Report’S Release Queried City Attorneys, Manager Had Qualms About Making Garage Document Public

The Spokane City Council majority’s decision to release a report on the River Park Square garage, a move criticized as politically motivated, was also questioned by city attorneys and City Manager Hank Miggins.

The report, prepared by city special counsel O. Yale Lewis Jr., alleges a conspiracy to subvert city laws in order to sell garage bonds. The document was given to the council in a closed-door session Monday and released to the public Tuesday.

On Thursday, Miggins said he had qualms about the council majority’s decision to make the document public.

“I was reluctant,” Miggins said. “I was concerned. If I’m going to pursue a legal resolution, is it good for me to put part of my strategy out there for the other side to consider?”

Lewis and Assistant City Attorney Milt Rowland also said they were not enthusiastic about making the document public.

Lewis said he would prefer it not be released but that it wouldn’t affect the city’s legal position.

“I don’t think there’s anything in there that’s not already known by the developers,” he said.

Rowland said the City Council majority decided that the public’s right to the information may have overridden the preference of the lawyers.

“Any attorney in litigation would want his or her advice kept confidential, but there are so many public issues involved, it’s very understandable why the information would be released,” Rowland said.

City Councilman Steve Corker, who is running for council president, said the council majority has strived to make all information about the garage deal public.

“Our attitude is we’re not going to hide information; our attitude is we’re not going to try and hide our case,” he said. “What we’re trying to do is find out the truth in the matter and that’s more important than, quote-unquote, `winning.”’ Corker also said Lewis had been working on the report for weeks at the behest of Miggins, and the timing of the release was coincidental.

The report alleges that the mall developer and city officials altered the garage lease to make parking meter revenue and general fund money available to pay off the garage debt, in order to sell the bonds. The maneuver, which has been strongly denied by the developer’s attorney and the city bond attorney, would be illegal under a 1997 city ordinance.

The mall is being developed by an affiliate of Cowles Publishing, which also owns The Spokesman-Review.

Strong mayor candidate John Powers and City Councilman Rob Higgins, who is running against Corker, said the release of the report was timed to help their opponents in Tuesday’s elections.

Mayor John Talbott and Corker have both made their desire for a re-examination of the River Park Square deal part of their campaign.

“I can’t understand what other purpose there could be (for releasing the report) a week before the election, other than for political purposes,” Higgins said. “You’re certainly not going to negotiate a settlement between now and Tuesday.”

Powers, a bankruptcy attorney, said the council majority may have harmed the city’s case to score political points.

He pointed to a paragraph in the report in which Lewis writes: “This is an unusually complicated controversy that should be resolved through negotiations and/or mediation.”

If the city is interested in negotiating a settlement in its favor, Powers said, the city weakens its own position when it discloses that it doesn’t think the case should go to trial.

“I think you might want to keep your litigation strategy to yourself,” Powers said. Releasing the document “kind of undermines your strength. It’s a very unusual move.”

Lewis, however, said his desire to reach a settlement through negotiation is no secret.

“It’s generally known that the City Council wants to negotiate,” he said. “I don’t think anything is given away.”

The release of the document might speed a settlement out of a “public revulsion of what was done to our citizens,” Talbott said. “It strengthens our position. It strengthens the citizens’ resolve.”

Talbott also took issue with Powers saying the city should hold back documents and accused his opponent of hypocrisy.

“I believe in openness in government,” Talbott said. “Wasn’t it Mr. Powers who said we should reveal everything? We have revealed it. Those who cry the loudest are the ones most guilty of political motivations.”