HomeMy WebLinkAboutILA - Franklin County - Modifying ILA regarding Financing, Aquisition and Ownership of a Multi-Purpose Arena and Exhibition Faciltiy (HAPO Center) - Franklin Co. Resolution 2025-0157JOINT RESOLUTION
FRANKLIN COUNTY RESOLUTION NO.
CITY OF PASCO RESOLUTION NO. 4604
BEFORE THE BOARD OF COMMISSIONERS, FRANKLIN
COUNTY, WASHINGTON, AND THE COUNCIL OF CITY OF PASCO,
WASHINGTON, REGARDING MODIFYING THE INTERLOCAL
COOPERATION AGREEMENT BETWEEN THE CITY OF PASCO AND
FRANKLIN COUNTY, WASHINGTON, REGARDING THE FINANCING,
ACQUISITION AND OWNERSHIP OF A MULTI -PURPOSE ARENA AND
EXHIBITION FACILITY (HAPO CENTER).
WHEREAS, on May 25, 1994, pursuant to RCW 39.34, Franklin County, Washington
(the "County"), and the City of Pasco, Washington (the "City") (together, the "Parties"), entered
into the "Interlocal Cooperation Agreement Regarding Financing, Acquisition and Ownership of
a Multi -Purpose Arena and Exhibition Facility with the City of Pasco" (the "1994 Interlocal
Agreement"); and
WHEREAS, on May 25, 1994, in conjunction with the Parties' entry into the 1994
Interlocal Agreement, the County, as Landlord, and the City, as Tenant, entered into a Ground
Lease under which the County leased to the City approximately 31 acres of land adjacent to the
HAPO Center for the purpose of the City's development, construction and operation of
Sportsfields on such land, the term of which Ground Lease initially extended to November 6, 2020,
and which has been extended to November 6, 2025, pursuant to Resolution No. 2020-261 of the
Board of County Commissioners; and
WHEREAS, on December 6, 2014, pursuant to Resolution No. 2014-484 of the Board of
County Commissioners, the Parties entered into Addendum No. 1 to the 1994 Interlocal Agreement
amending Section 8.4 pertaining to payment of operating costs of the HAPO Center; and
WHEREAS, pursuant to Joint Resolution No. 2024-112 of the Board of County
Commissioners and Resolution No. 4448 of the City Council, the Parties amended Section 11.2 of
the 1994 Interlocal Agreement to extend its termination date to December 31, 2024, to allow time
for the development of a Master Plan for the HAPO Center and surrounding area to determine best
use of the facility; and
WHEREAS, pursuant to Joint Resolution No. 2024-325 of the Board of County
Commissioners and Resolution No. 4546 of the City Council, the Parties further amended Section
11.2 of the 1994 Interlocal Agreement to extend its termination date to May 31, 2025, and to
further amend Section 8.4 pertaining to payment of operating costs of the HAPO Center; and
Jt Resolution — Modifying HAPO Center ILA - 1
WHEREAS, the Parties value their continuing relationship as established under the 1994
Interlocal Agreement as previously extended and amended as described in the foregoing recitals;
and
WHEREAS, the Parties have identified a need to further extend the termination date of
the 1994 Interlocal Agreement to December 31, 2025, for the purpose of allowing additional time
and opportunities for the Parties to engage in thoughtful discussion, consideration and negotiation
with respect to matters of mutual interest concerning the future operation, maintenance,
improvement, financing, and governance of the HAPO Center; and
WHEREAS, the Board of Commissioners constitutes the legislative authority of Franklin
County and deems this to be in the best interest of Franklin County; and
WHEREAS, the Council for the City of Pasco constitutes the legislative authority for the
City of Pasco and deems this to be in the best interest of the City to extend the Interlocal Agreement
for the HAPO Center facility to the end of May 2025; and
NOW, THEREFORE, BE IT RESOLVED the Parties hereby agree to remove and
replace in full Section 11.2 of the 1994 Interlocal Agreement, as previously amended as described
in the foregoing recitals, with the following language:
Section 11.2 Duration and Termination of this Agreement
This agreement shall automatically terminate on December 31, 2025. This
Agreement may be terminated, in whole or in part, through adoption of a joint
resolution to that effect by the Parties. This agreement shall be effective if signed
in separate documents as if all parties signed the same document.
BE IT FURTHER RESOLVED, the Parties hereby agree that, during the
remaining term of the 1994 Interlocal Agreement as extended to December 31, 2025, by
this Joint Resolution, they shall engage in thoughtful discussions, consideration and
negotiation with respect to the following matters of mutual interest in connection with the
HAPO Center with a view toward developing more comprehensive amendments of or a
successor agreement to the 1994 Interlocal Agreement:
Jt Resolution -- Modifying HAPO Center ILA - 2
a. Other potential models for the governance that may provide greater accountability for
both the County and the City;
b. Other potential models and/or avenues by which financial accounting and oversight of
the HAPO Center may be accomplished with greater accessibility between the County
and the City and for the State Auditor's Office;
c. A review of cost centers, cost allocation methods, and operating revenues and expenses
with a view toward making a fresh determination as to whether the historical 50150
sharing between the County and the City of operating losses of the HAPO Center
remains appropriate;
d. Identification of emergency capital needs and methods of financing those needs;
e. Identification of long-term capital needs and methods of financing those needs;
f. Improvements related to the competitiveness of the facility and methods of financing
those improvements;
g. Potential disposition to the City of the land leased by the County to the City under the
Ground Lease used for Sportsfields;
h. Potential inclusion of the ice rink under the umbrella of the 1994 Interlocal Agreement;
and
i. A process for joint completion and implementation of the Master Plan for the HAPO
Center.
The Parties acknowledge that not all of the foregoing items may be resolved and incorporated in
additional comprehensive amendments to the 1994 Interlocal Agreement or in a successor
interlocal agreement, and some items may be better addressed by other mechanisms, but the Parties
agree to engage in good faith discussions and negotiations toward that end for the mutual best
interests of the County, the City, and the greater citizenry of the County and the City.
- THIS SPACE WAS INTENTIONALLY LEFT BLANK IN ORDER FOR ALL
SIGNATURES TO BE PLACED ON ONE PAGE —
Jt Resolution — Modifying HAPO Center ILA - 3
APPROVED this 27tlday of May, 2025
CITY:
CITY OF PASCO, a Municipal Corporation
of the State of Washington
LSigned by:
—A�- Swrau�.e
'5jfiM499 Mayor
APPROVED this _ day of May, 2025.
COUNTY:
FRANKLIN COUNTY, a Political
Subdivision of the State of Washington
I
vL.
Roylry Mull n, fir p—
-hint Didier, Commissioner
�teph�Wm/an, Commissioner
ATTEST BY: ATT 'ST 9.
DocuSigne�d by:
7 5��053A460...
APPROVED AS TO FORM:
Signed by:
By: 15i6 rwl')uSb�
i ; ri 1W?TW&Q,7on, City Attorney
Jt Resolution - Modifying HAPO Center ILA - 4
APPROVED AS TO FORM:
Shawn Sant, Prosecuting Attorney for
Franklin Coun
By:
e/ ecuting Attorney
P