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Annexation agreement reached

Businessman Duane Hagadone has agreed to pay Coeur d’Alene $155,800 in annexation fees in addition to donating a boat slip at his proposed Blackwell Island marina.

The Coeur d’Alene City Council will vote tonight on whether to approve the Blackwell Island annexation agreement, which would end nearly a year of negotiations. In August, the council approved adding the 78 acres to the city limits. Yet, the annexation won’t become final until the agreement, which covers annexation fees and other conditions, is approved.

The property includes a portion of the man-made island and some of the water that stretches into the Spokane River and Blackwell Island channel.

Because some of the acreage is covered in water, the city had difficulty calculating the annexation fee, which generally is based on the number of dwellings allowed on the property. The fees are intended to offset the costs the city incurs in providing police, fire and other services to new developments.

Deputy Attorney Warren Wilson said Hagadone agreed to pay $155,800 for the part of the property where Hagadone wants to build a “village-style” business park that would include condos, shops and offices.

Hagadone also will give the city a boat slip for an emergency services boat. Wilson said the slip likely is worth about $100,000. Hagadone can lease the slip until the city obtains a fire or police boat.

Finance Director Troy Tymesen said there are no plans to buy a fire or police boat, but it could become a need someday.

Hagadone also will have to pay all sewer and water hookup costs, impact fees and building permit fees.

The contract calls for Hagadone to pay for a backup water system and a study showing the future need for city sewers south of the Spokane River. Wilson said Hagadone will have to pay for construction of the sewer lines and lift station needed to serve the marina and business park developments.

Hagadone also will build a public bike and pedestrian path that will loop from Marina Drive along the waterfront.

“That end of our town will be shined up because it’s pretty dilapidated at this point,” Hagadone spokesman John Barlow said Monday.

Barlow said he doesn’t expect the annexation agreement to become as controversial as when Hagadone asked the city to annex the 273 acres that includes The Coeur d’Alene Resort Golf Course. The council approved the annexation agreement in April 2004 over the objection of hundreds of residents. More than 1,300 people signed a petition asking the council to include a provision in the annexation agreement to guarantee public access to Sanders Beach. The city also waived $150,000 in annexation fees.

To expand the Blackwell Island marina to allow larger boats, Hagadone is asking for state and federal permits to dredge the channel.

The U.S. Army Corps of Engineers wants additional tests to determine how much of the soil is contaminated with heavy metals.