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HomeMy WebLinkAbout2026-02-12 PC AGENDA PACKETSookane jUalley Notice and Agenda for Regular Meeting Spokane Valley Planning Commission Thursday, February 12, 2026, at 6:00 p.m. Remotely via ZOOM meeting and In Person at Spokane Valley City Hall located at 10210 E Sprague Avenue NOTICE IS HEREBY GIVEN that a Regular Spokane Valley Planning Commission meeting will be held February 12, 2026, beginning at 6:00 p.m. The meeting will be held in Council Chambers at Spokane Valley City Hall located at 10210 E Sprague Avenue, Spokane Valley, Washington. The purpose of the meeting is to consider the items listed below on the Agenda. NOTE: Members of the public may attend Spokane Valley Planning Commission meetings in -person at City Hall at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in -person or via Zoom as described below: If making a comment via Zoom, comments must be received by 4:00 pm, the day of the meeting. Please email plammne(/Dspokanevalle or call the Planning Commission Secretary at 509-720-5110 to be added to the Zoom speaker list. Otherwise, comments will in -person at the meeting, as noted on the agenda below: LINK TO ZOOM MEETING INFORMATION: httlis://spokanevalley.zoom.us!/87146597722 One tap mobile US:+12532158782„87146597722#or+13462487799„87146597722#US Meeting ID: 871 4659 7722 AGENDA: 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA 5. APPROVAL OF MINUTES: January 22, 2026 6. COMMISSION REPORTS 7. ADMINISTRATIVE REPORT S. PUBLIC COMMENT: Thus an opportumbjor thepublic to speakon any subject except items listed aspublic comment opportunity orpublic hearing as comments will be taken when those items appear on the agenda. 9. COMMISSION BUSINESS: a. Study Session: Comprehensive Plan Draft Element Review (Presented By Steve Roberge) • Chapter 3: Economic Development • Chapter 4: Land Use • Chapter 10: Natural Resources 10. FOR THE GOOD OF THE ORDER 11. ADJOURNMENT Regular Meeting Minutes Spokane Valley Planning Commission Spokane Valley City Hall January 22, 2026 I. Chairman Robert McKinley called the regular meeting to order at 6:00 p.m. The meeting was held in person and via ZOOM meetings. II. The Commissioners and staff stood for the Pledge of Allegiance. III. Administrative Assistant Denise Mclain took attendance, and the following members and staff were present: Thomas Dingus Steve Roberge, Planning Manager Bob McKinley Tony Beattie, Deputy City Attorney Emily Meyer Justan Kinsel, IT Specialist Kristopher Pockell Denise Mclain, Administrative Assistant John Robertson Justin Weathermon Ann Winkler IV. AGENDA: Commissioner Winkler moved, and it was seconded, to approve the agenda for January 22, 2026. There was no discussion. The vote on the motion was seven in favor, zero opposed, and the motion passed. V. MINUTES: Commissioner Winkler moved, and it was seconded, to approve the regular meeting minutes as presented. There was no discussion. The vote on the motion was seven in favor, zero opposed, and the motion passed. VI. COMMISSIONER REPORT: There were no reports from the commission. VII. ADMINISTRATIVE REPORT: Steve Roberge, Planning Manager, updated the commission that at the next meeting he will be presenting the comprehensive plan elements that are currently being reviewed. He will also provide a schedule for the flow of work for the next year. He said that the scoping notice for EIS will be ready next week, so the commission will see that soon. 01-22-2026 Plamung Commission Minutes Page 2 of 3 VIII. PUBLIC COMMENT: There was no public comment offered. IX. COMMISSION BUSINESS: a. RPCA: Election of Officers Commissioner Robertson nominated Commissioner Weathermon. Commissioner Weathermon nominated Commissioner Robertson. The two nominated commissioners gave statements regarding their tenure on the commission and ability to serve as chair. The vote was four in favor of Commissioner Robertson and three in favor of Commissioner Weathermon. Commissioner Robertson accepted the appointment of Planning Commission Chair. Commissioner Meyer nominated Commissioner Winkler for Vice Chair. Commissioner Winkler nominated Commissioner McKinley for Vice Chair. The commissioners made statements regarding their nominations and ability to serve as Vice Chair. The vote was three in favor of Commissioner Winkler and four in favor of Commissioner McKinley. Commissioner McKinley accepted the appointment of Planning Commissioner Vice Chair. b. Study Session: Open Public Meeting Act & Public Records Act Tony Beattie, Deputy City Attorney, presented the Public Records Act and Open Public Meetings Act training. X. GOOD OF THE ORDER: Commissioner Weathermon welcomed the new commissioners. Commissioner Meyer also welcomed the new members. Commissioner Pockell thanked the commissioners and said that he is looking forward to working with everyone. Commissioner Winkler also welcomed the new commissioners. Commissioner Dingus expressed his excitement to be on the commission and contribute during his term. Commissioner Robertson made a statement about the upcoming 25011' birthday of the United States and applying the lessons from 1776 to what we do today. Chairman McKinley encouraged the commissioners to ask questions and reach out to staff or other commissioners for any clarification or information. XI. ADJOURNMENT: Commissioner Meyer moved, and it was seconded, to adjourn the meeting at 6:46 p.m. The vote on the motion was seven in favor, zero opposed, and the motion passed. 01-22-2026 Planning Comnussion Minutes Page 3 of 3 John Robertson, Chairman Date Signed Denis !Mley VALLEY 2046: COMPREHENSIVE PLAN UPDATE ELEMENT REVIEW SESSION 1 Spokane Valley's Comprehensive Plan charts a path for growth through 2046 that reflects community priorities while meeting state requirements. The Plan accommodates new housing and economic development through modest density increases, targeted infill, and expanded housing options, without dramatic changes to neighborhood character. By leveraging existing infrastructure and transit, and addressing environmental risks such as drought and wildfire, the Plan supports intentional, balanced growth that preserves the City's livability and community feel. STATE REQUIREMENTS This periodic update is required under Washington State's Growth Management Act jGMAj. It must be drafted by mid-2026 and adopted by December 31, 2026, with Planning Commission and City Council approval, to maintain compliance with state law and countywide planning policies. The update process includes robust public participation with workshops, surveys, and opportunities for community input, and integrates state mandates such as housing planning and climate considerations.The update will also be accompanied by a State Environmental Policy Act jSEPAj review using an Environmental Impact Statement (Ell PROCESS SCHEDULE To meet the Commerce deadline in June 2026, we are circulating the draft elements that will compose the Valley 2046 comprehensive plan for review. Below is a timeline for development of the entire comprehensive plan with major milestones. These three review sessions are part of a larger process, and will help shape and refine the final comprehensive plan. Review Session 1 Review Session 2 Review Session 3 • Economic Development • Housing • Parks • Land Use • Climate & Resiliency • Transportation • Preferred Land Use • Public & Private Utilities • Capital Facilities Scenario • Natural Resources Finalized Started Commerce Comprehensive June 2025 Februa March Ma Element Draft Plan ry y Deadline Draft EIS Review E 1 I June 2026 Summer 2026 December 2026 L---------J Planning Council City Council Three Element Review Sessions Recommendation Adoption October 2026 December 2026 Quesfions fo keep in mind during your review: • Do the Goals and Policies align with the City's Vision for the future? • Do these elements represent your understanding of the current conditions of the city? • What is the preferred land use scenario to plan toward for 2046? CITY OF SPOKANE VALLEY I VALLEY 2046 COMPREHENSIVE PLAN UPDATE FEBRUARY 2026 Economic Development Introduction The Economic Development Element presents goals and strategies for Spokane Valley to thrive. Data and trends for local industries, labor force and real estate markets provide context. Why the Economic Development Element is Important The Economic Development Element highlights the foundations of Spokane Valley's economic vitality including its diverse employment base, strong business community, and strategic regional position. Spokane Valley's economic landscape comprises a mix of industries, from advanced manufacturing and aerospace to healthcare, logistics, retail, and tourism, that collectively support a resilient and growing local economy. Sustained economic growth is essential to maintaining Spokane Valley's high quality of life. A strong job market supports household stability and thriving businesses generate tax revenues critical to funding community services, infrastructure, parks, and public amenities. As the city continues to evolve, planning for balanced economic development ensures that Spokane Valley remains competitive, adaptable, and well -positioned to meet future challenges, from housing affordability and workforce needs to changing retail preferences and emerging technologies. The purpose of this chapter is to guide strategies that support a healthy, resilient, and prosperous local economy. By leveraging Spokane Valley's strengths, facilitating conversation and ongoing collaboration with businesses and regional partners, and aligning economic initiatives with community values, the city can continue to grow as a dynamic, business -friendly, and welcoming place for residents, employers, and visitors alike. Planning Context Economic development ranks as a high priority for the City and as such this element aligns with the entire Comprehensive Plan. Infrastructure, housing, land use, and all other elements are foundational to community development and to the City's Economic Development goals. As such, the goals and strategies throughout the other elements call for investments and policies designed to support this element's goals for citywide prosperity Economic Development Element I Spokane Valley Comprehensive Plan Update Current Conditions This section presents the primary engines of employment and economic activity in Spokane Valley, highlighting the city's assets and strengths, and how they influence the regional economy. Employment Exhibits 1 and 2 show employment in the City of Spokane Valley and Spokane County in 2016 and 2 02 5. Together, these exhibits show the increase in employment by industry since the 2016 Update. Exhibit 1 for the city excludes construction jobs. The remaining employment in Spokane Valley increased by more than 13,100 jobs over the period, to 72,900 in 2 02 5, according to Lightcastdo's projections, representing a 2.2% compound annual growth rate (CAGR). Employment in Spokane Valley grew at a much faster rate than the County during the same period, with countywide jobs growing at a rate of 1.2%. The county added 25,000 jobs during that period; more than half of which were located in Spokane Valley. t In Spokane Valley, all sectors added jobs. The Services sector added the most jobs, with a net gain of 4,500 jobs, followed by Health Care adding 3,100 jobs and Wholesale Trade and Utilities adding 2,800 jobs citywide. Countywide