HomeMy WebLinkAbout206Michelle Farfan
From:
Sent:
To:
Subject:
Attachments:
Patty Charnas
Wednesday, November 30, 2016 9:44 AM
Michelle Farfan
FW: Brinnon, Pleasant Harbor "Vision"
20L6-Ll-29 BrinnonG to JC.pdf; 20L6-LL-29 LetterAtt Mann_PGST_1tr09191-5.pdf;
20L6-LL-29 LetterAtt'Visio n', pdf
Patty Charrlas - Director
Jeffersorr County Departmer-rt of Community Developmer, t
627 Sheridan Street, Port Towrrsend, WA 98368
Phorre 360-37 I -4493 - Fax 360-379-4451
pcharnas@co j effersorr.wa.us
From: Carol Imailto:carol@aramburu-eustis.com]
Sent: Tuesday, November29,2Ot6 2:56 PM
To: Patty Cha rnas <PCharnas@co.jefferso n.wa.us>
Cc: Rick Aramburu <rick@aramburu-eustis.com>; #dcd <#dcd@co.jefferson.wa.us>; jeffbocc
<jeffbocc@co.jefferson.wa.us>; Planning Commission Desk <PCommissionDesk@co.jefferson.wa.us>;
kevin.vandewege@leg.wa.Bov; chapman@olypen.com; Steve.Tharinger@leg.wa.gov; Michael Haas
< M H a a s @ co.j effe rso n. wa. u s>; je ro m ys @ pgst. ns n. u s
Subject: Brinnon, Pleasant Harbor "Vision"
Ms. Charnas,
Please accept for the County's records and your review this letter from Mr. Aramburu written on behalf of The Brinnon
Group, with two attachments. The original is being placed in the mail to you (including a color copy of the proposal).
Carol Cohoe, Secretary
ARAMBURU & EUSTIS, LLP
720 Third Avenue, SUITE 2000
Seattle, WA 98104
(206) 625-e515
This message may be protected by the attorney-client and/or work product
privilege. lf you received this message in error please notify us and
destroy the message. Thank you.
1
AneNrsuRU &Eusus, np
Attorneys at Law
November 29,2016
Patty Charnas, Director c/o Email:
Jefferson County Department of Community Development dcd@co.jefferson.wa.us
621 Sheridan Street planning@co,jefferson,wa.us
Port Townsend, WA 98368
J. Richard Aramburu
rick@aramburu,eustis.com
|effrey M. Eustis
eustis@aramburu.eustis.com
Phillip Morely
County Administrator
Jefferson County
621 Sheridan Street
P.O. Box 1220
Port Townsend, WA 98368
David Sullivan, Commissioner, District 2
Phil Johnson, Commissioner, District 1
Kathleen Kler, Commissioner, District 3
Jefferson County
1820 Jefferson St
PO Box 1220
Port Townsend, WA 98368
720 Third Avenue, Suite 2000
Seatde, WA 9810,+
Tel 206.625.95'1.5
Eax 206,682,L3?6
wrvw.aramburu.eustis.com
Via Email:
jeff bocc@co.jefferson.wa. us
Via Email:
jeff bocc@co.jeff erson.wa. u s
Re: Statesman Group: "Pleasant Harbor Marina and Recreation Community"
Dear Ms. Charnas, Mr. Morely and Commissioners:
This office represents the Brinnon Group, a Washington non-profit corporation
concerned with the resort development proposed by the "Statesman Group" near
Pleasant Harbor/Black Point in the Brinnon area. The proposal is currently being
reviewed by both Jefferson County and the Port Gamble S'Klallam Tribe ("PGST" or
"Tribe") and a Supplemental Environmental lmpact Statement has been prepared for
the proposal.
I write today to provide comment on behalf of my client concerning a document dated
August 19, 2016, entitled "THE PLEASANT HARBOR MARINA AND RECREATIONAL
COMMUNITY: A Vision for lnvesting in the Success of Puget Sound" (hereinafter
"Pleasant Harbor Vision" or "Vision") prepared by the Statesman Group. The complete
plan is attached for your ready review. This document was provided to the Tribe on
ARAMBURU & EUSTIS, LLP
November 29,2016
Page 2
September 19,2016, together with an accompanying letter of the same date (also
attached) and to Jefferson County on October 3, 2016.
As described herein, the "Vision" would effect major changes in this proposal. First, the
applicant now proposes that the project will be a "private-public venture," financed with
some $37,750,000 of public, taxpayer funds, a proposition that has serious legal
problems. Second, major changes in the development are proposed, including a large
community center, modification of the number of residential units and conveyance of
property to public entities. As described below, these changes will require complete
reevaluation of the proposal and raise questions about the long term feasibility of the
venture.
