Sumner staff to seek funding for combined Heritage Park phases after council signals support

Sumner city staff told the City Council during a July 28 study session that Phase 2 of the downtown Heritage Park project is under construction and that Phases 3 and 4 could be combined into a single construction effort if council supports pursuing funding.

The update, led by Communications Director Carmen Palmer and Community and Economic Development Director Ryan Windows, outlined how the project evolved from the Main Street Vision plan and described Phase 1 as completed, Phase 2 as underway, Phase 3 as bid-ready and Phase 4 at about 60% design. A project team member reported a current engineering estimate of about $22,000,000 in construction costs for the combined park and building in today’s prices.

City staff said the Phase 2 work — including utilities and Hop’s Alley — is being paid largely with Pierce County lodging-tax funds, Sumner lodging-tax monies and some Sound Transit contributions. Staff identified potential funding sources for later phases as the Recreation and Conservation Office (RCO) grants for park work, park impact fees, naming-rights/private donations, Sumner lodging-tax funds, and state or federal direct appropriations for the building portion. Staff noted RCO grants would be most applicable to park elements and estimated RCO support at “1 to 2 million at most” if the city secures other match.

Why it matters: Project staff and some council members said combining Phases 3 and 4 could reduce duplicated construction impacts on downtown businesses and cut rework and overall cost escalation. Several council members urged staff to pursue combined funding if feasible; others expressed concern about the size of the total price tag and said they want to limit use of the general fund.

Discussion and next steps included: - Staff presented usage goals for the building that prioritize everyday public use (modeled on “The Hangar” concept) rather than a building locked for only scheduled events. - Staff said the combined scope would include a stage (already named via a Rotary gift), an event lawn, an indoor public building intended for daily use, upgraded alleys, play features and streetscape connections to Main Street and transit. - Council members expressed general support for staff pursuing funding; several specifically asked staff to approach the city lodging-tax advisory body (LTAC) about funding design for Phase 4 and to seek private naming-rights donors. The council did not take a formal vote; staff will return with funding requests and formal actions if and when grants or donations are available.

Council direction: City staff recorded council consensus to explore combined funding for Phases 3 and 4 and to approach LTAC and prospective grant/donor sources; any grant acceptance or capital appropriation would come back to council for approval.

Costs and clarifying details: The project team estimated about $22,000,000 in construction costs for Phases 3 (park) and 4 (building) together, in current dollars. Staff reported that Sumner’s LTAC balance is approximately $500,000 and said Pierce County lodging-tax funds are already covering much of the current Phase 2 construction. Staff described RCO eligibility as limited mainly to park elements and suggested RCO awards are likely to be in the low millions if secured.

What remains unresolved: final design completion for Phase 4, the scale and sources of private donations or naming-right agreements, and the degree to which the city would rely on park impact fees, state/federal appropriations, or its general fund. Staff will return to council with specific funding requests before committing local capital.

The council discussion closed with staff directed to pursue funding options and report back; there was no recorded binding vote on construction of the combined phases.