Downtown Garage Already Full - Of Opinions City Council Seeks Independent Study Of Redevelopment Project
Robert Ferguson, a private consultant to the River Park Square redevelopment project, formerly worked for Simon DeBartolo, the nation’s largest retail-development company. A story in Friday’s paper misstated his position with the company.
Sheryl McGrath loves downtown, but she doesn’t want to see the low-income cancer patients she cares for starve.
On Thursday night, McGrath was one of about 300 people who came to City Hall to talk about a public-private development that could shape the future of downtown Spokane.
Issues touched on at the public hearing ranged from the value of Nordstrom, the number of people who go to movies, the cost of parking garages to the viability of downtown.
McGrath passionately told the Spokane City Council how much she loves downtown but worries about the risk to community development block grant money which helps fund her organization, Cancer Patient Care.
“A strong downtown is vital,” McGrath said. But, she added, without the block grant money, “we would have clients and patients who would starve to death.”
“Let’s just make a good choice,” she urged council members.
A $24 million federal Housing and Urban Development loan is part of the $100 million development financing package for River Park Square in downtown. If a new Nordstrom and River Park Square were to fail, the city could be held liable for the unpaid balance of the HUD loan and have community development grants withheld.
Mike Adolfae, the city’s community development director, noted the city would never allow a default.
McGrath’s personal struggle symbolizes a part of the complex discussion now underway as developers of River Park Square press the city to buy a $30 million parking garage that will be attached to the redevelopment project.
The project will include a new Nordstrom store, a 24-screen cinema, numerous shops and restaurants, and a glass-enclosed atrium over Post Street.
On Thursday, the council voted unanimously to solicit an independent study to determine the financial feasibility of the project. The council still plans to vote on the garage purchase on Oct. 28.
The aisles of the council chambers were filled almost to capacity with people, some of whom waited until 11 p.m. to speak. About 100 spoke in favor of the project. About 30 opposed it. Two, including McGrath, were neutral.
The two sides battled with buttons. Supporters wore white ones with red hearts, proclaiming love for downtown. Opponents’ yellow buttons declared, “I’m a citizen who puts priorities first.”
The developers’ group was fronted by Betsy Cowles, president of Lincoln Investment Co. and Citizens Realty Co., affiliates of Cowles Publishing Co., which owns The Spokesman-Review. On hand were representatives of some of the nation’s top retail-development companies.
Key opponents included the Sabey Corp., owner of NorthTown Mall, and Stephen Eugster, an attorney who repeatedly has challenged city projects.
The council also heard from numerous citizens: Some scared of seeing downtown deteriorate; others who raised concerns about the city’s involvement in the project.
Other cities would “kill to have a Nordstrom store,” said Bob Tindall, chief operating officer of Callison Architecture of Seattle, which has assisted in the building of 70 Nordstroms.
Cities such as Santa Rosa, Calif., Honolulu, Hawaii, and San Antonio, Texas, he said, “envy what Spokane has going for it.”
Robert Ferguson, of Simon DeBartolo, one of the nation’s largest retail-development companies, said Nordstrom is “the most sought-after anchor in the United States.”
Nordstrom has the luxury of selecting the projects it’ll participate in, Ferguson said, and can drive a hard economic deal.
It’s that economic deal that’s pushing the City Council to make a fast-track decision on the garage purchase. If Nordstrom leaves, developers say, the rest of downtown retail will follow.
Because Nordstrom is so sought after, the developers are under strict deadlines, and without the city’s participation, developers say the project will die.
Opponents voiced concerns ranging from why the city is buying a garage from one of the area’s wealthiest families to why the city is paying $30 million for a structure they say is worth substantially less.
Tim Wood, vice president of operations for ACT III Theatres, which owns most of Spokane’s movie theaters, said there’s not enough people going to the movies in the area to support River Park Square’s proposed 24 screens.
When Laurent Poole, executive vice president of Sabey Corp., owner of NorthTown Mall, got up to speak, one audience member whispered to his neighbor, “Their agenda is to protect their interests.”
One issue Poole raised was the national average cost of parking garages, which he said is $9,500 per stall. The city will be buying the 1,304-space River Park Square parking garage for $32,000 per stall, he said.
“It begs the question of whether this really makes sense,” Poole said.
Cowles countered that the city isn’t just buying a parking garage, but is buying an operating business. This makes its investment value far higher.
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