The City Council approved legislation Tuesday to help the Seattle Aquarium’s nonprofit operator secure a bank loan for the aquarium’s $160 million expansion and complete the project on time next year.
The Seattle Aquarium Society, which operates the city-owned aquarium under a long-term contract, needs the loan from PNC Bank for the new Ocean Pavilion because it hasn’t yet obtained certain federal grants and because it’s still raising money from private donors, council staff said.
Seattle has previously contributed $34 million and lent $20 million to the project, under construction on the downtown waterfront, which will be focused on tropical sharks and is part of a wider city effort to remake the waterfront after the removal of the Alaskan Way Viaduct. The Ocean Pavilion is architecturally integrated with a $70 million pedestrian overpass the city is building between Pike Place Market and the waterfront.
Rather than allocate extra money to the Ocean Pavilion, Tuesday’s legislation will make changes to cement the society’s contract with the city, as requested by PNC Bank. For example, the legislation will extend the contract from 2030 through 2040. It will also prohibit the city from terminating the contract while the $67 million PNC Bank loan is outstanding, except by paying a fee equal to the society’s debt, after taking into account the society’s resources and assets.
Mayor Bruce Harrell’s office crafted the legislation, which passed with a 7-1 vote. Councilmember Alex Pedersen didn’t explain why he voted “no.”
Northwest Animal Rights Network activists opposed the legislation and have opposed the Ocean Pavilion generally, calling it an over-budget “animal prison.” The structure has been designed to showcase sharks, rays and fish from the South Pacific in a 325,000-gallon tank. But a number of aquarium boosters urged the council to pass Tuesday’s legislation, arguing the Ocean Pavilion will inspire the next generation of marine conservationists.
Derek Baker, who directs government affairs for the aquarium, said the society’s fundraising from private donors is on track and that bridge loans are often used to complete civic projects. The society shouldn’t need to use the entire $67 million and shouldn’t have any trouble repaying the bank loan once the Ocean Pavilion opens in 2024 and ticket sales climb, Baker said.
“We’re really excited” about how the Ocean Pavilion will educate visitors and “connect the dots” between marine environments across the globe, he said.
The city won’t be a direct guarantor of the PNC Bank loan, and the Ocean Pavilion, which the city will own when the project is done, won’t serve as collateral, Councilmember Lisa Herbold noted. The PNC Bank loan will allow the society to repay the city’s $20 million loan more quickly, Herbold added.
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