Tri-City Area and Real Estate Blog

Source: Tri-City Herald

Kennewick could have its long-desired convention center hotel with a real estate deal approved Tuesday by the city council.

The council agreed on a real estate sales and purchase agreement with The Provost Group of Santa Rosa, California, for 2.25 acres the city decided three weeks ago that it would offer for sale. The agreed upon price is $563,482.

Jeff Kossow, Kennewick’s economic development directed, said The Provost Group wants the property developed as a multi-story headquarters hotel, which would be adjacent to the Three Rivers Convention Center in the Vista Entertainment Center. The sales agreement allows 180 days for the purchaser to investigate development options.

The hotel would have all the amenities necessary for a headquarters hotel that serves the convention center. The agreement calls for a restaurant, bar, room service, fitness room and pool. A $5,000 deposit secures the sale agreement.

The Provost Group must submit building plans within six months after closing and begin construction within 18 months of closing. The city has the right to take back the property if conditions of the agreement are not completed according to the timeline.

The two-acre sale agreement follows a similar deal by The Provost Group with the city in May for nine acres, also in the Vista Entertainment District near the convention center. The property has not yet been developed.

The Provost Group also cemented a sales agreement earlier Tuesday for 15 acres owned by the Kennewick Irrigation District in the same area. That gives the Santa Rosa property development and management company control of about 27 acres in the Vista Entertainment District.

“This is an exciting time for those of us who’ve been involved with the convention center,” said councilman Steve Young. He was on the Kennewick Facilities District Board of Directors eight years ago when it was created to design, build and open the Three Rivers Convention Center in Kennewick.

Young said the original vision to have a headquarters hotel next to the convention center is finally becoming reality.

Kossow said representatives of The Provost Group have already contacted national hotel chains. “They want to move quickly on this,” he said.

Kossow said the deal has been several years in the making. Kennewick city staff contacted The Provost Group during an International Shopping Centers Conference: “We knocked on their door, and they answered,” he said.

Also at Tuesday’s meeting, the council:

– Approved a resolution creating a Southridge Revitalization Area of about 1,600 acres and authorized the City Manager Bob Hammond to negotiate agreements between the city, Port of Kennewick, Benton County and Kennewick General Public Hospital District to participate in a Local Revitalization Financing Program sponsored by the state.

The program offers up to $500,000 a year in tax revenues for up to 25 years to the city to help build infrastructure in the Southridge area that would promote growth of business and jobs.

The county and hospital commissioners have said they are willing to give their share of expected property and sales tax revenues associated with the growth to help pay for the improvements.

Port commissioners are supportive but have reservations about how their contribution would be spent. The Port of Kennewick decided earlier Tuesday to opt out of the revitalization financing program.

The port would have to fork over $350,000 in future property taxes within the Southridge area to help prepare the area for development. But the port unanimously decided it didn’t want to participate without knowing how its share would be spent, said Tim Arntzen, the port’s executive director.

Part of the revitalization area includes land the port sold to a developer in 2006, and the port can’t legally spend money to provide infrastructure to that land, he said. The developer of South Ridge Village agreed to put in roads, sewer, water and electric lines as part of the purchase agreement for the port’s 150 acres, Arntzen said.

The port may reconsider joining the revitalization area if it can sign an interlocal agreement with Kennewick spelling out the Southridge infrastructure development plans more clearly, Arntzen said. The port would like to have more control on how its share is used, he said.

Dean Maldonado, who with his partners owns more than 200 acres in Southridge, said finding financing for infrastructure in the current economy is extremely difficult. Kennewick needs to have the interlocal agreements completed in time to apply for the state’s Local Revitalization Funding program Sept. 1

The maximum that could be handed out would be five grants of $500,000 each, which will be awarded on a first-come, first-served basis, said Marie Mosely, the city’s director of support services.

Councilman James Hempstead noted that if the city is successful, the grant will help develop the Southridge area without having to impose new taxes on Kennewick citizens. “It’s good for the state as well,” said Mosely, who explained that by fronting money to the city for the development, the state will receive new sales taxes that come from the new businesses.

Vista Field, particularly the 70 acres used for the airport operations, is worth about $5.33 million, the Port of Kennewick Commission was told Tuesday.

Gary Chamberlain of Chamberlain and Associates, which did an appraisal of the port-owned property, said that was the estimated value as of April 1.

Having that information may play a role in the commission’s decision about the future of Vista Field, said Tim Arntzen, the port’s executive director. The appraisal will be a useful tool for port officials, he said.

