Frequently Asked Questions

What is the Campaign for the Arts?

The Campaign for the Arts (CFA) is a private community initiative to raise contributions that, when combined with public dollars already committed, will enhance the Arts District’s historic icons, the Whatcom Museum and Mount Baker Theatre (Theatre). The combined goal of $8.6 million will benefit the endowments of each organization, assist with capital costs not covered by the Bellingham-Whatcom Public Facilities District (PFD), and cover all campaign costs.

Whatcom Museum and a New Facility

Why does the Museum need a new building?
None of the buildings operated by Whatcom Museum was designed or built for use as a museum. Designed as a City Hall, fire station, auto showroom and transmission shop, the four existing museum buildings are unable to meet or be effectively renovated to meet control of temperature and humidity required for loaned exhibitions from other museums. In addition, the present Whatcom Museum and Children's Museum facilities have a difficult time accommodating increasing attendance levels. More than 111,700 visitors from around the county and the region visited Whatcom Museum facilities in 2005, including 40,000 visitors to the Children's Museum. The new museum will include space to display and appreciate fine art, house collections that preserve our cultural heritage, and provide expanded space for a growing number of visitors of all ages.

What happens to the old Whatcom Museum?
The 1892 Old City Hall will be used to interpret our rich and varied history. The present use of the building, as exhibition galleries, offices and storage will be renovated to include period rooms and additional space for both temporary and permanent history exhibitions. Spaces that are now restricted access, such as the old basement jail, will be opened for tours.

What is current level of taxpayer support to the Whatcom Museum?
The City of Bellingham's historical average operational funding is approximately $1.4 million. Capital maintenance fluctuates depending upon need and other City capital maintenance requirements. The Museum also receives some tourism (i.e. lodging tax) money each year. In 2006, the Museum received roughly $40,000, and approximately $62,000 in 2007.

Mount Baker Theatre

Why does the Mount Baker Theatre need refurbishing?
The Theatre has enjoyed more than 80 years as a key performance venue and public gathering space for the region. Over the years, hundreds of thousands of people have attended movies and live performances within its walls. Much of the electrical wiring and heating systems are original. House lights are still controlled with the original resistance dimmer light panel that was installed in 1927. Many parts of the building have inadequate fire alarm and suppression capabilities. The current steam heat system is worn out. The giant radiators beneath the lobby and the pipes that connect those radiators to the boilers below the stage leak on a regular basis. Heating in the winter is problematic. It is common to present a performance in January where the temperature near the stage is 60 degrees and the temperature in the balcony is over 90. These systems are simply at the end of their useful life and must be replaced in order to preserve the integrity of this architectural asset.

What are the long-term financial implications once the CFA is complete?
The Whatcom Museum will be able to open the new facility with minimal impact on its operating budget by closing some of its present structures. The private sector is committed to making up the difference – currently estimated to be $150,000 – so that there will be no impact on the City budget or the public tax base.

The Theatre is publicly owned with long-term agreements in place between the PFD, the City of Bellingham and the Mount Baker Theatre (MBT, a not for profit management organization). These organizations each play a part in the Theatre’s long-term viability. MBT is responsible for all management, programming, presenting and daily operations, the City is responsible for major ongoing maintenance, and the PFD, in conjunction with the Campaign for the Arts, is contributing significant assets toward improving the facility. This three-way partnership provides the stability, entrepreneurial focus and resources necessary to make certain the Theatre will thrive well into the 21st century.

What is current level of taxpayer support to the Mount Baker Theatre?
MBT currently receives about $240,000 but returns more than $50,000 in City admissions, business and occupation (B & O) and sales taxes. This means that a net of less than 10% of the Theatre’s annual operations budget comes from taxpayer support in the form of a management fee. For this fee MBT determines and administers policy, presents programs, rents, maintains and improves the space and increases awareness throughout the region. The City also annually infuses between $30,000 and $60,000 towards maintenance expenses. The County also contributes about $7,000 annually to support the MBT education program that brings in more than 18,000 school children to experience premier international touring productions in the Theatre’s historic main stage auditorium.

Logistics

Who am I giving my money to?
Contributions are made payable to the Whatcom Community Foundation (Foundation) which is the fiscal sponsor of the CFA. The Foundation was established in 1996 as a local vehicle for giving. The CFA Board determined that the Foundation’s mission, connecting people who care with causes that matter, is a perfect fit for the Arts District project. The Foundation is certified by the Council on Foundations as being in compliance with National Standards for U.S. Community Foundations.

What determines how my gift is used?
Each donor completes a pledge form that details their wishes. Donors may make unrestricted contributions, which the CFA Board of Directors will apply to elements of the project most in need of funds, or may specify that their gifts be directed to a particular fund (for example, one of the institutional endowments or to capital expenses). The CFA and Foundation are happy to work with each donor to tailor gifts that will meet their wishes.

May I make my gift over a period of time?
Yes, pledge forms include the option for single or multiple payments. (The CFA hopes to have all multi-year gifts completed by 2009.)

Is my gift tax deductible?
Yes, contributions to the CFA are tax deductible. The Foundation will provide you with the appropriate documentation to acknowledge your gift and its tax-deductible status.

What are the references to a larger "Arts District"?
The Arts District will showcase a larger arts vision for both residents and visitors. There are an extraordinary number of arts and cultural organizations in the downtown area, including the Mount Baker Theatre, the Whatcom Museum, the Bellingham Public Library, the American Museum of Radio and Electricity, Allied Arts, The Pickford Film Center, Mindport, the Railroad Museum, Blue Horse Gallery, the Upfront Theater, iDiOM Theater and dozens of private sector businesses. Together, these attractions form a "point destination" for our community and visitors alike.

