Editorial: Kendall Yards developer broke rules, but city should weigh response

A brash move by developer Greenstone Corp. has left the Spokane City Council in an awkward position over the long-anticipated but elusive Kendall Yards project.

By circumventing the requirements of its public-private partnership agreement with the city, Greenstone sidestepped a competitive bidding process and avoided months of probable construction delays. It also put millions of dollars in tax breaks at risk because of its unilateral decision.

Now the developer wants the city to amend the 2007 deal and restore its eligibility for the incentives that were intended to spur housing projects on infill properties in Spokane. If the council goes along, it might be sending a message that its rules can be winked at. If it doesn’t it might be presenting the city as slavishly obedient to arbitrary regulations, even if they impede projects that are good for the community.

It would have been better if Greenstone had talked to city officials about the unauthorized step before rather than after taking it. It needs to be noted, though, that while rules are rules, the city of Spokane has a reputation for going overboard with them, making it harder than it should be to develop the kinds of projects that strengthen the tax base and enhance the city’s vitality and livability.

Greenstone president Jason Wheaton acknowledges that the developer took a risk in violating the agreement. Indeed, forging ahead was a gamble by sophisticated business people with no assurance the city would reward them. Yet that’s what they are asking for.

Before answering, the council needs to make a careful evaluation. Did the shortcut cause demonstrable harm? Is there significant danger of setting a precedent that invites others to ignore development requirements? Would amending the agreement as requested expose the city to costly litigation?

If the answer to such questions is yes, Greenstone should live with the consequences of its gamble.

At the same time, the council’s first obligation is to the community, which stands to share in the benefits of successful development.

The Kendall Yards development is in line with important zoning and environmental goals. It uses vacant downtown property instead of fostering suburban sprawl, thus keeping infrastructure to a minimum and reducing such side effects as auto emissions.

Mixed-income residential development promotes civic life in the urban core, a disincentive to blight and crime.

Construction work – so stagnant that sluggish would be an improvement – creates the good private-sector jobs that are so badly needed in a sour economy.

Unlike at least three previous owners of the site along the north bank of the Spokane River, Greenstone has tangible results to show for its investment. It has begun erecting and selling homes in a promising location where, despite decades of ambitious talk, only weeds and dreams have appeared until now.

The City Council can’t afford to look the other way when agreements are broken willfully, but it shouldn’t be so rigidly doctrinaire as to dismiss such a solid body of mitigating considerations.