The City Council approved its agreement with the Boys & Girls Club for public contribution to the PEAK project on April 6. The city is giving a total of $1 million to the youth recreational facility.
This money, however, is the final payment for the $15 million project. The transaction will only be made once the club has secured at least 90 percent of all donations, pledges and other methods of financing to begin building the project.
King County Boys & Girls Club CEO Daniel Johnson assured the Council that, despite a faltering economy, all pledges made to PEAK will come through.
“We’ve raised the necessary funds, we’re confirming our pledges, and we’re ready to go,” Johnson said, adding that the club has so far contacted donors of $100,000 or more and “nobody’s changed their pledges. We will have the financing to break ground.”
Although some Councilmembers were skeptical of Johnson’s assurance, Dan Grausz reminded his colleagues that the onus of PEAK’s financial responsibility falls on the club, not the city.
“Until the Boys & Girls Club gets the project all paid for, only then do we put our $1 million down,” he said.
Another prerequisite is that the club must secure all city permit approvals by Sept. 1.
The city will transfer its $1 million in two payments: $750,000 at “substantial completion” of the project and $250,000 upon issuance of the Certificate of Occupancy.
Other points specified in the agreement are: the club is responsible for all costs above $1 million and all maintenance and operations, will implement an environmentally sustainable facility, will operate PEAK an average of 1,040 hours per year, and agrees to make PEAK available free of charge to youth or with nominal fees. Access to PEAK will not be denied for inability to pay, and the club will make PEAK available for free for at least six hours, after which it can charge a “reasonable fee.”
The city’s $1 million contribution must “benefit the public,” as agreed by the Council at its 2009 planning commission.
Before approving the agreement, each Councilmember expressed his personal feelings about PEAK. While the majority were eager to fund the project, two members strongly opposed the facility.
Councilmember Mike Cero opined that $1 million was far to much for the “quid-pro-quo.”
“We’re tasked to oversee the citizen’s funds. I don’t think six hours of free use is [worth] $1 million. I’m disappointed that we haven’t done the best we could,” he said. “I’m voting against PEAK.”
Mike Grady was disappointed that, after efforts put in by the city, the PEAK design plan is not certified by The Leadership in Energy and Environmental Design (LEED), a Green Building Rating System developed by the U.S. Green Building Council. Although efforts are being made to install solar paneling and other sustainability methods, PEAK’s design falls short of LEED certification.
Despite its criticisms, the $1 million PEAK agreement passed with a majority vote.
“I think that people will look and view this as one of the better things we’ve done in terms of lasting effects in the community,” Grausz said, shortly before voicing a strong “aye.”