employment changes by sector were similar directionally, except for a net loss of 100 jobs in Retail. The County also added 2,600 jobs in Construction. Construction jobs are not mapped to local level, in part due to the roaming nature of the place of employment for Construction jobs. Minor inconsistencies hmit direct comparisons only slightly. Countywide data are annual averages for 2016 and first quarter data for 2025 (annual averages not available). Citywide data firm Lightcast are estimates for both years, presumably annual averages. Economic Development Element I Spokane Valley Comprehensive Plan Update Exhibit 1. Total Employment by Industry, Spokane Valley, 2016 & 2025 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10 000 72,900 59:800 Resources Government Hospitality & Entertainment Manufacturing WTU Health Care Retail 2016 2025 Source: City of Spokane, Llghtcast, Washington State Employment Security Division, 2026, CN, 2026. Exhibit 2. Total Employment by Industry, Spokane County, 2016 & 2025 260,000 200,000 160,000 100,000 50 000 0 240,000 215,000 2016 2025 Sources: Employment Security Department, Washington State, 2025,CAI, 2026. Const & Resources Manufacturing Hospitality & Entertainment WTU Retail Government Health Care Services Economic Development Element I Spokane Valley Comprehensive Plan Update 3 Exhibit 3 presents the concentration of employment activity in the city in 2025. Much of the city's employment clusters in or near Industrial land uses (see Land Use Element). Dense employment clusters align with prominent employers in the city, including Avista Stadium, Costco, and The Home Depot located in the far northwest census tract. Kaiser Aluminum and the Spokane Valley Mall are both located in the north -central region of the city, and Amazon and the Spokane Business & Industrial Park operate in the northeastern region of the city. Growth in the northeastern section of the city can be attributed to the recent designation of the Northeast Industrial Area (NIA). The NIA was identified through a planned action ordinance (PAO) completed by the city and used grant funding from the Washington State Department of Commerce. The NIA was identified as a priority area in the City's 2016 Comprehensive Plan and Final Environmental Impact Statement (FEIS), and the City adopted the NIA-PAO in 2019. The SEPA analysis has helped with growth and investment both within the boundaries of the PAO, as well as surrounding areas, which includes industrial activities across a multitude of sectors and services. Exhibit 3. Employment Concentration by Census Tract, Spokane Valley, 2025 11 s a?q op�1. 1ea n o,sp­ to d Employees by Tract ware I-30J0 _ sm -mm, 111111 501-15L0 Wss ifton IM Sources: Esri Business Analyst, 2025, CAI, 2026. Economic Development Element I Spokane Valley Comprehensive Plan Update Resident Workforce This section examines the workforce of Spokane Valley residents. Jobs -to -housing units ratio shows the relationship between housing unit development and job creation over time, and measures how the rate of residential development fluctuates along with changes in employment. Exhibit 4 shows this change over time for Spokane Valley and comparison geographies in the region. In Spokane Valley, job creation slightly outpaced housing unit production between 2010 and 2 02 3, with this ratio increasing slightly from 1.11 to 1.13. A similar trend can be observed for Spokane, Airway Heights, and Spokane County over the period, as the jobs -to -housing unit ratios increased in all jurisdictions over the period. Excluding Post Falls, all jurisdictions in Idaho experienced minimal fluctuations in their jobs -to -housing units ratio between 2000 and 2 02 3. Exhibit 4. Jobs -to -Housing Units Ratio, Spokane Valley & Select Comparison Geographies, 2000, 2010, 2020 & 2023 140 1.30 — 1.20 1.13 1.16 1.11 1.101.07 08 1.00 di-ol ' rI:L: 0.80 0.70 060 2010 2020 2023 Spokane Spokane Airway Liberty Post Falls, Coeur Spokane Kootenai Valley Heights Lake ID d'Alene, County County, ID ID Sources: U.S. Census Bureau, Employment Status ofthe Population in Households far the United States, States, Counties, Places, andfor Puerto Rico: 2000, U.S. Census Bureau, CN, 2026. Note: Both Spokane Valley and Liberty Lake were unincorporated in 2000, housing unit counts per the 2000 Decennial Census were unavailable. Labor Force Participation Rate shows the proportion of residents aged 16 and older who are either employed or actively seeking employment, while the Unemployment Rate is the proportion of the total labor force not currently employed but actively seeking Economic Development Element I Spokane Valley Comprehensive Plan Update employment. Exhibit S shows trends from 2016 through 2025, for Spokane and Kootenai Counties, as well as both Washington and Idaho. Though rates were generally steady across jurisdictions over the period, the labor force participation rate for both Washington and Idaho decreased slightly between 2016 and July 2 02 5, while Spokane County experienced a marginal increase between 2016 and 2 02 3. Unemployment rates in each of the four geographies followed the same trend between 2016 and 2 02 5, gradually decreasing up to the onset of the Covid-19 pandemic, spiking in 2 02 0, then promptly declining in the years following as Covid-19-era restrictions loosened and economic activity rebounded. Between 2016 and the most recent release data for unemployment rate, July 2025, unemployment rates decreased in three of the four jurisdictions and effectively did not change in the State of Idaho. Exhibit 5. Labor Force Participation & Unemployment Rates, Spokane County & Select Comparison Geographies, 2016-2025 Unemployment Labor Force Rate Spokane County participation Rate Kootenai County (ID) 9 0% Washington State 720% Idaho State / /\\ Labor Force Participation Rate — 7.5% 1 Unemployment Rate - - - - 4 d 69.0% • 45%4.5X� --1/��\��e'+�4, 2%66.0% 3.7%, — — — 4.1 % 30% 63.9% 63.5% 63 2%63.0% 61.8% 1.5% 61.1% 62.4% 5% 0.0% 60 "°% 60.0% 0 N 0 0 0 N N N 0 0 0 0 N N N N 0 0 a N N:a Sources: Washington State Office of Financial Management (OFM), Local Area Unemployment Statistics, 201S to 2025, Bureau of Labor Statistics, 2025,CAI, 2026. Nate: Labor Farce Participation Rate data unavailable far Spokane and Kootenai Counties in 2024 and 202S. Understanding commute patterns for Spokane Valley residents, as well as workers employed in the city who reside elsewhere, is critical to informing strategic and long-term Economic Development Element I Spokane Valley Comprehensive Plan Update decision -making, such as placemaking and development site selection, related to economic development. Exhibit 6 shows the commute patterns by destination for all Spokane Valley Residents in 2022, the most recent year of available data. More than one-third (34%) of all residents commute to neighboring Spokane for work, while nearly 30% of residents also work within the city. More than 70% of all Spokane Valley residents commute to destinations within the Spokane MSA for work. At least 4% of all residents commute to the Puget Sound region, including Seattle, Bellevue, and Tacoma. Exhibit 6. Commute Patterns by Destination for Spokane Valley Residents, 2022 Jurisdiction Number of Residents Proportion Spokane, WA 15,875 34.0% Spokane Valley, WA 13,565 29.1% Liberty Lake, WA 2,700 5.8% Seattle, WA 1,306 2.8% Coeur d'Alene, ID 871 1.9% Post Falls, ID 717 1.5% Airway Heights, WA 586 1.3% Bellevue, WA 336 0.7% Tacoma, WA 249 0.5% Millwood, WA 228 0.5% All Other Locations 10,260 22.0% Sources: Jab Counts by Places (Cities, CDPs, etc.) Where Workers are Employed -AII Jabs, 2022, OnTheMap Application, U.S. Census Bureau, 202S,CAI, 2026. Similarly, Exhibit 7 portrays the place of origin for all workers employed in Spokane Valley. Nearly half of all workers either live in Spokane Valley or neighboring Spokane. However, nearly 40% of workers employed in Spokane Valley commute in from other locations not shown on the exhibit, which may include nearby jurisdictions throughout the Spokane MSA, regions within neighboring states of Idaho and Oregon, or even those traveling from other regions within Washington. Economic Development Element I Spokane Valley Comprehensive Plan Update Exhibit 7. Jobs by Place of Residence for All Workers, Spokane Valley, 2022 Jurisdiction Number of Residents Proportion Spokane, WA 14.865 25.9% Spokane Valley, WA 13,565 23.7% Post Falls, ID 1,386 2.4% Liberty Lake, WA 1,070 1.9% Coeur d'Alene, ID 1,033 1.8% Otis Orchards -East Farms, WA 732 1.3% Cheney, WA 553 1.0% Fairwood, WA 493 0.9% Mead, WA 481 0.8% Airway Heights, WA 431 0.8% All Other Locations 22,746 39.7% Sources: Jab Counts by Places (Cities, COPS, etc..), Where Workers Live -AII Jabs 2022, OnTheMap Application, U.S. Census Bureau, 202S,CAI, 2026. Retail Spokane Valley is home to many shops, businesses, and retailers, from small mom and pop shops and boutique stores to large, multi -national big box retail chains. This section shows the impact of tax revenues generated by these retailers within both Spokane Valley and the County. Since 2017, the City has collaborated with a national retail recruitment company to promote and market retail development opportunities, including six identified in the City's 2017 Tourism Analysis report. The six tourist features identified in the 2017 report include: 1) Trail expansion and public art implementation, 2) Launching and promoting a new special event hosted by Spokane Valley, 3) Creating a new waterfront and whitewater park, 4) Establishing a new arts and entertainment venue, S) Expanding the fairgrounds and stadium district, and 6) Redeveloping Balfour Park. Taxable Retail Sales (TRS) is a measure of the total tax generated on the final sale of a product to the end user or consumer. Exhibit 8 shows the change in TRS over time, calculated on a per capita or value -per -resident basis. TRS per capita increased across all jurisdictions in the years preceding the Covid-19 pandemic, dipped sharply in 2 02 0, but rebounded post -pandemic. Spokane Valley has consistently had higher TRS per capita than Spokane County and the City of Spokane. Spokane Valley's relatively strong retail sales are a testament to the City's effort to attract national retailers and the City's investment in staff and resources intended to support local businesses. Economic Development Element I Spokane Valley Comprehensive Plan Update Exhibit 8. Taxable Retail Sales per Capita, Spokane Valley 8. Select Comparison Geographies, 2016-2025 Thousands($) $40.0 $35.0 $30.0 $25.0 $20.0 ,.JKane Vai.., Spokane Spokane County $15.0 $18.5 $15.9 $15.2 $10.0 $12.7 $5.0 $8.1 M 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD (Q2) Sources: Taxable Retail Sales by City & County by Calendar Year, 2016-2024 & Quarters 1 & 2, 2025, Washington Department of Revenue (DOR), 2025,CAI, 2026. Note: 2025 YTD (Q2) values represent annualized TRS per capita values, Taxable Retail Sales data for 2025 is only available through Q2, so calculated values were multiplied by two to achieve a projected year-end TRS average far all jurisdictions. Spokane Valley's Economic Drivers This section speaks to the strength and depth of Spokane Valley's economy, particularly its most impactful drivers of activity and growth, critical employers, key recreational assets, and historical contextual performance real estate sectors and typologies. Overview Spokane