1. CHANGES IN PROJECT FINANCING.
ln its several iterations, Jefferson County, the Tribe, my client and the public
have understood the proposal to be a private project funded with private equity or
borrowings. Now the applicant has modified the proposal to be a "private-public
venture." Pleasant Harbor Vision, page 9.1
Amazingly, Statesman now proposes that their project financing will be provided
by Jefferson County and the State of Washington. The details are provided on page 3
of the Vision under the heading: "THE PROPOSAL." Discussion of the several bullet
points of the proposalfollows.
o First Bullet. Statesman indicates that the State of Washington will purchase some
thirty acres of "reclaimed lands" for $9,250,000. This money would be deposited into a
"Washington State Utility Trust." However, our research fails to find such a "utility trust,"
either public or private, in the State of Washington. No explanation is provided as to why
the State would be interested in this property. The actual purpose appears to be a cash
contribution to the overall project.
a Second Bullet. Statesman next proposes that "Jefferson County would also
deposit in the Washington State Utility Trust, a Recreational Community Grant for
$2,000,000." We are not aware that the Jefferson County Commissioners have even
been asked to consider such a grant. Our review of the Jefferson County 2017 Budget
reveals no discussion of the availability of such funds. Given current and past Jefferson
County budgets, it is inconceivable that funds would be given to Statesman, especially
considering issues that appear to be facing the company as described below (see
comments regarding the Seventh Bullet).o Third Bullet. The $11,200,000 of state and federal taxpayer funds sought would
apparently be used for a "Recreational Community Center" which is to be a 158,000
square foot facility (3.6 acres) with several uses, as set out on pages 15-16 of the
Vision. Apparently one of the concepts behind the proposal is "Engaging the
Community plus the Political Will," though the meaning of this phrase is uncertain. See
' Statesman has neglected to paginate the document. The numbers on the attachment were provided by
us.
ARAMBURU & EUSTIS, LLP
November 29,2016
Page 3
page 11. No detail is provided as to projections of use of such a facility or why scarce
taxpayer funds ought to be directed to this project instead of other public needs.
Fourth Bullet. Th is section indicates: "Jefferson County would propose to the
local Tribes to be engaged an lndigenous lnterpretative Center within the grounds."
What this is and where it would be are not defined. We are not aware that the tribe is
interested in such a proposal.o Fifth Bullet. Statesman claims that Jefferson County and the State of
Washington will each "be a net benefactor as a result of the expansion of hospitality
business taxes." No indication of how these taxes would be "expanded" is provided.
lndeed, nowhere in the "Pleasant Harbor Vision" are any financialfigures provided, such
as estimates of construction costs, projections of potential use or other financial
information that might support Stateman's large funding requests.
Also included under the fifth bullet point is "coaching wellness through the
rehabilitation of Rejuvenation Plus." The meaning here is again uncertain. There is a
website called "www.rejuvenationplus.ca" but it has expired.o Sixth Bullet. Here Statesman proposes that the State of Washington would:
"sponsor through the Federal Government a Tax Exempt tvlunicipal lmprovement Bond
for $26.5 million dollars as a loan to PHN/." Such a transaction would clearly violate the
Washington state constitution: Article 8, Section 7 of the Washington state constitution
provides: "No ... municipal corporation shall hereafter give any money, or property, or
loan its money, or credit to or in aid of any individual, association, company or
corporation, except for the necessary support of the poor and infirm ..."
Our Supreme Court has held that: "The financing of private enterprises with
public funds is foreign to the fundamental concepts of our constitutional system." United
Sfafes v. Town of North Bonneville, 94 Wn.2d 827, 836, 621 P.2d 127 (1980). As stated
in Lassila v. City of Wenatchee, 89 Wn.2d 804, 810, 576 P.2d 54 (1978): "The
constitution clearly specifies that the sole purpose for which a municipality may loan its
credit is 'the necessary support of the poor and infirm."'The development of 208 "short
stay residential suites" described in the "Vision" is hardly intended for the "poor and
infirm."
Clearly the real purpose for the construction of a community center is to provide
a foundation for building the proposed 208 hotel units, not for public benefit.
We would be surprised should anyone in Jefferson County give this outlandish
scheme any consideration. Tax exempt municipal bonds may be general obligation
(secured by the full faith and credit of the municipal issuer) as with revenue bonds
(secured by revenues derived from charges or rents), but in all cases such bonds
represent taxpayer liability in the event of a default. The Vision proposes security for
the loan from development of the project, but without providing background financial
information. There is nothing in this meager and sketchy proposal that supports such a
huge bond issuance, even if Statesman were a credit worthy borrower, which is in
doubt. ln any event, the proposal was clearly impermissible under Washington law as
described above.o Seventh Bullet. Under the seventh bullet of the proposal it is stated that the
developer'Would be the General Contractor through its associate company Statesman
ARAMBURU & EUSTIS, LLP
November 29,2016
Page 4
Construction Washington LTD." A quick review on the State of Washington Labor and
lndustries website shows that "Statesman Construction Washington Ltd." is not currently
licensed.
The "Vision" is essentially for a destination resort. However, new "destination
resorts" have not been financially successful in recent years. A prime example is the
Tamarack Resort near McCall, ldaho. Like the Pleasant Harbor proposal, it included
lodging, restaurants, residential development, a hotel, commercial development and a
golf course.2 However, Tamarack quickly went into bankruptcy, leaving lenders,
investors and private home purchasers holding the bag. See
http://idahobusinessreview.com/2013105123/lessons-f rom-the-tamarack-resort-
foreclosurel lor a detailed description of the collapse of this resort. A more recent article
indicates that the local taxing district, Valley County, threatened to foreclose and the
remaining homeowners had to bail out the resort with their own money. See
http://boisestatepublicradio.org/post/homeowners-association-buys-troubled-tamarack-
resort#stream/O. Significantly, Tamarack was originally bankrolled by Credit Suisse, a
major financial institution. As a result of these financial problems, the Tamarack Golf
Course is closed.
lf Statesman is now seeking public financing, it is questionable whether it can
complete this development using its own financial resources. The Pleasant Harbor
Vision final pages include pictures of some of the facilities proposed at another
Statesman project, at Pine Ridge Mountain Resort near Lake Invermere in central
British Columbia. But it appears that this facility, with more than 700 units proposed, has
not sold and that only perhaps 60 homes of the proposed 700 have been built. See
http ://www. invermerevalleyecho.com/ou rtownl25637 866 1 . htm l.
