County continues quest for funding

County officials this week continued their quest for funding to build $15 million worth of infrastructure at the Hawkins shopping center.

Commissioner Greg Partch, Administrative Director Gary Petrovich and Public Works Director Mark Storey were scheduled to meet in Olympia Wednesday morning with 9th District legislators.

Rep. Susan Fagan reported Wednesday the meeting was cancelled because Partch could not cross Snoqualmie Pass Tuesday night.

County officials had an afternoon meeting with Marty Brown, director of the state’s Office of Financial Management.

They then planned to ask for funding from the state’s Public Works Trust Fund.

“That’s probably our main goal right now,” Partch said in a phone interview from Ellensburg Tuesday. “That’s why we’re coming over tonight to try to make things more palatable.”

Another funding option vanished this week when Columbia State Bank declined to extend the county a line of credit.

The county first asked the bank for $5 million to $7 million credit. The credit would have been used to pay initial construction costs. The county had planned to issue bonds and use the proceeds to pay off the line of credit. Revenue to redeem the bonds was expected to come from increased sales and property taxes from the Hawkins mall.

The credit request rose to as much as the whole $15 million after D.A. Davidson in December said it would not market bonds in the size or time frame the county requested.

“The bank is not willing to commit to long term financing supported primarily by tax anticipation notes which rely on an undeveloped project. The tax base is too narrow,” George Reynolds, Columbia’s senior vice president explained in an e-mail Monday to Treasurer Bob Lothspeich and Administrative Director Gary Petrovich.

“It doesn’t look like private financing is going to work for us,” said Commissioner Michael Largent, who voted against the Jan. 3 decision to increase the county’s contribution from $9.1 million to $15 million. Partch and Commissioner Pat O’Neill voted in favor of the deal.

Lothspeich and Partch noted Columbia Bank lost $3 million on last month’s default by the Wenatchee Public Utilities District on its public events center debt.

“So they’re pretty conservative on anything long term,” said Partch.

Largent worried about the ramifications of the county failing to secure funding for its obligation.

Under the original agreement with Hawkins in 2008, the county must reimburse Hawkins’ construction costs after 10 percent of the project is finished. Excavation is expected to begin this spring.

“If the financing is not available, that could make it somewhat difficult for the county,” said Largent.

Jeff DeVoe, Hawkins project manager, said Tuesday the project cannot be built without the county’s funding.

“The risk of this shopping center not happening is totally predicated on the county acquiring financing,” he said.

DeVoe would not comment on whether his firm would take legal action.

“That’s a bit like asking a judge how he’s going to rule before a trial begins,” said DeVoe.

As for the chance of state funding, legislators Tuesday morning said they had no sources for the county.

“Finding money for any project is going to be very difficult,” said Fagan. “We’re still looking for ways to cut almost $2 billion from the existing budget.”

Rep. Joe Schmick, R-Colfax, said he would not support requests to add the project into the state’s capital budget, noting Washington is at its debt limit.

“We’ve borrowed all we can, and I’m not in favor of borrowing more,” said Schmick.

Sen. Mark Schoesler, R-Ritzville, had the same explanation in a shorter form:

“There is no money. They should have thought of that before they signed that dotted line,” Schoesler said.