County is home to many assets that directly contribute to economic stability and growth in Spokane Valley Spokane International Airport accommodated an influx of more than 4.2 million passengers in 2024, as well as nearly 67,300 tons in cargo handled2. x Spokane International Airport Historic Passenger & Cargo Data, Spokane International Airport, https://business.spokaneairports.net/core/files/business/uploads/files/1991- 2024%20passenger%20cargo%20datapdf. Economic Development Element I Spokane Valley Comprehensive Plan Update Additionally, the Airport supports employment for over 3,0003 workers and has an estimated annual economic impact of $3 billion on the regional economy. Fairchild Air Force Base is the largest employer in Eastern Washington, sits in western Spokane County approximately 18 miles west of Spokane Valley, and is home to more than 6,5004 active - duty service members and civilians. The Air Force Base had an estimated economic impact of $915 million in 2024, with spending, employment, and secondary impacts spanning throughout and beyond the region. Beyond these drivers, Spokane County boasts a litany of regional attractions and institutions, including event venues such as the Spokane Arena, Spokane Convention Center, The Podium, and One Stadium, which all host a variety of professional sports teams and regional events. Gonzaga University, museums and cultural centers, and a thriving hospitality and culinary scene, also draw visitors and tourists from far beyond the region. Many economic drivers of growth, tourism, and visitation, are within Spokane Valley's city limits, drawing people from throughout the Spokane MSA, as well as outside the region and State. This includes attractions such as the Spokane County Fair, the Spokane Indians, a Minor League Baseball team that plays at Avista Stadium, a plethora of recreational opportunities, and major employers who play a crucial role in economic growth in the region. Additionally, recurring events throughout the year include sporting competitions, farmers' markets, and holiday celebrations that drive visitation and spending in Spokane Valley and the region. Tourism, Entertainment & Hospitality In 2022, Spokane Valley formed a partnership between the City and its hoteliers, called a Tourism Promotion Area (TPA). Through the TPA, the City collects a $4 fee, charged per room and per night, intended to funnel these revenues towards the City's tourism marketing efforts. The 2 02 3 Tourism Strategic Plan outlined how the City can leverage revenues from the TPA to further promote tourism marketing strategies, to leverage these revenues to bolster and improve its hospitality sector. This includes a particular emphasis on marketing the city's strengths and appeal as a destination brand. In 2024, Spokane County hosted more than 19.1 million visitor days 5, with an average length of stay of 1.8 days. In total, Washington State accommodated nearly 205 million a About Spokane International Airport, Spokane International Airport; https://business.spokaneairports.net/about-spokane-international. 4 Economic Impact Statement Fiscal Year 2024, Fairchild Airforce Base; 5 Visitor Days are "an estimate of the number of daily visitors to a given point of interest (POI) or cluster of POIs. The daily estimate can be calculated based on whichever date range is selected by the users." State of Washington Tourism (SWT) Visitation Data 2024, State of Washington Tourism, https://indmtrystateofivatourism.com/wp-content/uploads/SW T-Visitation-Data-Z024.pdf. Economic Development Element I Spokane Valley Comprehensive Plan Update 10 visitor days in 2024, of which Spokane County accounted for more than 9%. Through the second quarter of 2025, Spokane County accommodated approximately 9 million visitor days, on pace for a slight year -over -year decrease in tourism visitation from 2024. Spokane Hoopfest is an annual multi -day 3-on-3 basketball tournament held in downtown Spokane, and draws hundreds of thousands of fans, spectators, as well as sponsors, vendors, and various entertainers. Hoopfest's communal and economic impacts are far- reaching, with the Spokane Hoopfest Association generating an estimated annual economic impact of between approximately $39 and $47 millionb, dispersed throughout the economy via spending on lodging, entertainment, and dining. Another major regional draw is the Spokane County Interstate Fair, an annual event held in Spokane Valley that features live music, rodeo entertainment, and other events over a 10- day span. The Interstate Fair generated more than $24 million' in total economic impact for the region, including spending from visitors, workers, performers, and volunteers. The County Interstate Fair typically attracts around or over 200,000 attendees each year. Spokane Valley is also home to the Spokane Indians, a Minor League Baseball (MiLB) team that is a member of the High -A Northwest League (NWL) and an affiliate of the Colorado Rockies. The Spokane Indians have played in Spokane Valley since the late 1800s and have been the minor league affiliate for many professional organizations in Major League Baseball throughout its history Excluding the 2020 season, which was canceled due to the Covid-19 pandemic, and 2021 where attendance was limited for safety purposes, annual attendance dating back to 2016 has exceeded 187,000 fans in every season. Outdoor Recreation & Activities Many recreational opportunities draw visitation and tourism in Spokane Valley, including multi -use sports complexes and park facilities, recreational open spaces, and vast trail networks. Some notable attractions in Spokane Valley include Plante's Ferry Sports Complex, Browns Park, Mirabeau Park, Centennial Trail, and Dishman Hills. The Course is a new 46-acre park property that will serve as a dedicated cross-country sports venue operated by the City's Parks and Recreation Department in coordination with Spokane Sports, a non-profit promoter of regional sports and recreation. The Course can host national and regional collegiate cross-country events, regional and local middle- and high-school cross-country teams, and will ultimately include a fieldhouse, enhanced parking, a food truck court for concessions, and a finish line arch. ' Hoopfest History, Spokane Hoopfest Association, https://w ..spokanehoopfest.net/hoopfest-history/. Free Fair Program, 2025 Spokane County Interstate Fair, https://thespokanefar.com/wp- content/uploads/2025/09/2025-Spokane-Fair-Pmgram_Updated-97-1.pdf. Economic Development Element I Spokane Valley Comprehensive Plan Update 11 Spokane Valley's sports and recreation sector may soon grow further with Ice Sheets, a proposed, $44 millions ice rink facility, with potential to develop commercial use as part of the project. The Ice Sheets opportunity was identified in the City's 2023 Tourism Strategic Plan as a priority focus to generate increased tourism revenues. Spokane Valley is also home to community gathering spaces, covered shelters, trails for walking, hiking, and biking, wildlife viewing, scenic vegetation, and a plethora of additional recreational opportunities. Spokane Valley boasts more than 373 acres9 of park and open spaces, including Balfour Park, which the City is currently investing approximately $5 million to improve and beautify. Other large parks in the City include Browns Park, Greenacres Park Sullivan Park, Terrace View Park, and Myrna Park, where twelve acres of undeveloped land at were recently donated to the City Major Employers & Economic Drivers In addition to the many catalysts of economic development and growth in Spokane Valley, several large employers contribute to sustained employment growth and economic activity. Prominent drivers of economic growth and employment include, at a minimum, aerospace and manufacturing operations such as Kaiser Aluminum, Solstice Advanced Materials, and AMI Metals, Amazon, healthcare and related sectors, and many industrial operators located at the Spokane Business and Industrial Park. Aerospace and Manufacturing Kaiser Aluminum is a manufacturer of semi -fabricated aluminum products, primarily for use in the aerospace, defense, automotive, and general industrial sectors, headquartered in Franklin, Tennessee. Kaiser Aluminum employs approximately 1,000 workers 10 at its Spokane Valley location. Kaiser Aluminum recently completed a $25 million expansion of its Spokane Valley Trentwood rolling mill, where it has invested approximately $415 million over the last two decades. The Trentwood facility will specialize in production aluminum and sheet products for aerospace and general electric end -market applications. As of year- end 2024, Kaiser Aluminum either owns or leases nearly 2.9 million square feet" of commercial space in Spokane Valley. -'Anonymous donor pledges $44 million for new Spokane Valley ice rink', The Spokesman -Review, https://www.spokesmancom/stories/2025/oct/13 /anonymous-donor-pledges-44-million-for-new- spokane/. 9 Visit a Park, City of Spokane Valley Parks & Recreation https://www.spokanevalleywa.gov/165/Visit-a- Park '-'Raiser completes $25M expansion at Trentwood" Spokane/ournal of Business. https://www.spokanejownal.com/articles/17604-kaiser-aluminum-c ompletes-25m-expansion-at- trentwood-facility. v Form 10-K For the fiscal year ended December 31, 2024, Kaiser Aluminum Corporation. https://www.sec.gov/Arc hives/edgm/data/011596/000095017025024313 /kalu-20241231.htm Economic Development Element I Spokane Valley Comprehensive Plan Update 12 Solstice Advanced Materials, a pure -play specialty materials manufacturer headquartered in New Jersey, recently broke ground on a $200 md1ion12 expansion of its electronic materials facility in Spokane Valley, anticipated to be complete in 2029. Solstice Advanced Materials was recently formed as an offshoot of Honeywell International's advanced materials line of business 13. The expansion, which will increase semiconductor fabrication at the facility, is expected to add 80 new, permanent jobs in Spokane Valley, and will spend approximately $80 million on Washington -based suppliers. AMI Metals is a global manufacturer of advanced specialty materials and components, and is currently underway to construct a new, 101,000-square-foot 14 facility in Spokane Valley. AMI Metals specializes in the production of aluminum plates, which are critical components used in the aerospace supply chain. AMI Metals is a subsidiary of Reliance, Inc., who is the largest metal services provider in the United States, operating in 41 states and ten countries outside the United States. Healthcare and Social Assistance Healthcare and social assistance is a growing sector both in the city and the region, comprising more than 16% of the city's workforce in 2025, an increase from 2016. The region is served by several prominent hospitals and medical institutions, many of which offer services in Spokane Valley, including CancerCare Northwest, Providence Healthcare, Spokane CyberKnife & Radiation Oncology Center, and MultiCare Valley Hospital. In 2025, the healthcare & social assistance employment sector is the second largest employment sector by concentration, behind only retail trade. Amazon Amazon, a multinational technology, e-commerce, and cloud computing giant, who is one of the largest private employers in the United States, opened a 1.3 million -square -foot fulfillment center in Spokane Valley in 2021. At the time of opening, this move created at least 1,000 new full-time jobs for Spokane Valley and the region. Amazon also operates a second fulfillment center near the Spokane International Airport of similar size, as well as a recently opened delivery station in Airway Heights. i�'Solstice Advanced Materials Breaks Ground on $200 Million Spokane Expansion to Drive Semiconductor Innovation; Solstice Investor News, https://investorsolstice.com/news-releases/news-mlease- " "Honeywell plant now part of spin-off company" The journal of Business, https://www.spokanejownal.com/articles/17693-honeyweH-c ompletes-spin-off-of-solstice-advmced- materials. 