Sunday, November 9, 2025
The Olympia City Council has approved a $20.5 million bond sale to support the expansion of the Hands On Children's Museum, a project that will increase the facility's capacity and community offerings.
At a meeting on Tuesday, June 17, City Manager Jay Burney presented the funding plan, which the Olympia Finance Committee endorsed on May 19. The financing strategy will leverage Public Facilities District (PFD) funding and a 30-year bond issuance.
The PFD was established in 2003. It allows the 0.033% diversion of state sales tax to fund public facilities within the district. The Hands On Children's Museum and the Regional Athletic Complex in Lacey are the two designated PFD-funded projects.
"The PFD funding can only be used for very specific purposes. In this case, the funding of the Children's Museum and the Regional Athletic Complex. It cannot be used for any other municipal purpose," Burney said.
The PFD was set to expire in 2028. Burney noted the Washington Legislature initially extended the expiration date to 2043. That extension occurred in 2017.
Burney added that in the 2025 legislative session, the expirationd ate was extended another 15 years to 2058.
"The second extension is important because it provides this opportunity … for a 30-year bonding period, which really makes this project pencil for the museum and their fundraising efforts and to fit within the PFD revenues that we will receive," he said.
Burney said $20.5 million bond sale will fund the museum expansion and will cover a $1.5 million payment to acquire property from the Port of Olympia. The land purchase is expected to come before the council for consideration in July.
"We have been very conservative in our revenue projections to ensure this is a successful bond that can be repaid," Burney told the council.
He explained that in the first four years, revenue growth is assumed to be 2%, followed by 4% annually through the remainder of the 30-year term.
To address the risk of revenue shortfalls, the museum has committed to maintaining a $1.7 million security fund that can be tapped if annual bond payments exceed available funds.
"If at any point in time, PFD revenues don't come in to cover the bond payment, we can look to the museum and that will cover the difference out of that security fund," Burney said.
He noted that at the end of the 30-year term, assuming no additional uses of the fund beyond the planned bond payments, there would be a $10 million fund balance.
Hands On Children's Museum Executive Director Patty Belmonte made a case for the museum's expansion.
The facility currently serves 315,000 visitors annually. She said the museum has outgrown its existing 28,000-square-foot facility, experiencing significant overcrowding and operational limitations.
Among the challenges are insufficient bathroom facilities, off-site storage requirements, limited programming flexibility and overcrowding, which can impact visitor experience.
The plan includes adding 15,000 square feet of space, new galleries, restrooms, space for children's culinary classrooms, expanded parking, improved shop safety and general storage, and a new entrance and lobby.
In addition to the city's bond support, the museum is pursuing a multi-pronged funding strategy. It has raised nearly $900,000 toward a $1 million fundraising goal.
According to Belmonte, the museum has secured a $1.5 million state appropriation and a $1.6 million Building for Arts Grant.
To bridge the remaining financial gap, the museum is looking at $2 million in Foundation Grants, $1 million in federal appropriation and $3 million in community support.
Council member Clark Gilman, who also serves as finance committee chair, said the decision to support the museum expansion was "not an accounting decision, but more a decision about an investment in our future."
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BettyVerdammt
Assuming revenue growth of 2% in the next four years, followed by 4% annually through the remainder of the 30-year term is NOT a conservative estimate. It's not even realistic for the first two reporting Quarters of FY2025. Once again, Olympia's city council proves itself fiscally irresponsible.
Friday, June 20 Report this
PhyllisBooth
BettyVerdammt makes some excellent points. I totally agree that the Olympia City Council made an irresponsible decision on funding the expansion of the Children's Museum. There are massive Federal funding cuts which will hurt this state. Look right here in Thurston County at how many empty buildings we have with NO businesses anymore. Just recently Washington State was facing public school closures and so many, many other dire needs.
Cities across the United States need to focus on what taxes were intended for and this basic infrastructure. I think Public Facilities Districts need to be completely stopped. It's just a way to gerrymander our tax monies for luxuries.
The Children's Museum should be able to fund itself and not go begging for tax monies if it is truly making money. It's in a terrible location and I would have asked that the area be investigated for environmental toxins. The Children's Museum has already cost 18 million dollars when it was built and now we are adding 20.5 bond sale. NUTS.
Saturday, June 21 Report this
Virge13
I agree with both Betty and Phyllis. There is uncertainty whether federal dollars will be available to our state, schools are underfunded and we have a less than vibrant downtown. Pouring cash into an organization that serves only a portion of the population is not a good use of funds at this time.
Sunday, June 22 Report this
CarolMAR
This is great news. For a non profit generating near 5 million in income and has assets of 5 million is not a risky investment, especially one smart enough to keep a 1.5 million fund just in case the income generation is under performing. The increase in their revenue is very reasonable and i am sure they did a economic feasibility study to prove it, all loans of any type require this due diligence Besides, Children’s museums are true economic generators and educational powerhouses. They help bridge the gap in proficiency levels in schools, reduce crime, lower hospital visits to the ER (for mental health etc) and help create the next generation of skilled workers, all of which drive the economic development of towns and cities and make everyone and every thing more prosperous. They are tourist attractions, that can generate millions in economic support just by being there because they generate longer stays and people spend more money on hotels and food and shopping.
The microeconomics are clear for anyone who looks. It is a very good investment for the Town/its people. It’s phenomenal what cultural institutions do to strengthen local economies, and overall community well-being. For every $1 spent by a museum, $3.70 is returned to the local economy, adding up to millions in impact. For every job created by a museum, about $16,500 in tax revenue is generated for state and local governments. And for every $1 invested by government, more than $5 is returned in tax revenue. These numbers show that supporting a museum isn’t just good for families, it’s smart economics. Not caring to support non-profits, or people, is basically a bad investment in YOU as an individual. Non profits, are always supported by community donations and grants and if they could support themselves they would not be a public service, they would be a - self serving BUSINESS. Nothing wrong with that, but clearly, some folks are not familiar with public service. Basically if a non profit was a grocery store, they would subsidize food for the hungry who qualify- and be a non profit (AKA food bank). An investment in our kids, is the most meaningful investment we can give.
Wednesday, October 29 Report this
CarolMAR
Bravo City Counsel. This will be a great return on investment in so many ways.
Wednesday, October 29 Report this