Liberty Lake project has lower-cost units

Construction has started on a 100-acre, mixed-use development in east Liberty Lake where developers plan to provide work force apartments and senior living – some of the first affordable housing in an area that’s seen rapid growth.

Framing is under way on the 75-unit First Liberty Apartments, the first phase of a master-planned community by Hayden-based Whitewater Creek Inc. Renamed Hawkstone, the development on land southeast of Appleway Avenue and Simpson Road is authorized to have more than 800 residences, several acres of parks and a commercial hub when completed.

The Washington state Housing Finance Commission will hold a hearing Thursday on a 59-unit senior living complex with units set aside for low-income residents, for which Whitewater Creek seeks tax-exempt bonds.

Liberty Lake is home to manufacturers such as SprayCool Inc., Altek Inc. and Telect Inc. But in an area with an average home sales price last year of about $375,000, excluding waterfront property, some workers are priced out of living there.

“It’s really a shame when you have teachers and firemen and policemen who can work in an area but can’t live there because housing is too expensive,” said Mayor Wendy Van Orman. “This gives them a viable opportunity to do so and keep them working close to home.”

First Liberty Apartments late last year gained permission by the commission to receive $5.97 million in tax-exempt bonds, and it will receive low-income housing tax credits. Developers will set aside at least 30 units for people who make 60 percent or less of Spokane County’s area median income, or $34,560 for a family of four, according to the commission. Those units will be capped at $648 a month for a one-bedroom unit and $898 for a three-bedroom.

“There isn’t much affordable housing at all in Liberty Lake, especially targeted to people at 60 percent of area median income,” said Cindy Algeo, executive director of the Spokane Low Income Housing Consortium.

The entire development, including two later phases under review by Liberty Lake planning staff, could cost $200 million to $300 million and be built over five to seven years, said Todd Prescott, who owns Whitewater Creek with his wife, Maryann.

First Liberty Apartments should be completed late this year, he said.

A master plan shows a senior assisted-living center near the apartments, and single-family homes, townhouses and other residences to the southeast.

Initially called Liberty Village, the development was a partnership between Whitewater Creek and Flagstone Development Group, of Spokane Valley. Flagstone Development sold its interest early last year, said Brett Sullivan, vice president.

The development is modeled after Orenco Station in Hillsboro, Ore. – a mixed-use development along the light rail tracks west of Portland – said Amanda Tainio, planning and building services manager for Liberty Lake.

Whitewater Creek’s proposed senior living complex, Talon Hills Seniors, could receive $4.12 million in bonds, also from lender Banc of America Public Capital Corp.

That project, limited to residents 55 and older, would cost an estimated $6.37 million, according to state records.

Tax-exempt bonds allow private investors to pay less in federal income tax on bond profits, passing savings on to borrowers.

Developers wanted a diverse community, Prescott said.

“There’s not that type of product in the Liberty Lake market,” he said.