14'Ami Metals, Inc, expands its footprint in Spokane Valley", Washington State Department ofCommerce, https://www.commen e.wagov/ami-metals-inc-expands-its-footprint-in-spokane/. Economic Development Element I Spokane Valley Comprehensive Plan Update 13 Spokane Business and Industrial Park One of the most impactful drivers of employment and economic activity in the region is the Spokane Business and Industrial Park (The Park), which offers more than five million square feet of commercial space, including warehouse, distribution, manufacturing, office, and retail uses. The Park is more than 625 acres in size, and is located in the northeast of Spokane Valley In addition to a variety of spaces available for lease, customizable build -to - suit options are available to accommodate any tenant. Major tenants at The Park include Inland Empire Distribution Systems, Spokane Industries, Fastenal, and Spokane Packaging. In total, The Park employs more than 4,500 workers, and is home to approximately 120 companies, making it one of the most critical employment hubs in the region. In January 2 02 6, The Park had one available space for lease, an approximately 33,000-square-foot build -to -suit office space. The Park is within the city's Northeast Industrial Area (NIA), identified through the (SEPA) fulfillment process, which has experienced steady growth in recent years, and has contributed to very low vacancy levels. Business owners and commercial real estate professionals suggest that there would be market support for additional industrial development activity, if the city had additional land zoned for industrial uses. Bringing more industrial land into the city is an economic development priority for the City, and recent expansion at The Park —as well as the need for industrial land —is discussed in the Development Trends (LINK section of the Land Use element. Avista Avista Corporation is an electric and gas utility provider headquartered in Spokane, and one of the regions largest employers. Avista provides electrical and natural gas services to approximately 805,000 customers across its service area which includes eastern Washington, northern Idaho, and a small portion of Montana. At the end of 2024, Avista and its subsidiaries employed nearly 2,000 workers is, mostly concentrated in eastern Washington and northern Idaho. In addition to its broad impact as a regional employer, Avista sponsors in name the baseball stadium that is home to the Spokane Indians, located in Spokane Valley. Avista Stadium generates significant economic impact for Spokane Valley and the region, primarily throughout the Minor League Baseball season, hiring seasonal workers and attracting local vendors to sell concessions. Real Estate Market Considerations Contextual information on historical performance in the real estate market may help provide Spokane Valley with forward -looking insight into the future of economic development in the region. This section provides a comprehensive snapshot of historical i5 Form 10-K for the fiscal year ended December 31, 2024, Avista Corporation https://investorwistmorp.com/static-files/0503 cef&dhef-408-a361-ee591532dcf9. Economic Development Element I Spokane Valley Comprehensive Plan Update 14 and current market conditions for all primary commercial real estate asset types and subsectors, including office, industrial, flex, retail, multifamily, and hospitality typologies. Commercial Deliveries Exhibits 9 through 12 show the volume of deliveries by commercial typology between 2016 and 2 02 5 for Spokane Valley and comparison geographies in the region. These visuals present an easily digestible reference for which commercial typologies are most impactful and prevalent in the region. Most commercial deliveries concentrated in Spokane Valley and Spokane over the period, together accounting for at least half of all Office, Multifamily, and Retail deliveries among the select geographies, and approximately 40% of Industrial deliveries between 2016 and 2025. For office typologies, nearly 25% of total square footage delivered across the six comparison geographies occurred in 2 02 0, including nearly 200,000 square feet in Spokane. Similarly, approximately 24% of all Industrial square footage delivered across the six geographies occurred in 2021, nearly 1.5 million of which was in Spokane Valley. Total retail deliveries in Spokane exceeded 190,000 square feet in three different years, 2016, 2018, and 2021. Deliveries in Spokane Valley accounted for nearly 28% of all office square footage delivered over the period among the six geographies, more than 57% of industrial space delivered, 14%of retail, and 23% of all multifamily units. Exhibit 9. Total Industrial Deliveries, Spokane Valley & Select Comparison Geographies, 2016-2025 Square Feat (Millions) 2.0 1B 1.6 1.4 12 1.0 06 0.6 0.4 02 0.0 2016 2017 2010 2019 2020 2021 2022 2023 2024 2025 Sources: CoStnq 2025,CN, 2026. Economic Development Element I Spokane Valley Comprehensive Plan Update 15 Exhibit 10. Total Office Deliveries, Spokane Valley & Select Comparison Geographies, 2016-2025 Square Feet (Thousands) 250 Post Falls (to) Airway Helghls All Other Spokane County liberty Lake 200 Coeur d Alone Spokane Valley Spoken. 150 100 r 50 0 . r I w N 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sources: CoStar, 2025,CAI, 2026. Exhibit 11. Total Retail Deliveries, Spokane Valley & Select Comparison Geographies, 2016-2025 Square Feet (Thousands) 500 — Liberty Lake 450 All Other Spokane County 400 Post Falls (ID) irway Heights 350 - Spokane Valley Spokane 300 250 J4LA 200 150 too 50 a 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sources: Co Star, 2025, CAI, 2026. Economic Development Element I Spokane Valley Comprehensive Plan Update 16 Exhibit 12. Total Multifamily Deliveries, Spokane Valley & Select Comparison Geographies, 2016-2025 N of units 4,000 3,500 3,000 2,500 2,000 1500 000 500 0 Airway Heights Liberty Lake All nih—c.,.,k,,,e Coeur d'Alene CID) Post Falls (ID) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Sources: CoStor, 202S,CAI, 2026 Lease & Vacancy Rates 240 100 0 350 Exhibits 13 through 16 depict the fluctuation in lease and vacancy rates by commercial typology between 2007 and 2025 for Spokane Valley and comparison geographies in the region. These exhibits reflect fluctuations in the real estate market over time, capturing economic swings, and how real estate typologies have performed in each jurisdiction. While lease rates generally followed a similar trend in both Spokane Valley and Spokane County, vacancy rates fluctuated more significantly across both geographies. Less volatility of vacancy rates was observed for Spokane County, however, vacancy rates in Spokane Valley reached lower thresholds than Spokane County for all typologies, typically around and after the onset of the Covid-19 pandemic. Economic Development Element I Spokane Valley Comprehensive Plan Update 17 Exhibit 13. Industrial Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Lease Rate {$) Spokane Valley Lease Rate — Vacancy Rate NNN Overall Spokane County Lease Rate — N $12.0 70-k Spokane Valley Vacancy Rate - - - - $9 60 $10.01, 7 6.0% 2% 1w\ 1\t 50% l ! $80 8.44 2.70/3.0% r !1 lt—\ rt r =J\1%\tli, try, !! $2.0 \ ! 1 0% \ / $fl.o 0.0% R NN R R 2——�s ry—� N N 21 N N N N N Sources: CoStar, 2025, CAI, 2026. Exhibit 14. Office Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Lease Rate {$J Spokane Valley Lease Rate — Vacancy Rate Spokane County Lease Rate $30.0 18 0% �\ Spokane Valley Vacancy Rate - - - - $25.0 Spokane County Vacancy Rate - - - - $23.g16.0°,6 t \ 140% \ ° $2 3.1 $20 0 12 6% 8.8% r . . \ 111 $14.9 t 10.00% S15.0 ` 8.5 % " \\w 7.0%80% sio.gg WA \ ! $.a/ Y 4 0°/ $5.0 20% $0.0 0.0% N M?—— -—— N N N N N NG G Sources: CoSWr, 2025, CAI, 2026 Economic Development Element I Spokane Valley Comprehensive Plan Update 18 Exhibit 15. Retail Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Lease Rate [$) Vacancy Rate NNN Overall M $20. D 10.0% SIB_1) /� $17.629.0% ! 1 $16.0 8.0% $14 0 J. 15.2670% $11)_1) 5.0% \ r � ♦ ti I 111,r1 $8.0 % 4.0% ^ \ r . $6.0 Spokane Valley Lease Rate— �♦ r ♦ 30% Spokane County Lease Rate r 4-�� 2.0% ., $2 0 Spokane Valley Vacancy Rape - - - - 10% $0.0 Spokane County Vacancy Rate - - - - 0.0% N O0p c 5p 0 O0_p Or_p ON_p m s N N N r N N Sources: CoStar, 2025,CN, 2026. Exhibit 16. Multifamily Lease & Vacancy Rates, Spokane Valley & Spokane County,2007-2025 Effective Vacancy Rate Rent/Unit ($) M $1 60o 90% 1 $1,377k80% $1,400 ti I + ♦ i ti ft !\ .5%60% $1 6005.fi;6 $910 v,tt� al 1 + 1„ r 5.70)W5.0% $800$900 I ♦ �1 v 4.0% $6W Spokane Valley Lease Rate 3.0% Spokane County Lease Rate — �� 2 D% $200 Spokane Valley Vacancy Rate - - - - Spokane County Vacancy Rate - - - - 1 D% $D 0.0% 0 0 o O r N cn a— A m m N N N 0 0 0 pp pp o 0 0 -0 0 0 0 0 0 0 0 N N N 0 o Q N N N rV N N N N N N N N N N N N N N N Sources: CoStar, 2025,C41, 2026. Economic Development Element I Spokane Valley Comprehensive Plan Update 19 Hospitality Exhibit 17 conveys current and historical fluctuations in demand for the hospitality sector in Spokane Valley and Spokane County, showing the monthly revenue per available room (RevPar) for hotels. This exhibit captures the cyclical demand for hotels, which fluctuates significantly on a monthly and seasonal basis, with demand and RevPar typically peaking during summer months and decreasing to a lull during the winter season. Hotels in Spokane County typically performed better than hotels in Spokane Valley, as RevPar in the County eclipsed that of the City of Spokane Valley nearly every year over the period. Though the rate of occupancy is another critical indicator that hotel operators and real estate professionals track to measure the health of the hospitality sector, there is a generally close relationship between RevPar and occupancy rate. For example, increases in both RevPar and hotel occupancy rates in the city between October 2024 and October 2 02 5 increased over the same six-month occurrences, while both rates decreased over the other six periods. As the City of Spokane Valley is concerned with accumulating increased TPA revenues, the stronger the performance of the hotel sector in terms of RevPar, this generally equates to increased TPA revenues. Exhibit 17. Monthly Hotel Revenue per Available Room, Spokane Valley & Spokane County,2007-2025 Revenue per Available Room (81 $120.0 $100.0 $80.0 $3 $60.0 $40.0 $20.0$ $0.0 Spokane Valley Revenue per Available Room Spokane County Revenue per Available Room $15.4 O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N Sources: CoStar, 202S,CAI, 2026 Economic Development Element I Spokane Valley Comprehensive Plan Update 20 Approach to the Economic Development Element This Update builds on the 2016 Update to continue