The proposal for a "private-public venture" is fanciful at best. The concept that
state and local governments would underwrite this proposal to the tune of $37,750,000,
with no financial feasibility analysis, is not believable or acceptable under the
Washington constitution.
More importantly, since the private-public financing is now a part of the proposal,
it is not appropriate to proceed with additional analysis of the overall project unless this
applicant can demonstrate that the public funding requested is available. lf this funding
is not available, then no further processing of this application should take place until the
applicant can demonstrate its own financial ability to develop the project.
2. CHANGES IN PROPOSED DEVELOPMENT.
As described above, the developer has changed his proposalfrom a privately
funded project to what Statesman calls a "private-public venture" at pages 9 and 10 of
the Vision. Such a proposal is not permissible under Washington law, as outlined
above. ln addition, the Vision makes major changes in the proposal itself which call for
reevaluation of the entire permitting of the project, as described below.
' Unlike Pleasant Harbor, Tamarack was never proposed to be funded by the taxpayers.
ARAMBURU & EUSTIS, LLP
November 29,2016
Page 5
First, the golf course is downgraded from 18 holes to "a unique 9-hole golf course
that plays like an 18-hole course." The site plan does show a 9-hole course, but with no
indication as to why it will be "unique" or how it will "play like" an 18-hole course. While
there is mention of "Success Stories" at page 10 of the Vision, there is no Statesman
project listed there, and no indication that Statesman has designed and/or built any golf
courses.
Second, the Vision at page 17 shows playground equipment that would be
installed as a part of the proposal. As noted, these are stock renderings, not
photographs of actual installation of such equipment. Swing sets and slides are hardly
significant recreational investments.
Third, the Vision discusses at pages 2 and 12 outdoor areas that would "shadow
LEED GOLD standards." This term is applied to outdoor facilities, but LEED standards
are applied to buildinq construction, not to golf courses and outdoor exercise areas
(page 12). Various searches have not turned up any reference to "shadow LEED"
standards, specifications or projects.
Fourth, the proposa! appears to include geothermal heating and cooling, which
will require installation of underground pipes to accomplish the required heat exchange.
The location, scope and size of this proposed geothermal facility is not defined.
Fifth, there are line drawings for the proposed "Pleasant Harbor Recreation
Center," a two-story, 158,000 square foot rectangular building. The plans, found at
pages 15-16 of the "Vision", include such anomalies as nine separate dressing or
changing rooms, both a "bistro" and a "restaurant and lounge" (on separate floors), and
a laser skeet shooting range. These plans are not consistent with any conceivable
needs of the local Brinnon community. It appears that the "community center" is not
intended for the local community, but to provide an attraction for the private guests of
the Statesman proposal.
ln summary, the proposal represents a significant change from prior renditions of
the project plans. Jvloreover, the material here is only at a concept level and more detail
must be provided before review can begin. For example, there are no proposed site
plans, no building dimensions, no concept of building facades or other information
necessary for evaluation of the proposal, including evaluation of traffic and parking
impacts.
The addition of a large community center to the existing proposal, including a
restaurant and other uses, clearly requires the preparation of a supplemental
environmental impact statement once sufficient detail is provided.
3. CONCLUSTON.
The "Pleasant Harbor Vision" as presented has multiple defects, both in financing
and physical development. There are no projections of costs or income that might
provide any information about the financialfeasibility of the project. The "private-public
venture" as outlined is not permissible under established Washington law. This
apparent admission that this project cannot be financed with traditional private market
ARAMBURU & EusIs, LLP
November 29,2016
Page 6
financing raises questions as to whether further processing of this application is
appropriate.
ln addition, the "Pleasant Harbor Vision" proposes multiple and substantial
changes from prior iterations of the Statesman proposal. As noted above, some of
them are mystifying ("shadow LEED standards," page 2) and some are simply so vague
("Engaging the Community plus the Political Will,' page 11) that they cannot form a
basis forfurther review without substantial additional information. Once suf{icient
information about the proposal is presented to allow consideration of its environmental
impacts, a supplemental environmental impact statement will be required.
Thank you for the opportunity to comment on this revised "Vision."
Sincerely
&
J. Richard Aramburu
JRA:cc
E-cc: The Brinnon Group
Cynthia Koan, Chair, Jefferson County Planning Commission, and Planning
Commissioners Gary Felder, Kevin Coker, Mark Jochems, Matt Sircely,
Lorna Smith, Michael Nilssen, Richard Hull, Tom Giske, c/o county ernail
at PlanComm@co.jefferson.wa. us
State Representative Mike Chapman
State Representative Steve Tharinger
State Senator Kevin Van De Wege
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PI-ERSANT HnneoR
PLEASANT HARBOR MARINA & RECREATIONAL COMMUNITY
The Strategic Plan, as adopted by the Leadership for Jefferson County in 2001, identifies clearly
with the Brinnon Comprehensive Plan for Pleasant Harbor Marina & Recreation Community as
recorded below:
Dear Sir:
RE: THE BRINNON COMPREHENSIVE PLAN ENABLING A MASTER PLANNED
RESORT COMMMUNITY.
