Kennewick council adopts $71.3 million 3 Rivers Convention Center expansion and approves city contribution to bond debt service

The Kennewick City Council on a 7-0 vote adopted a resolution Tuesday accepting a total project cost of $71.3 million for a 15,000-square-foot expansion of the 3 Rivers Convention Center and then approved a disbursement agreement amendment that directs city funds to help cover early bond debt service.

City staff presented the expansion as a public-private project tied to a new 62-room AC by Marriott hotel and adjacent retail. Ms. Erdman, a city staff presenter, told the council the expansion 2will accommodate larger events, conferences, sports, arts, music, etcetera.2 Corey Pearson and Calvin Dudley, the project representatives, described the design and construction plan and said documents are 90% complete.

The resolution adopts a total project cost of $71,300,000, which staff broke down as $61,600,000 for construction, $4,400,000 for design services, and $5,300,000 for professional services, furniture, fixtures and equipment and other development costs. Funding sources outlined in the presentation include a $50,300,000 bond issue by the Kennewick Public Facilities District (KPFD), $7,000,000 of rural county capital funds the city proposes to apply to construction, and $14,000,000 of city capital and lodging-tax reserve funds.

Miss Platt, presenting the city's disbursement agreement staff report, recommended the city contribute $1,800,000 toward the new debt service in 2025 and again in 2026. Platt told the council that after 2026 the original KPFD debt used to build the existing convention center will have matured and the annual debt service obligation is expected to drop. Staff's debt-service schedule projected roughly $3.5 million in annual debt service for 2025 and about $3.9 million for 2026, falling thereafter toward a lower annual payment as earlier debt is retired.

Project representatives summarized the expected community returns. In the presentation they cited an economic-impact estimate of about $82 million in total spending, roughly $16.5 million in increased earnings, about 620 jobs, and an estimated $4.3 million in sales and hotel tax revenues that will help cover operating costs.

Calvin Dudley described project timing: demolition and construction are slated to begin the March after the hockey season ends, with a target certificate of occupancy and opening in fall 2026. The Kennewick Public Facilities District has received state approval to use a general-contractor/construction-manager alternate contracting procedure (GCCM); the project team said that approach sets a ceiling price for construction, makes the contractor responsible for overruns, and shares potential savings between the parties.

Council members asked about bonding and term. City staff said the KPFD will issue the bonds and the city will back them. Staff planned a bond rating call the Thursday after the meeting, expected to go to market the following week, and hoped to close by March 16. The council was told the proposed financing term is 30 years; a final interest rate was not known at the time of the meeting.

After the resolution passed unanimously, the council took up and approved the second amendment to the city's contribution agreement with the KPFD. The amendment amends section 2.02(b) to add the city's contribution toward the new 2025 series bonds; staff recommended the city contribution equal the required annual debt service less amounts the KPFD receives from excise taxes and payments from regional partners (Pasco PFD and Benton County) but committed to $1.8 million in both 2025 and 2026.

Council members expressed support for the project's regional economic benefits and for staff work that reduced earlier cost estimates. Several members noted the public-private partnership and the attached hotel as essential elements of the expansion strategy.

Next steps identified in the meeting record: a bond rating call the Thursday after the meeting, going to market shortly afterward, and construction kickoff tied to the end of the local hockey season. The project team said the anticipated opening is fall 2026, with certificate-of-occupancy timing contingent on construction schedule and permitting.

Votes at a glance: the resolution adopting the total project cost passed unanimously, 7-0; the disbursement-agreement amendment also passed unanimously, 7-0.