look If • -r" , Ill x ,,-, { X4 . 3Ilk ... Renton City Limits December 2006 for opportunities for improvement that development of this facility could For more information, contact the City of Renton's Economic Development Department: facilitate. 425-430-6580 2/21/07 rentonwa.gov R E N T O N .111111 ul TNI ut lei i. I. R7W4 ,,,,4,4 otrAW .,i3i,F.` 4,,,,,,-, 4.,..:,,,a,z, m. ,,,,:s.;,, Q;,,-„,-.0i-4 resif4. 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F.%A•:i 124:, - r ;i' , , - 0. :' 1)74 +'',, 4g,':,Or' i, ,„„:„„fr .,,,• ,4., *- 2 4 *4 , , le .,,,.,:,;ay. ., .;1. , wok,' - .- 0:: -!.,,i4' ' - x Pietch,, ch Administra or ri e pt. of conomic Devel g! pment loc), I P ( eighbo hoods & Strateg c Planning tICA .11( cro co, . Wash' +gton State . hail •' _..._- Hou e of Representative Finance Committee Hea ing . February 26, 2007 )tlh , Z-Zk- 20O1 ,i Pe-ice-4;6- 'Testimony regarding the proposed King County Events Center(HB 2264) Alex Pietsch House Finance Committee Meeting _ February 26, 2007 • Thank you, Mr. Chair, and Members of the Committee. For the record, my name is Alex Pietsch and I am here tonight on behalf of Mayor Kathy Keolker who could not attend this evening as we have a regularly scheduled City Council meeting each Monday night. • I am here in support of House Bill 2264 and was asked to provide some background for you about why Renton needs the economic revitalization that passage of the legislation before youcould help catalyze. • With me tonight are representatives from the Renton Chamber of Commerce, as well as our hotel and restaurant industries, who will briefly add their perspectives on the importance of this legislation to our community. • First, let me say that Renton is extremely pleased to havebeen selected by Mr. Bennett and the owners of the Sonics and Storm as the potential site for the multipurpose events center. While there are many questions that must be answered, and impacts that will need to be mitigated, this opportunity has the potential to provide profound economic benefit to our city and the region. • The fact that Renton was selected for this opportunity is a testament to the dedicated work our community has put in to diversifying our job base and creating a tremendous quality of life for our residents. • I have provided each of you with a handout that provides some context about the City of Renton, the transformation from its industrial past, and its potential to become a third economic engine in King County, on par with Seattle and Bellevue. • Over the past one hundred years, Renton has been at the forefront of the regional economy. Whether it was timber and brick making at the turn of the 20th Century to Sherman tanks and rail cars for World War Ito B-29 Bombers for World War II and the dawn of the jet age, Renton has been the place in King County where people come to work. • In this global, and extremely competitive, economy that has evolved in recent years Boeing has worked to become more efficient. The Company has reduced its workforce in Renton by nearly 14,000 people since 1991 (Page 8 of handout). The Company has freed up significant acreage at its sprawling plant on the south end of Lake Washington. Rather than bite our nails and worry about what the future might bring, we worked with Boeing to embrace the opportunity and transform this new South Lake Washington neighborhood in to a vibrant district—a new place for the entire region to live, work, and be entertained. • We are already on our way to achieving that reality. The Landing, which is being developed on Boeing's surplus property, is an exciting mixed-use development that will - contain 900 housing units, 600,000 feet of retail, and a movie theater. .v. SK '.des . } #4: A411 t tir• ,4, 141 ° z ton . The center of opportunity in the P et Sound re • ion where businesses and a ilies thrive. Tru h is in the nu bers. Overyears: ast 10 p -- 101 % increase in as essed value - 5% increase in sale., tax collections _ — 27% population grow h More people moved t• Renton than any King County city except Seattle (2000 to 2005) ( -s1 o — #2 in King County in residential building permits in 2006 ti �• o RENTON NT AHEAD OF THE CURVE y . n `�/ .. . 3 t #' •:41' , ra'k \,. —,. 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'-'*aa'`,,-,,.),N,•ett:44,te.9•4*\,....;'.'',"t,• ",""• '•:...,,ttlagit..,, , * ,Maitkit,,,ta,?Ait‘a "I•"'",, •"`'• '''. .•. , ..41,2,,,,...,t4A-7,!'llattillopgAt';•r$',..147,.:`-: '' - ' `•'' . ' '' -...:"Nii,"'"° ' • • --4.4-t-4.4a4t4lt• '',t,,,,t;"t'V'04:,,,,Z,t,--',, .1 ta- - "• ' • .,..._ .