I received an email last week from Commissioner David Sullivan, who suggested that I reach out
to you once more in order to learn of the Port Gamble S'Klallam Tribe's position pursuant to our
10* year application for approvals for Pleasant Harbor Marina & Recreation Community.
Commissioner Sullivan noted that you wanted a report in writing that detailed the changes as
mandated by Port Gamble S'Klallam Tribe. I have enclosed this report, as an attachment, that
indicates the following:
The golf course will be reduced to a 9-hole course from the original design, even though
a golf course is an approved use under the Brinnon Comprehensive Plan.
The assurances that originating surface water will not flow off-site to impact the Hood
Canal to the south. This has been accomplished through our existing grades and revised
contours that will create a longitudinal 13.5-million-gallon retention pond to capture both
surface water and Class A treated water from our Waste Water Treatment Plant.
Pleasant Harbor Marina
308913 US Hwy l0l
Brinnon, WA 98320
360-796-46 1 t I 800-547 -347 9
FAX 866-848-4612
A STATESMAN GROUP OF COMPANIES DEVELOPMENT
www.stotesmongroup.com
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"We envision Jefferson County as a balonced, sustainable community with economic
opportunities for income potential that allows personal independence. Were post-secondary
educational opportunities exist and are tied to the local economy. Were the conmunity accepts
that a certain level of growth and development are healthy and necessary to maintain our quality
of lfe. Where the enjoyment of a rural lifestyle is allowed without necessity of rural services.
Were growth is encouraged where appropriate infrastructure exists or is planned to exist, this
enabling urban and rural lifestyles to co-exist. Where the community is engaged with their
elected leadership to accept responsibility for contributing to the solution of community
problems,"
Mr. Jeromy Sullivan, Septonber 1,9,2016
Port Gamble S'Klallam Tribe
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PlEnsar.{r HnRBoR
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The removal from the plan for use of the 2 major Kettles B and C as a reservoir for
retention of water. Instead the Port Gamble S'Klallam Tribe would be responsibie for
beautifying this area and making it safe to the public, as a Tribal Historically Registered
Spiritual area. (Washington State).
The property will not be subject to haditional synthetic fertilizers such as Nitrates and
Phosphates or Pesticides. Instead, the specifications call for the use of organic products
that stimulate root growth, such as Humic Compounds and a construction base material
of Peat.
We enquired if the Department of Fish and Wildlife for Washington was familiar with the
proximity readers for the Elk Herd. They confirmed that these are in use, and have
proven effective in controlling haffic should the herd move across Highway 101 in their
traditional grazing areas 3 to 4 miles to the north of our property. Obviously, there
cannot be hunting on the Pleasant Harbor property due to safety c,oncerns with visitors
and occupants on site.
You will notice in the attached report that the Tribes are invited to provide an educational
area for indigenous art and artifacts, as approved within the public buildings at Pleasant
Harbor.
All parties are anxious to move forward, as we discussed mid -April 2016 at the Court House.
You emphasized on the record, that the Tribe had no interest in stopping or delaying the
development of the project. Mr. Don Coleman has attempted since April to accommodate a tour
of the property, but without response from the Tribe.
These are the facts Jeromy.
We look forward to an early response from you or other Elders of Port Gamble S'Klallam Tribe
during the month of September 2016.
Thank you for your integrity and being considerate.
Sincerely,
/&16
M. Garth Mann: Director
Pleasant Harbor Marina & Recreational Community
Pleasant Harbor Marina
308913 US Huy 101
Brinnon, WA 98320
360-796-461 t / 8OO-547 -3479
FAX 866-848-4612
A SIATESMAN GROUP OF COMPANIES DEVELOPMENT
www,stolesmongroup.com 2
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THE PLEASANT HARBOR MARINA and
RECREATION COMMUNITY
A Vision for lnvesting in the Success of Puget Sound
what a beaufirtil u'q|'to litv!
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Economically, the community has an extremely small working populatlon, resultlng in +l- 70 percent of the Brinnon
schoolstudents receivlng a supplemented meal program.
The +/-30 acres proposed for the Recreation Communfi is on the Black Polnt l,ands, a natural peninsula proJecting into
Hood Canal lAooendk AL Historically, since the 196O+ the Black Point Lands had been an active recr€atlonal vehlcle
and tent campground for SCD campsites.
The applicant/owner is proposing to reclaim this land that lncludes the refuse, septic frelds, open firealts and derelict
bulldings, and turn this area lnto a beauttfulfamily parkthatwould shadow LEED GOLD standards. Families and guests
would enjoy outdoor hiking and biklng trails, a children's playground, tennis oourts, pickle ball courts, beach-sand
volleyball, and access to a unique 9-hole golf course that plays like an 18 hole course, plus a soccer field house and
outdoor court.
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EGCI,TIVE 5UMMARY - PROPEETY DESCRIPTION & ROPOSAI.
