Council Approves Tax Break For Developers City Can Take Advantage Of Program That Grants 10-Year Exemption

The Spokane City Council voted Monday to approve a tax break for developers of multi-family housing, but without protections for older properties sought by the Landmarks Commission.

The ordinance, which passed 7-0, means the city of Spokane can take advantage of a state program that grants a 10-year tax exemption to anyone who builds or renovates four or more units in two neighboroods: Riverside and West Central.

The goal is to add housing in downtown neighborhoods, which is a key component of the city’s downtown plan.

The Landmarks Commission hoped the council would amend the ordinance so developers taking advantage of the program could not demolish any building more than 50 years old without a “cooling off” period.

The 45-day window would give the Landmarks Commission an opportunity to help the developers find other solutions rather than demolition.

The commission is concerned that the multi-family tax exemption dilutes an existing historic preservation exemption. Where a developer once may have had incentive to preserve an older building, there would now be incentive to tear it down and build a newer building.

But Councilman Steve Eugster, who introduced the proposal, said the request was too sweeping.

“There is something wrong with a code that forces all property to be demolished to go to landmarks simply because they are 50 years old,” Eugster said. “That’s an arbitrary standard.”

An amendment to change the ordinance to include the 45-day cooling off period was defeated 3-4, with council members Rob Higgins, Phyllis Holmes and Roberta Greene voting for the change.

Following the vote, landmarks commission member Brian Poirier said requiring developers to wait 45 days wasn’t asking too much.

“They’re getting something in exchange for this for 10 years, which is significant,” said Poirier. “To do that, the property owners has to earn that a little bit.”

Poirier said it’s too early to tell what harm the ordinance could do to the approximately 350 historic buildings in West Central and the 125 downtown.

“It depends on if a lot of developers decide to go to the targeted areas,” he said.

Also on Monday, the council heard additional discussion on districting proposals.

The council will vote next week on which of three proposals to use in dividing the city into districts for electing future council members.

Bob Herold, an Eastern Washington University professor, spoke in defense of his proposal, map No. 55, which was criticized last week for granting too much power to South Hill voters.

The plan would require South Hill candidates to find common ground with people from the North Side, Herold said.

“You cannot win on the South Hill without North Side support,” he said.

David Bray, who was the author of the districting ballot initiative, spoke in favor of map No. 28, which splits the north side of the city along Division and keeps the South Hill intact.

“It divides the city the way most people think of the city,” he said.

Bray, who ran for City Council last fall, also said that 22 neighborhoods voted in favor of map 28.

That claim was quickly contradicted by Holmes, who said most neighborhoods had not taken action on districting.

“My information is very different from your information,” said Holmes.