Commerce manages the public facilities district (PFD) independent financial feasibility review program, as required by Chapter 36.100.025 RCW and Chapter 35.57.025 RCW. The requirement went into effect in 2012.
State law requirements
The Department of Commerce conducts independent financial feasibility reviews with independent contractors. The program is intended to ensure that local decision makers have access to objective and timely analysis of the financial feasibility of a project. Commerce’s role is not to approve or reject a PFD’s plan.
State law directs Commerce to make the review public upon its completion, and submit it to participating local governments, state elected officials, and the Legislature.
The law requires that an independent financial feasibility review must take place before:
- A new PFD is formed.
- A PFD issues new debt (refinancing existing debt does not require a financial feasibility review).
- The long-term lease, purchase, or development of a facility by a PFD.
According to the law, the review “must examine the potential costs to be incurred by the public facilities district and the adequacy of revenues or expected revenues to meet those costs.” This could include information from interlocal agreements between the public facilities district and other local governments, bond covenants, construction and operating contracts, business plans, and other documents.
Typically, Commerce and jurisdiction(s) negotiate a cost-recovery agreement under the Interlocal Cooperation Act (RCW 39.34). We select and contract with an independent party to perform the review. Commerce pays the reviewer directly and the jurisdiction(s) reimburse us for the review and associated costs.
Resources
- 2024 – Washington State Convention Center Cash Pool Loan Feasibility Review (PDF)
- 2024 – Kitsap PFD Poulsbo Events and Recreation Center (PDF)
- 2024 — Jefferson County Proposed PFD Formation Feasibility Review (PDF)
- 2022 – Spokane Public Facilities District Stadium Feasibility Review (PDF)
- 2021 – Washington State Convention Center Summit Addition Completion Feasibility Review (PDF)
- Washington State Convention Center Summit Addition Completion Addendum (PDF)
- 2020 – Skagit Regional Public Facility District Improvement Feasibility Review (PDF)
- 2018 – Washington State MLB Stadium Lease Agreement (PDF)
- 2018 – Spokane Public Facilities District Sportsplex Project (PDF)
- 2018 – Washington State Convention Center Expansion project (PDF)
- 2018 – Cowlitz County Public Facilities District Columbia Theatre Renovation project (PDF)
- 2017 – Spokane Public Facilities District INB Performing Arts Center (PDF)
- 2013 – Asotin County Asotin County Family Aquatic Center project (PDF)
- 2013 – Richland Public Facilities District Hanford Reach Interpretive Center project (PDF)
- Richland Public Facilities District’s letter with comments on the review (PDF)
- AECOM Economics’ additional remarks related to the RPFD’s letter (PDF)
- 2013 – Spokane Public Facilities District Convention Center Expansion (PDF)
- 2013 – Spokane Public Facilities District 2013 Debt Issuance (PDF)
- 2012 – Lewis County Public Facilities District Event Center and Sports Complex project (PDF)