Council passes Resolution 84

Thu., Nov. 17, 2005

By Melodie Little melodiel@spokesman.com

Liberty Lake City Council passed a resolution on Tuesday that allows Mayor Steve Peterson to meet with the county and local landowners to talk about forming a joint tax district to make infrastructure improvements that would attract commercial and retail development.

Major beneficiaries of the improvements include Liberty Lake Land Co. and Centennial Properties. Centennial Properties Inc. is a subsidiary of Cowles Publishing Co., owners of The Spokesman-Review.

Resolution 84 – which wasn’t noted on the city’s agenda – allows Liberty Lake officials to investigate the feasibility of tax increment financing. The proposed area is south and north of Interstate 90, along Henry Road. “We know the feasibility is out there. We know it’s feasible. Aren’t we asking to find out the benefits of TIF?” questioned Councilman David Crump.

Tax increment financing is a municipal funding tool that allows cities to issue general obligation bonds to finance community revitalization projects. The financing is repaid by capturing a portion of regular tax dollars to make improvements that attract development, which increases value.

Local taxing districts, such as fire services, receive fewer tax dollars, but the percentage of taxes going to school districts remains the same. Utility districts using tax dollars to repay debt are also exempt from receiving fewer taxes from a TIF district.

Peterson said adding commercial buildings won’t add a significant burden for Spokane Valley Fire District, so the district would likely not be adding a burden.

If approved, the area could receive varying degrees of improvement, including new roads, sewer and street lights, said Peterson, before the council discussion on TIF, which began at 10:30 p.m.

The boundaries for the tax district haven’t yet been defined, said Peterson, adding, Post Falls and Coeur d’Alene are using TIF districts and Eastern Washington needs to do the same to compete.

“If we don’t start looking at those opportunities, we end up with some of the businesses going over there and then we don’t get anything,” Peterson said.

Outside council chambers, Councilman Brian Sayrs – who has voiced concern about the impact TIF could have if an additional service load is added to Spokane Valley Fire without additional funding – said the purpose of TIF is to encourage development, which may not be a good thing for an area already flush with development.

Citizens will have plenty of opportunity to comment on TIF before the council approves anything, he said.

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