What is the Bellingham-Whatcom Public Facilities District?

A "Public Facilities District" (PFD) is an independent municipal taxing authority created solely to fund facilities that encourage or enhance economic development within a regional center area. State Legislature established the PFD concept and framed rules for PFDs under RCW Chapter 35.57.

The Bellingham-Whatcom Public Facilities District (BWPFD or PFD) was created in 2002 as a joint effort between the City of Bellingham and Whatcom County. The PFD’s mission is to fund a regional center that will increase economic prosperity and lay a foundation for further public and private investment in our community. A PFD Regional Center must be made up of projects requiring a minimum of $10 million, including debt service.

What decisions is the PFD responsible for? Do they get input from the City, County, CFA, voters?
The PFD was created under state legislation authorizing the formation of public facilities districts (RCW Chapter 35.57) and funding them using a portion of state sales tax revenues otherwise reserved for state use.

According to an interlocal agreement between the City of Bellingham and Whatcom County, the PFD is to “assist in financing the regional center project including land acquisition, development, design, construction, remodel, maintenance and operation by imposing a state sales and use tax credit of 0.033 percent within the District, as well as imposing the charges, fees and taxes authorized by RCW 35.57.040.” This revenue will service any potential debt that may be issued by the City for the design and construction of the regional center, as well as for the payment of management and operating expenses of the District and its facilities.

An additional interlocal agreement between the City of Bellingham and the PFD, establishes that the District:

Will consider, analyze and identify a regional center project(s);
May undertake fundraising from public or private sources to obtain gifts, grants and donations for the purpose of a Regional Center; and
Shall have the right, subject to City Council approval, to lease, purchase and own real property to accomplish the purposes of the Public Facilities District.

The PFD has many community stakeholders and provides opportunities for input and communication back and forth on a regular basis, including: regular progress reports to both City and County Councils; being included as part of the City Budget; regular interaction with Campaign For the Arts representatives; and time for fundraising reports and public comment at all PFD meetings. Additional opportunities for public input and ideas occurred through the design competition for the planned Art & Children’s Museum and continue to occur through public membership on project design teams for both museum and theater renovation projects.

Why is it that only the Museum and the MBT are receiving financial support from the PFD?
As part of the requirements for a Regional Center, the PFD defined the components of a Regional Center which may receive PFD funding as:

Phase I of the MBT renovations;
Design and renovation of existing space for Museum purposes;
Design and construction of new Museum facilities;
Acquisition of additional property for other components of the Regional Center;
Construction of Phases II and/or III of the Theatre;
Design and construction of one or more performing arts facilities; and
Related parking facilities.

Based on state legislation, public facilities districts may receive the state sales tax rebate for 25 years after the tax is first collected, or until bonds issued for construction of the Regional Center are retired. This limits the amount and timeframe for funding PFD projects. The PFD also focuses efforts on ensuring its projects are a wise use of public funds that encourage and leverage additional private and public investment.

Why didn’t citizens get to vote on PFD projects like they would for a new library?
Legislation creating public facilities districts imposes several restrictions on PFD projects. A defined Regional Center must serve a regional population and cost at least $10 million, including debt service. Under the City–County interlocal agreement our Regional Center projects are to be located in Bellingham’s Civic Center. State sales tax rebate revenues are pledged to repay bonds for PFD projects and they qualify under the rules for non-voted City or PFD debt.

What is the relationship between the City and the PFD?
The City and PFD are parties to an interlocal agreement that describes this relationship. To view the interlocal agreement, visit the PFD website at www.bwpfd.org. The PFD collects the state sales tax rebate for the Regional Center. The City consults with the PFD on City responsibilities for design, construction, operation, management, and any future expansion of the Regional Center. For example, the contract for the design of the new Art & Children’s Museum is between the City of Bellingham and Olson Sundberg Kundig Allen Architects (OSKA). Other contracts for design and construction of Regional Center projects will similarly be City contracts.

Where/how does the PFD get its funds?
The PFD receives, for 25 years, a rebate of 0.033% of sales tax collected by Bellingham and Whatcom County. This means for every $1,000 in state sales tax collected in Bellingham and Whatcom County, 33 cents is returned to our community through the PFD. The PFD has been receiving this tax rebate since September 2002. The PFD can sell bonds to generate capital for specific projects. As sales tax rebates continue to come in, they will be used to pay off the bonds. A match of thirty-three percent (33%) of the sales tax revenue collected must be met by other public or private sources. The City of Bellingham has already met this match by transferring to the PFD the City's ownership interest in the Mount Baker Theatre and by designating $2 million in capital funds towards a Streetscape project within the Regional Center

Who is represented on the PFD and how are they elected/appointed?
Seven community leaders representing various backgrounds and interests were proposed by the Mayor and County Executive, and confirmed by both the City and County Councils. The current list of these individuals can be found on the PFD website

How does the PFD decide where to spend the money?
By interlocal agreement between Whatcom County and Bellingham, Regional Center projects must be located in Bellingham’s Civic Center. The PFD’s mission from the outset has been to fund projects that will provide a foundation for further public and private investment, and facilitate future projects that will increase economic development in our community.

To this end, the PFD Board has outlined three guiding principles to use in selecting specific projects to fund:

Projects will encourage private and public investment;
The investments will be sustainable (not requiring additional tax dollars long-term); and
Projects will be a wise use of public funds.