Q: Mr. Federal Way, I’m concerned about the funding for the soon-to-be-built Performing Arts and Conference Center. The city has identified several funding streams, which is great. But I’m troubled by all the grants and funds the city hopes to get their hands on, including the $7.2 million of federal funding. What is this federal funding and what are the city’s odds of obtaining that kind of money?

A: Mr. Federal Way enjoys swanky hotels and casinos once in a while, especially during special getaways with Mrs. Federal Way. But he is not too much of a betting man outside of the casino. Mr. Federal Way is unwilling to put his money on the red or black to guess whether or not the city will be awarded the money.

However, the good news is city officials enjoy roulette. They have placed $7.2 million worth of hope on the black and are holding their breath to see where the ball falls when the wheel stops.

Their gamble began in 2013, when the city began exploring a federal tax incentive program called new market tax credits. Congress established the program in 2000 to spur new investments into businesses and real estate projects in low-income areas.

Federal Way officials knew from the beginning that applying for the program would be a competitive process.

Nevertheless, preliminary discussions the city had with others familiar with the program revealed that the arts center was a strong candidate to qualify for the program. The city said it had a “better than 50/50 chance” of getting the funding and placed their bet.

The city later tweaked the arts center project in 2014 as the council approved making the project property an economic redevelopment zone. The move was meant to help the city better qualify for and thus secure the federal tax credits.

But a hiccup in 2014 delayed the potential federal funding. The city missed out on the “first tier” of 2014 funding allocations but was still in the running for “second tier” allocations. They missed that round too.

Now, the city is getting aggressive with securing the potential $7.2 million in federal tax credits this year.

And it appears city officials enjoy the swanky hotel life too. In January, Mayor Jim Ferrell, Chief of Staff Brian Wilson and Economic Development Director Tim Johnson traveled to San Diego for the Novogradac New Markets Tax Credit Conference. They rubbed elbows with multiple community development entities and pitched their arts center project for a shot at the funds.

The city is also considering a Native American culinary arts institute for the arts center, which has caught the attention of community development entities because of the institute’s potential impact in Federal Way in regard to educating the public about healthy living.

And if that’s not enough, Johnson went to Los Angeles in late April to pitch the Performing Arts and Conference Center to one of the largest community development entities that is responsible for distributing new market tax credits.

“At this conference, there is almost every CEO of banks and financial institutions who are interested in this upcoming allocation of new market tax credits,” Wilson said during the April 21 council meeting, noting that the city has identified a new market tax credit consultant and “the best legal talent” who will assist Federal Way in securing the funds.

Those consultants will get a percentage of whatever federal funding they bring in. Mr. Federal Way wonders how much of a cut they will get.

And the cost of plane tickets and hotel stays are racking up, as the city also plans two more trips during the next month to Miami, Florida and Washington, D.C. to again market Federal Way’s project.

In addition, the city has submitted nine applications for the federal funding, significantly upping the ante.

Mr. Federal Way applauds the city for pushing hard this year for the federal funding, which the federal government will allocate in mid-June.

“We’ve done a 360-degree circle on what we did last year,” said the city’s Finance Director Ade Ariwoola during the April 21 meeting, adding that last year, the city only submitted one application for the funding.

But getting back to your question — what are the odds the city will get this money?

According to the United States Department of Treasury, since the new market tax credit’s inception 15 years ago, the Community Development Financial Institutions Fund has made 836 awards, allocating a total of $40 billion in tax credit authority to community development entities.

To put that in perspective, 310 community development entities applied for allocations in 2013, requesting a total of approximately $25.9 billion. However, only 87 entities were awarded a total of $3.5 billion in funding. So only 28 percent of the total applicant pool received funding.

In 2014, Federal Way was one of 263 applicants across 44 states seeking an aggregate total of $19.9 billion in federal funding, according to the Community Development Financial Institutions Fund’s website. Only $5 billion in tax credit allocation was available for the 2014 round.

So the odds are low — certainly below the 50/50 chance the city has previously boasted, Mr. Federal Way thinks.

However, Mr. Federal Way feels reassured that the city has done many things to ensure they succeed in receiving the federal funding. And if they don’t get the money, the city does have a backup plan — albeit a more costly one — to get the funds from bonding.

Mr. Federal Way will see where the ball falls in mid-June and if the city’s efforts will be worth it, or all for naught.

Q: Mr. Federal Way, I saw during the last council meeting that a new deputy chief was sworn in. What happened to that “Top Shot” guy?

A: Indeed, new Deputy Chief Stephan Neal was sworn in on Tuesday. But Federal Way’s reality TV star has not left the building.

The History Channel’s “Top Shot” contestant Kyle Sumpter is still the city’s deputy chief. Two deputy chiefs, you say?

Neal’s promotion was part of the department’s reorganization that Chief of Police Andy Hwang proposed in the 2015/16 budget. The two deputy chiefs split the organization, by responsibility. Sumpter leads the Field Operations Division; Neal leads the Support Services Division.

Mr. Federal Way welcomes Neal in his new role and is appreciative that the sharpshooting Sumpter is still on the force to protect our community.

Q: Mr. Federal Way, I heard the city staff that are working to put together the city’s upcoming 25th anniversary celebration in June was considering some sort of a hog hunting competition. Is this true?

A: None of your business.

Got a question for Mr. Federal Way? Email mrfederalway@federalwaymirror.com