County OKs River District plan

Residential and commercial development in Liberty Lake will be eligible for up to $50 million in public subsidies.

The Spokane County commission voted 2-to-1 to approve the creation of a “revenue development area” that will allow the state to give up to $1 million a year for 25 years for infrastructure improvements on the 1,200 acres if the state’s money is matched by another $1 million a year from the city of Liberty Lake.

The money will be used for infrastructure in and around the River District project, a development by Jim Frank’s Greenstone Corp. and Centennial Properties, a subsidiary of Cowles Co., which owns The Spokesman-Review.

The River District is 700 acres of Spokane River frontage north of Interstate 90 on both sides of Harvard Road. Plans call for the land to be transformed into a shopping center called Telido Station, a business and office park, 1,320 apartments, 1,355 townhouses and 2,470 single-family homes.

The commission’s decision draws a border around 1,200 acres from which the state can pull state sales tax revenue to collect money it will give to the project.

The tax plan still will have to be approved by the state’s Community Economic Development Revitalization Board as part of an application process to win a “Local Infrastructure Financing Tool” designation. But officials say that is a formality.

Liberty Lake officials have not decided how they will come up with matching funds, but they can use the city’s tax revenue or money from the developer.

The most vocal opposition has arisen from some Otis Orchards residents concerned that the tax area’s border extends north of the Spokane River. They have argued that extending the tax area on that land, which is owned mostly by Centennial, will create added growth pressure – and threaten their rural lifestyles.

Commissioner Bonnie Mager, who was the lone vote against the proposal, said she would have supported the plan if she could have gotten assurances “that this is not just going to be used as a tool to advance speculative values north of the river at the expense of the rural neighborhood.”

River District representatives said Tuesday that development of the land north of the river is several years in the future, and they don’t have any plans for it.

Commissioner Todd Mielke pointed to the state law that requires the county to adopt the same borders for the tax increment financing district that the county created in 2005 when commissioners allowed local property tax money also to be diverted for infrastructure. He said the issue of developing the land is part of a different process in which residents will have input.

A few opponents of the plan, such as Spokane County Treasurer Skip Chilberg, have argued that the tax assistance is unneeded to spur economic development in Liberty Lake, especially considering other community needs like mental health services. He argues that developers should pay the bills.

But Frank said the tax money will be used on items such as arterial streets and parks that normally are paid for by taxpayers anyway. He said the development would happen on the land either way. Without the support, residents would have to deal with inadequate roads and other poor infrastructure – like the residents of Five Mile Prairie, Frank said.

“It is a financing tool that’s allowing Liberty Lake and Spokane County to create the public infrastructure that’s necessary to support development,” Frank said.

Mager tried unsuccessfully to delay the final approval of the tax area until next week, after commissioners are able to review the application that will be considered by the state economic development board. That application isn’t expected to be available until later this week. She also wanted the county to hold a forum to allow Otis Orchards residents to voice concerns before a final decision.

“A lack of planning on the part of the developers should not be causing an emergency on this board,” Mager said.

But River District officials argued that moving a decision to June 26 endangered the project since the deadline to submit an application to the state is June 29.

And Mielke and Commissioner Mark Richard questioned if holding a forum next week was hollow since there likely wouldn’t be time to amend the proposal before the deadline.

Frank said Greenstone has followed the prescribed timeline. He noted that a forum was held for Otis Orchards residents earlier this month and said he supported holding another.

Richard joined Mielke in support of the tax plan. After approval, the commission unanimously supported a new Mager proposal to hold an Otis Orchards forum – though a date was not selected.