Council Agrees On Garage Offer Will Present Proposal To Mall Developers Friday

The Spokane City Council has agreed on a settlement offer to resolve the dispute over the parking garage at the River Park Square mall, council members said Wednesday.

The agreement, worked out in executive sessions Tuesday and Wednesday, will be presented to developers Friday. Council members would not disclose any details.

City Council members cannot vote or make any binding decisions in executive sessions.

Mayor John Talbott said a consensus was reached after the “best and most constructive two council sessions” that he’s participated in. The council worked as a team to come up with a strategy, he said.

“We hope everything works well,” Talbott said.

The consensus comes following a June 12 meeting in which council members seemed bitterly divided over whether to attempt to reach a compromise in the garage controversy. One tentative agreement was discussed that night, but resulted in name-calling and nasty remarks.

The garage controversy stems from a request from the developers earlier this year for $450,000 to help support the struggling downtown mall’s garage. The city had pledged to make the loan in a 1997 ordinance, but the council later voted not to make the loan, citing concern that it would never be repaid.

The developers sued, and Superior Court Judge Michael Donohue ordered the city to make the loan. The city has appealed that ruling.

Council members Rob Higgins and Phyllis Holmes declined to comment. Council members Steve Eugster and Steve Corker could not be reached for comment.

Duane Swinton, the attorney representing the mall’s developers, said late Wednesday he had not heard anything about a settlement offer, but that the developers were willing to listen.

“We’d be willing to listen to whatever they have to say,” he said. “One of the issues we’ve always had was to make sure that whatever they propose has the support of the council. We would review it in good faith.”

Swinton said representatives of the developers met with the city’s lawyer last week, but that no specific solutions were discussed.

Betsy Cowles, president of River Park Square LLC, the mall’s developer, said Wednesday she had not heard about an offer, either.

“As far as I know, nobody’s contacted us,” she said. “We’ve certainly been always willing to discuss reasonable solutions. I think the big question is: What is the agreement?”

River Park Square LLC is an affiliate of Cowles Publishing Co., which also owns The Spokesman-Review.

Councilwomen Cherie Rodgers and Roberta Greene said council members worked well together to come up with a consensus.

“We had two days of very positive interaction. There was a lot of back and forth, questions and suggestions,” Greene said. “This was a solution folks are feeling very comfortable getting behind.”

Rodgers said she hoped the solution would allow the city to move forward and put an end to the controversial issue.

“I hope this all turns out,” she said.

Staff writers Oliver Staley and John McFarland contributed to this report.