“We can’t set a budget unless we know what this creature called Vista Field is going to throw at us,” Arntzen said.

Chamberlain said the audit indicates the property after development and improvements would fetch about $9.65 million at today;s prices. But it would take about nine years to sell all the parcels, thereby reducing the real gains, he said. The discounted value, calculated assessing risks, would come to about $5.66 million, he said.

The report comes with a caveat, Chamberlain told the commissioners.

It’s based on an assumption that the land is vacant — and suitable for commercial and industrial development — with access to roads and offsite utilities, and is shovel ready. It also doesn’t include the costs of potential environmental mitigation and asphalt removal if the airport were to be closed.

The report also assumed that a single developer would purchase the entire parcel and be responsible for the master plan, and that there’s no major change in the economic health of the community. From 1998 through 20008, the Tri-Cities had healthy growth, but there’s no way to predict future trends, Chamberlain said. “In reality, the absorption could be 15 years.”

In a separate development, a Benton County pilot who supports keeping the airport open raised the issue of potential conflict concerning Port Commissioner Calvin Dudney, who was elected last year to fill out former Commissioner Linda Boomer’s term through November.

Dudney serves of the board of the Kennewick Public Facilities District, Chep Gaunett told the commission, adding that’s an appointment made by the city of Kennewick, which also is responsible for a budget shortfall of the district.

“I’m not accusing him of anything,” Gaunett said. But there could be a possible conflict on any vote on matters related to Vista Field, Gaunett said. He requested that port commissioners get a legal opinion on the matter.

Dudney said he volunteers with several Tri-City organizations, including the Tri-City Water Follies Association, Tapteal Foundation and Leadership Tri-Cities. It’s his way of serving the community, said Dudney, a Fluor community program manager who estimates he spends over seven hours a week volunteering.

Source: Tri-City Herald

In April more than 100 softball teams descended on the Tri-Cities for a tournament, taking over hotels and ball fields in all three towns.

“They used all the fields we have,” said Janice Heitschmudt, Tri-Cities Visitor and Convention Center sports sales manager. “It’s a great time of year for people to visit.”

And the Tri-Cities is seeing more and more athletic- and event-driven traffic. Soccer, softball, lacrosse and water sports are bringing more visitors to the Tri-Cities for a few days, leaving some money behind.

“Even in an economy like we’re in right now, people still want to be a part of sports, and they still want their kids to play.” Heitschmidt said, “It’s always a strong market for us, and it’s continuing to grow, especially as word gets out.”

About 40 percent of the bureau’s overall expenses in 2008 were for convention and sports sales and marketing, according to the Bureau’s annual report.

The biggest advantage the Tri-Cities has for sporting events isn’t fancy ball fields or sports venues – it’s the mild weather.

“On the other side of the state, there’s rain, traffic congestion and open land is pricey,” said Kris Watkins, president and CEO of the visitor and convention bureau. “But we have a lot of great outdoor facilities to offer groups, along with great weather and almost 3,400 hotel rooms.”

Sporting groups make up about 50 percent of the entire visitor portfolio, Watkins said. Events like the Washington Potato Conference and Trade Show, held in Pasco, also bring in large groups.

According to the Visitor and Convention Bureau, attendees at large conventions, like the Jehovah’s Witnesses, spend an average of $150 per person per day including hotels, shopping, meals and gas. Smaller convention attendees spend about $135 per person, and visitors here to play sports spend an average of $95 per person daily.

In March, more than a dozen groups visited the Tri-Cities, most of them for smaller conventions, which typically have fewer than 150 people, and sports events.

In 2008, there were about 130 convention and sport group bookings, drawing almost 85,000 delegates, filing 68,900 hotel room nights and spending $27.9 million.

More than 170 conventions or large sporting events are currently booked for 2009 and forward, said Watkins. Those will bring in at least $37.5 million. “The Tri-Cities is really hard to beat as a first-class conference area, because we have the facilities, great hotel rooms and accommodations, and numerous attractions in the region,” Watkins said.

The amount of tourism money coming to the area is growing. In 2007, those visitors spent about $348 millions in Benton and Franklin counties. In 2001, it was $238 million. that’s a 46 percent increase in 6 years.

“We’re downright aggressive in bringing in large groups,” Watkins said. “We get very involved with sports events, offering them services and helping them book and coordinate hotel rooms, media contacts and within the business community.”  Many staff members follow leads and spend hours working with groups, Watkins said.

