Wenatchee Arena Loan Scramble

The Town Toyota Center in Wenatchee, Wash., is in financial trouble and the Office of the State Treasurer is looking for a possible solution.

The Greater Wenatchee Regional Events Center Public Facilities District, which owns the 5,000-capacity arena, has had problems paying off the short-term, interest only debt due by Dec. 1. A loan of $42 million is needed to avoid defaulting on the debt, which would impact the state’s credit rating, according to Assistant State Treasurer Wolfgang Opitz.

“It’s not urgent that we bail out the Public Facilities District in Wenatchee,” Opitz said. “It’s urgent that we avoid another municipal default in Washington state.”

Wenatchee City Councilman Tony Veeder, who’s been involved in trying to solve the debt problem, insists the proposed loan wouldn’t be a bailout.

“It’s not a grant. It’s not even an easy loan,” Veeder said. “It would come with pretty strict terms and at a premium interest rate. The city will pay for it for sure.”

Lawyers hired by the treasurer’s office are working out a specific plan for the state to loan the money and how it would be repaid. Once the proposed legislation is drafted, it would be distributed to all lawmakers before Nov. 28 when a special session begins and a decision needs to be made.