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Ellensburg conditionally selects Central Paving LLC for Fieldhouse; council discusses financing and operations
Summary
Council authorized the mayor to sign a conditional letter of intent selecting Central Paving LLC as the Ellensburg Fieldhouse developer under an RCW 35.42 lease/leaseback approach, with a not‑to‑exceed project cost of $16 million and financing/operations questions left for negotiation.
On March 2, 2026, the Ellensburg City Council authorized the mayor to sign a conditional letter of intent selecting Central Paving LLC as the developer for a proposed Ellensburg Fieldhouse at Rotary Park and directed staff to proceed with lease/leaseback negotiations under RCW 35.42.
City Manager Heidi Baron summarized the project history, noting the former racket center’s December 2022 fire elevated the fieldhouse as a community priority. Staff estimated preliminary capital costs in a wide range depending on delivery method and design; earlier design‑bid estimates reached roughly $16 million, while progressive design‑build scenarios lowered some costs. The proposed approach uses a lease/leaseback public‑private partnership under RCW 35.42 that would have the developer own the facility while the city pays an annual lease with options to buy down or purchase later.
Baron said the city holds settlement proceeds of roughly $7 million and has modeled operations using a Ballard King study of a comparable facility; that study suggested roughly $1 million per year for operations with about 60% recoverable via fees and services. Potential funding tools discussed included lodging‑tax allocations for event/tournament revenue, a countywide Public Facilities District (sales tax up to 0.2%), a metropolitan parks district, voted bonds, state loan programs (local program with ~3.78% interest noted), and county participation contingent on formal commitments.
The conditional LOI presented to council included high‑level terms: a not‑to‑exceed total cost of $16,000,000; construction financing capped at 8.5% interest; lease terms up to 50 years with options for early buyout; prevailing wage requirements; and payment and performance bonds. The city would complete a boundary line adjustment and work with the developer on traffic and permitting tasks.
Council members expressed support for the developer and thanked him for long‑term commitment to local youth sports. The motion authorizing mayoral signature on a LOI (or substantially similar form) passed on a voice vote. Staff will continue negotiations and return lease and financing documents to council for approval.
