Council MIN 02-11-2013 SpecialCITY OF
� Federal Way
MINUTES
FEDERAL WAY CITY COUNCIL
SPECIAL MEETING
Council Chambers - City Hall
february 11, 2013
5:30 p.m.
www. cityoffederalway. com
1. CALL MEETING TO ORDER
Mayor Priest called the meeting to order at 5:30 p.m.
City officials present: Mayor Skip Priest, Deputy Mayor Jim Ferrell, Councilmember Kelly
Maloney, Councilmember Susan Honda, Councilmember Jeanne'Burbidge, Councilmember
Bob Celski, Councilmember Diana Noble-Gulliford and Councilmember Dini Duclos.
City staff present: City Attorney Pat Richardson and City Clerk Carol McNeilly.
2. PERFORMING ARTS/CONFERENCE CENTER (PACC)
• Historv and Process
Community and Economic Development Director Patrick Doherty reviewed the City
Center Vision adopted in the 1995 Comprehensive Plan. In 2008 the City conducted a
National Citizen Survey and inquired if residents support the use of city funds to
develop a PACC in the downtown core. Sixty-two percent of respondents stated they
"somewhaY' to "strongly" support the development. In 2009 Webb Management
conducted a feasibility study on the success of a PACC in the City. The study revealed
that a PACC would be competitively placed in the market. LMN conducted a siting
analysis throughout the City Center for a PACC and one of the top sites identified was
the Toys R Us site. The City secured a$5M state grant with the condition a PACC
would be constructed within 10 years. In 2012, the City issued a RFQ for joint
development of a PACC and related hospitality components. Lorax Partners and
Associates were selected from the RFQ respondents.
• Presentations bv Lorax / LMN Architects of Alternative Sitinq/Desiqn Concepts
PJ Santos of Lorax Partners stated the project goal is to create a new cultural and
civic center, enhance the urban fabric with community gathering spaces and serve as
a catalyst for City Center re-development.
Wendy Pautz with LMN Architects shared information on the :program components
being proposed which include a theatre, conference rooms, kitchen, lobby, and office
space. The theatre's functionality would be multi-purpose and accommodate
numerous types of events. Ms. Pautz reviewed technical components of the theatre
which include the stage, hall, proscenium opening, pit and wing space. Meeting rooms
would be located off the lobby and would accommodate up #0 100 participants each.
Mr. Santos reviewed three proposed layouts for the placement of a PACC on the site.
City Council Minutes — February 11, 20i3 Special Meeting Page 1 of 4
• Overall Cost Estimate
Mr. Santos stated the current development estimate is $31,750,000 for a 700-seat
theatre with 3,000 s.f. of conference space. This cost includes $750,000 for storm
detention. Mr. Santos reviewed various cost options for development.
• Revenue Sources
Mr. Doherty stated with a preliminary cost estimate of $31,750,000, the infrastructure
related portion would be $5M (there are sufficient funds available to finance this
portion). The non-infrastructure balance is $26,750,000; available funding is
$9,940,000. The balance to fund is $16,810,000.
Potential funding options include naming rights, grants, state capital funding and a
capital campaign. The remaining balance for financing could be addressed via short-
term financing, a property tax levy lid lift and property tax excess lid Jift.
• Next Steps
Next steps include creating momentum to engage support, donations, grants and
other contributions. Development of schematic design plans that would lead to a land
use application are estirnated at $950,000. in February 2011, council approved
$750,000 for preliminary design work. The balance would be $475,000.
The Council asked clarifying questions of Mr. Doherty and Mr. Santos relating to
ongoing operations of the facility; potential hotel partners; the timeline for development
and current bond rates.
3. FORMER AMC THEATRE SITE
• Historv and Process
Mr. Doherty reported the City purchased the site in January 2007 for $4.1 M. The City
has issued two RFQ's for re-development of the site. Several proposals have been
received; however; none of the proposals have been able to secure financing to date.
• Current Status
Over the past few months staff has worked with a landscape architect to formulate
alternate concept plans for the AMC site. Plans include the original re-development
vision for the site with significant open space or town square and with private
development abutting.
• Presentation of Concept Desiqn Alternatives for Open Space / Private
Development Alternatives
Mr. Doherty reviewed concept alternatives for the site which include half of the site
with green-scape, a pond or water feature and two buildings for commercial
development along with possible residential or office space. Cost estimates range
from $2,250,000 to $2,500,000 with annual maintenance ranging from $75K to $100K
depending on the amount of lawn, gardens and other special features. There are
sufficient downtown parks, REET and other infrastructure-related funds to finance a
park.
• Discussion of Potential Interrelationship with PACC Development
Mr. Doherty stated these two sites (Toys R US and AMC) are inter-related due to
topography. Development costs for a PACC on the Toys R Us site includes $750,000
for stormwater refiention. The PACC could capture water in an artistic way to feed a
City Council Minutes — February 11, 2013 Special Meeting Page 2 of 4
water feature on the AMC site, therefore sharing costs relating to stormwater.
Mr. Santos suggested viewing the development of both sites on parallel paths.
• Next Steps
Next steps include marketing the site to developers as a joint venture with the City to
create an urban place. The City will commit to building the park in tandem with the
private development. The private portion should include retail, cafes, etc. with housing
or office space.
The Council asked follow-up questions of Mr. Doherty relating to which site to develop
first; including development of the parcel next to the Transit Center; the importance of
including an active use component in the development and possible partnership with a
higher education facility.
4. PUBLIC COMMENT
Joann Piquette with the Federal Way Coalition of the Performing Arts provided background on
the Coalition and their work. The Coalition has funding that will go towards the development of
the PACC and they are eager to begin a financing campaign.
PhillNamba spoke in support of development of a PACC.
Joe Hawe Federal Way Harmony Kings Barbershop Chorus President stated the group
supports developing a PACC. They would like to see a facility in Federal Way that can
accommodate their performances.
Preston Johnson spoke in support of a PACC in Federal Way.
Debra Twerksv with 4-Culture spoke in support of moving forward with the development of a
PACC. She feels the vision of the project has evolved into a sustainable model.
Maurice Cooper spoke in support of developing a 700-seat PACC rather than a smaller
venue.
Mark Davidson representative from the Federal Way School District spoke in support of
developing a PACC.
Barbara McMichael spoke in support of a PACC.
Karla 'Kluqe, Jet City Chorus member, submitted a letter for the City Clerk to read into the
record. The letter stated the group supports a PACC in Federal Way.
Bettv Huff submitted written comments for the City Clerk to read into the record. She urged the
Council to move forward with development of a PACC.
Pam Smith, Managing Director of Auburn Performing Arts, submitted written comments forthe
City Clerk to read into the record. She supports the development of another theater in the
region.
Deputy Mayor Ferrell noted the Council will be discussing these topics at the Council Retreat
on March gtn.
Ciry Council Minutes — February 11, 2013 Special Meeting Page 3 of 4
5. ADJOURNMENT
Mayor Priest adjourned the meeting at 8:02 p.m.
Attest:
m !
Carol McNeilly, CMC, Cit Clerk
Approved by Council: February 19, 2013
City Council Minutes — February 11, 2013 Special Meeting Page 4 of 4