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In addition to replacing the theater’s cracking exterior, city staff members now recommend replacing the roof and rooftop mechanical equipment, which are due for replacement in the next two years, according to a staff report.
The Olympia City Council’s finance committee is scheduled to discuss the matter at its meeting today, as well as the center’s business plan. The center is dipping into its endowment for the third consecutive year to keep the theater operating, this time for $200,000.
The city owns the theater at 512 Washington St. S.E., and the center is run by a nonprofit. The city is responsible for major maintenance including the exterior, while the nonprofit is in charge of maintaining most aspects of the interior.
Rich Hoey, interim public works director for the city, said the city was planning to replace the roof and equipment.
“It just makes sense in terms of project efficiency minimizing disruption to The Washington Center and other downtown businesses to do the project together,” he said.
He said the roof and the exterior are “integrally connected” and doing both projects will improve the building’s performance. He said the new exterior should last at least 50 years and the roof at least 30 years.
That’s not the case for the current building, which was built nearly from scratch in 1985 from the footprint of the old Olympic Theater, using a synthetic stucco-like material called EIFS. The exterior is crumbling, letting water seep inside.
The city is negotiating with MSGS Architects of Olympia to redesign the center and will hold a public workshop Feb. 27 to get community input. The center’s appearance could drastically change; some options that have been mentioned are a brick facade and metal panels.
“It is going to make The Washington Center look entirely different on the outside,” said Kevin Boyer, interim executive director.
The center could get a more distinctive facade. Boyer said the understated entrance has confused people.
“They either can’t find the door to come into us or they walk in and say, ‘What is this place?’” he said.
The city hasn’t signed a contract with MSGS, but project manager Rick Dougherty has said the city’s design budget is $390,000.
The council has identified money for the design, but it’s unclear how the remainder of the project will be funded. City staff recommend applying for a state loan that could have an interest rate as low as 0.5 percent.
But there are no guarantees the city could get such a loan, a staff report says, so the city would also pursue traditional general obligation bonds, with interest rates between 2 percent and 3.25 percent.
Hoey said the city could fund the debt payments for the repairs for 10 or 20 years from its building repair fund.
The question is how to place enough money in the fund. The city has historically put $414,000 in the fund each year to cover maintenance on all its buildings, which city staff have acknowledged was underfunded. This year’s budget has $600,000.
However, to pay back a loan on The Washington Center could cost between $190,000 and $429,000 per year, sapping money needed for other projects.
Hoey said the council will discuss later in the year how to find money to pay for the exterior work. The city is also pursuing grants.
BUSINESS PLAN
Today’s meeting will also include a discussion about the center’s business plan. The center has struggled in recent years, dipping into its endowment each of the last three years.
Boyer said his fingers are crossed that this is the last year for that.
The center is proposing to firm up its financial position by doing more fundraising, including at its Center Fest on Sept. 28. Eventually, the organization will hold a formal capital campaign, Boyer said, probably when construction is nearly complete on the exterior.
He said the center is also engaging other jurisdictions and service organizations. It is appealing to Lacey and Tumwater for lodging tax dollars.
Another plan is to better promote the community groups that use the theater; Boyer said only about 10 percent to 12 percent of theater activities come from its annual theater season, which includes touring groups.
“Not only do we serve four counties and have all these events, but people don’t realize the educational things we do here,” he said. “I don’t think people know that part of our story.”
Matt Batcheldor: 360-704-6869
mbatcheldor@theolympian.com
