The Bellevue City Council voted late Monday night to commit $20 million toward completing the Tateuchi Center for performing arts with the goal of not increase taxes for residents and serving a significant public benefit.
The council approved a memorandum of understanding with the Performing Arts Center Eastside in May 2014 , which committed the city to $63,200 in general fund spending to explore options through outside consultants.
B Squared Consulting was commissioned to analyze the current and future financial position of the Performing Arts Center Eastside and suggest steps the city could take if the council decided to invest in the project to make the long-awaited Tateuchi Center a reality in downtown Bellevue. That work started in November.
B Squared principal Steven Bronfenbrenner told the council in February a statement of support from the city is critical to instilling confidence in the private sector, which is where the PACE board is looking for the lion’s share of a $138.4 million construction funding shortfall to complete the center.
PACE has raised about $65 million since 2002 — donations slowing immensely during the recession — and is now reenergizing its fundraising efforts and working to double its board members, one of which is developer Kemper Freeman, Jr., who donated the land for the center. Freeman was in attendance during Monday’s council meeting to await the $20-million decision.
“Now is the time. PACE’s time has come,” said Councilmember John Stokes, who has been the most vocal advocate for the Tateuchi Center on the council. “The ghosts of the past should not haunt us now.”
“I will tell you that’s more than I was expecting to put down on paper,” Councilmember John Chelminiak said. He added the B Squared report showed PACE is back on track, but an agreement with the city will mean meeting performance benchmarks. “This is a contingent commitment.”
Under a proposed agreement with PACE, the city would be the last to pay into the project, and only if the performing arts center board can privately raise the bulk — 90 percent — of the funding needed.
A special hotel/motel tax, the revenue from which has been historically committed to the Meydenbauer Center, is being looked at as a funding source for the Tateuchi Center in 2024-25, however, debt could be issued as soon as 2019, said city finance director Jan Hawn. This would be tax revenue in excess of what is needed for the Meydenbauer. Other revenue options will be explored, she said, with the direction from council being to avoid raising taxes and not affect the schedule for planned capital improvement projects.
