April 29, 2011
Defaulting on the loan for the town Toyota Center appears now to be a real
possibility. The City of Wenatchee will ask the courts to decide if its legal to pursue a contingency loan
agreement to support a 42 million dollar bond to be issued by the Regional Public Facility District. The City
Council’s action Last night was unanimous in approving a recommendation by the City’s attorney, Steve Smith. Smith
says the court could rule that the City’s legal debt capacity could not support payment on a long term Bond. . .
After some discussion the Council voted together in approving Smith’s recommendation. Afterwards,
Councilmember Karen Rutherford explained the financial risks that are involved… CLICK ABOVE FOR AUDIO
And the clock is ticking . . . The current short term bond anticipation note expires at the end of the year.
Defaulting on the loan could spell trouble for the City and other jurisdictions that comprise the PFD. . .
In a related side note Wenatchee Council members learned that Standard and Poors would be issuing the City’s
bond rating Today (Friday). A downgrade could effect the City’s ability to obtain bond financing for other City