PL{ASANT HARSOR MARINA & EICREATION COMMUI*IITY
THE INTRODUCIIO]T:
Pleasant Harbor Marina & Golf Resort LLP ls the appllcanflowner of the futurc Pleasant Harbor Marina & Recreation
Community. The 252 acres of land has been designated through The Brlnnon Comprehensive Plon to support a Moster
Plonned Resart (MPR} The applhant has proposed a spcial RECREAIION COMMUNITY fior both indoor and outdoor
actlvltles on a view parcel of +/- 30 acres of the land overlooklng the s€a waters of Hood Canal. The Recreation Center
will provide year-round actlvities that appealto families as well as creating quality employment thmugh manatement
and operations of multiple league and family pnograms.
Fleesant Hrrbor Marina ls lofEted off the Cottt Hlghtray.l$l in south telhruon counly end lrclose to the southwest
access of the Olympic Netlonsl Prrt & Forest. Approttlmat6ly 1.3 mllllon uehicles drlvr by Pleasant Harbor annually.
There arE 3 mltllon paople wfio rerHe wlthtn t5dtour drlua to Plearant Harbor, The nearest Gommunlty is a hamlet
crlled Brinrrsn, \ffashlngton, uhich lsr strqgting comm$ntw that0ras not shown pogutatron gromh of lts +/' 800
|tsid€nt5. Ih€ lt€ Edlool lrtdly in need sf fE$atri.,glusattrastine new dud€oE to Eustah itEslf.
Ihe Rtogttonrl Center Is e ,rrt$illcrnt 2 rtoraf tts6l sBttcturt of +/- 158,(m squ8re feet ttrat ,.vl{cn compkted
woutd plwlde lndoor ardvtrtssond multi4utpo$e tts?s"
3 Swimnring Poolr (OlympicTrainlns & flecreationl plur water stldes
lndoor Olmblng Wallr rnd Avrtar Rollsr f,oastsr Zip Une^
fitness Hertth Centarlor fteJuvenati0n Pmgram: & a SPA
A'BlSf,RO & fierteurrnt for lndoor& outdoor Baling,
Conwntion & Educgtional Meeting Areas.
Sports f.tnter.lor lndoor Basketlall, Volleyball, Sodcer, & [acm*e"
hdoor racket cpurts for badmirrton, trandball, rncqueflrall,
A running tratk and gthlelk trs{nlngarer
A Famity DhtoveryArer *ilih Oay Carp
A Chapel lor weddlngr,
Ulewing srands for rthlelic everits.
ATteare.
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rHE PROPOSAI.:
In order to finance thls community rercurce, Pleasant Harbor Marina & Golf Resort tLP (PHM) will be seekhg County
and State of Washington support, where the stakeholden would all beneflt ftom the increased attractlon to the
community.
Flrst, the +l- 30 acre reclaimed Iands for the Recreation Family Park will be gifted to the State of Washington from
PHM. (The State of Washington may wish to transfer thls titled property to Jefhrson County). The State would
place in a Washington State Utllity Trust a Recreatlonal Communlty Grant fior S9,Z5O,OO0.
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Jefferson County would also deposit in the Washington State Utility Trust a Recreational Community Grant for
s2,ooo,ooo.
The conditional release of these Grants would be antended for the exclusfue development of the Recreational
Community Center.
Jefferson County would proposc to the local Tribes to be engaged and to develop an lndigenous lnterpretive Center
within the grounds (Kettles) and within the Recreatlon Complex. The Tribes would benefit from the increased
recognition within the community, as well as a facillty for the development of wellness and skills for children &
families of the lndian Tribes.
Jefferson County and the State of Washington would be a net benefactor as a result of the expanslon of the
hospitality buslness taxes through facilltating Leogue EvenB for enioying swimming, basketball, soccer, volleyball,
lacrosse as well as coachlng wellness through the rehabilitation of ReJuvenotion m, The local school athletic
events at the Recreation Center would attract frmilles to Brinnon and Quilcene, where bursarles could reward
students br Excellence in Recreation & Study.
The State of Washington would sponsor through the Federal Government a Tax Exempt Municipal lmprovement
Bond for 525.5 mlllion dollars as a loan to PHM. The 7-year Tax Exempt Bond would yield a rate of 2}6 and would
be secured by PHM. The PHM security would be ln the value of the development lncluding 2(R Short-Term Stay
Residentiol Suites, a-top the Recreational C-enters second story (see Rendering).
Further, PHM would develop at its cost affordable stafr housing of +l- 5O dual suites.
Of the total 598 residential units, slxty-five percent are reglstered for short-term stays and would lnclude Terraced
Condominlums of 1, 2 or 3 bedroom suites. Thlrty-ffue percent are for longer-term oocupancy and would include
slngte family @ttages, Alpine Townhomes, and Serview Villas.
PHM would be the GeneralContractor through its assoclate company Statesman Construction Washington Ltd. All
construction short falls would be the responsibill$ of the General Contractor.
The State of Washlngton would be glfted by PHM the title as owner of the +/-30 acres including the 2 floors of the
strata-title for the Recreation Center. (The State may wish to transfer this owrrcrshap to JeffeBon County). PHM
would receive a tax-receipt for the transfer of the gift-asset.
a 3ffiFr-ulaia" HAnH
a PHM or assignee would agrce to manate the Recreation Center fur the beneflt of the Owner and the County for a
SGyear lease at 5100 per annum. Net revenues from operatlons of the facillty would accrue to PHM, and shortfalls
in revenues would be the responsibillty of PHM, so not to be a flnancial burden to the Community and County.
a The proposal will be seen as a healthy opportunity to turn around a community sufrering from high unemployment
and low productivity. The communfi now relies on 90 to 100 days of prlme season for e[hty percent of its
revenues. Wlthout growth, the Millennials (18-34 yrs. of age) are forced to leave the community ln order to
support thelr growing families. This proposal offers a sustalnable, responsible and quality way of life fur the
fa m ilies of Jefferson County.
