City’S Offer; Developer’S Counteroffer

The Spokane City Council spent parts of three days in executive session during the third week of June working on a settlement proposal for the dispute over the River Park Square garage.

The offer was rejected by the downtown mall’s developers the day it was proposed. The developer responded a week later with its own offer.

The abrupt rejection of an offer that had the support of six council members (Cherie Rodgers said she did not support it) was one of the events that triggered Tuesday’s lawsuit by the city against the mall developers.

On Tuesday, the city released the offer and counteroffer.

While the city proposed a radical remaking of the deal, with the developer eventually holding ownership of the garage, the developer suggested a sharing in the cost of the garage’s revenue shortfall. Here are the key elements to the two proposals:

City’s June 22 proposal:

The city would issue general obligation bonds and loan the proceeds to the Spokane Parking Development Authority to prepay garage rent.

The city would gain title to the garage.

The city could return the garage to the developer for either $25 million or the fair market value of the garage at any time prior to 2025.

The 1997 ordinance that pledged parking meter revenue to support the garage would be terminated.

Developer’s June 30 response:

The developer would be paid 75 percent of the HUD “retainage” money held by the city. The remainder would be paid when the remaining AMC theaters open.

The developer would pay all relocation costs for mall tenants.

The developer would pay 50 percent of any garage revenue shortfall up to $3 million, with specific limits on how much could be paid in any given year.

All other agreements would remain intact.