The Tri-Cities Visitor and Convention Bureau has media outreach across the country, including stories in Seattle Homes & Lifestyle magazine, Northwest Travel, Bike Freak Magazine and Sunset Magazine. Convention and sports marketing was about $618,000, 40 percent of the $1.5 million 2008 advertising budget.

But much of the networking and planning falls to Heitschmidt, director of the 40-member Tri-Cities Sports Council for the Visitor and Convention Bureau. The 40-members represent various Tri-Cities sports interests, including the high schools, Youth Soccer USA Swimming, regional semi-pro teams and independent youth teams.

“Every month, those folks get together and collaborate on tournaments and activities,” Heitschmidt said. “They’re essentially the experts on each sport that they represent.”

Facilities like TRAC in Pasco have a lot of athletic and convention groups come through its doors. TRAC is a quasi-convention center with an adjacent hotel, with restaurants and retail stores within walking distance. 

But when TRAC was built back in 1995, it was surrounded by sagebrush.

“We’ve definitely seen increases in tracking our numbers through the doors,” said Troy Woody, TRAC’s general manager, who is also on the Tri-Cities Sports Council.

TRAC had a 50 percent increase in sales from 2004, when sales were $1.4 million to 2008, when they reached $2.1 million.

“That’s sizable,” said Woody. “I don’t think there’s any question that we’ll keep growing, but TRAC will also have to somehow diversify – we need to get bigger or be able to offer additional amenities or services.” Right now, TRAC has a tough time hosting sporting events because it doesn’t have locker rooms, Woody said.

But the complex is still popular for trade, rodeos and livestock shows and the adjoining hotel often functions as a base for those groups.

“The TRAC, Three Rivers Convention Center and the Toyota Center are all remarkable venues that help us pull groups in,” said Watkims. “We need hotel rooms to host them overnight, but that has grown continuously.”

Since 2000, the number of hotel rooms available has increase 15 percent from 2,950 to 3,400. There will be more hotel rooms opening in 2009, including a new 60-room Cedars Inn & Suites at 601 N Young Street in Kennewick near the convention center.

In 2008, Tri-Cities hotels saw an increase in revenues of about 6 percent, Watkins said – and this region was one of the few areas in the state to have growth.

“That’s very encouraging, because we’re still seeing people visit here,” Watkins said. She said that cheaper hotels and cheaper land- and building-use costs-due to more open space-are encouraging budget-conscious groups to try out the Tri-Cities.

Smaller communities haven’t been as hard-hit as the big cities when it comes to business travel, she said.

“We’re holding our own,” she said. “We haven’t lost as much as cities like Seattle or Portland. We may be flat, but we’re hanging in there.”

Another lure for groups is the activities they can pursue in their off time – like wineries, shopping and restaurants, Watkins said.

“We have a lot of attractions that we didn’t have a decade ago,” she said. “A lot of that does have to do with the wine industry and the reputation it has internationally. That’s helped tremendously.”

And tourists, who spent more than $347 million here in 2007, have an impact long after they go home.

“Both small and large retailers feel that impact,” she said. “A lot of that money is circulated throughout the community over and over again.”

That money circulation makes shopping in the Tri-Cities more fun, she said. “That helps in the diversity of retailers and restaurants,” Watkins said. “It helps small business increase their traffic — areas with a higher volume of tourists have great restaurants, retail and museums. It’s helping to increase the quality of life for all citizens in the region.”

Through the summer months, parks and fields in the Tri-Cities stay busy with lacrosse sticks, soccer balls and baseball bats.

“It seems like every weekend there’s something going on,” Watkins said. “It’s surprising to me, even now, when I see the numbers of groups in the Tri-Cities region. They come in, spend their money with retailers, gas stations and restaurants and leave – and their money is still circulating through the community.”

Source: Tri-City Journal of Business

An executive manager from Illinois will be the new executive director of the Three Rivers Convention center, Toyota Center and Toyota Arena in Kennewick.

Corey A. Pearson, 38, was chosen by VenuWorks, which manages the Kennewick facilities under contract with the Kennewick Public Facilities District, said VenuWorks President Steve Peters at a facilities district board meeting Thursday.

Pearson was selected following a nationwide search VenuWorks conducted to fill the vacancy when Jeff Kossow resigned last month. Kossow left to become executive director of economic development for the City of Kennewick.

Pearson has 16 years experience in arena management. He was general manager for the past seven years at the Rockford MetroCenter. The assignment included overseeing a 10,000 seat arena, seven-acre festival park and a historic theater. He also served in management at the Monona Terrace Community and Convention Center in Madison, Wis., and at the FARGODOME in Fargo, N.D.

