WENATCHEE, Wash. (AP) — Despite a $2 billion state budget deficit, the state treasurer will ask lawmakers in next month’s special session to loan Wenatchee $42 million to avoid default on the city’s arena.
The Wenatchee World reports that (http://bit.ly/rHju1t ) city and state officials face a tight deadline to get the loan approval. The time to pay off the bonds for the arena expire on Dec. 1.
Assistant state treasurer Wolfgang Opitz says is in the state’s interest that one of its cities avoids default.
The Greater Wenatchee Regional Events Center Public Facilities District, which owns the arena, has been unable to find a way to pay off the current short-term, interest-only debt by Dec. 1 after a judge ruled in September that the city of Wenatchee could not legally back the sale of new bonds without exceeding its debt capacity.
