The current economy and budget shortfalls threaten to halt momentum on a performing arts center that not long ago seemed destined to rise in Federal Way.
Conventional wisdom tells us that the greater the risk, the greater the reward. But the dictionary tells us that risk means “the chance of injury, damage or loss.”
The Federal Way City Council recently announced that a performing arts center would be its top legislative priority. In these shaky economic times, it is fair to reassess priorities as well as risks Federal Way or Washington state should take with public money.
On one hand, now may be a good time to invest in construction projects. Take for example the Federal Way School District, which benefits from near-desperate construction companies as they out-bid one another for contracts. As a result, the school district gets more for its money. However, that money was already committed toward school construction projects in a bond passed by voters (who previously rejected a higher-cost version of the bond that included an arts center). These now-cheaper bids ended up as a lucky side effect of economic distress.
As for an arts center in Federal Way, the economy instead spurs a reluctance to invest in anything that does not meet immediate quality-of-life needs such as affordable housing and basic improvements to infrastructure.
Supporters point to the potential economic benefits an arts center can bring to Federal Way, namely through job creation and visitors’ money. State Sen. Tracey Eide said building an arts center “is critical to the development of the core of Federal Way and a big step for South King County.”
Developing the downtown core is an ongoing priority for Federal Way in its pursuit of prosperity. However, construction on Federal Way’s Symphony project — a mixed-use project featuring four high-rise buildings — was delayed at least a year because the developer had problems securing financial backing.
Likewise, the Federal Way Community Center, which opened in 2007, offers another lesson for publicly-funded projects. The $20 million community center struggles to generate the expected revenue to cover both construction and operating costs.
Proposed at a cost of more than $50 million, a performing arts center would require about $260,000 a year in operating costs, supplemented by about $925,000 annually from Real Estate Excise Tax money. The city is considering contributing $20 million to the project. About $4 million is expected to come from federal and grant money. An annual state contribution of $5 million per year, for four years, is hoped to add another $20 million in funding. Land is likely to be donated at an estimated worth of about $5 million. The rest will come through private fundraising — which has no guarantees.
There is demand for an arts center that suits both Federal Way students and performance groups — as well as logical incentives to build one. As the economy continues to falter, there is also incentive to adjust spending of public money.
It is realistic to have second thoughts on whether Federal Way taxpayers should shoulder the costs of a performing arts center. The city council will vote Jan. 6 on whether to pursue state funding.
For a project of this cost and magnitude, the people of Federal Way deserve more of a say. The Mirror urges the city to put this proposed performing arts center on a ballot and let the voters decide.
