Kitsap Public Facilities District Executive Director Mike Walton handed the City of Bremerton a check for $25,674 last week during a regular city council meeting, but not before telling the city that the facilities district is unhappy with the way the city is marketing the Kitsap Conference Center.

“The Public Facilities District’s board is perplexed at the city’s failure to properly promote and market the center,” Walton told the council. “The money we have contributed for that purpose was suppose to be distributed using the existing Visit Kitsap Peninsula (organization) for marketing efforts and none of that is being done. It’s baffling.”

In October 2013, the Kitsap Public Facilities District helped to fund the expansion of the third floor of the conference center which is on the waterfront in Bremerton’s downtown Harborside District. The city received $400,000 from the facilities district and, in addition, the city loaned itself $500,000 from its equipment rental and revolving fund.

The 6,750 square feet of space has sat empty since 2004. The $1 million-worth of improvements to the third floor are now complete and city officials have said that they anticipate about $500,000 income every year from rental of the the additional space. Officials said with the additional space they can market the conference center to larger conventions.

The city also asked the Public Facilities District for an additional money to help make the project pencil out. Walton said in total, the city received $442,000 for the expansion project.

“Following the investment of more than $1 million in this project, it is just baffling and confusing (that it is not being marketing),” Walton said. “Perhaps you should direct some of this money to that, to restore the confidence of the Public Facilities District in this venture.”

City Council President Greg Wheeler did not engage with Walton at the meeting, nor did any other city officials.

But later, Wheeler said he was concerned about Walton’s comments and planned to look into it.

“I told the council members that I want to add it to our next work session for discussion,” Wheeler said. “I’m going to be talking with the president of the board at the facilities district and investigating this. I want to get some background and then have a discussion with the council.”

Wheeler said it will be necessary for the council to look at the city’s economic development plan and see whether the kind of marketing that Visit Kitsap Peninsula does fits in with that plan.

“Does Visit Kitsap fit that model?” Wheeler asked. “We need to find out.”

Walton said the city council recently voted to cut funding to Visit Kitsap Peninsula when it decided how to spend its lodging tax income.”A last-minute objection took that out,” he said. “That money was suppose to go to Visit Kitsap so that they can achieve the goal of marketing Bremerton and the conference center.”

Walton said he hopes something can be worked out so that the facilities district’s faith in the city’s ability to market the conference center is restored.

As part of the original expansion deal, the city negotiated a $15-per-square-foot lease with Kitsap Transit, which owns the building, for third floor space. Kitsap Transit also agreed to forego four years worth of rent in lieu of tenant improvements by the city. Kitsap Transit, too, kicked in $200,000, mostly to speed up the elevators.

The expansion, paid for by three government entities, almost doubles the size of the conference center, which opened in 2004. The Kitsap Public Facilities District funded the original conference center a decade ago.

Public Facilities Districts in Washington received a sale tax money as established by the State Legislature to help build and manage public projects. In Kitsap County, the facilities district chose not to own properties, but rather to work with other governmental entities to improve existing buildings.

Mayor Patty Lent is on vacation and didn’t attend this week’s council meeting. She also was not available to comment on Walton’s criticism.