POULSBO — If anyone had forgotten how badly Poulsbo needs a new city hall, Wednesday night served as a not-so-subtle reminder. Even at 10:30 p.m., the warm temperature was undeniable in the standing-room only city council meeting, but it was the withdrawal of one of the three development proposals for a new facility that really cranked up the heat.
After soliciting city hall development proposals in February, the city narrowed the field to three finalists in June: Pioneer Property Group, Kitsap County Consolidated Housing Authority and the Mentor Company. As of Wednesday, only Pioneer Property Group and KCCHA remain.
In a letter from Judy Mentor Eagleson, read at the meeting, the Mentor Company expressed concerns as to how Poulsbo planned to pay for city hall’s construction.
“We are greatly concerned that the city does not have available financing to complete the project and the city council members have drastically different opinions about their city hall needs, the process necessary to meet those needs and their overall vision for Poulsbo,” the letter stated.
Because it believes a lease-leaseback arrangement is the city’s only financing option, the Mentor Company is “unwilling to advance construction financing given the apparent shortfall in permanent funding.”
The Mentor Company also backed out of its agreement with the KCCHA, which showed plans to build a hotel on the Mentor Company’s Nilsen’s Appliance site. The Mentor Company did say it looks forward to redeveloping their Front Street property with KCCHA’s New Market program in the future.
Councilman Dale Rudolph said he and Councilwoman Connie Lord favor the Pioneer Property Group proposal, which includes a parking garage, interior plaza and mixed-use development on the current city hall site. A museum, hotel, conference center and further redevelopment on Jensen Way are two other possibilities it provides, Rudolph said.
“We believe voters truly meant downtown when they voted for a downtown city hall,” he said. “I believe the Pioneer proposal meets all of our downtown goals.”
Councilman Ed Stern argued the Pioneer proposal’s $16 million cost goes too far over the estimated $12.5 million the city has to spend. Stern said unlike the Pioneer proposal, the city hall phase of the KCCHA plan fits into the city’s spending goals. The KCCHA plan would place the new city hall next to the Poulsbo Parks and Recreation Center on Front Street, where more parking than required could be provided. Stern said he felt advised by the citizens’ vote, not constrained, and would exercise his best judgement even if it cost him his seat. He also urged the council to select one of its available options and move the process along.
“Legally, if we do not accept one of the proposal presentations, we are back at ground zero,” he said. “That becomes important when we look around the room tonight at the condition this building is in. How much longer are we willing to delay?”
One more week at least, as council adjourned at 10:30 p.m. with still no decisions made.
City finance director Al Juarez said the city should consider its willingness and ability to pay in making the decision. He plans to have updated debt capacity figures at the July 18 council meeting.
“Regardless of what our debt capacity is, we have to consider our ability to pay,” he said. “Is it prudent for the city to sell bonds up to the ceiling of our capacity? I would say not.”