prioritization of promoting tourism and visitation, encouraging and supporting outdoor recreational opportunities, leveraging key infrastructural assets, and bolstering commercial growth. This Update calls on the City to continue to leverage and recognize its strongest assets. Furthermore, as new challenges and issues have arisen since the 2016 Update, the goal should be to continue to support and leverage the city's key assets to drive growth and economic development, while allocating adequate resources to address modern-day problems. Challenges and Opportunities Outlined below are issues of concern for the City of Spokane Valley and its residents, coupled with opportunities to achieve sustained growth and economic development. Awareness of these areas guides the goals and policies to enhance the city's quality of life through economic prosperity Land Availability for Industrial & Commercial Growth Industrial operations in Spokane Valley are a key driver of the city's economic growth, supporting thousands of jobs, accommodating businesses of all sizes, and generating millions of dollars in tax revenue each year. Industrial operations in Spokane Valley occupy more than 40% of total industrial commercial space in Spokane Countytb in 2 02 5. The City must be receptive to land use reform and zoning change to allow for expansion of commercial and industrial prototypes. New development opportunities in the city are limited (See Exhibit LU-1 in Land Use section), and local stakeholders call out a lack of industrial -zoned land for development. In addition to supporting industrial growth, the City must allocate resources to improve infrastructure, particularly the maintenance of roads and bridges, to adequately sustain future growth from industrial operations. Though existing land availability for industrial growth is limited, the completed Land Capacity Analysis within the Future Land Use section identifies buildable land capacity for Industrial growth in Spokane Valley (See Exhibit LU-5 in Land U se section). Housing Affordability and Job Growth During the engagement process, some community members highlighted the challenging regulatory environment in Washington, noting the less complex regulatory system in Idaho, as a potential source of competition. As population and employment continue to increase in Spokane Valley, it is critical that housing development, particularly affordable and accessible housing, keep pace. 16 Co Star Group, 2025. Economic Development Element I Spokane Valley Comprehensive Plan Update 21 Washington State's Office of Financial Management identified growth targets of 20,913 new residents, and 16,661 new housing units for Spokane Valley between 2026 and 2046. Between 2020 and 2025, nearly 3,800 total residential units were developed, accounting for nearly 23% of this overall growth target. Many of these units were developed for the city's workforce, including those earning between Sl% and 80% of the area median income (AMI). The City must continue to prioritize the development of units to house both existing and new members of the workforce, while doing what is within their regulatory power to reduce barriers to the development. Balancing the Commercial Sector Deliveries of primary commercial typologies in Spokane Valley have been stable since 2016. Over this time, industrial space in Spokane Valley has accounted for 43% of all industrial space delivered in Spokane County. Deliveries of multifamily and office typologies in Spokane Valley represented approximately 30% of all units and space delivered in the County, respectively. Conversely, retail space developed in Spokane Valley over time accounted for 17% of all retail delivered in the County To continue to thrive, Spokane Valley must foster a balanced economy, encouraging the development of all commercial typologies. To accomplish this, they must continue to promote a business -friendly environment, provide housing for a stable workforce, and enable and encourage businesses of all sizes to thrive. Placemaking & City Identity While Spokane Valley has a successful and thriving economy, some residents feel that there is a lack of placemaking and identity in some districts. More specifically, some community interviewed during the engagement phase noted the lack of investment around key community assets, such as the Avista Stadium, where they would like to see increased transportation uses for pedestrians and cyclists. Similarly, residents suggested that the City should invest resources into supporting local businesses, particularly minority -owned organizations and entrepreneurs, whom they feel represent the greater cultural fabric of the community. Though the City can work to engage private investment to funnel towards placemaking efforts, they have limited resources and funding to invest in placemaking, to further establish a city identity. Key City Assets & U nderutilized Opportunities The City should continue to support and promote its key assets that drive growth and support a high quality of life. There is a wealth of recreational and entertainment opportunities that draw visitors to Spokane Valley from the region and beyond. Protecting, leveraging, and building upon these resources encourages both a diverse community and economy, and offers a wide range of lifestyles. Economic Development Element I Spokane Valley Comprehensive Plan Update 22 Conversely, some residents feel that there are existing assets in the city that are underutilized or neglected, such as the Spokane River. During the engagement process, some residents suggested that the City should consider creating and fostering communal spaces for recreation and gathering near the River, in addition to housing development. While Spokane Valley boasts a multitude of park and recreational opportunities, some residents feel that park access is unevenly distributed and that some milli development infringes on recreational space. Environmental Impacts As covered extensively in the Natural Resources Element, environmental impacts such as wildfire risk, smoke, drought, and dwindling water levels in the Spokane River, to name a few, may negatively influence economic development. If these concerns are not addressed immediately and head on, they have the potential to significantly divert much -needed city resources and funding from other problems. New and Emerging Trends This section identifies recently emerging activities that are impacting the economic and cultural landscape for communities across the United States. While some of these trends bring with them trepidation, Spokane Valley can benefit from considering their potential impact on the city. Scarcity of Resources I Data & Distribution Centers With the increasing prevalence of data and cloud storage, and the emergence of artificial intelligence (AI), data centers are becoming an increasingly popular development trend across the U nited States. At present, though there are no data centers operating in Spokane Valley, there are seven data centers in neighboring Spokane and Liberty Lake, and there is appetite to build more in the region. One primary concern with data centers is their extensive demand for resources. Larger data centers can consume up to five million gallons of water each day, equivalent to the water usage of a town with a population between 10,000 and 50,000 residentsl'. In addition to data centers, distribution centers and other large-scale operations such as Amazon distribution centers require large footprints and carry a high demand for resources and infrastructure capacity Not only do large-scale users such as data and distribution centers require intensive energy and water usage, but they can also be very inefficient from an employment density perspective. Though these operations typically occupy large swaths of land and property, they do not always employ enough workers to adequately fill the space. 17 Data Centers and Water Consumption, Environmental and Energy Study Institute; https://www.eesi.org/articles/view/data-centers-and-water-consumption. Economic Development Element I Spokane Valley Comprehensive Plan Update 23 Impending Impacts of Artificial Intelligence Demand and usage of artificial intelligence have risen precipitously in recent years and will likely continue to increase. The uses of At continue to multiply as the technology continues to develop, and a growing number of entities are adapting its usage. The implications of this shift have the potential to be long-lasting, far-reaching, and potentially detrimental. As automation and machine -learning are on the rise, adaptation of AI contributes to the erosion of employment sectors and occupations, including retail and services. Despite concerns surrounding AI, ranging from ethical considerations to the automation and erosion of less specialized occupations, there is optimism that advancements and gains from this technology can be an economic boon For example, as AI's popularity and usage skyrockets, there will be a growing need for specialized and skilled workers capable of managing this technology. As businesses operating in and around Spokane Valley continue to embrace this technology, this increases the potential for employment opportunities to service, administer, and operate AI to strengthen the economy, generating jobs and business and tax revenues. Equity & Inclusion Since Spokane Valley's 2016 Comprehensive Plan Update, the city's resident base has become increasingly diverse. According to 2016 5-year American Community Survey (ACS) estimates from the U.S. Census Bureau, residents identifying as "White Alone" made up 91% of the total city population, which decreased to 85% in 2 02 3. City residents identifying as "Two or more races" increased from 5% in 2016 to 16% in 2023. As Spokane Valley's population continues to diversify, the City should prioritize measures that champion equity and inclusion, from fostering marginalized and underserved communities, to supporting arts and cultures of all backgrounds. Strategic Priorities The priorities outlined below speak to Spokane Valley's greatest assets and strengths, and where the City should focus efforts on funding and support in the future to continue to bolster a resilient and strong economy. Retain Talent & Promote High Quality of Life Spokane Valley's diverse workforce is one of its most critical assets, and a heightened focus on talent retention is essential for driving successful and sustainable economic development. Investing into the city's workforce, providing support for local businesses, and containing the cost of living in Spokane Valley all contribute to a successful talent retention strategy. A continued emphasis on the city's high quality of life to retain talent should remain a priority for Spokane Valley. Economic Development Element I Spokane Valley Comprehensive Plan Update 24 Adjust to Shifting Retail Landscape The desired retail experience has changed dramatically in recent years, induced by a mixture of mass adoption of social media and smartphone technology, and changing entertainment preferences in the aftermath of the Covid-19 pandemic. Prior to this new era, most retail end -users preferred a traditional brick -and -mortar experience, such as restaurants, movie theaters, shopping malls. To effectively compete with these new technologies, Spokane Valley must continue to foster spaces that offer experiential retail, or other