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June 5, 2010 in City
City to buy warehouse for police evidence
Voters nixed tax increase for building
Fifteen months after voters rejected a tax to pay for a new police evidence building, city officials say they can open an improved facility without new taxes.
The city announced this week plans to buy a warehouse in East Central Spokane and convert it to store police evidence by borrowing from the city’s main reserve and investment fund.
Last year, voters turned down an $18.5 million bond for a new $11.5 million police evidence building, among other projects. Under the city’s new proposal, Spokane will pay $2.8 million for the Great Floors warehouse at 4010 E. Alki Ave. and $600,000 to upgrade the space.
At the same time, the city plans to purchase the Gardner Building, 1427 W. Gardner, for $1.8 million to house the Police Department’s domestic violence and special investigation units. The city has leased the building since 2008, but hasn’t been using it. Purchase of the space also was included in last year’s failed property tax proposal.
Attempts made to reach Mayor Mary Verner were unsuccessful on Friday. In a news release she called the proposal a “no-cost solution to a potentially huge liability.”
“This is the kind of thinking that our citizens are demanding, especially during this economic downturn,” she said.
But former City Councilman Al French criticized the purchase of the Gardner Building, saying it “makes no sense” to buy office space at a time of layoffs.
“When they’re trying to downsize government, that’s a contradiction,” said French, who left the council after two terms at the end of last year.
Under the new plan, which needs City Council approval, the city would repay its own investment fund with interest over 20 years. The city places most of its reserves and other money in an investment pool. The fund includes money saved for upcoming wastewater and other projects and totals about $300 million.
Chief Financial Officer Gavin Cooley said the city can make annual payments on both buildings using the savings from moving the two police investigation units out of leased space at Monroe Court, an office building near the Spokane County Courthouse.
“Knowing that the taxpayers were not going to support a tax increase, we asked, ‘How else can we do this?’ ” Cooley said.
Spokane police have argued for several years that its evidence building, owned by Spokane County, is full and in need of significant upgrades, including a sprinkler system. The city oversees evidence storage for it and the Spokane County Sheriff’s Office.
The Great Floors purchase allows the city to vacate the county-owned building near the courthouse as well as a downtown warehouse on State Street where vehicle evidence is stored.
Councilman Bob Apple, who opposed last year’s tax proposal, said he’s glad administrators abandoned the more expensive evidence building. He added that it’s better for the city to move from rented space.
“I think we’re better off with our own facilities,” Apple said. “It pencils out for the long term.”
Although the total cost of the project is much less than a new building, the city is paying more than the assessed values for both buildings.
The Great Floors warehouse, which was built in 1978, is valued by the county assessor’s office at $1.5 million. The Gardner Building is valued by the county at $1.3 million.
“In my experience that’s really not all that unusual to have a difference between assessed value and market value – particularly on commercial property,” said Rick Romero, the city’s internal auditor.
The city began leasing the Gardner Building for its potential new municipal court in late 2008, but instead kept the court at the Public Safety Building; the Gardner Building remained empty.
Dr. Marcus DeWood, who owns Monroe Court, has been lobbying the City Council to stay at his building. He questions why Verner allowed the city to lease Gardner before knowing if the city would use it.
The city has paid more than $200,000 a year to lease Gardner and for other expenses of the structure.
“You never lease a building unless you have a use for it,” DeWood said. “Now she has a building and she has to do something with it.”
At his final City Council meeting last year, French was sharply critical of the administration’s decision to keep the Gardner Building. The lease should have been allowed to expire when the city decided not to put courts in the building, he said.
French, who has received contributions to his current election campaign for Spokane County commissioner from DeWood and DeWood’s wife, said leasing space would give the city more flexibility – especially in tough times.
“I don’t care if it’s Marcus’ building or anyone else’s building,” French said. “I’m talking about a business plan.”
DeWood says he offered to freeze the city’s rent at Monroe Court for five years and to pay off the remaining lease payments the city had on the Gardner Building. He also offered the city a deal to lease and fix the former Hostess Building, which he also owns, for police evidence.
Councilwoman Amber Waldref said the administration’s case is strong that moving from Monroe Court will save enough to allow the city to purchase both buildings.
“We have instant savings every year,” she said. “We owe it to our citizens to make sure our evidence in cases is protected and preserved.”
MAC faces angry crowd 
de3 on June 05 at 12:09 a.m.
$2.8M + 0.6M + $1.8M for the 2nd building is a LOT less than the wish list of $11.5M they started with. Hmmmmm …. padding their expenses before?
Erik_T on June 05 at 1:10 a.m.
What say you Al?
mikeln on June 05 at 4:21 a.m.
what happend to the 20 million dollor slush fund the police department had stashed away, have not heard much about that lately.
lewis8457 on June 05 at 8:03 a.m.
maybe if they actually gave people back their property after trial they wouldn’t have so much of it. they are only using half the building they are in now why not convert the whole building?
