Franklin Co. takes back full use of HAPO Center. It cut a deal with former contractor

For the past two years the HAPO Center has been only half a facility, after a sports program moved into the arena portion full time.

That left HAPO management struggling to sell potential trade shows and events at the facility, since the contract gave the sports contractor control of the arena, other than two major trade shows with pre-contracts.

It also cost the Tri-Cities their indoor football team because they were unable to coordinate weekly games with Clubhouse Sports, according to a social media post announcing the team’s departure from the HAPO Center in 2022.

Now the HAPO Center’s owners, Franklin County, is cutting the company a deal to help them find a new home. They won’t pay rent for the remainder of their time in the HAPO Center and will leave after tournaments in June, cutting their contract short by about six months.

The savings of $10,000 a month from March through June is intended to help the company transition to a new space, County Administrator Mike Gonzalez told the Herald.

County commissioners unanimously approved the contract update earlier this month with no discussion.

It also will allow the county to begin work on that portion of the center, including an estimated $6 million air conditioning upgrade to open it up year-round.

The HAPO Center has about 85,000-square feet of space, but just 39,000 square feet in the exposition hall and the banquet rooms have been available for events over the past couple years.

Because of the lack of air conditioning, the arena did not see much use after permanent concrete flooring was installed in place of the old dirt floor.

That led to former county officials signing an unusual, modified event contract with Clubhouse, giving them full use of the arena year round.

Typically event centers only rent out on a short-term basis, for a week or weekend at a time.

The terms allowed the organization to add sports fields, such as artificial turf for football practice and temporary basketball courts, but they had to be cleared out for the Sportsman and Family Expos and the Rush games. They could also subcontract the space out.

The county has since changed the way they manage contracts for the center, no longer using the modified event contracts that were set up for organizations like Clubhouse and the Tri-Cities Amateur Hockey Association.

“It gives us the opportunity to work on the HVAC system without any distractions and allows (Clubhouse) to invest in other properties they’re looking at,” Gonzalez said.

“We miss out on ($10,000) a month, but at the same time it does open up a world of opportunities for us. Things like concerts when it’s not so hot and 40,000 more square feet to market.”

The writing has been on the wall for Clubhouse for some time, with commissioners signaling their intent to open that space back up when interviewing potential management teams to take over the facility last summer.

Clubhouse owner Jeff Carvo made a joint pitch with International Promotions by David Cortinas, but the county ultimately went with Idaho-based Harris White Leasure group.

HWL is currently working on a long-term master planning process for the entire center, including exploring new uses for the spaces and expanding offerings. The company is looking at potential improvements to expand uses for the hockey rink as well.

They manage a variety of event centers across the county, as well as several hockey arenas and various large-scale annual events and festivals. The Harris portion of the team also contracts services for military base and government building commissaries.

Larry Leasure, of White-Leasure, oversees the hospitality portion of the contract.

He has Tri-Cities ties dating back to the 1990s when he first tried to bring a convention center to the area. His company also built the Colonade shopping center on Canal Drive in Kennewick, according to Herald reporting at the time.

HAPO upgrades

Franklin County used $6 million in American Rescue Plan funds to replace the HVAC system in the exposition hall in 2022, and they expect the arena side to be comparable.

The county recently secured $9.2 million through local partnerships and state lobbying efforts.

That will leave $3 million for parking lot upgrades, exterior touch ups and more. Gonzalez is also hoping they have a line on another $3 million in federal funding that will allow them to use the center to support the region during emergencies.

The parking lot is a major priority, becoming a frequent discussion point at county commission meetings. They hope to be able to do repair work before the condition of the asphalt deteriorates to the point where it needs to be completely replaced.

The HVAC proposal bidding process closed this week. Commissioners are expected to award the bid in June.

Pasco partnership

The county is also working to renegotiate its partnership with the city of Pasco.

The initial 30-year agreement between the city and county expired in April, and they’ve agreed to extend the current agreement through the end of the year while they work together to determine what the next phase of their relationship looks like.

The city currently splits funding for the center, but does not pay for capital improvements. The city has contributed nearly $2.3 million toward the facility’s operation over the last decade.

The county is hoping to see that become more equal going forward. The original contract states the city can buy in at a 50% ownership stake for $1.

The city also has the option to pull out completely or to buy the HAPO Center.

Pasco told the Herald in a statement that they’re still committed to the partnership, and are beginning a master planning process with the county in June.

The city previously said they hope to focus on a collaborative approach that will serve the best interests of both the residents and businesses of Pasco and Franklin County.