Council Critics Biggest Spenders In Primary Public Disclosure Commission Has Some Questions About Independent Expenditure

The biggest spender in the Spokane primary wasn’t Mayor Jack Geraghty, challenger John Talbott or any of a dozen other candidates seeking city office.

That distinction belongs to a recently formed group that opposes a plan for downtown redevelopment and other recent city decisions.

Spokane for a New Century mounted a $17,500 campaign that criticized city officials for decisions on such things as River Park Square, the proposed Lincoln Street bridge and street repair.

That campaign was the largest independent effort ever mounted in Spokane.

David Sabey, a Seattle developer and owner of NorthTown Mall, has been a major critic of the downtown redevelopment program and is one of two principal donors to Spokane for a New Century.

Now, as a result of its two-week effort, the group has another distinction: It currently has the largest outstanding debt from the primary.

The state Public Disclosure Commission has questions about the way the group has reported its campaign expenses and contributions.

“There does appear to be some information that’s unclear or missing,” said commission Director Melissa Warheit.

An auditor from the agency is sending a letter to the group, asking it to clarify apparent discrepancies.

John Stone, a developer and one of Spokane for a New Century’s principal officers, said he is convinced there is nothing improper about the group’s reports.

“We have no knowledge that we’re in violation of anything,” Stone said.

The kind of campaign that Spokane for a New Century mounted is unusual because it didn’t urge people to vote for or against a candidate, political experts said.

Such independent expenditures are most often used as a way to get around contribution limits, said Sue Tupper, who managed Norm Rice’s campaigns for Seattle mayor and Washington governor.

This particular effort sounds like “an aberration” because donors are free to give as much as they like to candidates running for office in Spokane, she said.

“I think voters are skeptical of (independent expenditures),” Tupper said. “I think voters want to know who they’re getting the message from.”

That’s difficult to tell from the reports filed thus far by Spokane for a New Century. The group reported collecting only $130 in Spokane.

A companion organization in Seattle, Citizen Action Coalition, reported giving $4,000 to Spokane for a New Century on Sept. 2. That’s the same day the Seattle group received $2,050 from Sabey and $2,000 from Stone, a Spokane home builder.

The two groups were formed the day before the money was donated and transferred.

The Spokane group has not yet reported receiving the money, according to records on file at county or state election offices. That’s one of the issues for which the disclosure commission is seeking additional information.

Another is a difference between what was raised and spent.

“If they’ve only received $4,000, it doesn’t explain how they spent $17,000,” Warheit said.

Stone said the confusion may stem from the fact that the group reported all the bills it has received and all the money it collected thus far.

It is still trying to collect money to cover the outstanding campaign debts of about $13,000, Stone said Wednesday.

“We have commitments (from potential donors), but we don’t have any more contributions at this time,” he said. “There’s still an awful lot of fund raising for us to do. Those bills have to be paid.”

The Public Disclosure Commission also is trying to determine whether the group is a true political action committee, as it said on its registration form.

If so, it was required by state law to file a summary of its contributions and expenses on Sept. 9. No such report was filed.

It also should have listed a location where its finances can be examined by the public.

“There is a requirement that they do keep their records open,” Warheit said.

The problems have not prompted a formal investigation yet, she added.

“It’s a bit premature. We’d like to get some answers,” she said.

Stone said he was sure the group’s paperwork is in order, although he wasn’t familiar with the rules on all the forms.

“I can check into it,” he said. “There could be a form that we’re late on.”

Not listing a location where the committee’s books can be studied was an oversight, he said. It’s the same as the committee’s address, 104 S. Division, which is on the registration form in another spot, he said.

The campaign was announced by the Sabey Corp. on Sept. 2, when the company said it would give no money to any candidate in the Spokane primary.

Instead, corporation president Sabey said in a statement, Spokane for a New Century would try to encourage discussion about such local topics as the River Park Square redevelopment, the Lincoln Street bridge project and the deterioration of city roads.

Sabey has criticized the city’s decision to help developers secure a $22.65 million loan from the U.S. Department of Housing and Urban Development to finance part of the $100 million downtown redevelopment project. The project includes a new Nordstrom’s store.

The city has also pledged parking meter money as a backup source for repaying the loan, and agreed to rent the development’s parking garage and the land it sits on.

Supporters say the city’s involvement is justified because the project will create thousands of jobs, increase tax revenue and save downtown from further decline. Opponents say private interests should pay the entire cost, calling the city’s involvement corporate welfare.

River Park Square is owned by subsidiaries of Cowles Publishing Co., which also owns and publishes The Spokesman-Review.

A campaign flier mailed in early September by Spokane for a New Century criticized elected city officials for not allowing a public vote on the River Park Square project.

“Now these same politicians want us to vote for them in the Sept. 16 primary,” the mailer said. “Regardless of your view about paying for a new Nordstrom, make certain the candidate you vote for in the primary supports the rights of citizens to vote … tell the politicians to get used to hearing from us.”

The mailer, which did not mention anyone running for mayor or council, carried a note that it was not authorized or approved by any candidate.

Mayor Jack Geraghty criticized the campaign - which included some $7,900 worth of radio commercials with similar themes - as an anti-incumbency effort that not too subtly targeted him and Councilwoman Phyllis Holmes.

But Stone said the message wasn’t negative, it was strictly about the council’s record.

“The record hasn’t been good, so it kind of speaks for itself,” he said.

The group has not yet decided whether it will take an active role in the general election campaign, and if so, whether it will back any candidates running for mayor or City Council, Stone said.

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