The Grant from Jefferson County is recovercd from tax rEvenues. The State of Washington is a net benefactor also
from Tax Revenues enabling an early reoovery of the Granted-Funds.
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More lmportantlv, thir offfttt{nB co$i ae a resutt of thls areas high unernploymeot that npsr'trts iu sorial assistanr,r
producec a tremondous aduantage to dre 5t0tt of 'Wasfiir€ton, knowlng thnt hundredr of quallty lobs wlll be made
available.
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For oner lm years, The Statesman Group has been an active developer and builder of multi-family and senior living
communltles ln Canada and the United States. Over the past years the firm has developed at various stages Resorts
and Communities for Health and Wellness Tourism, as well as Sports Tourism. Advanced Medical Group is a Statesman
Company that has been active in working wlthln the guidelines of Potient Centered Core and lmproving the dellvery of
Traditionaland Ltfestyle Medicine in Canada.
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The Morltlme Wlage ls on the omer of Hwy 7Ol & BlockPoint Road. The Refr,ll cr,mplexwill indude a Community Fontrels
Ma*et ond Sounnin wlth lndlgenous Art
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PUASANT HARBONMARINA & RECfiIATION @MMI.IHITV
Mort Importenuy. Iriesta0erflroo 6rptJ, Eon,Ewfronm{nfdl5la*md Dwetoper {or tl'g Land. Whar ttrls mennr i5 rhar
our pregrgmsfordesigns.utlli.sthE formuh futtregvfuEa Bnil ollgtacy lnto'the f*bric of Pleasant Harbor Marina &
fiafireitlan (pmrnunlty.
It is lrnport,alt that thc Gommufllty of lefferson County undentands that the rertoratton ol tho lands, wlll provide i
sourcesf odu€tlonfurthacounty gs a detnonrtratlonof honr to cult{mtoleaderrhtp olderrolopment for conrervarton
ffic hcilthy heating:and Godiltgsyilttr{tqf GeOthmtrel Grountl Source ulll rerlsr the u:e of hydrocarbons ar a
tdllltv.
Thecontouilngofthelandurillfrohlbltrun-off{tumthepropertx. Surf}cereteotionwilloccurlnstongepondsa
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a Atthe request of the PortGamble $Klallam Trlbe, the Keftleswill remain and become a registered historic site
based on tribal data fur sacrcd grounds. The Tribe will agree to develop these land arcas in collaboration with
safety, beauty and slgnage fior pubic viewings.
The Aquifer is unique as the fresh water floats on sea water. Careful consideration by all users In terms of
proper well locations is requlred for monitoring the aquifer. Pleasant Harbor Marina as antended to replace
through infiltratlon more fresh water than is removed through our permit.
The lighting has been deslgned to accommodate a dark-sky impact on the environment.
In agreement with the US Navy, Pleasant Harbor Marina will not sellAvlation Fuels, and will not allow Seadoos
on the Harbor and will assist the Navy by dellvering messages and lectures on the sensitlvity areas required for
US Security.
The Pleasant Harbor Marlna area will be monitored for pollution.
The Highway 101and Black Point Road will not exceed the maximum loadsfor its intended use and design due
to traffic to and from Pleasant Harbor Resort Communlty.
Construction standards wlll be substantially utilizing non-combustible materials.
Less than 12 percent of the land being developed wlllbe lmrervious.
Appliances and Fixtures will exceed Washington State standards for water and energy rccommendations and
code compllance.
Pesticides and Fertilizerc are programmed to utllize natural products rc that the need for Nitrates and
Phosphates are not required. The sensitive Clam and Oyster Beds will not be impacted negatively by Pleasant
Harbor Marina & Recreation C.ommunity.
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Torcono Resqt is o very unique Moster Plonned Resort Community in Phoenix - Sr;ot8;dole Arizono.
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Dr. M. Garth Mann - CEO, The Statesman Grcup
Garth Mann's career has strirddled many venues, from practicing as an Oflometrist at the Lake
Bonavista Medica! Center, to developlng Medlcal and Senlor Centers, and Active Adult
C.ommunitles in Canada and the US.
Dr. Mann loves to be active and enfoys amenftles that are useful and are an attraction to
developing future properties and encouraging potential prospects who want to live in a
Statesman Community. 'ltlith the right omenities, Sports ond Finess wtth Wellness Tourism
orc wonderful for lomily involvement ond enteftolnment as well as engaging the communitf , sr,ys Garth.
The darelopment and management team have sustaaned the Statesman Group as one of Alberta's most successful
builder/developers. Statesman ls known for being innovative with practical ldeas that can clrcumvent the economlc
conditions that cause others to retreat. The skllls and experience that is required to succeed well into the future are
the expectations of The Statesman Group.
Alana M. Mrnn - Executlvo Vlce Presldent and Genenl Manager - USA, Thc
Stat$man Group
Alana Mann acquired a Bachelor of Science D,egree from Universlty of Memphis in 1994 while
attendiry University on a full scholarship representing the Women's Golf Team. Ms. Mann
began full-time employment for the Statesman Canadlan Corporatlon as the General Manager
in January 1!196.
