Waivers Free Funds For Downtown Promotion Money Trapped By Lawsuit Released To Finance Holiday Ad Campaign

Caught between the approaching holiday shopping season and a lawsuit that’s trapped money earmarked for downtown promotion, some property owners and businesses are circumventing the legal action to release the funds with no strings attached.

Business leaders have freed $85,000 from the $675,000 downtown-improvement fund to kick off a new holiday advertising campaign.

“The lawsuit stopped us, but nobody wanted that to happen,” said Karen Valvano, president of the Downtown Spokane Partnership. “If we were to let that happen, I can’t imagine where we’d be.”

Stephen Eugster, a Spokane attorney and downtown property owner, in June sued the city, saying a newly created Parking Business Improvement Area was unconstitutional and violated several state statutes. The case is still pending in Spokane Superior Court.

Eugster’s action blocked the city from dispersing money collected for the PBIA, an 80-block district that assesses property and business owners for security patrols, cleaning crews and marketing programs. That meant the only way downtown could tap the fund in time for Christmas was if individual property and business owners waived their rights to recover the money from the city should the court decide that the PBIA was unconstitutional.

Valvano said that 25 of the largest downtown property owners have signed waivers, providing half of the partnership’s goal of collecting $160,000.

“We have a whole group of people out there making calls,” she said.

The heart of the Christmas marketing plan, she said, is a $40,000 advertising campaign. The partnership bought the rights to the song “Silver Bell” as the campaign’s jingle.

To pay for these programs, the city has assessed 1,100 businesses in an area stretching from Division Street to Walnut Street, and the railroad viaduct to the north bank of the Spokane River.

The city contracts with the downtown partnership to manage the PBIA. Stacey Cowles, publisher of The Spokesman-Review, is chairman of the partnership. The Cowles family has signed waivers to release their assessment into the fund.

Not everyone, however, shares Valvano’s enthusiasm for the PBIA. Jennifer Salmi, owner of the Galaxy Gallery, said the partnership has warned her that unless she pays her $120 assessment to the city, the bill will go to a collection agency.

Eugster questioned whether that was legal.

Dave Hamer, owner of Hamer’s clothing store, said he refused to pay his $1,782 assessment because the city overcharged him and has not explained how the money will be spent.

“I don’t want to be labeled as an obstructionist, but they’ll never tell you where all the money is going,” he said.

Valvano said a full breakdown of PBIA expenses is available to the public. In addition, City Council reviews the PBIA budget each year.

, DataTimes