Major metropolitan centers in Washington, and most of the nation, have been experiencing thousands of layoffs. However, diversification efforts by TRIDEC and its economic development partners have positioned the Tri-Cities to be able to weather the recent economic recession with just a few scraps and bruises.

A positive influence on the Tri-City economy is the fact that it consists of stable, recession-proof industries that shelter it – mainly food, government and energy production. While construction and financial industries are hurting right now, over-the-year comparisons show the Tri-Cities gained 1,800 nonfarm jobs.

In these times of economic uncertainty, competition for facilities is fierce. This past year, TRIDEC responded to 78 businesses seeking information about the area, from what properties and services are available to demographics and worker availability. Although many companies narrow the list of potential sites in a few months, some cases are managed over a much longer period. The nature of the business means most recruitment is done behind closed doors because of proprietary information, taking hundred of hours that sometimes can end abruptly.

This year, TRIDEC made the final cut on two significant projects. However, when the economic downturn started, many nationwide projects, including those two, were put on hold. Much of TRIDEC’s focus last year went to trying to encourage AREVA to build its new uranium enrichment plant in the Tri-Cities — only to have the company announce it would go to Idaho. While we did not get that particular deal, the good news is that AREVA will continue to be a major players in our community, and our relationship with the corporation remains solid.

TRIDEC employees will continue attending marketing and sales trips outside the state and collaborate with the state’s Community, Trade and Economic Development office on Team Washington trips to market the state.

Whole TRIDEC spends a large amount of time recruiting businesses to the area, our Commerce Appreciation, Retention and Expansion (CARE) division continues visiting existing manufacturing companies in Benton and Franklin counties to determine what needs they have, future plans and how TRIDEC might help them.

Our new public relations committee has been meeting monthly and is focusing on ways to raise the the visibility of the Tri-Cities in media markets both in and out of state. The committee is working with Horizon Airlines to add “Tri-Cities” to the Pasco moniker in all of its marketing materials. Public service announcements have been recorded with local GAP Broadcasting stations entitled “Tri-Cities: The Bright Spot in the State.” And this month, KONA radio began working with TRIDEC on an hour-long call-in radio show.

This past year, we have actively communicated with business owners, senior managers and decision makers within successful, growing companies, and the individuals that assist these firms in new facility decisions. We will continue identifying expansion and relocation candidates, refining our databases and keep concentrating our direct marketing and sales activities geographically.

TRIDEC worked with our congressional delegation on language in a letter sent to the National Guard signed by every member of the state’s delegation and included the governor requesting HAMMER Training Facility be designated as the western regional training center for National Guard Civil Support Teams and related training. Having this designation would not only highlight HAMMER and the Tri-Cities, but also would be good for the state to be identified as the location for their western regional training center.

And Hanford cleanup will be on the receiving end of almost $2 billion in extra funding through the federal stimulus package.

Finally, TRIDEC will continue working with our congressional delegation and DOE headquarters to reach a decision on the Mission Support Contract so we can attain some normalcy out at the site.

Source: Tri-City Herald Progress 2009

Visitors to the Tri-Cities will find outdoor adventures for all ages. The confluence of the Snake, Yakima, and Columbia rivers has produced an aquatic playground second to none. The area’s inviting waterways beckon water lovers from all over the region who enjoy sailing, power and pleasure boating, kayaking, wakeboarding, swimming, wind surfing and much more. Or enjoy the 23-miles of continuous riverfront trails along the Columbia River known as the Sacajawea Heritage Trail. Golfing, fishing, and sightseeing are all popular activities to try during your stay.

Recreational facilities abound with seven waterfront parks and 67 miles of paved pedestrian and bike trails, In fact, the Tri-Cities area offers 15.5 miles of paved bike trails per 100,000 people – nearly three times the amount of other metropolitan areas in the state (Source: Pacific Northwest National Laboratory).

The Tri-Cities has three skate parks around town; two in Kennewick and one in Richland. There is also a skate park in nearby Benton City. Each has their own unique features including bowls, snake runs, pyramids , and ledges, to name a few.

And if you are a sports enthusiast, take your pick of hockey, baseball, or football. The Tri-Cities has three professional teams to satisfy your sporting needs throughout the year. Or stop in on the last full weekend of July to catch the Tri-Cities’ largest community event – Water Follies. Enjoy hydroplane racing and aerial performances all weekend along the shores of the Columbia River.

Source: Tri-Cities visitor & Convention Bureau Official Guide