River Park Square Project Being Rushed, Talbott Says
Spokane Mayor John Talbott sent another letter this week to federal officials raising questions about a proposed loan for the River Park Square redevelopment project.
The letter is similar to one he sent in December, but this time the mayor added a complaint that the City Council is being “pressed” to make a decision.
Talbott mailed the letter Tuesday - a day after council members voted 5-2 to let the downtown shopping center’s developers know early next week whether the $22.65 million loan has city approval.
“My council colleagues and I are being pressed by the developer to approve the project by a vote on Monday, March 30, before all the data is in,” Talbott wrote in his letter to the U.S. Department of Housing and Urban Development.
Betsy Cowles, president of the two companies that own River Park Square, said Thursday the urgency is real.
“We’re at a point where we need to know we have the money to build the project or we don’t have the money to build the project,” Cowles said, noting that Nordstrom is set to begin construction next Wednesday.
She noted the loan has been debated in public meetings for nearly three years.
Talbott sent a similar letter to HUD in December that resulted in a meeting with federal officials in Washington, D.C., about the proposed loan.
The $110 million redevelopment of River Park Square includes a new Nordstrom store, a 20-screen cinema complex, expanded parking, and new shops and restaurants.
The proposed public-private partnership calls for HUD to loan the city $22.65 million, which then would be loaned to the shopping center’s developers.
Council members may vote on the draft loan documents before getting final word from HUD. The federal agency has given the loan preliminary approval, but a final decision isn’t expected until next week.
If HUD makes substantial changes to the agreement, those would come back to the council for approval.
At least two of Talbott’s colleagues voiced dismay at what they called the mayor’s second attempt to derail the project by raising issues with HUD.
“His goal is to kill the project,” said Councilman Orville Barnes, adding the questions are similar to a letter Talbott sent to HUD in December.
Councilman Jeff Colliton said Talbott’s letter wouldn’t change the council’s schedule.
“This letter doesn’t represent my feelings,” he said, adding Talbott didn’t tell him or his colleagues he planned to send the letter, although he did give them copies after he mailed it.
“Whether (Talbott) agrees or not, the vote’s going to come,” Colliton said.
Councilwoman Cherie Rodgers defended the mayor’s letter.
“What’s wrong with asking questions?” she asked.
In the letter, Talbott raises questions about the lack of an appraisal for the Nordstrom store and a market feasibility study for the entire project. He presses federal officials to answer his questions before approving the loan.
“I’m not trying to derail the loan,” Talbott said Thursday. “If it’s derailed, it’s because someone opened their eyes and saw that the process was flawed.”
HUD spokesman Alex Sachs said the agency was “aware of the mayor’s concerns. We have been working closely with the city on these issues.”
Sachs said he wasn’t sure HUD could respond to the questions by today as Talbott requested.
City Manager Bill Pupo said he couldn’t comment on the letter because he hadn’t read it. The city is looking for an appraiser to assess the value of the Nordstrom’s building and lease, which is being used as collateral for the loan, he said.
HUD originally asked that the appraisal be completed before loan approval, Pupo said. That urgency passed when developers pledged to fill any dollar gap between the appraisal and the amount of the loan, he said.
As for Talbott’s concern about a market feasibility study, Barnes said signed leases are the very best measure of a project’s predicted success. He added that private financing depends on solid rental agreements.
, DataTimes ILLUSTRATION: Color Photo