Customer service
Jobs | Cars | Homes
MotorSpaceNW
Place classified ad
Search classifieds
Subscribe
 
Get email alerts
Report problem
Submit a news tip
 

News

 

Opinion

 

Sports

 

Community

 

Lifestyle

 

Weekly sections

 

Extra

 
Sunday, March 28, 2004

Spokane

At a glance: Anatomy of a decision

  • The decision: The 1995 ”partnership” between the city and the River Park Square developer.
  • Who made it: The developer approached the city to acquire low-interest financing to make the project economically feasible. Spokane City Council voted 5-0 in June 1995 to vacate Post Street and seek a federally backed loan.
  • Why it became controversial: From the beginning, critics called the publicprivate partnership ”corporate welfare,” and argued if the renovation was viable, private businesses should fund it. The last resort for repaying the loan was money that would be taken from the city's Community Development Block Grants, which are used to help low-income neighborhoods.
  • What went wrong: The loan was to be repaid from several sources that have fallen short of projections. One of those sources, ground rent from the garage, hasn't been paid for more than three years as the former partners have waged extensive court battles. City officials are now preparing to divert as much as $1.5 million a year from HUD grants for neighborhoods to make loan payments.

    Back to Top

    		•