!n 1997, oomparry plans for the Senior Care Developments expanded to the United States necessitating the transfer of
Ms. Mann to Phoeni,$ Arizona, Since coming to the United States, Ms. Mann has been responsible for the start-up of
the US Corporate Office and all operations involved. Responslbilities include acquisitlons and development of new
propertie+ managing of the day-to-day operations, implementation of US Corporate pollcies and procedures
maintainlng corporate reports and forms, human resource compliance, overseeing sales and marketing efforts, and
working with financhrs in developing project pro-formas and banklng solutlons.
Jeff Mann - Dlrector of Constructlon, The Statesman Group
Mr. Mann gr€w up as part of the Statesman 6roup and has contrlbuted to all aspects of
numerous developments and successful growth of the buslnesses for over 15 years. He currently
oveEees the construction of thousands of multifamily units throughout North America. Mr.
Mann has comphted numerous lndustry construction, project management and safety courres.
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Builderc lnstitute Master Bullder courues.
While at Deloitte & Touche, Mr. lngalls was an advlsor to numerous prominent public and private real estate
corporations. Since irlning Statesman, Mr. lngalls has managed all financial detalls for numerous ventures invohing
multifamily condomlnium & senior housing construction, land development, resort development & operations, and
condominium corporation operations comprising hundreds of mlllions of dollars.
Morgan Tlngle, LLB., MBA- Genera! Gounsel
After graduating from the Univercity of Alberta with a Bachelor of Laws and a Masters in Business
Administratlon, Mr. Tingle practiced with Canada's largest national law firm before pursuing his
own law practice focused on realestate development and corporate securities and finance.
Mr. Tingle has advised many clients through the real estate development process and has acted
as both legal counseland developer. Mr. Tingle's practke alsofocused on structuring both equlty
and debt financings on behalf of public and private companles alike. At Statesman/Manor Village, Mr. Tingle ovensees
al! legal operations for the company as well as paftlcipatlng on the Senior Management team In directing Statesman's
developments from concept through construction to completion.
Brad Lohman, VP Operatlons - The Statesman Group, The Manor Vlllagc
Mr. Lohman first graduated wlth his Registered Psychiatric Nursing Dlploma from the
Saskatchewan lnstitute of Applied Arts and Schnces in 1992. Since graduating with his dlploma,
Mr. Lohman has acqulred his Bachelor of Nurcing Science (Hons), and Masters of Nurslng/Health
Ad m inlstration from Cha rles Sturt U niverslty, Austra lia.
Mr. Lohman has held a number of Program Development and kadershlp roles over the counse of his 24 year career.
ln his current Vice President of Operations role at the Manor Village Life Centers tn coordinates, plans, implements,
monitors, directs and araluates all aspects of operations lncluding supervislon & suppoft. He also ensures that each
senlor community meets financlal expectations and malntains hlgh Resldent and hmily satisfaction.
Jamie McArthur- Markctin6 Statcsman Group
Mr. McArthur graduated with a degree in Human Kinetics - Sports Administration in 1991. For
almost 23 years, he was involved wlth the plannin6 designlng and operataons of Sports & Wellness
facilities throrghout Western Canada. His role has typlcally been to focus thc various aspects of
planning and operations towards the overallvision of the project ensurlng that every stakeholders
mission ls achieved and maximized through the process. With a strong understandlng of budgets,
stratedc plans, and operational work-flows, Mr. McArthu/s role is to ensure thatthe planning and
operatlons are aligned with the vision, and these congruencies are communlcated to stakeholders & the public at large.
t_8PTTEAMY }I iH
lGvin lngalls, C,A. - Chlef Flnanclal Clfflccr, The Statesman Group
Mr. lngalls graduated from the University of Glgary with a Bachelor of Commeroe and obtained
his Chartered Accountant designation with Deloitte & Touche ln 1995. Prlor to joining the
Statesman Group in 2003, Mr. lngalls was a Senior Tax Manager wlth Deloitte's real estate group
and a graduate and teacher for the Gnadlan lnstltute of Chartered Accountants ln-Depth Tax
Courses. He has also completed the Gnadian Securitaes Course and several Professional Home
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PRO'ECT RANOilAI.E & OVERVIEA'
PTEASANT }{ARBOR MARINA & BECREATION COMMUNIIY
Prlrratefubllc Ventures am ,bscnrnlng the ;new NORM In tleveloping needed -GREf.ld" arnenitier for benefitting
cqmmunilles. lnlheraseofJeflersonCcunty, thepmc*ssoldernloplngneededemenitlescanbeeffectivelyplanned
to not heve sny capital rirk to the varlous lEvels ol governmerrt.
Thh recrealional area hrs a paorrlatiun ttr.'rt expandt try atmr rch ar ttn-told fur 8O to g0 darlg each .lerr,
Pleasant Harbor Marina is unique, with a 300 sllp marina offering the opportunity for boating kayaking, paddle
boarding, clams & oysters & fishin6 plus a Golf Course, and an envlable year round temperature that has less raln than
most realize. However, the arca has strugghd to attract growth & employment, and as a result it has not prospered
in comparison to other similar communitles such as G'lg Harbor & San Juan lslands.
When a population base does not have a heahhy growth cycle, local businesses suffer. To sustain a communltyoutside
the usual prime 80 to 7il) days, a munlcipality requircs diversification sustainint lmportant tax net enues that are
otherwise lost to the community.
