Downtown Renewal Foes Seek Probe

Wed., Feb. 4, 1998

Compiled From Wire Services

Opponents of a proposed $100 million redevelopment project in downtown Spokane are asking the state auditor to investigate the plan.

In a 19-page letter to state auditor Brian Sonntag, dated Jan. 30, Spokane attorney Stephen Eugster outlined a list of allegations that accuse various city officials of approving a project that will benefit developers at the expense of taxpayers.

Sonntag spokeswoman Mindy Chambers on Tuesday confirmed receipt of the letter, but said it was too soon to tell whether the auditor’s office will open an investigation.

The city is helping developers secure a $22.65 million federal Housing and Urban Development loan, pledging parking meter money as a backup source for repaying the loan, and renting the development’s parking garage and the land it sits on.

Supporters say that is justified because the project will create thousands of jobs, increase tax revenue and save downtown from further decline.

In the letter written on behalf of the Spokane Research and Development Fund, Eugster complained that the city is taking too much of the risk to expand an existing parking garage and mall, while the developer reaps the profits.

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

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