highly engaging and interactive forms of retail. Typically, this includes retail businesses with multiple uses, such as an event space like mini golf or bowling, which also feature alternative offerings such as a bar, interactive art, or video displays. Support Economic Resiliency Fostering a successful and thriving business environment in Spokane Valley is the backbone of stable economic development and resiliency By encouraging businesses of all sizes and sectors to be successful in the city, this bolsters a steady and well -paid local workforce, which in turn enables increased business and tax revenues, greater levels of employment stability and growth, and a continued promotion of the city's identity The longevity and success of local businesses provide the local workforce with stable incomes, allowing them to reinvest this money into the local economy. This generative model works well with a diverse business base, sustaining itself in steadier times while also protecting against the risks of major disruptions to a stable economy. Think Creatively Around Affordable Housing Housing availability and accessibility puts additional pressure on workforce demand and impacts consumer spending. Spokane Valley, like much of the country, is facing a housing affordability crisis as attainable homeownership feels out of reach for many lower and middle-class earners and first-time homebuyers. Recent efforts in Washington have aimed to mitigate this crisis, and yet significant challenges remain to developing sufficient affordable housing. The City may consider creative solutions to housing challenges that also generate other economic value. The Housing Chapter discusses these issues in greater detail. Goals and Policies Informed by Spokane Valley's current conditions, challenges, opportunities, and future growth needs, the following goals and policies will guide economic development for the City in this 2 02 6 Comprehensive Plan Update. GOALS ED-G1 Cultivate economic opportunities and foster employment growth for Spokane Valley Economic Development Element I Spokane Valley Comprehensive Plan Update 25 ED-G2 Maintain and employ a city brand that supports economic growth and leverages existing community, economic, and natural assets. ED-G3 Plan for economic development in a way that complements community development priorities and the city's fiscal health. ED-G4 Collaborate with relevant economic development stakeholders, including the business community, to grow a strong and healthy regional economy. ED-GS Support and encourage the development of a strong workforce that helps Spokane Valley compete in targeted sectors as workplace needs evolve. ED-G6 Maintain a positive business climate that offers flexibility, predictability, and stability. POLICIES ED-P1 Work collaboratively with the private sector to support catalytic development projects that are consistent with the City's vision. ED-P2 Maintain an understanding of target sectors and encourage business and employment growth in relevant industries and occupations. ED-P3 Support businesses that provide jobs and grow local markets. ED-P4 Promote key retail, office, and industrial opportunity sites, as well as vacant and underutilized sites, as identified in the City's economic development studies and other planning documents (Certified Sites, for example). ED-PS Promote Spokane Valley as a great place to work, visit, and do business. ED-P6 Provide and maintain infrastructure that supports Spokane Valley's economic development priorities. ED-P7 Leverage federal, state, and regional economic development resources and programs for City economic development purposes. ED-P8 Pursue public -private partnerships that advance the City's economic development goals. ED-P9 Provide positive, accessible, and customer -oriented City and public services. ED-P10 Provide effective and impactful assistance to businesses. ED-P11 Engage local businesses to understand their needs and to assist in future growth. ED-P12 Dedicate resources to sustain Spokane Valley's existing high value and high - volume tourism segments. Economic Development Element I Spokane Valley Comprehensive Plan Update 26 ED-P13 Work to create and market new attractions, events, and other improvements that perpetuate Spokane Valley's presence as a tourist destination ED-P14 Promote parks, trails, and other facilities that help to attract visitors and grow the local economy. ED-P15 Support the creation and retention, and expansion of home -based businesses that are appropriate for residential areas. ED-P16 Support local educational institutions in the development of educational and training programs that meet the needs of businesses. Economic Development Element I Spokane Valley Comprehensive Plan Update 27 IV. Land Use Introduction Why the Land Use Element is Important The land use element is foundational to Washington State comprehensive planning under the Growth Management Act (GMA) in a number of important ways. Under this statute, this 2026 Comprehensive Plan Update will set the future course of the City of Spokane Valley through the year 2046. Central Role in Growth Management The land use element sets the direction of future growth in a community and includes a future land use map (FLUM) that identifies the general location and intensity of land uses such as residential, commercial, industrial, recreational, and public uses. It is the first mandatory element listed in the statute and acts as the organizing framework for all other plan elements. Integration with Other Elements The land use element serves as the basis for other required elements to build upon. Transportation forecasting must be based on the adopted land use plan, and capital facilities planning depends on the land use patterns identified. This ensures internal consistency across the comprehensive plan. Implementation Through Regulations Cities and counties must adopt development regulations that are consistent with and implement the comprehensive plan. This means the land use element directly shapes zoning ordinances, subdivision regulations, and other development controls that affect daffy land use decisions. Current Policy Requirements Recent amendments have expanded the land use element's scope. It must now give special consideration to achieving environmental justice in its goals and policies, avoid creating or worsening environmental health disparities, reduce per capita vehicle miles traveled, and address wildfire risks. These requirements reflect evolving state priorities around climate, equity, and resilience. The land use element essentially determines where and how growth will occur over the 20- year planning horizon, making it the cornerstone of comprehensive planning in Washington State. Land Use Element I Spokane Valley Comprehensive Plan Update 1 Countywide Planning Policies Framework Under the Growth Management Act, Spokane Valley's Comprehensive Plan must be consistent with Spokane County's Countywide Planning Policies (CPPs), which establish a common framework for developing county and city comprehensive plans. The CPPs provide direction for U chart Growth Area (UGA) designations, which must include sufficient land and densities to accommodate 20-year projected growth. Key land use implications for this element include: • Maintaining consistency with regional population allocation processes coordinated through the Steering Committee of Elected Officials (SCEO); • Ensuring land use plans support and are consistent with regional transportation planning by the Spokane Regional Transportation Council (SRTC) and Spokane Transit Authority (STA); • Accommodating diverse housing types and densities across economic segments as specified in the CPPs' affordable housing policies; • And making provisions for essential public facilities consistent with regional siting processes. The UGA boundary, which defines where urban development may occur, is reviewed every 10 years to ensure adequate capacity for projected growth. This Land Use Element is structured to maintain consistency with these regional policy directives while addressing the city's specific land use needs and community character. Planning Context Since adoption of the 2016 Comprehensive Plan, the City of Spokane Valley and its communities have accomplished much, with a new City Hall and library, parks investments (such as Balfour Park and The Course), major transportation projects, and a diversity of new housing developments. Critically, the city has experienced significant demographic, economic, and regulatory changes that shape the context for this update. Population Growth and Regional Development Spokane Valley's population has grown rapidly since the 2020 Census. The city has maintained an average annual growth rate of roughly twice the national rate and has recently exceeded Spokane County's growth rate. This strong, steady growth reflects the city's continued attractiveness as a residential and business location within the Spokane metropolitan area. This Comprehensive Plan update plans for growth through 2046, responding to community preferences and economic conditions. The plan accommodates more moderate growth than that seen over the last decade without large increases in density or dramatic changes to its development pattern - maintaining the community feel Land Use Element I Spokane Valley Comprehensive Plan Update and excellent livability that residents value while providing the affordable housing options and multi -modal connectivity now required by State law. Housing Affordability Crisis The planning period has been marked by unprecedented housing market pressures. Home values in Spokane County increased by nearly $100,000 from 2021 to 2022 alone, and middle -income families have been paying more than 30% of their income on housing — above the affordability benchmark —since 2020t. Between 2010 and 2 02 1, Spokane County's population grew by 56,000 people, while home prices in the region rose 30% in a single year during the pandemic period. These market forces have fundamentally altered the housing landscape, making homeownership increasingly challenging for local residents and creating urgent demand for diverse housing options. State Legislative Mandates Washington State has enacted significant housing legislation that directly impacts comprehensive planning. HB 1220 (2021) now requires jurisdictions to plan for housing across all income levels, identify sufficient land capacity by income bracket, and address racially disparate impacts and displacement in housing policies. HB 1110 (2023) requires cities of Spokane Valley's size to allow at least four housing units per lot, with higher densities near major transit stops, while HB 1337 (2 02 3) mandates allowing at least two accessory dwelling units per lot and removes barriers such as owner -occupancy requirements. These legislative changes necessitate substantial updates to the city's land use regulations and comprehensive plan policies. Economic Resilience and Development Despite housing market challenges, Spokane Valley has maintained its position as Washington's eighth -largest city and continues to serve as a regional distribution and manufacturing hub along the Interstate 90 corridor. The city benefits from proximity to major transportation infrastructure, including two Class-1 railroads, Interstate 90, and state highways SR290 and SR27 - not to mention one of the largest industrial parks in the country - all supporting continued economic development and employment growth. This update responds to these converging factors by establishing land use policies and strategies that accommodate projected growth, advance housing diversity and affordability, comply with state mandates, and support economic vitality while preserving community character and environmental quality. 