• RENToN AHEAD OF THE CURVE .-- / Michele Neumann-Statement from Renton Mayor Kath Keolker Page 1 From: Preeti Shridhar To: Shridhar, Preeti Date: 2/13/2007 4:57:45 PM Subject: Statement from Renton Mayor Kathy Keolker February 13, 2007 For Immediate Release: For more information contact: Alex Pietsch, Administrator, Economic Development, Neighborhoods, Strategic Planning, 425-430-6592 Preeti Shridhar, Communications Director, 425-430-6569 Statement from Renton Mayor Kathy Keolker on Renton being selected as the preferred site for tb ie o 1 J n We are excited that the ownership of the Sonics and Storm have chosen Renton as their preferred site for a world-class sports and entertainment venue. This is definitely a great moment for Renton. The economic opportunities that this arena promises go far beyond Renton's borders. All of King County and the State of Washington will benefit. We look to the Legislature to authorize King County to extend this package of visitor and user taxes—taxes we are already paying. I believe the"No New Taxes" proposal laid out for the Legislature is sound, reasonable, and worthy of broad support. The real work and discussions begin now. In order for us to determine if it makes sense for Renton,we need to have an open and honest dialog with the City Council and the community to consider the opportunities and impacts. No commitments have been made regarding the possibility of city investment in the facility. If we can be assured of new revenue to the city, I will ask the City Council to consider making an investment at a level commensurate with those new revenues,just as we have done with other economic development projects in our community. We are also committed to working with the neighborhoods that would be most impacted by the development including North Renton and Kennydale. One of my first priorities is to engage a consultant to work directly with the residents of these neighborhoods to help them identify and protect what they love about their neighborhoods, as well as to look for opportunities for improvement that development of this facility could facilitate. Preeti Shridhar Communications Director, City of Renton 1055 South Grady Way Renton, WA 98057 P 425.430.6569 F 425.430.6523 pshridhar@ci.renton.wa.us February 5,2007 Renton City Council Minutes - Page 34 Resolution#3853 A resolution was read authorizing the Mayor and City Clerk to enter into an Transportation: 108th Ave agreement with King County regarding the improvements to the intersection of SE/SE 168th St Intersection 108th Ave. SE and SE 168th St. MOVED BY PERSSON, SECONDED BY Improvements,King County NELSON, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. Resolution#3854 A resolution was read authorizing the Mayor and City Clerk to enter into a Utility: Initial utilities cooperation agreement between the City of Renton and King County to Infiltration/Inflow Reduction, allow King County to perform an Initial Infiltration/Inflow Reduction Project King County within a portion of Renton's system. MOVED BY CLAWSON, SECONDED BY CORMAN, COUNCIL ADOPT THE RESOLUTION AS READ. CARRIED. The following ordinance was presented for first reading and referred to the Council meeting of 2/12/2007 for second and final reading: Community Services: Henry An ordinance was read amending Section 5-1-7,Aquatic Center Admission Moses Aquatic Center Fees Fees, of Chapter 1, Fee Schedule, of Title V(Finance and Business Regulations)of City Code by setting 2007 rates and fees for the Henry Moses Aquatic Center. MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL REFER THE ORDINANCE FOR SECOND AND FINAL READING ON 2/12/2007. CARRIED. NEW BUSINESS Referring to the potential siting of an arena for the Seattle Sonics professional '(l•' Planning: Sonics Arena in basketball team in Renton, Councilmember Persson stated for the record that the North Renton Council, Mayor,and City staff have not made any promise to the Sonics to use new or existing City revenue sources or other assets if they relocate to Renton. Mayor Keolker confirmed that the City has not made any assurances to the Sonics. She stressed that Council will be kept informed of any developments. AUDIENCE COMMENT Jerry Puckett, 15260 Oak Dr., Renton, 98058,resident of the Wonderland Citizen Comment: Puckett- Estates Mobile Home Park, said that residents try to get along with the owner of Wonderland Estates Mobile the park since they are trying to purchase the