Dumas Bay Centre is tentatively scheduled to close its doors this fall.
The conference and meeting location at 3200 S.W. Dash Point Road in Federal Way is considered a beautiful facility, but is costing the city too much to keep open, city manager Neal Beets said during an April 28 Finance, Economic Development and Regional Affairs (FEDRAC) committee meeting.
The 2009-2010 budget was revisited and Beets announced his recommended measures to avoid a budget gap at the meeting. He suggested the council close Dumas Bay Centre as early as September or as late as November due to the fact that the city annually expends more than it makes from the property’s operation.
“I’m not proposing a new use,” Beets said. “I do think we need to stop the bleeding out there.”
Dumas Bay Centre was purchased by the City of Federal Way in 1993, and was converted to the present-day conference and retreat facility. The building features a banquet area and large outdoor lawn overlooking the Puget Sound. The building is available for rent by public and private parties, and can accommodate about 90 individuals. The adjoining Knutzen Family Theatre would remain open under proposed management by Centerstage Theatre.
The city uses the facility for its annual Writer’s Retreat. Service groups and non-profits, such as FUSION and the Federal Way Symphony, also hold annual events and fundraisers on the grounds. The location is ideal for weddings. A catering service is provided, and overnight room and meal packages for guests start at $76.25. The facility is also available for day use.
Tucked off Federal Way’s main arterials, the facility’s outdated features are setbacks when it comes to balancing revenues and expenditures. Dumas Bay Centre was purchased with the notion that it would operate at a break-even point, city spokeswoman Linda Farmer said. However, that has not always been the case.
The money
Dumas Bay Centre is facing an operating loss of $100,000 or more for the 2009-2010 season, Beets said.
Through March, it was budgeted to generate revenues of $122,000, but is falling short of this by $12,000 (9.6 percent), according to the city’s March monthly financial report found in the April 28 FEDRAC packet agenda. The centre’s year-to-date expenditures were budgeted at $128,000, but have already reached $143,000 — that’s $15,000 (11.8 percent) beyond budget, according to the same information.
The centre has operated at a loss periodically throughout its history, Farmer said. There were years in which revenues outweighed expenditures, but since 2005, it has ended with a negative fund balance, she said. Expenditures far outweighed revenues in 2008.
Dumas Bay Centre was purchased for $2.75 million, with money coming mostly from bonds, grants and state funding, Farmer said.
‘You name it, it’s got problems’
The setting is majestic, but the structure needs work. In late 2007, the city hired Johnson Consulting company to evaluate Dumas Bay’s productivity and worth, and determine if the building could feasibly house a performance and conference center. The group concluded the building had too much existing damage and would need to be rebuilt if it were to serve in this capacity. The structure’s wood frame is warped and sagging, and appears to suffer from water damage, according to the feasibility study. The windows are single pane and asbestos is present. The ventilation, electrical and mechanical systems do not meet code standards, according to the study.
“You name it, it’s got problems,” Farmer said.
The centre’s upcoming fate will be determined later this month by the city council.
“(City council) can go anywhere with this,” Farmer said. “There are no guarantees it will actually be closed.”
If the council shuts down the facility, there will be plenty of community involvement and conversation regarding its decision, she said. The closure would cause four employee layoffs and would be on a temporary basis. Re-opening Dumas Bay Centre would be re-evaluated once the city’s revenue streams improve, Farmer said.