'According to the US Census, 33% of Spokane County households were cost -burdened in 2021. Land Use Element I Spokane Valley Comprehensive Plan Update Current Conditions Existing Land Use The city is substantially developed, with 2,540 acres, around 12.5% by parcel area, of the total citywide parcel acreage2 remaining vacant, a decline from the nearly 15% vacant area as of the 2016 Comprehensive Plan cycle. This vacant land is characterized by both large contiguous tracts —such as Saltese Creek (currently under development) and a tract north of the County Fairgrounds —as well as by small, single lots scattered throughout the city and a handful of mid -size industrially -zoned parcels in the northeast of the city (Exhibit LU-1). Exhibit LU-1: Current Land Use Map, City of Spokane Valley, 2026 x Note that these acreage figures include only discrete parcel acreage and generally exclude rights -of -way. If the total city land area is 24, 354 acres, then rights -of -way would comprise approximately 3,950 additional acres. Land Use Element I Spokane Valley Comprehensive Plan Update 4 Source: City of Spokane Valley, 2025,Spokane County Assessor, 2025,CommunityAttributes, Inc., 2026. In 2026, single-family residential development accounts for 8,782 acres and approximately 43 percent of land use in the community (Exhibit LO-2), down from 49% in 20163. Multifamily residential development, around 9.3% of land use (see note below exhibit) has grown from 5.6% in 2016 and is concentrated in numerous nodes near commercial areas along main arterials, and in various neighborhood centers. Commercial land uses, including retail and most services, account for approximately 7.8% percent of the city's parcel area. Smaller commercial and mixed commercial / multifamily residential uses are located primarily along major thoroughfares, including Sprague, Appleway, Pines, Argonne/Mullan and Sullivan; as well as larger format, auto dealership, and big box commercial along Sprague, Appleway and I-90. There are also smaller neighborhood commercial centers located throughout the city. Spokane Valley's extensive industrial land use component, totaling 2,491 acres and approximately 12.2% of land use overall (almost double the 6.5% from 2016) is concentrated in and around the Kaiser Aluminum plant and Spokane Business and Industrial Park (known as "The Park'; it is one of the largest active industrial parks in the nation), in the northeast of the city; a secondary major industrial node is centered in and around Yardley in the west end of the city and comprises many smaller -to mid -size industrial sites and activities. The significant growth in active industrial land uses reflects increased demand related to industries such as aerospace and advanced manufacturing in recent years. The following table includes estimated acreages for existing land uses within the City of Spokane Valley as of 2 02 6. ' A portion of this decline is due to methodological differences in the way land use was measured in 2016 versus in this document; here, additional, and more detailed, categories of land use have been broken out - including institutional, resource, parks - that may reduce single family land use as a proportion of the whole. Land Use Element I Spokane Valley Comprehensive Plan Update Exhibit LU-2: Current Land Use by Area, City of Spokane Valley, 2026 Land Use Type Parcels %Total Acres %Total Single -Family Residential 25,216 74.07. 8,782 43.07. Vacant 2,758 8.1% 2,548 12.57. Industrial 759 2.27. 2,491 12.27. Multifamily Residential 3,521 10.37. 1,890 9.37. Commercial 1,267 3.77. 1,587 7.87. Institutional 282 0.87. 1,299 6.47. Transportation & Utilities 161 0.57. 793 3.97. Parks & Recreation 60 0.27. 536 2.67. Resource 42 0.1% 479 2.37. Total 34,066 1007. 20,404 100% Source: City of Spokane Valley, 2025,Spokane County Assessor, 2025,CommunityAttributes, Inc., 2026. Note: Additional multifamily is located in mixed use zones, including CMU and MU,, categorized here and .symbolized in the map as Commercial. Resource land includes mining, agricultural, current use designations and forest land. Development Trends Talk here about changes since 2016, plus similar trends write-up as in 2016 version. Residential Larger lot single-family residential development remains the most prevalent land use citywide, though new statewide regulations are poised to increase density on most of the single-family zoning categories in Spokane Valley. With Spokane Valley's dramatic population growth since 2 019, driven partly by people relocating from more expensive West Coast cities seeking more affordable living options, vacancy has decreased, and new residential development —especially multifamily —has proliferated. While the 2016 Comprehensive Plan had already indicated renewed interest in multifamily development in Spokane Valley, recent numbers testify to the scope of the multifamily construction boom in the city. The most dramatic trend has been the surge in apartment development. In the first five months of 2023, multifamily permits in Spokane Valley increased 144.4% compared to the year-earlier period. Major recent projects include: • Mirabeau Place Apartments: 300-unit, complex on the former Elks Lodge property (permitted 2023, expected completion 2025) • Orchard Vista: 240 units across 7 buildings by Spokane Housing Authority • Saltese Creek: 320 units planned across 10 buildings Land Use Element I Spokane Valley Comprehensive Plan Update 6 • Multiple projects totaling 355 units permitted in Spokane Valley in early 2023 alone In addition to apartment projects, numerous three to six -unit townhome buildings have been permitted and constructed in the city's R-4 zone. Despite growth, affordability has become increasingly strained. Around 44 percent of Spokane Valley households need housing priced below the Area Median Income, yet only 34 percent of the housing stock is affordable at those levels. The City developed a Housing Action Plan identifying the need for approximately 6,600 housing units by 2037 to meet demand. To support residential growth, the City has made significant infrastructure investments, including water transmission mains and sewer upgrades, though, importantly, the City relies on a number of special purpose districts for provision of water, sewer, and fire services in many locations. Retail The retail market in Spokane Valley has shown resilience despite high interest rates and changing consumer patterns. While national brick and mortar retail faces challenges from bankruptcies, consolidation, and online retailing, Spokane Valley has maintained relatively stable performance, though growth rates have moderated from the 5% historical average to around 2-3% more recently. The city saw substantial improvement in retail health following the Great Recession and continuing through the 2 01 Is. Retail vacancies dropped dramatically over the last 10-15 years from 12-15%to around 4-5% currently (considered a healthy market), representing about a decade of steady recovery and market strengthening. Spokane Valley's taxable retail sales grew impressively over this period. The city reached $3.62 billion in retail sales by 2 02 5, representing a 144.1%increase since 2004. The city maintains high retail sales per capita and strong trade capture rates across many sectors, suggesting it is attracting shoppers from beyond its immediate boundaries. The city has proactively attracted new retailers. Since 2017, Spokane Valley has contracted with Retail Strategies to identify retail gaps, research national retailers expanding westward, and maintain active recruitment efforts including representation at major industry conferences. The Spokane Valley Mall has also undergone transformation with Sears closing in 2020 as part of nationwide store closures while the mall has retained its Macy's and JCPenney anchors (with the Macy's location surviving recent corporate consolidations that closed nearby stores). Recent years have seen diverse retail additions like a future Trader Joe's slated to fill former big -box space and boost the East Sprague corridor, a new Dave & Buster's, a Burlington clothing store (moved into a former Toys-R-Us location around 2020), Sierra (an off -price active apparel retailer), and various locally -owned restaurants and specialty shops. Land Use Element I Spokane Valley Comprehensive Plan Update Industrial Since 2016, the City of Spokane Valley has experienced a transformation of its industrial sector, evolving from traditional manufacturing into a major regional logistics and distribution hub. The most significant catalyst was Amazon's entry into the market, with the company opening a 1.3 million -square -foot fulfillment center in September 2021 that brought more than 1,000 new full-time jobs to the area. This development, combined with Amazon's existing West Plains operations, established the company as the second-largest private employer in Spokane County. Beyond e-commerce, the period saw substantial expansions by established manufacturers including Kaiser Aluminum's $150 million capital investment, Solstice Advanced Materials' (formerly Honeywell) $200 million expansion, Wagstaff Inc.'s $5.8 million facility addition, and Mercer Mass Timber's (formerly Katerra) 270,000-square-foot cross -laminated timber manufacturing plant. Between October 2019 and October 2020 alone, developers added 4.5 million square feet of industrial space throughout the greater Spokane area, reflecting strong demand for modern warehouse and distribution facilities. The City made strategic investments to accommodate this growth, particularly through development of the Northeast Industrial Area (NIA). The City completed environmental analysis for all 500 acres in the northeast industrial area in March 2019, streamlining the permitting process so that qualifying commercial or industrial projects are not subject to additional review under the State Environmental Policy Act. This shovel -ready land was equipped with water, sewer, and utilities through multi -year collaboration between the City, Spokane County, utility providers, and private landowners. The area's strategic positioning adjacent to both BNSF Railway and U nion Pacific mainlines, including a Union Pacific spur, combined with direct access to Interstate 90 and State Highway 290, created exceptional multimodal transportation advantages. The Spokane Business & Industrial Park expanded with newer buildings added since 2 02 0 featuring 120,000 square feet of space with concrete -tilt construction, 36-foot clear heights, cross -dock capacity, 135-foot truck courts, and LEED certification standards. These coordinated efforts positioned Spokane Valley as a competitive location for modern industrial development with diversified tenant mix spanning e-commerce fulfillment, advanced manufacturing, food and beverage production, packaging, logistics, and aerospace components. The industrial market evolved to feature contemporary specifications including 32-37-foot clear heights, ESFR sprinkler systems, advanced fiber optic infrastructure, and competitive lease rates supported by over 5 million square feet of industrial product under professional management at the NIA Major established industries including Kaiser, Boise Cascade, Alliance Machine Systems International, and SCAFCO Grain Systems continue operations alongside newer entrants, demonstrating the area's ability to support both traditional manufacturing and emerging logistics sectors. The City's Land Use Element I Spokane Valley Comprehensive Plan Update streamlined permitting processes, absence of local Business & Occupation taxes, and competitive workers' compensation rates have reinforced Spokane Valley's attractiveness as a regional industrial center serving markets throughout the Pacific Northwest and beyond. Population Spokane Valley's population has grown to approximately 110,200 residents as of 2 025 4, representing a 7% increase since the 2 02 0 Census. The city has maintained an average annual growth rate of approximately 1.3% since incorporation in 2003, almost twice the national rate, and has recently exceeded Spokane County's growth rate (1. 