park. He noted that the mobile Home Park home park's situation has received attention from the media. He further noted that six of the park's residents recently went to Olympia to attend State legislative hearings regarding the topic of mobile home parks. Citizen Comment: Flynn- In response to the inquiry of James Flynn, 18211 112th Ave. SE, Renton, Benson Hill Communities 98055, as to why his correspondence was not listed on the Council meeting Annexation agenda, Councilmember Corman requested that the letter be read into the record. A letter was read from James Flynn,Benson Hill Communities Progress Group Member, 18001 113th Ave. SE,Renton, 98055, stating that King County has certified enough petition signatures to annex Benson Hill Communities to Renton. He requested that this matter be part of the City Council meeting agenda on 2/5/2007. Additionally, he requested that the task force assigned to this matter include significant representation from the Benson Hill Communities Progress Group, and that the land use review be assigned high priority. Responding to Councilmember Corman's inquiry as to the timing of the annexation,Mr. Flynn noted the deadlines set throughout the annexation process, and the need to address the matter this evening in order to achieve placement of the issue on the November 2007 ballot. Assistant CAO Wine confirmed that Council received an annexation petition • with a sufficient number of signatures. From the date of receipt, Council has 60 February 5,2007 - Renton City Council Minutes Page 33 reading. MOVED BY NELSON, SECONDED BY CLAWSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 34 for ordinance.) CAG: 05-165,NE Sunset Council President Nelson presented a Committee of the Whole report Blvd/Duvall Ave NE recommending concurrence in the staff recommendation to transfer$430,000 Intersection Improvements, from the 2007 Duvall Ave. Widening Project to the construction phase of the Sanders General Construction, NE Sunset Blvd. (SR-900)/Duvall Ave.NE Intersection Improvements Project. Fund Transfer The Committee also recommended that Change Order 1 to the intersection improvements project contract(CAG-05-165) with Sanders General Construction Company be approved in order to perform additional work necessary to complete the project,to extend the completion date by 21 working days,and to increase the construction contract cost by$157,132.51. The Committee further recommended that the budget amendment for this matter be presented as part of the 2006 Carry Forward Ordinance. MOVED BY NELSON, SECONDED BY CLAWSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Community Services Community Services Committee Chair Corman presented a report Committee recommending concurrence in the staff recommendation to approve Mayor Appointment: Library Board Keolker's appointment of Amy Pieper to the Library Board for a term expiring 6/1/2012. MOVED BY CORMAN, SECONDED BY CLAWSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Appointment: Municipal Arts Community Services Committee Chair Corman presented a report Commission recommending concurrence in the staff recommendation to approve Mayor Keolker's appointment of Britt Peterson to the Municipal Arts Commission for an unexpired term expiring 12/31/2009.* Councilmember Corman introduced Ms. Peterson who was present in the audience. *MOVED BY CORMAN, SECONDED BY PERSSON, COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. Utilities Committee Utilities Committee Chair Clawson presented a report recommending Utility: Initial concurrence in the staff recommendation to approve the utilities cooperation Infiltration/Inflow Reduction, agreement with King County for the Initial Infiltration/Inflow Reduction King County Project, which allows King County to implement flow reduction repairs within a portion of Renton's sewer service area. The Committee recommended that the Mayor and City be authorized to execute the agreement. The Committee further recommended that the resolution regarding this matter be presented for reading and adoption. MOVED BY CLAWSON, SECONDED BY CORMAN, • COUNCIL CONCUR IN THE COMMITTEE REPORT. CARRIED. (See page 34 for resolution.) Planning&Development Planning and Development Committee Vice Chair Clawson announced that the Committee Kennydale Blueberry Farm Comprehensive Plan amendment item will be Comprehensive Plan: 2006 reported out at the next Council meeting. Amendments,Kennydale Blueberry Farm RESOLUTIONS AND The following resolutions were presented for reading