HomeMy WebLinkAbout4/13/1977 - City Council - City Council Meeting MinutesMEMORANDUM FOR EAST WENATCHEE CITY COUNCIL MEETING
Monday, April 18, 1977
Today's Date: April 13, 1977
Re: Tax Mistake
On April 12, 1977, a meeting was had with the Wenatchee City
Commissioners and Mayor Art Johnson and myself.
That meeting was held to discuss the mutual problems between the
City of Wenatchee and the City of East Wenatchee relative to the
misallocation of tax money. The meeting further discussed the
possibility of the City of East Wenatchee contributing funds from
their stadium/convention center fund to the City of Wenatchee for
the financing of the Wenatchee Convention Center.
The end result of that meeting was that the City of Wenatchee has
agreed to repay the misallocated tax monies to the City of East
Wenatchee. The first payment will be sometime during the end of
the month of April, 1977. The City of Wenatchee will then make
similar 1/3rd payments over the next two years on the same date.
Therefore, at the end of another two years, 1979, the City of
East Wenatchee will have reacquired all of the misallocated tax
monies.
The second matter discussed was the convention center fund. After
having reviewed all of the statutes on this area of finance it
does appear to me to be quite legal for the City of East Wenatchee
to transmit funds to the City of Wenatchee for the purposes of
financing the convention center here in Wenatchee. Furthermore,
at that meeting we discussed the possibility of setting a limit
on the amount of funds which would be forwarded to the City of
Wenatchee over the 18 to 20 year period for which they are request-
ing the funds. All parties seem to be in agreement that, at a
minimum, we should allocate the revenues generated by the two motel
units now in existence in the City of East Wenatchee. Those two
units are the Dolman Motel and Eddie Mays Inn. It appears at this
time that those two facilities are generating approximately $5,000
worth of revenue each year. If the City of Wenatchee could be
guaranteed of receiving the funds from those two facilities over
the 18 to 20 year period of the bond, they would have the necessary
stability required to make those bonds salable to the public.
It does appear that this will be a satisfactory method of helping
the City of Wenatchee finance their convention facility. At this
time it would be unfeasible for East Wenatchee to enter into a
long term proposal wherein they would attempt to set up a convention
facility of their own. Over the 18 to 20 year period involved in
this transaction, the City of East Wenatchee would have transmitted
approximately $100,000 in funds to the city of Wenatchee. At todays
current rates, that $100,000 would be insufficient to get a similar
project off the ground in the City of East Wenatchee.
MEMORANDUM
Page Two
It would be my recommendation that+_the City Council of the City of
East Wenatchee agree and contract with the City of Wenatchee to
transmit the funds acgmired in the stadium and convention center
facility to the City of Wenatchee for the desired period of time.
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