With a projected rise in the Washlngton population over the next 25 years, having qtnllty amenities ln the local area
wlll become critical ln keeping youn& working families in Puget Sound communities. Wthout such recreation
opportunltles, these families will find themselves migratlng towards areas that offeryear-round employment.
RcgionalForecast zot4^ 2oso zo3o 2o4o
Population: g,8g5,45o 4,t68,267 4,58,589 4,goz.,r14
Households: 1,5o9,r82 \725,594 t,9o6,o76 2,ro7,Vs
Total Eurplgment: 2,061,000 2,291,ooo 2'49g,ooo er983,ooo
^2014 Values are edimat6.
Sourcae: Office of Flnandal Management, PSRC QCEW Databaso and PSRC Macroeconomlc Forocast
An indicator of sustainablllty can be measured through real estate values, where a real estate asset either appreclates
or depreciates in value over tlme. (Depreciation occurs and is defined as, "lf the value of rcal 6tate does not
appreciatc oyer a 2-3 year time frame, the prcperty has deprclated').
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ENABTING COMMUNITIES TO PROSPER
A number of studies eramining wlry communities trow and prosper, have shown that there is a commonallty of
factors that contrlbute to sustainabllity for healthy growth and economic s'tability.
r A Stable Employment Base to Sustain the Family Unit
o A Pro-Active Local Gorrcrnment must recognize the need for heatthy grofih
r The Vislon to Create Value ln a Community to Attract New Growth.
r A Combined effort of Prlvate and Public Partnerships wh'rch benefits all Partles.
o Amenities that Retain the ResHents to Stay & Support their Communlty with a Sense of Pride.
MEETING THE NEEDS OF A FAMITY COMMUNITY
What many communities have proven, is that where the young peoph go to be engaged, Is where the famlly follows
lncludlng the grandparents.
. Young people need and wantto be eryaged and actirre.
o Parents want their chlldren to experience as marry actlvities as possible, in order that their chlldren expand
their horizons for their futures, including good frlends and posltive influences.
r Grandparents lwe to watch their grandchlldren develop new skills and to coach thelr grandchlldren so they
are fondly remembered.
succEss sroRtEs
While every community ls unique, and offers its own challenges and
opportunities, we can still learn from the successes of others who have faced
simllar challenges. Amongst many other inltiatives, the communlties of Gig
Harbor & San Juan lslands have embraced the demand of the local resldents
to offeryear round recreational and community opportunities.
Addltionally, these centers continue to attract vlsitorc through recreatlon in
terms of Sports Tourlsm and Medica! Heahh Rejuvenation which then
contribute to amenity migration as well as family vacations.
Gig Harbor
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FINANCING A PRIVATE.PUBUC RECREANOil CENTRE
Statesman Group dedhates +l- 30 acres of Prlme
Parklands to accommodatc both lndoor and Outdoor
Recreatlon Center.
o State of Washington land Grant of S9.25M. State Finane Aufiority to release Munlclpal
Bonds providing low-interest tax exempt status
to support infrastructure
o The SZe.SfU is a loan rcpald after 7 yearc
Engaglng ttre Communfi plus the Polltlcal Will:
The Recrcatlon Center is 158,000 square fuet.
School of Brinnon & Quilcene functional beneft
Educational theatrc
CommercialStore & Sports Bistro
The Lounge (lndoors & Outdoors)
Change rooms & showers
Chapel, Confu renceflIttedding Centre
Family DisoveryCentre
Statesman Group of Arizona develops and pays for 208
one, two & three bedroom vacation lofts wtth 9 foot
ceilings orerlooking the Sea Waters & Forest.
a The vacatlon lofts will be constructed over the
Recreation Centle to ac@mmodate Sports &
Heahh Tourlsm. These offer the advantage of
providing accommodations for wem'rght travel
& cost savings through sharing a multl-use
structure.
Furnlshed Vacation Sultes will be sold to
investors, and operated by statesman as the
Proper{ Manager. The Owner/Property
Manager share revenues after expenses 60/40
respectfully. Ar ma na ging the Recreation Crntre
produces minima! net re\renue, the Vacatlon
Suites will prwide an offsetting profit center
owned by Ttre Statesman Group.
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PTEASANT HARBOR RECREATION CENTER
The ldeal location fur a public Recreational Center should feature the view of the prime attraction to the area, "the sea
waters of Hood Canal". lmportantly, there is space for activities such as hiking and mountain biking and with our
proxirnity to a number of schools, chlldren and their families will beneflt from these amenities.
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INDOOR:
o lndoor Soccer, Volleyball, Basketball & lacrosse Recreatlon court
o lrdoor Pickle BallCourts that are also useful for MartialArts & Dance Tralnlng
o lndoor SPA-Health and Exercise Center for Refuvenation PLUS
o lndoor & Outdoor large Pools & Slide for Entertainment and Enhancing Swimming Skills
o A series of Rock Climbing Walls and the Avatar Roller Coaster Zipline
o A BISTRO that provides free Saturday Morning Cooking Classes for Gluten LITE cuisine that is both healthy
and dellghtful.
o Educational Convention Center providing Seminars to support Sports Tourlsm & Medlcal Health
Reluvenation.
o Wedding & Conference Facilities, lncluding a chapel.
o Various Allled Health Services
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