and adoption: ORDINANCES January 8,2007 Renton City Council Minutes Page 14 Ordinance#5257 Following second and final reading of the afore-referenced ordinance, it was Planning: East Renton Plateau MOVED BY BRIERE, SECONDED BY CLAWSON, COUNCIL ADOPT PAA,Prezone to R-8 (7.34 THE ORDINANCE AS READ. ROLL CALL: ALL AYES. CARRIED. Acres) NEW BUSINESS MOVED BY PALMER, SECONDED BY PERSSON, COUNCIL REFER THE Airport: Financial&Property AIRPORT FINANCIAL AND PROPERTY MANAGEMENT OPTIONS TO Management Options THE TRANSPORTATION(AVIATION) COMMITTEE. CARRIED. Planning: Highlands Task Responding to Councilmember Persson's inquiry, Councilmember Briere Force indicated that the topic of the Highlands Task Force membership and tasks is in the Planning and Development Committee. Planning: Sonics Arena in Councilmember Persson voiced concern regarding potential transportation North Renton problems if an arena is sited in North Renton for the Seattle Sonics professional AZAAUL basketball team and other events. Mayor Keolker stated the City has been in contact with North Renton neighborhood representatives who are developing a list of concerns in case this happens. She assured that nothing has been decided, and stressed that Council will be kept apprised of any developments. AUDIENCE COMMENT Nancy Osborn, Planning Commission Member, 4635 Morris Ave. S.,Renton, Citizen Comment: Osborn- 98055, questioned why Councilmember Palmer voted against the ordinance that East Renton Plateau PAA rezoned a 1,350.41 acre parcel from R-4 to R-4. Councilmember Palmer replied Prezoning it was an oversight due to the large number of similar ordinances. Citizen Comment: Petersen- Inez Petersen,PO Box 1295, Renton, 98057, expressed her hope that the City Various will grandfather in Jeff Colee's over-height fence under the ADA(Americans with Disabilities Act)requirements for zoning. Additionally,Ms. Petersen objected to the granting of multi-family housing property tax exemptions to developers and the return oflodging tax funding to businesses while sidewalk repairs and other infrastructure improvements in Renton are needed. Councilmember Persson explained that State law requires that tax collected from the rental of hotel rooms only be used for promotional purposes to encourage people to come to Renton. He noted that some members of the Renton Lodging Tax Advisory Committee are business representatives required to collect taxes. EXECUTIVE SESSION MOVED BY NELSON, SECONDED BY CORMAN, COUNCIL RECESS AND ADJOURNMENT INTO EXECUTIVE SESSION FOR APPROXIMATELY 20 MINUTES TO DISCUSS LITIGATION WITH NO OFFICIAL ACTION TO BE TAKEN AND THAT THE COUNCIL MEETING BE ADJOURNED WHEN THE EXECUTIVE SESSION IS ADJOURNED. CARRIED. Time: 9:52 p.m. Executive session was conducted. There was no action taken. The executive session and the Council meeting adjourned at 10:12 p.m. .44. tikiie-"-- Bonnie I. Walton, CMC, City Clerk Recorder: Michele Neumann January 8,2007 i i A RENTON CT'''S'COUNCIL COMMITTEE MEETING CALENDAR Office of the City Clerk COUNCIL COMMITTEE MEETINGS SCHEDULED AT CITY COUNCIL MEETING January 8, 2007 COMMITTEE/CHAIRMAN DATE/TIME AGENDA COMMITTEE OF THE WHOLE MON., 1/15 No Meeting (Holiday) (Nelson) • MON., 1/22 Potential Annexation Area Interlocal 5 p:m. Agreement with King County *Council Chambers* Approximately Emerging Issues (Economic Development 5:30 p.m. &Transportation); • Council Policies *Council Conference Room* COMMUNITY SERVICES MON., 1/22 One Night Count of the Homeless (Corman) 3:30 p.m. (briefing only) FINANCE MON., 1/22 Vouchers; (Persson) 4 p.m. - New Positions Descriptions (briefing only); Health Management Administrators Contract Renewal (briefing only); Police Department Lateral Hiring Bonus Program(briefing only) PLANNING&DEVELOPMENT THURS., 1/18 Linn Officie Conversion Landscape (Briere) 2 p.m. Variance Appeal *Council Chambers* Approximately Multi-Family Housing Property Tax 3 p.m. Exemption Agreement for The Sanctuary; Multi-Family Housing Property Tax Exemption Agreement for The Reserve *Council Conference Room* " PUBLIC SAFETY (Law) TRANSPORTATION(AVIATION) WED., 1/17 Airport Financial &Property (Palmer) 4 p.m. Management Options; Interlocal Agreement with King County for Cost Sharing for Traffic Signal at SE 168th&Benson Rd. (briefing only) UTILITIES • THURS., 1/18 CANCELLED (Clawson) NOTE: Committee of the Whole meetings are held in the Council Chambers unless otherwise noted. All other committee meetings are held in the Council Conference Room unless otherwise noted.