Published May 6 2015
The City Council on Monday offered to provide up to $20 million towards construction of the Tateuchi Center, a proposed 2,000-seat performing arts center in downtown Bellevue. The unanimous vote is a major boost for a cultural asset long sought by civic leaders.
The city's offer to invest in the project is subject to reaching an agreement with Performing Arts Center Eastside (PACE), the nonprofit organization that has been working since 2002 on fundraising and designs for the Tateuchi Center. As conditions for the agreement, the city will require: that public programming be included at the performance center; a security interest in the facility; and the right to be repaid if PACE's programming and other commitments are not met.
"It has been a long-standing dream of this council, and the councils before us, to have a major performing arts center in our city," said Mayor Claudia Balducci. "What makes me most proud of the pledge we made is that we will ensure the Tateuchi Center is a place for everyone to enjoy. It is the city's interest for people of all ages, ethnicities and socioeconomic levels to have access to these extremely valuable cultural experiences."
Since 2002, PACE has raised more than $64 million, but the total cost of the project, including operations through the first year, is estimated at $198.1 million.
Creating a state-of-the-art performing arts center in downtown Bellevue has been part of the city's adopted policy since 2004, and in 2013 PACE asked the city to help push the project into the home stretch. On Monday, after several months of collaboration, analysis and a feasibility study by an independent consulting firm, the council agreed.
"Our 2035 vision for Bellevue states that 'we celebrate all aspects of our culture.' Last night's commitment of $20 million is an opportunity for us to fulfill this part of our vision," said Councilmember John Stokes, who has been acting as council liaison for the Tateuchi Center project. "This will be a performing arts center for all -- a crown jewel for Bellevue and the Eastside. The city has made a strong statement of support; we now look forward to the PACE Board securing the necessary private contributions to make this a reality."
The city's offer is also contingent on PACE securing the funds needed for construction from other sources no later than September 1, 2016. As proposed, the city would not provide its funding until 2019, after construction of the facility has been substantially completed.
The council directed City Manager Brad Miyake to negotiate an agreement on terms with PACE in the next two months. If negotiations are successful, the council could vote on a final agreement in the fall.
The specific funding sources for the city's commitment have not yet been identified, but some councilmembers expressed interest in using hotel-motel tax revenue. That would be subject to negotiation with the Bellevue Convention Center Authority, once the revenue becomes available in 2025, after a significant portion of the bonds issued for construction of Meydenbauer Center have been paid off.
Between 2019 and 2025, funding would need to come from alternate funding sources. The goals would be to avoid a tax increase and to avoid having an impact on the city's capital projects fund.
Tateuchi Center, named for Bellevue's Atsuhiko and Ina Goodwin Tateuchi Foundation, which committed $25 million to the project in 2010, would be owned and operated by PACE. The city would secure its investment in the Tateuchi Center through an ownership interest in the facility and a commitment for 50 years of operation and public programming.