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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Parking Meters May Fund Garage Meter Money Would Be Used As Last Resort If Revenue From Project Couldn’t Cover Debt

Money collected from Spokane’s parking meters could be used to help pay for a parking garage the city proposes to buy from a private developer.

City officials say the parking meter money - which is designated for street repair - would be used only as a last resort if revenue from the River Park Square parking garage couldn’t cover the debt.

The parking meter money totals about $1.6 million of the city’s $11.6 million street repair fund.

“Basically, we are pledging 12 to 15 percent of the revenues from the street fund,” said Pete Fortin, the deputy city manager.

The city proposes to buy the $29.79 million River Park Square garage in 1999 by issuing revenue bonds, which would be paid back over 20 years with parking fees from the garage.

No tax dollars would be used to pay for the garage.

Details of the deal are outlined in documents the city released late Friday. The documents are available for review on the fifth floor of City Hall.

The parking garage is part of a $100 million proposed redevelopment of River Park Square. The project would include a new Nordstrom building, 24-screen cinema, glass-enclosed atrium over Post Street and numerous shops and restaurants.

Under the proposal, garage parking fees would pay for rent on the land where the garage sits, maintenance and repair of the structure, bond debt and a reserve account totaling one year of the debt payments. The reserve account is needed in case of a bad revenue year.

If the reserve account falls short, money collected from parking meters could replenish the account, says the proposed city ordinance outlining terms of the garage purchase.

Parking meter money is designated for street repair, including filling potholes, and plowing, sanding and sweeping the streets.

In September, Spokane voters rejected a $37 million bond measure that would have raised money to repair city arterials. The measure failed with 62 percent of voters saying no.

A 1995 economic study commissioned by developers shows the redevelopment project will create 2,800 jobs, contribute $2.5 million annually to the city’s general fund and generate $50 million in wages.

The developers and other project supporters say the redevelopment is essential to keep Nordstrom downtown and revitalize the city’s core.

River Park Square is owned by Citizens Realty Co. and Lincoln Investment Co., affiliates of Cowles Publishing Co. which owns The Spokesman-Review. Betsy Cowles, president of Citizens and Lincoln, says the project can’t survive without the city’s help.

Mayor Jack Geraghty, who supports the project, said if the new River Park Square is not built, the city’s commercial tax base will erode, shifting a higher tax burden to homeowners.

, DataTimes MEMO: This sidebar appeared with the story: WHAT’S NEXT? The City Council will hold a public hearing about the proposed parking garage purchase at 6 p.m. Thursday in council chambers.

This sidebar appeared with the story: WHAT’S NEXT? The City Council will hold a public hearing about the proposed parking garage purchase at 6 p.m. Thursday in council chambers.