Kennewick facilities district illegally spent taxpayer money on campaign, investigator says

More than $20,000 of taxpayer money improperly went to support a 2017 campaign for a new convention center in Kennewick, says a state investigator.

A nearly yearlong investigation by the Washington state Public Disclosure Commission found the money the Kennewick Public Facilities District spent on a website, advertisements, a banner and fliers were meant to sway voters to support a sales tax increase.

The district could face a fine of up to $10,000 for each violation.

Now it will be up to the district to decide whether to negotiate a settlement with the PDC or challenge it at an upcoming hearing.

An attorney for the public facilities district still maintains the materials were meant to explain the issue to voters and didn’t break campaign rules.

“The KPFD board is committed to ensuring that all laws related to ballot propositions are followed correctly and are looking forward to a final resolution of this matter,” the district said in a statement to the Tri-City Herald.

Disclosure commission Executive Director Frey Lavallee released the eight-page notice of administrative charges, which details how the district’s board allegedly broke the rules during the 2017 campaign for The Link.

The November 2017 measure failed by 1,300 votes.

If voters had signed off on the 0.2 percent sales tax increase, it would have paid for an expansion at the Three Rivers Convention Center, an upgrade for the Toyota Center and other improvements at the center’s campus in Kennewick.

Vic Epperly, a former Kennewick mayor, and Pasco activist Roger Lenk each filed a complaint three years ago, but a backlog of investigations and a lack of state investigators meant the agency was slow to make the ruling.

The state Legislature authorized cities, towns, metro areas and counties to form public facilities districts to promote economic development.

The district then can use its tax revenue to finance, design, build, remodel, maintain or operate public facilities, such as aquatics centers and convention centers.

The city of Kennewick formed a facilities district in 2001 to manage, coordinate and finance the Three Rivers Convention Center, the Toyota Center and the skating arena.

Pasco and Richland also have formed public facilities districts.

Using public money

The Kennewick facilities district money spent on a website, mailers, door hangers, banners and TV and newspaper advertising is at the center of the charges filed by the PDC’s Lavallee.

While state law lets public organizations spend money on providing basic information about ballot proposals, they can’t spend cash to advocate for them. That includes:

• Paying employees to organize campaign efforts.
• Paying to mail campaign materials.
• Letting the campaign access equipment the public can’t access.

Lavallee said the district crossed the line into campaigning with its fliers, banners, a website and advertisements.

The commission normally advises that one publication of the facts per ballot measure is appropriate, as long as it’s an objective and fair presentation of the facts.

They can do more than this if it’s in the agency’s normal business, but the commission’s investigators decided the facility district’s effort was an attempt to market the sales tax increase.

The district funded website for The Link included a list of six local entities that endorsed the project and linked to news articles, a Herald editorial and a supportive letter to the editor, according to the commission.

The district spent $1,100 on door hangers, $4,000 for mailers, $12,400 for print, TV and radio advertising and $2,300 for banners.

That included 3,000 door hangers and fliers distributed during open houses and at the Toyota Center.

The more than 14,000 mailers targeted registered voters who voted in the 2014 and 2016 elections.

The six quarter-page newspaper ads, 64 TV spots and 209 broadcast ads ran between early September and mid-October 2017.

And six banners were hung up at the convention center and in booths during events, according to the commission.

All of them contained similar language saying The Link would offer “something for everyone” and, “Together we can make the Tri-Cities a destination for athletes, artists, conventions and more!”

They also said, “Sales tax impact — only 2 cents on every $10!”

This story was originally published February 25, 2021 at 12:04 PM.