The Convention Center has $25M in reserves and a $1.9B bond obligation. One restructuring path: the City buys the Arch building outright, shores up SCC's position, and Seattle Center operates it as a public commons — with separate books and no bond debt.
The Washington State Convention Center Public Facilities District owns two buildings: the Arch (705 & 800 Pike Street — the original convention center) and the Summit (900 Pine Street — opened 2023, financed through $1.9B in bonds backed by lodging tax). Both share a management structure — the same security team, the same facilities staff — so any split has to account for those shared operations.
The restructuring concept: The City of Seattle purchases the Arch from SCC for cash. That cash goes directly onto SCC's balance sheet, shoring up reserves that have fallen to ~$25M. SCC retains the Summit and continues running conventions. SCC can lease back the Arch for overflow conventions. The Arch is then operated by Seattle Center as a year-round public commons — programming, markets, events — with its own books and no bond debt.
The bonds don't change in this scenario. Lodging tax still flows to bondholders. Debt service still runs ~$90M/year. The restructuring only affects the operating picture — who runs which building, who absorbs which costs, and who captures which revenues. Bond coverage depends entirely on Seattle hotel performance, as it does today.
Security, facilities, and building management currently serve both buildings. Any restructuring has to decide who employs that shared team — and who pays whom.
Move the sliders to explore how sale price, cost allocation, and revenue assumptions change the books for each entity. The management scenario above affects who pays the service fee but not the total cost envelope.
| Item | Value | Source / Confidence |
|---|---|---|
| Audited figures (2024) | ||
| Total SCC operating expenses | $128M | 2024 WSCC PFD audit, p.15 (incl. $52.9M depreciation) |
| SCC operating cash burn (ex-depreciation) | ~$75M | $128M minus $52.9M non-cash — cross-checks with audit p.16 cash flows |
| Convention-dependent revenue | $51.5M | 2024 audit p.15 (food/bev, event services, rentals combined) |
| Parking revenue | $4.1M | 2024 audit p.15 — "3 garages, 2,150 stalls." Arch garage ~1,490 stalls (≈$2.8M); Summit garage ~700 stalls (≈$1.3M). Model splits proportionally by stall count. (Third garage may be Freeway Park.) |
| Retail leases & other revenue | $3.0M | 2024 audit p.15 — single line item, not broken out by building. Summit (900 Pine) tenants: Bombo, Monorail Espresso, Piroshky Piroshky, Pike Brewing — newer leases, high foot traffic. Arch (705 Pike) tenants: Taco Del Mar, Dog in the Park, Espresso Caffé Dior, Ethioblue, Stamp & Coin Shop — older/lower-rate leases, possibly grandfathered. Summit share is likely larger. Modeled with slider. |
| Total lodging tax received | $99.9M | Seattle 7%; 2024 audit p.15 |
| KC extended lodging tax | $6.4M | 2024 audit p.15 (2.8% rate on King County hotels) |
| Annual debt service | ~$90M | 2024 audit p.16 (~$75.1M interest + ~$14.8M principal) |
| SCC reserves (cash + short-term) | ~$25M | CEO public statement, Feb 2026; consistent with audit p.14 |
| Estimated / assumed (model inputs) | ||
| Arch share of operating costs | Default: 40% | Estimate — audit does not break out by building. Arch is larger; Summit is older. Range: 20–60%. |
| Arch sale price | Default: $150M | No public appraisal. Arch cost ~$1.9B to build; sale would reflect operating economics, not replacement cost. |
| City GO bond financing | 4.5% / 30 yr | Seattle would issue General Obligation bonds to fund the purchase — no realistic cash alternative. At $150M sale price: ~$9.2M/yr debt service. Rate fixed for model purposes; actual rate depends on market and bond structure at time of issuance. |
| Commons programming revenue | Default: $5M/yr | Estimate — Seattle Center Fisher Pavilion comparable. Highly dependent on programming model. |
| Annual lease-back (SCC → City) | Default: $2M/yr | Estimate — depends on frequency SCC needs overflow space and negotiated rate. |
| Shared ops fee | $8M/yr base (at 40% load) | Estimate — covers shared labor: security, facilities (electric/plumbing), transportation coordinators, cross-building setup and admission crew. ~10–15% of $75M cash opex. Scales with building load: modeled as base rate × (Arch cost share / 40%), so busier building = higher fee. Parking attendants split by garage and are already in the parking revenue allocation, not this fee. Direction and union complexity depends on management scenario. |
| Unknown / TBD | ||
| Aramark replacement model | TBD | Contract expires Jan 2, 2027. Summit could retain convention catering; Commons could adopt food-hall model. |
| Bond covenant review | TBD | Does selling Arch trigger covenant review? Legal analysis needed. |
| State PFD authorization requirements | TBD | WSCC is a state PFD — sale may require legislature or PFD board approval. |