Will Pasco become a full partner in owning the HAPO Center or walk away?

The HAPO Center’s new management team has been in place just over two months, and their vision for the center is beginning to crystalize.

They’re expecting to present a master plan early next year, but another major change is coming down the pipeline.

The city and county have shared much of the costs of operations over the years, but the facility is owned by Franklin County. At least until next year.

The city of Pasco has the option to become full partners with an ownership stake in the center. Or the city could walk away.

Officials have until April to decide the future of the partnership, that’s when the original 30-year agreement between the city and county expires.

The end of that contract comes with an option for the city to buy a full 50% stake in the center for $1 or simply move on from the agreement.

Franklin County Administrator Mike Gonzalez said they’ve already begun talks with the city.

He said that work is starting with digging into the decades-old contract, which was written and agreed to long before anyone currently working at the city or county came aboard. Gonzalez said there’s also a history of the city feeling like it isn’t quite getting a full seat at the table.

“We haven’t really talked as much as we should have over the years,” he said.

Gonzalez would know, he was the city’s economic development manager before being hired by Franklin County earlier this year. He said he’s been working with the city since the county decided to go with new management at the center to ensure its voice is also being heard.

“I’m really encouraged where the relationship is now,” Gonzalez said.

Pasco remains committed to the partnership, but isn’t yet revealing its hand, according to a statement provided to the Herald.

“We are currently engaged in discussions with the county, focusing on a collaborative approach regarding the future of the HAPO Center. Our joint goal is to make decisions that will serve the best interests of both the residents and businesses of the city of Pasco and Franklin County,” the statement read.

The city has contributed nearly $2.3 million toward the facility’s operation over the last decade.

“This investment underscores our commitment to a partnership that enriches our community,” said the statement.

Deputy City Manager Richa Sigdel will represent the city in the talks. “We are dedicated to finding a solution that will bring the greatest benefit to our community,” the city said.

That equity would come with many of the same responsibilities and the potential for new ones. The county used $6 million in American Rescue Plan funds to repair the HVAC system on the conference center side of the facility, but the arena side is still in need of similar upgrades. If the city were to buy in, it may be on the hook for sharing that cost if plans justify the upgrades.

Under new management

Meanwhile the facility’s new management group is working on a road map for where they want to take the facility.

Larry Leasure, of the Idaho-based Harris/White-Leasure Team, told the Herald that their goal is to turn the HAPO Center into a regional economic driver. They plan to do that by working alongside, not in competition with, other event centers in Tri-Cities.

Years before the Three Rivers Convention Center was built, Leasure proposed developing a convention center in Tri-Cities. That project never got off the ground, but he was coming off some major success in developing the shopping centers along Canal Drive in Kennewick that would help build out the area.

Now 25 years later, he’s ready working to determine what needs aren’t being met by existing facilities in the area, and how they can use the HAPO Center to fill that niche.

During a recent visit, Leasure met with Franklin County and Pasco leaders to discuss their vision for the center and drill down into the details for a master plan.

They also have a new team in place. The county pays the general manager’s salary, as well as the salary of a catering coordinator and two maintenance workers that were kept on from Simmons Venue Management (SVM).

Their benefits will be paid by Harris/White-Leasure, which is also sharing its resources from other sites for marketing, event planning and more.

Leasure said the cost of a master planning process typically can run more than $100,000, but Harris/White-Leasure is preparing the HAPO Center’s plan as part of its regular contract.

Part of that master plan will be determining how best to use existing facilities, potential changes for large portions of the complex that are tied up and even land use around the center. The county owns about 6 acres of undeveloped property on the southeast corner of Convention Place and Rodeo Drive.

Leasure hopes that their vision for the center will help spur more private development near the property, but Harris/White-Leasure doesn’t currently have plans to build their own hotel onsite.

While the Pasco Public Facilities District has signed a resolution to commit to the Broadmoor area for the city’s aquatic center, they haven’t yet finalized a purchase agreement.

