 |
Liberty Lake is miffed about the TIF.
The latest turn in the saga over tax increment financing – a funding mechanism that utilizes property taxes to reimburse a land developer for infrastructure improvements – took place at the April 7 Liberty Lake City Council meeting when municipal leaders expressed frustration with a letter from Spokane County informing the city that it could submit written comments – but not have complete oversight – concerning TIF expenditures.
When the TIF boundaries were formed in 2005, a development known as the River District was positioned outside Liberty Lake city limits, but within TIF margins. In 2006, the city annexed 644 acres – an area that included much of the River District.
The city of Liberty Lake joined the Spokane Library District and Spokane Fire District 1 in establishing the TIF district. Because the River District fell outside city limits when the TIF borders were established, Spokane County oversaw distribution of TIF funds.
City leaders maintain they had verbal confirmation from Spokane County that would ultimately give Liberty Lake authority over the dispersal of TIF funds – estimated to be up to $15 million in the River District over the next 15 years – for road construction, sewer installation and other upgrades. A letter from the county dated March 17, however, made it clear that Liberty Lake would be relegated to submitting written comments on how TIF money is spent.
“The city is not at the table,” said Council Member Patrick Jenkins, a member of Liberty Lake’s community development committee and the city’s resident expert on TIF financing. “The city is basically relegated to the role of a Spokane resident.”
In May of last year, the Liberty Lake City Council passed a resolution outlining priorities for TIF spending emphasizing a balance between residential, commercial and open space development. Liberty Lake officials pointed to improvements in areas like roads (especially for retail traffic), storm drainage, water and sanitary sewer systems as well as parks and recreation with a focus on a 20-acre sports complex. The city also brought up the need for an interchange study that would determine the flow of traffic around Liberty Lake and North Idaho.
While a corresponding list drawn up by Greenstone Homes, the primary developer in Liberty Lake, contained many of the same mentions to infrastructure, there were differences in areas like parks (Greenstone preferred smaller neighborhood parks to a sports complex) and more mention made of public transit. The interchange study also did not make Greenstone’s top five.
At the time, Doug Smith, Liberty Lake community development director, said “the city will certainly have a say in where the (TIF) money goes.”
“We will ensure that these dollars are spent wisely and for the public’s benefit,” Smith said.
In July of last year, over three dozen residents of the River District attended a meeting of the community development committee lobbying for the establishment of neighborhood or “walkable” parks in lieu of a multipurpose sports complex. The city has since backed off from its stance on a large-scale athletic facility, instead emphasizing the development of community-wide facilities for sports like baseball and soccer.
At a Board of County Commissioners meeting in March, Jim Emacio, Spokane County chief deputy civil prosecuting attorney, said language could be added to the TIF agreement ensuring the county “would consult with and consider the concerns” of Liberty Lake before moving ahead with any infrastructure renovations that would impact the city.
County Commissioner Mark Richard emphasized that the county would continue to oversee TIF spending because “we’re still a unified county…and we look at things from a regional perspective.”
For the city’s part, Smith maintained that TIF funds are specified for “local projects, not regionally significant projects.”
Council Member Neal Olander said the latest shift disregards the original intent of TIF to support retail development and generate additional sales tax for the city.
“There is a significant difference in Greenstone’s goals and what the city is trying to do,” Olander said.
Smith and Liberty Lake Mayor Wendy Van Orman are scheduled to meet with Greenstone owner Jim Frank later this month to discuss the allocation of TIF funds.
“I don’t believe there is a feud between Greenstone and the city,” Frank said. “They passed a resolution last year that outlined their priorities and we’ve been following those priorities.”
Frank said he plans to provide the City Council with an update on TIF spending and the interchange study in the near future.
“We want the city to have input,” he said. “As long as these improvements are consistent with the intent of the statute, meaning job formation and economic development, that’s where we’re going.”
|
|
By
Craig Howard
