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Olympia council approves tax-exempt bonds to fund Hands On Children’s Museum expansion
Summary
The City of Olympia adopted an ordinance on the consent calendar approving up to $25 million in tax-exempt bonds to finance an expansion of the Hands On Children’s Museum; staff expects a bond sale in September and estimates roughly $1.5 million in annual debt service secured by public facility district sales tax revenue and museum set-asides.
Olympia’s City Council approved an ordinance on the consent calendar Monday authorizing issuance of tax-exempt obligations of up to $25,000,000 to finance capital improvements for an expansion of the Hands On Children’s Museum.
The approval followed a public TEFRA (Tax Equity and Fiscal Responsibility Act) hearing during which city staff described the plan of finance, museum staff and volunteers urged support, and the council adopted the ordinance as part of its consent calendar. "We're here on to issue tax exempt bonds for the expansion of the Hands On Children's Museum," Finance Director Mike Giffens said during his presentation.
The expansion plan would double exhibit space from about 12,000 to about 24,000 square feet. The overall project budget is listed at $30,600,000; city staff said the issuance before the council is a limited-tax, general-obligation bond issuance sized at $20,500,000 on a roughly 30-year term, with an estimated annual debt payment of about $1,500,000. Giffens said the bonds are secured primarily by dedicated public facility district (PFD) sales tax revenue and by a museum set-aside to cover potential shortfalls.
Museum leaders and staff told the council the expansion would increase programming capacity. "I'm one of the culinary educators," a museum staff member who identified herself as Ali said during the public hearing, adding the current space limits programming ("we don't even have enough electricity to run two blenders in the same room"). Patty Belmani, identified in the hearing as CEO of the Hands On Children's Museum, emphasized the museum’s regional draw and role as a PFD partner: "This partnership and the PFD bonding mechanism is a significant win for children and families in our community," she said.
City staff described next steps for the bond issuance: a rating agency presentation in August, a targeted bond sale in September and proceeds to be received thereafter. The city also held the TEFRA hearing required under federal tax law and posted hearing notice on the city's website beginning June 30, 2025.
The staff presentation said the museum has also secured other funding sources, including private, state and federal grants and donations, which together with the proposed bond proceeds would fund the project. The bond ordinance approved on the consent calendar was described in staff materials as authorizing issuance "not to exceed $25,000,000," while the financing plan discussed at the hearing specified a planned issuance of $20,500,000.
Council members did not request further public discussion after the hearing and moved the ordinance forward on the consent calendar; the consent calendar vote adopted the ordinance and associated matters as published. City staff said bond counsel was available during the hearing and that a Public Facilities District board meeting is being scheduled to coordinate the PFD-side approvals needed for closing.
If the city proceeds as planned, residents should expect a bond rating presentation in August and a bond sale in September, with construction and other project milestones following from the museum and its project team.