The cops get what they want where the hell is the pot hole filling crew?
liarsinnews on June 05 at 8:50 a.m.
Verner needs to be removed from office.
spokanesausage on June 05 at 10:26 a.m.
The mayor must think we are fairly dim. She has raised taxes every year in office.
If I remember right, the Gardner building had to be bought to house the court she seperated from the joint court operations with the county. Only to never use the building at cost a half million so far. More wasted tax dollars.
For the property room rather than listening to the voters or re-running a bond of just the property room, she’s going to bury it in the annual budget and raise other taxes to pay for it.
Leadership we can do without.
PS. While I’m at it, what’s up with this calendar I got in the mail with her picture on it from the water department. That little project had to cost in the hundred of thousands of our tax dollars as well.
SugarShane on June 05 at 12:36 p.m.
How did Verner ever get elected? She seems Palinesque…..
ChefGus/ John Olsen on June 05 at 5:27 p.m.
She got elected by having the Police and Fire department personel on her side…. do the math… the 8 page multicolor campaign brochure paid for by the tax payers should cause a rucus but won’t…. just the mailing costs would fund the cuts on the Libraries…. disgusting… shameful/shameless john
Dazzeetrader11 on June 05 at 6:12 p.m.
1. COP shops cut by $100 K
2. Library fund cut tremendously
3. 55 police and firemen jobs cut with drastics job loss at City Hall=poorer service and protection
4. Despite voters voting overwhelmingly against the bond, Verner does it anyway….and somebody will have to pay for the following. Verner goes against the voters after the voters clearly spoke…960 suspension sound familiar ( remember the legislation passed was against the voters choice?
5. Gardner Building is 20 K sq ft. Great fllors building for eveidence is a 60 K sq ft building. Total of 80K sq ft ( according to the assessor page. Because the City/County must use prevailing wage ( unions), everyone knows the remodel will cost minimum $100 /sq ft for remodels. The total is $8 million.
6. Cost of moving usually is $10/sq foot= another $800 K.
7. Maintnencence and repairs usually cost $20/sq ft annually= $1.6 million to operate ( Heat, Lights, janitorial, sewer and water).
8. Since Brunt’s article clearly states the CIty paid MORE than assessed value for each, add another $3 million for purchase. PLUS another $200 K lease for the gardner Building paid already for an EMPTY building.,
9. Now this must be financed….and even with a 5% interest rate , a 20 yr term will triple the cost. Look at a house purchase contract…with the interest paid on a home, usually the cost over time triples. Same with this building.
10. It will now be a 10 mile round trip distance from the New Evidence building to the courthouse…not to mention it’s further to the Garder Building. Fuel, transport time, personel costs….and this is a “green “ major?
Given that Cooley clearly states the city would lose money till year 10,
http://www.krem.com/outbound-feeds/yahoo-news/Landlord-says-City-of-Spokane-losing-millions-of-taxpayer-dollars-91873764.html
I’d like to know how this Mayor and her Council keeps their jobs….not to mention the whole Administration at City Hall.
This is adding above $20 million to the Spokane budget. Does anyone doubt the Mayor is planning to raise taxes to pay for alll this? This money just won’t appear. Somebody has to pay for it. Take it from one fund ( General Fund) and that fund or another fund must be replenished. And Apple and Waldref thinks this is a good deal for you the taxpayer?
I wonder how so. Tsk Tsk Tsk…..I wonder ….and SPokane you should too. It’s your money….and it’s your Mayor and Council who’s doing this in conjuction with the Police. I’d be wrting to the Mayor and Council protesting. Remember too, she/they went against the clear will of the people from the Bond that was defeated. It’s an “in your face” issue.
I wonder again: what exactly is it Verner’s done? One thing? Looks like the Dr offered a very good deal to the City. Verner didn’t.
Ron_the_Cop on June 05 at 6:41 p.m.
Mr. Adams,
I know you know where this money is coming from:-)
I’m somewhat sympathetic to the need for an adequate space for the police evidence facility but the voters turned down the bond request because I believe they’re dissatisfied with how the City is managing taxpayer money. Police/fire are typically put out front for cuts when there are other areas that could be paired first if in fact we need a new police evidence structure.
Mr. Adams I see you’ve already made you’re short and to the point comment, “Verner needs to be removed from office.”
FYI Mr. Adams went to City Hall a while back to meet with Mr. Dunivant, the City’s Budget Director. Mr. Adams asked me to go with him. Mr. Adams wanted to check on the status of an insurance settlement of some $11 million dollars that the City received on the Northside Landfill when it was designated as a Superfund Site. This settlement is kept in the Solid Waste Reserve Fund which is not generally reflected in the Annual Budget unless money is spent from this reserve fund.
