Olympia Finance Committee reviews Washington Center funding 

The Olympia Finance Committee took a closer look at the city's long-standing partnership with the Washington Center for the Performing Arts at a meeting on Monday, July 20.

The committee focused on funding history, recent capital investments and how lodging tax revenue should be allocated to the nonprofit.  

The city owns the building that houses the not-for-profit Washington Center for the Performing Arts at 512 Washington St. SE, while the organization operates the facility, manages programming and day-to-day operations.  

The partnership dates back decades, with a current operating agreement in effect through 2034. 

Finance Director Mike Githens said financial support for the Washington Center has included investments in the facility since its acquisition and construction in the 1980s. The work was paid for through a combination of state appropriations, city funding, the sale of surplus city property, local fundraising and private donations.  

The city also supported major rehabilitation work between 2008 and 2014. That included exterior improvements and upgrades to heating, ventilation and air conditioning, as well as other mechanical systems.  

Additionally, Githens said the city invested in  an $8.8 million interior renovation project completed in 2022. The city contributed $3.8 million to the project, with the remainder of the money coming from the fundraising efforts, private donations and state grants.  

The city manages two funds associated with the Washington Center. Fund 021 receives proceeds from certain property sales and other contributions, and can be used for the center’s maintenance, operations and improvements. Fund 025 is the center’s operations and maintenance fund, which receives lodging tax revenue and other transfers.  

Githens said the City of Olympia’s 4 percent lodging tax consists of two separate 2 percent portions.  

One 2 percent portion has been provided directly to the Washington Center without going through the Lodging Tax Advisory Committee (LTAC) application and review process.  

The other 2 percent goes through the LTAC process, in which organizations apply for funding and LTAC reviews requests before making recommendations to the Olympia City Council.  

Committee members questioned whether the 2 percent provided directly to the Washington Center should also go through the LTAC process.

Council member Kelly Green, who represents the city council on the finance committee, asked if state law requires funding to go through LTAC process or allows the city council to continue handling it separately.  The committee did not reach a clear conclusion.  

Staff will review the state law and examine how other Washington cities handle the first 2 percent before returning to the city council with an answer.

City Manager Jay Burney said this will be the first year the Washington Center applies for lodging tax funding under updated procedures. He said staff are working with the Washington Center and LTAC to determine how the application and review process should work.  

The committee also briefly discussed a former landfill property at the southwest corner of Black Lake Boulevard and Cooper Point Road that the city has identified as a potential future funding source for the Washington Center.  

Finance Committee Chair Clark Gilman, who also represents the city council on the committee, asked about the property’s appraised value, its remediation status, and whether the city is actively listing or marketing it.  

Burney said the city has a “remediation plan that is in place … that’s approved by (Washington State Department of) Ecology,” giving the city “certainty in terms of how we sell the property” and potential buyers certainty about what the responsibilities are going to be around the cleanup.