Council seeks multi‑year breakdown of Toyota Center costs and lodging‑tax benefits

Finance Director Jessica Platt told the Kennewick City Council that the Toyota Center and Arena posted a net operating loss of about $766,000 in 2025 and that the shortfall was covered primarily by lodging tax proceeds and coliseum admissions tax.

Platt characterized the loss as nearly covered by dedicated tourism‑related revenues, saying about $450,000 of lodging tax revenue and a separate admissions tax contribution were applied to the operating loss. “Those two funding sources are covering that loss,” Platt said.

Council members questioned whether the venue’s economic benefits justified ongoing subsidy and requested staff produce a multi‑year breakdown showing net operating loss, direct tax revenues returned to the city, and broader economic impacts. One council member asked for historical data going back five to 10 years to evaluate long‑term viability and to compare net costs with tax revenue generated by hotel stays and related economic activity.

Councilman Torres cited regional Visit Tri‑Cities estimates and recent reporting to suggest the venue and related events generate millions in regional tax revenues; Torres said he believed a Kennewick ‘slice’ of that figure was reasonable but asked staff to quantify what portion actually flows to city coffers. “They raised $79.9 million in state and local taxes regionally,” Torres said, referring to the Visit Tri‑Cities annual report; he asked staff to clarify how much of that revenue directly benefits Kennewick.

Platt agreed to pull a multi‑year report and to clarify what lodging tax and admission taxes are being used for and how those flows compare to net operating subsidies. Several council members requested an itemized five‑ or 10‑year summary of net cost versus direct tax revenue so council could evaluate long‑term venue strategy before committing additional capital or subsidy.