Talbott Says He Won’t Derail Mall Mayor Tells Council Members His D.C. Trip Isn’t Meant To Harm River Park Square

Spokane Mayor John Talbott assured residents and his City Council colleagues on Tuesday that he doesn’t want to stop the $100 million redevelopment of River Park Square.

“I am committed to see that project through,” Talbott said at the beginning of the council meeting. “I want River Park Square to become a reality in downtown.”

Talbott said he made the comments to alleviate concerns of people who think his trip to Washington, D.C., next week is intended to derail a $22.65 million federal loan for the project.

He added that he does have questions about the security of the loan and the adequacy of the information given the public about the project.

Talbott plans to meet with officials of the Department of Housing and Urban Development when he travels to the nation’s capital for the U.S. Conference of Mayors’ annual meeting. He will be gone from Tuesday to Feb. 2.

Talbott asked for the meeting in a Dec. 16 letter to HUD officials.

Council members didn’t learn about the planned meeting until last week. Five of them sent a letter to HUD on Friday defending the loan and dismissing Talbott’s concerns, saying he wasn’t speaking for the council but as an individual.

A proposed public-private partnership calls for HUD to loan the city $22.65 million, which then would be loaned to River Park Square developers. The loan has received preliminary approval but hasn’t been awarded.

The River Park Square project includes a new Nordstrom department store, a multiplex movie theater, expanded parking and numerous shops and restaurants.

On Tuesday, Talbott listed his concerns about the loan, and Councilman Orville Barnes - who works in commercial real estate - responded to them. The concerns, with corresponding responses, boiled down to these:

Absence of an overall independent marketability study. Barnes said such a study isn’t necessary because tenant shops and department stores wouldn’t sign leases if the project weren’t viable. Also, a private bank is financing much of the redevelopment, which wouldn’t happen if the project couldn’t succeed.

No signed retail lease information. Barnes said leases contain confidential information that, if released, would give an unfair advantage to competitors. A synopsis of the lease that doesn’t disclose rent amounts will be part of the public record.

No appraisal of the loan collateral. Barnes said HUD recently asked for an appraisal, which should be done within 120 days.

“The council here tonight wants to do everything in their power to protect the taxpayer,” Barnes said. “That doesn’t mean there isn’t risk. … It’s up to us to look at it and make that ultimate decision as to what is in the best interest of Spokane.”

Councilwoman Roberta Greene said she recently heard Nordstrom might leave Spokane in 1999 without the redevelopment project. That departure would trigger further decline downtown, she said.

“We can preside over the beginning of the end,” or the council can help make downtown thrive, Greene said.

Despite Barnes’ assurances, Talbott said he still wants to talk to HUD officials so he understands their review process for the loan.

In other business Tuesday, the council approved spending $500,000 from a special account to help pay Steve and Leslie Ronald $1.9 million for their land just north of the downtown library.

The money will come from an account made up of reserves and interest earned by dollars collected from local improvement districts.

, DataTimes