1. Development Overview

2. Project Background In 2000, the High Performance Community Strategy helped define a vision for economic development in our region. Two key recommendations: 1) Improve community livability by revitalizing the waterfront and downtown; and 2) Develop an information technology industry cluster. Entertainment is vital to recruit and retain a high tech sector In 2001, the PUD hired the JD White Company to help understand how the waterfront could be an economic development catalyst for public / private development In 2002, the city worked with Makers on a new Vision Plan to help guide the update of our overall Comprehensive Plan. The development of the waterfront became a priority project.

3. Waterfront Planning Process

4. Public Desires More access to the water

5. Add adjacent commercial activities

6. Opportunities for residential Opportunities for residential

7. Waterfront Development Concept Plan and zoning adopted by Council in February 2004

8. Benefits $239.5 million in building value 1430 jobs (not including construction jobs) $152 million in annual business income $1.258 million in annual revenues to the city

9. City Implementation Waterfront Subarea plan adopted Feb 2004, winner of 2004 APA Award of Merit Riverwalk Crossing completed in 2001 Orondo moorage and parking expansion project planned and funded – permits are pending Riverside Drive planned, current grant allows for design and ROW acquisition, grant pending for construction

10. City Implementation 5 th Street improvements completed Thurston Street underpass completed Hawley/Pine/Walnut grant received Row and Paddle Club dock completed Private development projects materialize 2005 - 2006 successful effort with the passage of ESSB 6230 June 15, 2006 Interlocal agreement with 9 partners

11. Projects / Announcements

14. Dock and Parking Expansion project Riverside Drive Development Arena Development

15. Area of Impact $1.285 million in annual revenues (Berk and Associates impact analysis) 20% = $257,000

16. Pending Development projects CERB grant description: Public infrastructure project to support over $265 million in urban development creating 520 jobs and $3.7 million annual impact to the State ($1.258 to city) Three additional projects are in the planning stages with pre-permitting conversations with community development

17. Wenatchee Regional Events Center Year OneYear TwoYear Three Annual Projected Debt Service $1,864,398$2,031,807$2,068,653 Revenue sources: Annual Sales Tax Support $553,129$569,722$586,814 LOTS allocation$200,000 Admission / Parking tax revenues $301,947$306,476$311,074 Sales Tax generated by facility $81,518$82,741$83,982 Global Net Operating Revenue $1,115,646$1,132,381$1,149,366 Difference applied to debt reserve: $387,842$259,513$262,583

18. Wenatchee Regional Events Center Bonding: Project Cost$44.5 million Sales Tax bonds- $7 million CERB grant- $10 million Revenue bonds- $27.5 million Revenue bonds supported by Conditional Loan Agreement (CLA)

19. Wenatchee Regional Events Center CLA considerations: Allocate current Ice Arena funds and hold in reserve: The fund had a $195,000 balance at the end of August 2006 The Ice Arena renovation fund has a balance of $48,700 The General Fund reserve as of 12/31/2005 was $4,405,000 or $1,968,000 above our self imposed reserve of 14%

20. Wenatchee Regional Events Center CLA will be limited by: Sales tax will increase: Current figures are based on 2005 numbers with a 4.5% escalator. From 2004 to 2005 the PFD area had a 6.41% increase and current experience is 10.32%. Global will have contracted income available as we enter bonding (3 or 5 year signed agreements) and management contract will guarantee performance. Anchor team will be named Financing includes a $2 million debt service reserve

21. Wenatchee Regional Events Center Additional Consideration: Department of Revenue provided initial project assessment based on a trade area of 400,000 in a 50 mile radius. Based on consumer expenditure numbers, event attendance and ticket pricing numbers were conservative. North Central Washington receives 3 million visitors a year. 50% of Mission Ridge season ticket holders are from the Seattle area The building will be tax exempt, however leases will generate leasehold tax.

22. CH Johnson

23. Global CH Johnson comments: Market area Fixed seat vs. maximum seat comparison Revenue and expenses

24. Interlocal Agreement Provides project backing to help guarantee revenue dependent proportion of the debt Provides for city match Provides for project oversight Provides for fiscal oversight / treasury function