Post Falls Growth Leaves The Fast Lane Not Everyone Disappointed By Slowdown, Micron Decision

Breathing room.

That’s how Mayor Jim Hammond and others here describe the dip in an economic surge that has spanned the last four years.

Signs that Post Falls’ economic momentum is waning are both tangible and psychological:

A building boom that peaked in 1993 is petering out.

The city’s hopes for two major commercial developments have vaporized. Post Falls last week learned that Micron Technology Inc. will not build its expansion plant in town. A proposed megamall, International Expo, is being scaled back dramatically.

This week, scores of Post Falls workers went off the job because of a Kaiser Aluminum Corp. strike, which affects the Trentwood plant just a few miles west of town across the state line.

“I see this as settling down to a more manageable growth rate,” Hammond said, after delivering his state of the city address on Tuesday. “We’re going to continue to grow bigger and continue to grow a stronger economy.”

Although disappointed by Micron’s decision last week, Hammond told Chamber of Commerce members that he and county business recruiters now are eyeing other prospects. “There are bigger and better fish in the sea than Micron … “

That may be a stretch. Micron’s expansion - now pondered for Nebraska, Oklahoma or Utah - is a $1.3 billion plant with an annual payroll of $200 million.

Regardless, Post Falls is getting a lesson in the fragile nature of an economy based in housing construction.

The building boom less than a year ago had some folks talking about a months-long halt to residential construction. Now, it seems, the region’s fickle economy may accomplish what the Post Falls City Council did not deem necessary last summer: cooling growth from red hot to lukewarm.

Those who supported the halt in construction permits are delighted at today’s slower growth rate.

“I’m tickled to death about it,” said City Councilman Gus Johnson, who unsuccessfully lobbied for the building moratorium. “It’ll give us some time to catch up. The pace we’re slowing down to is still pretty good. This city needs some breathing room.”

Johnson also is a Kaiser employee off the job this week.

While major new developments are not appearing as rapidly as in 1992 and 1993, Post Falls is maintaining its steady growth in small businesses. The Chamber of Commerce gained two dozen new members this month alone.

Also, population growth continues. However, the flow of newcomers no longer translates into record housing construction. The market was substantially overbuilt during the last three years. Plenty of homes are on the market to absorb the town’s new arrivals.

Until recently, the city had been growing by roughly 1,000 people annually, said Post Falls planner Gary Young. He expects that rate to slow this year.

“I think we’ll continue to grow at a healthy rate,” Young said. “But rather than trying to change a flat tire while going 90 miles per hour, maybe we’ll have time to make a pit stop this year.”

ILLUSTRATION: Graphic: Building boom fades

MEMO: Cut in the Spokane edition.