Council Passes Redevelopment Measure Unanimous Vote Settles Method For Funding Downtown Improvements

The Spokane City Council unanimously passed a resolution Monday night that could pave the way for revitalization of the downtown core.

After months of negotiations with developers, council members settled on a way of helping fund redevelopment of River Park Square that substantially limits the city’s financial responsibility.

“I would like us to be a part of the solution,” said Councilwoman Roberta Greene. “We have tried our best to craft a solution that is a workable one.”

“It’s not the city’s role to make business happen,” said Mayor Jack Geraghty, “but it is the city’s role to make the environment where business thrives.”

Though more people spoke in favor of the project than against it Monday night, four frequent council critics lambasted the project.

The council vote helps a non-profit corporation formed by River Park Square’s owners issue revenue bonds to buy the shopping center’s parking garage, after it is renovated and expanded.

The Spokane Downtown Foundation also will lease the garage land. Non-profit corporations are allowed by law to issue revenue bonds if they serve a public purpose. The council would need to approve the issuance of the bonds.

A public development authority formed by the city will sub-lease the garage building and land from the foundation.

The parking garage is part of the proposed $100 million redevelopment of River Park Square, which includes a new Nordstrom, a 24-screen cinema, shops and restaurants. The shopping center’s owners have said they need the city to support the project in order to get lower interest rates on its financing.

The development authority will be governed by a seven-person board appointed by the council. It is needed because the city is planning to help finance construction of more downtown parking garages, including one near the Davenport Hotel and another near the convention center, said Pete Fortin, deputy city manager.

“Ultimately we expect to have a parking system with more than one garage,” Fortin said. “This group would run all the garages.”

Parking fees generated by the River Park Square garage will pay for the revenue bond debt, operation and maintenance, and ground and building leases. No tax dollars will be used to repay the debt. When the debt is paid, the city will own the garage.

The new funding arrangement was reached after the council balked at issuing $30 million worth of revenue bonds in the city’s name to pay for the garage. Under that proposal, the city would have also rented the land under the garage for 20 years.

“Three months ago, there was no way on earth I would’ve supported it,” said Councilman Mike Brewer of the previous proposal. “We’ve come to a different solution. This can work.”

But the city has not been left completely out of the deal. If money for operation and maintenance, or the ground lease falls short, the city will make up the difference with money from its parking meters.

Parking meter money totals about $1.6 million of the $11.6 million city street-repair fund.

Despite the city’s reduced role, Spokane resident John Talbott blasted council members Monday night, accusing them of trying to “slip a fast one by the taxpayers” by voting on the proposal during a week when tens of thousands are without power.

That drew an impassioned response from Greene.

“I think it’s very unfair for anyone to come up and say the city is trying to slip one by,” she said. “What an unfair accusation. Some of these people here have not slept but two to three hours per night.”

“Negativity never built a thing,” said Councilwoman Phyllis Holmes.

“I want the city of Spokane to maintain a vibrant city core. This is a project that can make Spokane proud …,” said Andrew Baucom, representing the Davenport Arts and Entertainment Board.

River Park Square is owned by Lincoln Investment Co. and Citizens Realty Co., affiliates of Cowles Publishing Co., owner of The Spokesman-Review.

, DataTimes