County staff outline HAPO Center property issues; appraisal draft, leases and grant constraints flagged

Franklin County staff and consultants presented a detailed review Dec. 17 of the HAPO Center property and options for disposition or continued joint management with the City of Pasco.

Eric Johnson described five appraised parcels that make up the HAPO complex — including the arena, ice arena, athletic fields, parking and an RV park — and said a draft appraisal is now under analysis. He flagged several potential legal and fiscal constraints: earlier grants (including ARPA and Recreation and Conservation Office grants) that may carry repayment or conversion obligations if the county sells or materially changes property use; a naming‑rights agreement that could require up to $150,000 in amortized payments if the county terminates early; and operator and event contracts that extend into 2026 and beyond.

Johnson said the county—ridal/ARPA awards of roughly $6.3 million raise the possibility of partial repayment to the federal government depending on post‑sale use, and that the county will need to consult Treasury and legal counsel to clarify liabilities. He also noted some ground‑lease parcels and interlocal agreements have expired or are near expiration, which affects scheduling and tournaments that drive sports tourism.

City of Pasco officials said they want to extend field‑use arrangements to avoid losing tournaments during negotiations. County counsel and staff recommended further legal review and planned an executive session focused on real‑estate negotiation. No decisions or votes were taken on disposition at the workshop.

Next steps include deeper legal review of grant conditions, clarification of outstanding contract liabilities, finalization of the appraisal, and executive‑session negotiation strategy with counsel.