Spokane annexation hearing on tap

A controversial annexation by the city of Spokane is expected to take another step today when City Council members hold a public hearing on annexing a 134-acre tax-rich commercial strip on the west side of Division Street north of Francis Avenue.

The hearing is scheduled for the latter part of the council’s 6 p.m. legislative session in Council Chambers at City Hall.

Council members are expected to approve a resolution notifying the state Boundary Review Board of the city’s intent to annex the North Division area. The Boundary Review Board would then study the annexation and have authority to approve, modify or reject it.

The city has significant support from Costco Wholesale Corp., which notified the city last year of its intent to move ahead with an annexation. Costco owns more than 10 percent of the value of the property in the proposed annexation, according to city documents.

The city has petitions or waiver covenants signed from property owners representing at least 75 percent of the value of the land within the North Division annexation area, qualifying the city to use what’s called the “direct petition” method of annexation. That does not require a public vote within the area.

The annexation area contains a mix of uses, but is dominated by mainly commercial properties as well as Holy Cross Cemetery. The area runs along the west side of Division from Francis north to about a half-block north of Cascade Way.

Opposition has surfaced in recent months from Spokane County commissioners – the county stands to lose at least $1.3 million in taxes – as well as a small group of residents living in a planned-unit development in the mainly commercial area. The previous owner of the development had signed an annexation covenant with the city in exchange for sewer service, but residents said they don’t want to be forced into the city.

Costco’s development was also subject to an annexation waiver granted in exchange for sewer service, but Costco management is actively supporting the annexation.

Mayor Dennis Hession last fall offered to share part of the tax revenue with the county in the first three years after the annexation, but only if the county dropped its opposition.

The commissioners rejected Hession’s offer in a Dec. 13 letter, in which board members said they support annexations that are put to a vote of residents within its boundaries. Commissioners said the proposed annexation is a tax grab “to the detriment of the county, which has the responsibility to provide regional services to the entire county.” Hession responded in a letter that the election method is cumbersome and costly.

In an interview, Hession said his offer to share tax revenue for three years is still good. However, he said, “It doesn’t look like we are going to come to terms on this.”