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Pasco council approves restrictive covenant, leasehold deed of trust for Boys & Girls Club building
Summary
Council unanimously approved Resolution 4625 to authorize a leasehold deed of trust and a 10-year restrictive covenant required by the Washington State Department of Commerce for state funding toward renovation of the club facility.
The Pasco City Council on July 21 unanimously approved Resolution 4625, authorizing the interim city manager to sign a leasehold deed of trust and a restrictive covenant tied to Department of Commerce funding for renovation of the Boys & Girls Club building that sits on city-owned property.
Why it matters: The city owns the building and the land under it (the school district holds underlying land rights), and the Department of Commerce requires a recorded restrictive covenant to ensure state funds are used for youth services for the contracted period. The covenant runs with the property and restricts its use to Boys & Girls Club youth programming for the designated term in the Commerce contract.
City staff, donors and the Boys & Girls Club described the financing and oversight. Deputy or senior staff said the city allocated $1,260,000 in ARPA funds for the building’s renovation; the Boys & Girls Club has also secured roughly $800,000 from the Washington State Legislature (amount described in the meeting as “close to 800 and something dollars”). City staff explained that state or federal funding frequently requires assurances that the funded use will continue for a specified period, commonly about 10 years.
Legal and operational effects. City counsel explained the leasehold deed of trust and restrictive covenant create two related legal effects. First, consent to the leasehold deed of trust allows the Boys & Girls Club to grant a leasehold interest to a lender or other party; the deed permits the Department of Commerce or its beneficiary to cure defaults and preserve the grant’s purpose. Second, the restrictive covenant is a recorded obligation on the property obligating the city and successors to allow the site to be used for Boys & Girls Club youth programming as specified in Commerce contract number 24-96647-200 for the stated term.
Council discussion. Councilmembers thanked club staff and donors, emphasized a desire to keep the club operating and noted the city does not take long-term leasing of public property lightly. Brian Ace, executive director of the Boys & Girls Club of Benton and Franklin Counties, told the council the club is adjusting the building to meet grant requirements and expressed hope to remain a long-term partner in the community.
Formal action. The council voted to approve Resolution 4625; the motion carried unanimously.
Ending: Staff and the club said renovations will proceed with combined local ARPA funds and state support; the recorded restrictive covenant will ensure the renovated facility is used for youth programming for the contract period required by the Department of Commerce.