The money in this reserve is then farmed out to the City’s investment pool to earn interest income during the year. The amount in the Solid Waste Reserve fund is some $40 million. The insurance settlement with interest has grown to probably over $25 million plus. It’s unknown what the other monies in this reserve fund are or what they are designated for. In “City Hell” staffers euphemistically refer to the Sold Waste Reserve Fund as the “Bank of Hein (sp)” after a former solid waste director.
The City will from time to time dip into the Bank of Hein and lend itself money. My question why the heck are we rat holing this kind of money when were running budget deficits and claiming we’re paupers?
Dazzeetrader11 on June 05 at 7:35 p.m.
Ron: this is a complete boondoggle created by Verner when she (again) created the Municipal Court. By law, it was unnecessary move…so Verner leased/purchased (now) a building thqat the Judges refused to move into because it was 8 blocks away and frankly was an infested nightmare. So , as this article says, when the Judges wouldn’t go along, Verner was left with an empty building for the next 24 months ( it’s on the record) costing $240K…for nothing! So she had to cover her tracks by forging ahead to the tune of $6 million. …when the police operations ewere fine where they are ( for $1.2 million over the next five years) as this article clarifies. All this while the economy tanked and Verner knows there will be a shortfall of $10-$12 million per year for the next several years.
So why the urgency to buy? Verner had to cover her tracks…in preparation for her re-election run.
The investment money pool will cover 10% to her her foot in the door but the rest will be buried in forthcoming budgets for years to come. If the Council members were smart ( and if they want to be re-elected) they’d cancel the purchases. Save the money for something needed…not something at the whim of a manufactured scenario verner herself generated.
Waldref was a grammar school teacher if one reviews her CV. How could she possibly know this money outlay will save moeny for the City. $1.2 million fixed doesn’t = $6 million outlay for the Gardner building. So…Sokane taxpayers will have to pay 500% more for Verner’s folly even though her purchases aren’t needed. And the best part is the carefully worded phrasing…won’t cost the taxpayers!! She should have finished the phrase with “now”.
Playfair, YMCA, RPS, etc and now these purchases simply indicate Verner is incompetent…as is the City when it comes to real estate matters. And the reason for these new dollar outlays? Covering her tracks…only this time the taxpayers will foot the bill for a very ill advised Mayor who appears to be clueless about money…unless it’s her own. Oh and the County refused to purchase the Gardner property because of contamination right before Verner decided it was a good deal.
She needs to go. Among the worst, disingenous Mayors in modern times. And just is where all that transparency she promised? What has she accomplished again? And just what happened to the “River Cleanup fund with $18 million in it? Ask her next time you see her….<shaking head=”“>.
Ron_the_Cop on June 05 at 7:52 p.m.
Daisy,
The door slowly creaks open. The question is whether the people will do anything about it. BTW this little slight of hand is chump change compared with the RPS Bond Frauds - $87.5 million dollars minimum. Until folks wake up in this town, they are destined to continually be “marks.”
Dazzeetrader11 on June 05 at 8:28 p.m.
If I lived there, I would be furious! Realtors, Unions, Cops, Contractors….everyone to a man is killing the taxpayers.
Verner should be impeached for this complicity. She is supposed to protect and manage Spokane…not take advantage of its citizens.
Worse, she is hiding it with nice news releases. Doesn’t anyone wonder why this and why now…when the City is going through huge deficits? This is Gregoire and how she’s managed Washington St. And Gregoire’s simply a smaller version of Obama and his debt (our debt). Spokane should be outraged at Verner’s overriding of the peoples’ vote to deny that Bond from a mere 15 months ago.
And wait till her liberal green friends figure out she’s already wasted the river cleanup fund.
Ron_the_Cop on June 05 at 9:36 p.m.
Daisy,
LOL I didn’t vote for Obama as I was concerned about his Chicago upbringing and friends. I did vote for Verner as I thought she had the potential to bring “change” to Spokane government. I was wrong.
Dazzeetrader11 on June 07 at 11:22 p.m.
I saw two things tonight:
1. Nice lady at the Council meeting asked some very good questions…direct ones too. Of course she was treated like she shouldn’t be “allowed” to ask questions. And, of course, non of the council answered her questions…just made her feel like she should just go along. IN fact, it became obvious they COuncil had deliberately skirted the peoples’ will fo the Bond and had made arrangements aimed at keeping the public in the dark.
2. I saw the budget. It’s a crazy old one that doesn’t apply . It’s fudged, misleading and inaccurate. COundil doesn’t know the numbers or how they were arrived at.
I wonder if Cooley’s person who presented the numbers even knew either.
I wonder if this Council shouldn’t be recalled given the obvious attempt to hide this from the people….tonight Shogan lied…then quickly ended the meeting. They denied the people the outcome of the vote….knew it and proceeded. SOmething must be illegal about this. Something about fiduciary contracts….hmmmm…call Shannon Sullivan!