Council Moves Ahead On Redevelopment Unanimous Approval Of Resolutions Moves Downtown Project Closer To Reality

Following another contentious hearing, the Spokane City Council unanimously approved two resolutions Monday that bring a downtown development project closer to reality.

“Hopefully, 1997 will be a year of celebration and the city of Spokane will have a multimillion-dollar asset,” said Betsy Cowles, president of the companies that own River Park Square.

River Park Square is scheduled to undergo a $100 million redevelopment, with construction of a new Nordstrom store, a 24-screen cinema, and numerous shops and restaurants.

Developers say the project wouldn’t happen if the city didn’t help with the financing of the shopping center’s parking garage.

One resolution approved by the council allows a non-profit corporation created by the owners of River Park Square to issue revenue bonds for $30 million and use that money to buy the center’s renovated and expanded garage.

The garage then would be leased to and operated by a public development authority created by the city.

The project has been lauded by supporters as the catalyst which will prevent further decay of the downtown core.

“I’ll tell you what, I want you to go for it,” Spokane resident Jack Kinsey told the council. “If Spokane went down the tubes, like Tacoma, my taxes would go up.”

Opponents labeled the project “corporate welfare” and accused the city of not focusing on essentials, such as repairing roads.

“Think of the entire community, not just what’s going to benefit a small group of people,” said Ron McArthur, a Spokane resident. “Is this really the project the city should imperil its funds over?”

A 1995 economic study commissioned by the developers says the project would generate $3 million annually for the city’s general fund, create 2,800 jobs and $50 million in wages. No tax dollars would be used to finance the project.

The 3-1/2-hour hearing drew a nowfamiliar group of people who have spoken for or against the proposal several times in the past few months.

Supporters outnumbered opponents two to one.

For the developers, the tone was one of urgency Monday night. Three people representing the developer stressed that if anything else delays the project, it will fail.

River Park Square is owned by Citizens Realty Co. and Lincoln Investment Co., affiliates of Cowles Publishing Co., owner of The Spokesman-Review.

“I believe their schedule is at risk,” said Bob Ferguson, a consultant to the project. “Any indication at this point that the parking provision cannot be met would surely cause concern with Nordstrom.”

“We need City Council approval tonight and we need all city action finalized by the end of the month,” Cowles said.

Spokane is not alone in pursuing public-private partnerships to revitalize urban cores, said Mike Adolfae, director of community development.

U.S. Housing and Urban Development is loaning tens of millions of dollars for retail projects around the country, Adolfae said.

The second resolution adopted by the council Monday expresses support for the project and says the garage will be given to the city in 21 years, when the revenue bonds are paid off.

The city also has agreed to pledge parking meter money to pay for maintenance, operation and ground rent for the garage, if revenue generated from the garage falls short of covering those expenses.

The parking meter money would be a loan, not a gift, to be repaid with garage revenues during more profitable years.

One final council action is required, before the project can go forward. That action, consideration of an off-street parking ordinance, likely will happen in two weeks.

, DataTimes