Parking lot owner fails city code

The developer of a parking lot on the site of several demolished historic buildings has failed to meet city codes for construction, drainage and safety, but has reached an agreement with city officials to fix the problems.

Spokane city officials said last Friday that property owner Wendell Reugh was being issued a temporary certificate of occupancy, but he must complete the project according to city code, or risk having the city tap into a Reugh line of credit to get the work done properly.

Reugh became a controversial business figure after demolishing the Rookery and Mohawk buildings on Riverside Avenue at Howard Street last year and the Merton Block building at Sprague Avenue and Howard in 2004. Several smaller buildings along Sprague Avenue on the same block were torn down prior to that.

Reugh had failed in his own plan to redevelop the properties, and then was unable to sell them to another investor for a combined historic renovation and new development. His asking price was about $4.75 million.

At one point in 2005, the City Council voted to get involved in finding an investor for historic redevelopment, but that effort failed in spite of pressure from members of the public, including the Spokane Preservation Advocates organization, to save the historic buildings.

The controversy caused the council to adopt an ordinance outlawing demolition of older buildings downtown without a project to replace buildings. The idea was to stop demolitions for surface parking lots such as the one being developed by Reugh and currently under scrutiny at City Hall.

Theresa Sanders, city director of planning, community and economic development, said the temporary occupancy permit was issued after Reugh assigned a bank line of credit as a guarantee that the lot would be completed according to code.

He must submit a detailed drainage plan to City Hall by Feb. 1, or the city will start doing the work required for satisfactory completion and use his line of credit to pay for the work, Sanders said.

If the plans are submitted by Feb. 1, then Reugh would have until June 1 to complete the job, she said. Any work remaining after June 1 will be done through City Hall on Reugh’s line of credit, she said.

“He is required to do the remaining work,” Sanders said.

A wall on the adjoining Fernwell Building must have bricks and cables secured so that they don’t pose a safety hazard; a top rail is required on a decorative wall around the lot; additional trees must be planted in the landscaping; and stormwater infiltration areas must be completed and planted with grass, Sanders said.

Parking spaces next to the Fernwell Building are being cordoned off until safety issues are resolved, she said.

The tree plantings were not done as specified in plans initially submitted to City Hall, Sanders said.

Sanders declined to speculate on why the trees and other work did not match plans submitted to city officials during the building permit process.

Until last week, the city had declined to issue a certificate of occupancy because of the failure to meet conditions for the project, she said.

Leaders in the Downtown Spokane Partnership had been aware of the problems and had talked with city officials about it, according to one of the group’s board members.

A telephone call to Reugh’s office seeking comment on the problems was not returned.