[22] September 25, 2015 [ PAEC from page 1]
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and to sound financial planning to move forward and to make this a better city.” “And I have to tell you that if there was an effort to try and He also vehemently disagrees with Jarvis about the goal rollback or stop this project now, it would be the worst of the citizen’s initiative. financial calamity in the history of the city.” “Make no mistake. This effort is to not only to delay, However, Jarvis said this citizen’s initiative does not aim but to kill the project,” Ferrell said, noting the initiative to shut down the project. appears to include both debt service and ongoing opera“We’re not trying to stop [the events center] construction,” he said. “We just want to say, hey, go ahead and build tions. “To say this is not intended to kill the project is not a true statement. It is meant to obstruct and delay and it but let’s just make sure it doesn’t become a money pit and we can’t really trust you at this point to make accurate stop this project.” However, as far as that really happening, “I don’t think projections because your first ones have been so wrong.” there’s community support for that,” he said. He noted Examples of the city’s alleged inaccurate projections aside from Jarvis and Hiller’s concerns, include the city’s operation of the Federal “I can’t tell you the last time I heard Way Community Center and the Knutzen from somebody opposed to the [events Theatre that both “went hugely over budget center] or upset about the direction for years,” Jarvis said. of the [events center]. I think we have The most recent example Jarvis cited is widespread support from the commuthe federal funds from New Market Tax nity.” Credits allocations the city hoped would But during the last council meeting on help fund at least $7 million of a $5-9 milSept. 15, Councilwoman Susan Honda lion shortfall for the events center. The city made a motion for the city to discuss was passed over for the federal funding last exploring public-private partnerships summer and, again, in the first wave of alfor the events center. She also asked the locations in June. The mayor is still hopeful council to postpone the construction bid the city may receive the funding during a award from Oct. 6 to Oct. 20 to allow second wave of federal allocations by next time to get more information on this. week. Both Honda and Councilwoman Kelly “It’s really a matter of, we don’t want to Maloney voted in favor of the motion, see police and public safety further cut,” which failed 5-2. Jarvis said. “In fact, the city already cut one Matthew Jarvis “I made the motion so that as a roads project to fund the construction of council we could have a discussion on the [events center] and so they’re showing the funding for the [events center],” that there is no sacred money when it comes to the [events Honda said in an email. “As you know, we do not have all center] and we’re really concerned with that.” of the funding needed to build the facility. We have not However, Ferrell said Jarvis is wrong in regard to the been successful in obtaining the New Market Tax Credits 352nd Connection Project. The project was temporarily and I would like to explore other options of funding this put on hold “but if Mr. Jarvis had done his due diligence, project.” he would know that we are literally in the process of movHonda said partnerships will be “vital” in making the ing forward on that project. And I have to tell you, his project successful, which can include the school district, facts are provably wrong.” Chamber of Commerce, businesses and citizens. Honda The project, which will connect Enchanted Parkway to said she does believe that “most of our citizens really do Pacific Highway South, was included in the last budget. “These are wrong facts and facts matter,” the mayor said. want this to be built. It will be an important part of our redeveloped downtown. But we need to always be mind“As a prosecutor for 19 years, I put people in prison based ful of how we use the resources that we have.” on facts.” Maloney said that because the city was not awarded Ferrell added that while he respects the citizen’s initiaNew Market Tax Credits, the city is now relying on an tive process, he “fundamentally disagrees” with Jarvis and inter-fund loan that expires in three years. After that, she Hiller’s approach. said the idea is to bond the balance, which could cost up “What they are trying to say with essential services to $15 million. The interest on the loan could potentially is they are trying to scare the public that if we build the be upwards of $1 million per year. [events center] that it’s going to undermine public safety. “As I have always said, I oppose this way of funding the I have spent a career protecting the public, we have been completion of the project and support partnering with a adding police officers and that is a false argument that appeals to people’s fears. And the city administration and the private entity instead,” Maloney said in an email. “There have been initial conversations around the public-private City Council are appealing to the hope of this community
“We’re not trying to stop [the events center] construction. ... Let’s just make sure it doesn’t become a money pit and we can’t really trust you at this point ...”
partnership concept and I support taking the time to see if they develop further. It is my hope they do so the [events center] is built in a collaborative way between the city and private entity for the enjoyment of all.” Both Honda and Maloney said they received an email about the citizen’s initiative but need more time to study the issue. Ferrell emphasized that both council members voted in support of the events center last year and city officials made it “abundantly clear” that the city could move forward with the project without the federal funding. However, he admits the city may have “over-emphasized and put our expectations too high” on the tax credits. “The lesson I’ve learned if I go back in time is that I don’t think that we should have put so much emphasis on New Market Tax Credits,” the mayor said. “We were attempting to be transparent about what our efforts were but we can proceed and I believe there is support among council to proceed, even without New Market Tax Credits. But we are still working on those and they are not a foregone conclusion.” During the same council meeting, Hiller’s wife Julie, who is a council candidate, also implored the council not to proceed with the events center ground breaking on Oct. 21 until the city either waits until all of its funding is secured, builds the project in phases and has firm plans in place to add phases as funding is in place, or explores partnerships with private investors. She said she is excited about the idea of a vibrant downtown core, but she believes the city’s first responsibility in this effort “is to our citizens and if we don’t have the funding needed and have to borrow money to build, that means citizens are going to pay either in increased costs at some point in time down the road, or decreased services. But the money has to come from somewhere. I believe that this is important enough that if the citizens are going to have to bear the responsibility of that decision, they have a right to have input and it should go to a vote before proceeding.” During the next council meeting on Oct. 6, the council will vote to approve the most responsive responsible bidder for the project’s construction. The city received eight bids from local bidders. During that meeting, Jarvis and Hiller plan to ask the council for their support on the measure and also invite residents to join them. “This is probably ignorantly optimistic, but we’re going to present it to the City Council and ask for their support on it because the $100,000 was their number,” Jarvis said. “If you believe this is the right number, then you shouldn’t have any problem backing it into law.”
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