Developers Reject Offer To Settle Garage Dispute Though Lawyer Says Proposal Fell Short, He’S Willing To Talk

The developers of River Park Square have rejected the city of Spokane’s offer to settle a dispute over the mall’s parking garage.

But they said they’re still willing to negotiate.

Yale Lewis, a Seattle attorney hired by the city, faxed a copy of the settlement offer to the developers’ lawyers Friday morning.

By midafternoon, River Park Square attorney Les Weatherhead had issued a statement saying the offer fell short of what the developers want.

“We don’t think that Mr. Lewis’ opening proposal can form the basis of a resolution, but we intend to pursue a constructive dialogue with the city,” Weatherhead said in the statement.

In a subsequent interview, he declined to say whether talks between the city and developer are scheduled or if the city’s proposal contained anything his clients could agree to.

“(City officials) have indicated that they want to communicate,” Weatherhead said. “I don’t want to do anything to jeopardize that communication. It’s our intention to keep talking to them.”

Lewis, reached at his Seattle office, said he was pleased with the developers’ response to the offer.

“I’m pleased that they’re interested in pursuing a dialogue,” he said. “I think that’s terrific.”

Lewis, too, declined to provide details of the city’s offer, saying only that it is “a thoughtful, logical proposal to completely resolve all of the issues.”

Mayor John Talbott didn’t appear to be put off by the developers’ response. He and council members spent two days this week crafting the settlement offer.

“I will be most interested in the constructive dialogue they intend to have with Mr. Lewis,” said Talbott, who also has declined to provide details of the settlement offer. “Dialogue is always interesting.”

In the case of the parking garage, it has also been nasty.

The dispute over the downtown mall’s garage has divided the council and led to finger-pointing as to who is at fault for the mess: the city or the developers.

It also has led two investment rating agencies to downgrade the city’s credit rating, the latest blow coming Thursday from Standard and Poor’s.

At issue is the City Council’s refusal to lend $450,000 in parking meter money to the Spokane Parking Public Development Authority, which oversees the garage.

Under a 1997 ordinance, the city promised to lend money if revenue from parking garage customers fell below the amount needed to pay rent, operations and maintenance.

Since it opened in August, the garage has fallen well short of earning the requisite money and needs an infusion of cash to meet its obligations.

It barely makes enough to cover monthly payments on the $31 million in bonds sold by the nonprofit Spokane Downtown Foundation to buy the garage from the developers, River Park Square LLC.

That development company is an affiliate of Cowles Publishing Co., which also owns The Spokesman-Review.

A majority of the current City Council has refused to pay, however, saying the city cannot lend money to an entity that may not be able to pay it back.

The developers took the city to court over the matter, and a Superior Court judge ordered the city to pay. The city is appealing that decision.