Public Facilities Districts (PFDs)

Overview

A Public Facilities District (PFD) is a municipal corporation empowered to own, operate, and manage certain public facilities serving regional populations. They are “taxing districts” with independent taxing authority under Article VII, Section 2 of the Washington State constitution.

Any city or town or group of contiguous cities or towns in counties with fewer than one million people may create a public facilities district (PFD) under chapter 35.57 RCW. This PFD is intended to develop, improve, and operate "regional centers" (defined in RCW 35.57.020) costing at least $10 million and serving a regional population.

Public Facilities District Funding 

Taxes, Fees, and Charges

PFDs can impose a number of taxes, fees, and charges to fund their activities and operations, including:

• Sales and use taxes up to 0.2% (RCW 82.14.048). PFDs can only impose this tax if a simple majority of voters approves it. The statute also defines and allows “distressed PFDs” to impose an additional 0.2% sales and use tax (this currently applies only to the City of Wenatchee);
• Admission taxes up to 5% (RCW 35.57.100 and RCW 36.100.210);
• Parking taxes up to 10% (RCW 35.57.110 and RCW 36.100.220);
• General obligation and revenue bonds (RCW 35.57.030 and RCW 35.57.090);
• Lodging taxes (for county PFDs only under RCW 36.100.040);
• "State shared" sales tax credits (RCW 82.14.390 and RCW 82.14.485); and
• Charges and fees to use PFD facilities (RCW 35.57.040).

Examples of Local PFD Sales Tax Resolutions

• Asotin County Public Facilities District Resolution No. 13-01 (2013) – Submitting 0.2% PFD sales tax to voters for maintenance and operation of existing aquatic center.
• Pasco Public Facilities District Resolution No. 2022-02 (2022) – Submitting 0.2% PFD sales tax to voters for construction and maintenance of new aquatic facility and competition pool.

Loans from Other Municipalities

Although legally possible, loans to PFDs from other municipalities may require additional legal considerations and procedures to be valid.

For example, In re Bond Issuance of Greater Wenatchee Regional Events Center (2012), the Washington Supreme Court examined the legality of a “contingent loan agreement” between a city and a PFD. The agreement required the city to loan money to the PFD if and when the PFD became unable to pay its debt.  The court had to decide whether the agreement exceeded the city’s debt limit in Article VIII, Section 6 of the Washington State constitution. The city argued that the agreement wasn’t a “debt” for purposes of the limit because it was only contingent—the city only had to pay if the PFD couldn’t. The court disagreed, holding that even though contingent, the agreement was subject to the city’s debt limit because it placed the ultimate risk of loss on the city as an “absolute guarantor” of the PFD’s debt. Accordingly, such an agreement could only be valid if approved by the voters.

Examples of Public Facilities Districts by County

Asotin County

• Asotin Public Facilities District 
  • Public Facilities District – Provides funding for Asotin County Family Aquatic Center.
  • Family Aquatic Center Resolutions

Benton County

• Kennewick Public Facilities District 
  • Ordinance No. 3966 (2000) – Creates the Kennewick PFD; includes subsequent resolution appointing first board members.
  • Public Facilities District – Responsible for design, construction, and operation of the Three Rivers Convention Center.
• Richland 
  • Ordinance No. 18-02 (2002) – Creates Richland PFD to acquire, construct, operate, and/or finance a regional center in Richland, including any related parking facilities.
  • Public Facilities District – Supports The REACH Museum to educate visitors about the Manhattan Project and its impacts on the surrounding area.
  • Public Facilities District Charter and Bylaws
• Tri-Cities Regional Public Facilities District – Formed in 2010 through interlocal agreement between Richland, Kennewick, and Pasco (Franklin County) to assist in financing, construction, operation, and maintenance of regional aquatic facility; includes interlocal agreement and bylaws.

Chelan and Douglas Counties

• Greater Wenatchee Public Facilities District
  • Final Bill Report SSB 5984 – References the Greater Wenatchee PFD's 2011 bond default.
  • Interlocal Agreement – Forming a PFD between Chelan and Douglas counties, the cities of Wenatchee, East Wenatchee, Chelan, Cashmere, Entiat, and Rock Island, and Waterville to create the Town Toyota Center.
• Wenatchee Municipal Code Ch. 5.104 – Greater Wenatchee Regional Events Center Public Facilities District Sales and Use Tax

Clark County

• Clark County Public Facilities District Ordinance No. 2002-07-21 (2002) – Formed for the purpose of participating in the study, planning, and development of two regional centers in Clark County: the Vancouver Convention Center and the Exhibition Hall at the county fairgrounds.
• Vancouver Public Facilities District Ordinance No. M-3461 (1999) – Creates the Vancouver PFD; includes PFD charter.

Cowlitz County

• Cowlitz County Public Facilities District 
  • Public Facilities District – Owns Cowlitz County Event Center; facilitates potential future development of sports facilities, entertainment facilities, convention facilities, and regional centers.
  • Resolution 99-240 (1999) – Creates Cowlitz County PFD.

