Officials with the city of Tacoma and LeMay Museum have resolved a dispute in their legal relationship involving the long-awaited shrine to the automobile, which will eventually be built on city-owned parking lots across the street from Tacoma Dome.
The dispute arose late last year as to whether the museum could use land for collateral. Both sides have agreed that the museum can use land donated by the city as collateral for future bank loans, under certain stipulations. One is that the museum will first have to repay loans from the U.S. Department of Housing and Urban Development. Land cannot be put up for collateral to finance commercial activities on the site, or to pay for operating expenses, repairs and maintenance.
Tacoma City Council heard an update on the matter during its Feb. 2 study session.
Museum CEO David Madeira briefly addressed the council. He denied reports in the media claiming museum officials were considering cities other than Tacoma for the project.
He also disagrees with those who claim outsiders control the museum. While some on its board are leaders in the automotive industry who live elsewhere in the United States, 17 of the 29 members live in Washington. And 90 percent of those on its executive board live in the Tacoma area, he added.
Board members have contributed about $25 million of their personal funds to the project, according to Madeira, proof that they are committed to making the museum a reality in Tacoma.
“That should never, ever be questioned. Nobody is taking this away.”
The museum has completed negotiations with general contractors, he said. Groundbreaking should occur no later than summer 2010, he added. The groundbreaking date has changed several times, but Madeira said the museum has not gone astray from meeting its obligations.
“We have never missed a deadline, we have just missed our expectations and goals.”
Fundraising has been hampered by the economic downturn but it is not dead, according to Madeira. Nationwide, donations to museums were down 10 percent in 2009, he said.
“You look around and the environment is brutal.”
The council is scheduled to vote on the latest agreement on Feb. 9.
Councilmember Lauren Walker expressed relief the two sides have found common ground.
“This is great to see. I look forward to this agreement coming forward.”
“We have always supported this project and we continue to do so,” Mayor Marilyn Strickland remarked.
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