Court Hears Wenatchee Arguments

The Washington Supreme Court recently heard arguments over whether the Public Facilities District in Wenatchee should be allowed to refinance $42 million in debt for the city’s Town Toyota Center.

The PFD has asked justices to overturn a lower court ruling from September that said refinancing the bonds would exceed the city’s current debt limit.

Dan Cohen, an attorney for the district, argued in court that refinancing should not be considered debt because the city would not have to borrow money to do it and would not have to commit future tax revenues, according to the Wenatchee World.

But Tom O’Connell, an attorney representing Wenatchee taxpayers, countered that refinancing should be considered debt because it would impact the city’s general fund, the paper noted.

“The Town Toyota Center is never going to be able to pay back the city,” O’Connell said. “There is zero evidence that it can materially increase its revenues or materially decrease its expenses.”

The arena has reportedly failed to make any payments thus far and justices questioned whether Wenatchee could continue to operate if it was forced to cover the debt, the World said.

The venue defaulted on its debt Dec.1 after state lawmakers attempted to pass a bailout package to rescue the venue and the measure stalled in a Senate committee.