Franklin County

• Pasco Public Facilities District – Created in 2002; provides funding for aquatics facility and competition pool.

Grays Harbor County

• Grays Harbor Public Facilities District – Oversees the Ocean Shores Convention Center.

King County

• Kent Ordinance No. 3852 (2007) – Creates Kent Special Events Center PFD; file includes interlocal agreement and bylaws of PFD. Operates the ShoWare Center.
• King County Code Ch. 2.38 – Creates the Washington State Major League Baseball Stadium Public Facilities District, which operates T-Mobile Park.

Kitsap County

• Kitsap Public Facilities District  
  • Kitsap Conference Center – Initially funded by a partnership between the City of Bremerton, Kitsap County, and the Kitsap PFD; subsequent public/private development partnerships added the many other elements to the complex.
  • Resolution No. 093-2000 (2000) – Creates the Kitsap Public Facilities District and provides for the appointment of members to the district; includes second resolution establishing terms and duties of the board of directors.

Lewis County

• Lewis County Public Facilities District 
  • Event Center and Sports Complex LLC Umbrella Agreement (2010) – Agreement with the Lewis County PFD, Centralia School District, and Lewis County Event Center and Sports Complex LLC to construct and operate a facility that will bring sports tournaments to the area.
  • NW Sports Hub – A joint partnership between the City of Centralia, Lewis County PFD, and the Centralia School District.
  • Resolution No. 07-247 (2007) – Creates Lewis County PFD.

Pierce County

• Interlocal Agreement (1999) – Collaboration between the cities of Fife, Tacoma, University Place, and Lakewood to create a Tacoma Convention Center PFD; includes charter, bylaws, and subsequent interlocal operating agreement; creates the Greater Tacoma Regional Convention Center Public Facilities District and the Greater Tacoma Convention Center.

Skagit County

• Skagit County Public Facilities District 
  • McIntyre Hall Performing Arts & Conference Center
  • Resolution No. 18364 (2001) – Forms Skagit County Regional Public Facilities District.

Snohomish County

• Edmonds Public Facilities District 
  • Public Facilities District – Supports for Edmonds Center for the Arts; includes charter, bylaws, interlocal agreements, and other documents.
  • Ordinance No. 3358 (2001) – Creates Edmonds PFD.
• Everett Public Facilities District Angel of the Winds Arena
• Lynnwood
  • Lynnwood Event Center
  • Ordinance No. 2266 (1999) – Creates South Snohomish County PFD; includes original bylaws.
  • The District (Lynnwood) – Originally created as South Snohomish County PFD; name changed to Lynnwood PFD in 2003 and then "The District" in 2023.
• Snohomish County Public Facilities District
  • Snohomish County Public Facilities District – Provides funding support for Angel of the Winds Arena, Lynnwood Event Center, Edmonds Center for the Arts, and Boeing Future of Flight.
  • Ordinance No. 01-041 (2001) – Creates the Snohomish County PFD.
  • Policies, Key Reports & Documents – Includes charter, bylaws, and various policies, reports, and agreements.

Spokane County

• Spokane Public Facilities District
  • CenterPlace Regional Events Center – Collaboration between City of Spokane Valley, Spokane County, and Spokane PFD.
  • Spokane Convention Center
  • Spokane Public Facilities District

Thurston County

• Capital Area Regional Public Facilities District – Serves cities of Olympia and Lacey, and Thurston County.
• Lacey
  • Lacey Ordinance Nos. 1183 and 1196 (2002) – Adopts an interlocal agreement for creation of a PFD for a regional center and charter for the Lacey PFD; includes additional amendment ordinance.
  • Thurston County and Lacey Memorandum of Understanding (1999) – Agreement between Thurston County and City of Lacey to jointly purchase, own, use, and maintain the Lacey-Thurston County Regional Athletic Complex.

Olympia

• Olympia Public Facilities District Hands On Children's Museum

Walla Walla County

• Walla Walla County Unnumbered Resolution (2003) – Creates the Walla Walla County PFD.

Whatcom County

• Bellingham-Whatcom Public Facilities District
• Whatcom County Ordinance No. 2002-041 (2002) – Creates a joint city/county PFD to undertake the design, construction, operation, promotion, and financing of a regional center and/or related parking or other related facilities.

Yakima County

• Yakima Regional Public Facilities District
  • Resolution No. R-2001-102 (2002) – Authorizes execution of design development, construction, financing, and operations agreement, and authorizing execution of lease of convention center to the PFD.
  • Yakima Convention & Event Center – Establishes a PFD to lease and operate the convention center.

Recommended Resources

• Association of Washington State Public Facilities Districts
• MRSC
  • Sales and Use Taxes
  • Special Purpose District Revenue Sources
  • Types of Municipal Debt
• Preston, Gates, and Ellis LLP: City and County Options for Creative Financing: PFDs, PDAs and 501(c)(3)s (2003)