They need about 5 acres for the site. In addition to the county’s 6-acre plot, LifeQuest has also expressed interest in selling them 5 acres just south of the facility bordering the HAPO Center. They also offered to put together a proposal to help run the facility.

The major factor in the land’s location will likely come down to potential community partnerships. The facilities district has discussed finding a space at Broadmoor where they can create a campus with a Mid-Columbia Libraries, a Ben-Franklin Transit hub and potentially a city of Pasco recreation center.

They are currently eyeing the area near Lot 19 in the Broadmoor development, which would be near the intersection of the future Sandifur Parkway extension and a new north-to-south road. Last April the facility board signed a resolution to bring a final purchase and sale agreement before them at a future date.

The facilities district is setting aside $3 million in its 2024 budget to buy the land.

Space constraints

The HAPO Center is billed as the largest event center in Eastern Washington, but currently more than half of its 85,000 square feet is unavailable on an ongoing basis. With the exception of two major annual events, the arena is occupied by a youth sports program year round.

Looking at the arena portion, one might not realize that the two turf fields and basketball courts aren’t permanent fixtures. The second of the two courts was only recently installed.

County commissioners were clear during proposals for new HAPO stewardship that they aren’t inclined to let that program remain in place once the contract expires at the end of 2024, questioning companies looking to win the management bid on how they planned to use that space once the current contract is up.

Harris/White-Leasure can’t rent out the full center under the terms of the contract, which was a modified event contract that more typically would be used when a party wanted to rent part of the center for a weekend.

Leasure said they intend to let the contract run its course and will begin discussing plans with Clubhouse Sports later next year, noting that major changes they might have in mind are still a year or more out from becoming a reality once a master plan is in place.

Gonzalez with the county said Clubhouse Sports hasn’t done anything wrong, they were just offered a great deal during an exodus of leadership. The contract was signed by former County Administrator Keith Johnson after the center’s management team left during the summer.

He said that while there was some miscommunication as Simmons Venue Management was brought in to stabilize the HAPO Center, that has been worked out and they’re communicating well with Clubhouse’s leadership team. He praised SVM for its work keeping the center open during a crucial time.

Because the arena portion of the center is not air conditioned, and Harris/White-Leasure is assessing whether it’s worth the cost to invest millions into a new HVAC system. The county spent $6.6 million if COVID relief money on the event center side’s HVAC repairs in 2022.

Clubhouse owner Jeffrey Carvo told the Herald he couldn’t comment on plans for the organization’s future.

The program currently occupies the arena section’s entire 44,000 square feet of event space and bleachers, and they’re getting a great deal on it, with a rate of just $10,000 a month.

They would be hard pressed to find a space anywhere else in the Tri-Cities even half the size for that rate. Loopnet real estate listings for Tri-Cities multi-use spaces from 5,000 to 25,000 square feet start around what they’re currently paying.

The Tri-Cities Amateur Hockey Association currently pays about $100,000 per year for the pavilion at the center, which is half the size and has no other uses. That contract, which most recently also was renewed using a modified event contract, went to the commissioners for approval.

Harris/White-Leasure is also looking into potentially expanding the pavilion’s uses. Whether that’s to create more opportunities for ice skating open to the public or to expand the current offerings. The company has several other hockey rinks, and its expert who oversees maintenance and uses of those arenas will be adding the HAPO Center’s ice to his duties.

It’s unclear why the HAPO Center was using modified event contracts for full-time facility rentals, but the practice was in place at least as far back as 2019. That year the hockey association signed a lease on a modified event contract, but the contracts were rewritten specifically for the amateur league.

The Clubhouse Sports’ contract did not contain major changes, just some language struck and an addendum saying the organization would need to accommodate Tri-City Rush indoor football games and two major expos each year. That contract was not submitted to county commissioners.

In a Facebook post in October 2022 the Tri-City Rush said they were being pushed out of the HAPO Center, but later said an agreement had been reached to play their 2023 games there. Weeks later a second announcement was posted with the news the team was folding.

Leasure said the need for programs like Clubhouse are evident, and he hopes that they’ll find a way to continue that relationship in some fashion.