76% Compound Annual Growth Rate - CAGR - for Spokane Valley from 2 016-2 02 5 versus 1.56% for the County). This strong, steady growth has outpaced that of its much larger neighbor to the west (1% CAGR 2015-2024) and reflects the city's continued attractiveness as a residential and business location within the Spokane metropolitan area. While Spokane Valley has steadily comprised around 19% of the county population, Spokane's has fallen from 44% to 41%since 2003. Exhibit LU-3: Population Growth, City of Spokane Valley and Surrounding, 2012- 2025 Annual Percentage Jursidiction 2012 2016 2020 2025 Growth 2016-2025 Spokane Valley 90,550 94,160 102,976 110,2DD 1.76% Spokane 210,000 214,5C7 22B,989 234,7CC) 1.00% Spokane County 475,6C0 492,530 539,339 566,0M 1.56% Source: Washington State Office of Financial Management 2025,CommunityAttr(hutes, Inc., 2026. Residential and Employment Growth Targets The Spokane County Countywide Planning Policies (CPPs) establish residential and employment growth targets for all the municipalities in Spokane County, as well as growth targets for the unincorporated portions of the county. The State Office of Financial Management (OFM) develops growth targets for each county based on its forecast for statewide growth over the next 20 years. In Spokane County, the County and Cities work collaboratively to allocate the targets to smaller areas based on City policies and policies in the CPPs. For the 20-year period 2026-2046, Spokane Valley has a growth target of 20,913 new population, 16,661 new housing units and 9,174 new jobs. Due to economic fluctuations, over portions of the 20-year period, the city may see more or less growth than 4 Washington State Office of Financial Management, Postcensal Estimates ofApril 1 Population Land Use Element I Spokane Valley Comprehensive Plan Update this target. With this Comprehensive Plan update, Spokane Valley must demonstrate capacity to accommodate these housing and job targets. To determine the 2046 housing needs for all income categories in Spokane County, the Housing for All Planning Tool (HAPT) was utilized, as developed by the Washington Department of Commerce. Figure LO-4 details Spokane Valley's original and adjusted allocation of housing units by income band in terms of new units required through 2046. The original allocation of 16,661 units was reduced by 3,795 to 12,866 units based on housing built and approved since 2 02 0. Exhibit LU4: New Housing Unit Allocations, City of Spokane Valley, 2026-2046 Spokane Valley Valley Existing Original Total It Adjusted Spokane Housing Units by Area Median Housing Units Allocation Units Built Valley Allocation Income Band Income (AMI) (Estimate) (New Units) 2020-2025 (New Units) Emergency housing N/A 0 733 0 733 Extremely low 0-30%PSH 0 1,380 0 1,380 Extremely low PSH 1,265 4,806 93 4,713 Very low 31-50% 6,515 3,289 478 2,811 Low 51-80% 21,579 1,960 1,582 378 Moderate 81-100% 7,456 1,058 475 583 High 101-120% 2,792 872 178 694 Other Above 120% 4,144 3,296 990 2,306 Total 43,751 16,661 3,795 12,866 Source: Spokane County and City of Spokane Valley, 2024, City of Spokane Valley, 2025,CommunityAttributes, Inc., 2026. Residential and Job Growth Capacity Spokane Valley's Comprehensive Plan supports the zoning and Urban Growth Area measures necessary to accommodate the growth assumed in the adopted 20-year targets. To assess the city's development capacity under the Future Land Use scenario envisioned in this element, a Land Capacity Analysis (LCA) has been completed. The table in Figure LO-S details the results of this LCA, providing a comparison of housing unit allocations to housing unit capacity determinations by income band, in terms of surplus or deficit capacity. The full LCA, available as a separate technical report, contains detailed information and calculations of buildable land, deductions, assumed densities, and dwelling unit capacity (and related assumptions documentation) for each of the zoning designations or parameters that will change with this Comprehensive Plan update. This document also Land Use Element I Spokane Valley Comprehensive Plan Update 10 includes projections for new required Middle Housing types and ADU s under HE 1220, 1110 and 1337 legislation. Exhibit LU-5: New Housing Unit Allocations Versus Capacity, City of Spokane Valley, 2026-2046 Source: Spokane County and City of Spokane Valley, 2024, City of Spokane Valley, 2025,Community Attributes, Inc., 2026. Most of the residential growth modeled above is anticipated to occur along X and around the X areas. Much of the redevelopment in these areas is anticipated to be mixed -use structures, with commercial uses on the bottom floor and office or residential uses on the upper floors. Some of these will be a mix of uses within several structures (often of varying heights), which might be purely residential, office, retail, or commercial. Placeholder - commercial / industrial LCA findings showing needed capacity. Redevelopment is also anticipated in the smaller mixed use commercial areas located throughout the city These areas are anticipated to be developed with smaller -scale mixed - use developments or medium density multi -family residential uses. The city's residential neighborhoods are also anticipated to see growth over the next 20 years, primarily related to the middle housing requirements, discussed in more depth in the Housing Element of this plan. The City of Spokane Valley has the aggregate land capacity to accommodate the housing growth targets - the City does require, however, new "adequate provisions" to ensure that housing for residents in the lowest income bands is supported. In contrast, Spokane Valley is short on zoned capacity to accommodate the job growth targets and emerging industry clusters. Industrial development trends since the last Comprehensive Plan in 2016 support increasing demand for industrial space in the northeast for the Aerospace supply chain to continue to cluster there and for new Advance Manufacturing opportunities. See Figure X, which shows the city's existing pending development and land use capacity, allocated housing, and job unit targets. More detailed information on the land capacity analysis can be found in the Land Capacity Analysis in Appendix I of this Comprehensive Plan. Land Use Element I Spokane Valley Comprehensive Plan Update 11 Approach to the Land Use Element Growth Strategy Spokane Valley's approach to accommodating future growth reflects a needs -based philosophy that is responsive to community preferences and current economic conditions The city is planning for a lower population growth rate through 2046 than what it experienced over the last decade, allowing the city to accommodate future growth without large increases in density or dramatic changes to its development pattern. This allows Spokane Valley to meet its state -mandated responsibilities —particularly around expanding the diversity and affordability of housing and planning for transit—whfie still maintaining the community feel and excellent livability that residents value. Other emerging factors, such as wildfire risk and wildfire smoke, drought, and post - pandemic shifts in residential preference and key economic sectors further reinforce the need for a measured, responsive approach that aligns future growth with community needs and wants. Under this strategy, growth management emphasizes incremental increases in housing variety, targeted milli, and modest density adjustments where they best leverage existing infrastructure and current and future transit. This provides pathways to meet statewide housing obligations while avoiding abrupt changes to neighborhood form. Moreover, this approach preserves Spokane Valley's strengths —an enjoyable lifestyle, easy access to regional amenities, and a business -friendly environment attractive to lifestyle -oriented enterprises —while acknowledging that development must proceed with sensitivity to natural resources and environmental risks. With this Plan, Spokane Valley sets a path to intentional growth, preserving and enhancing the landscape, built environment, and community spirit that make this city special. In short, this means: • Concentrate new housing unit capacity in existing commercial and mixed -use corridors; • Preserve and enhance parks, open spaces, and recreational opportunities; • Ensure adequate land to support strong economic growth, without compromising fiscal responsibility; • Make decisions holistically, evaluating costs and benefits across housing, transportation, the economy and the environment; • Communicate well to maintain respectful dialogue and manage compromise. Land Use Element I Spokane Valley Comprehensive Plan Update 12 Challenges and Opportunities Progress on Previously Identified Challenges and Opportunities The 2016 Comprehensive Plan identified the city's lack of small-scale, walkable neighborhood commercial areas as a primary land use challenge. The dominance of regional big -box retailers along commercial corridors, combined with insufficient residential density in surrounding neighborhoods, created barriers for small independent retailers that rely on local foot and bicycle traffic. Additionally, the pedestrian environment in many commercial areas —characterized by wide streets and large street -facing parking lots —was not conducive to the walkable, gathering -oriented spaces needed to support neighborhood retail. The 2016 Retail Improvement Strategy addressed retail diversity consistent with comprehensive plan goals, emphasizing the integration of retail planning with open space, pedestrian, and bicycle infrastructure improvements. Spokane Valley was also designated a Tree City USA by the Arbor Day Foundation, recognizing its commitment to urban forestry and community tree management. While the City has made valuable infrastructure investments since 2016 including sidewalk installations, bike lane additions, and trail connections, the density needed to support local retailers in residential areas adjacent to commercial corridors still needs to rise. A second major opportunity involved attracting new development to underutilized areas, particularly along the Sprague Avenue corridor. Identified as a corridor suitable for multimodal travel and higher -density mixed -use development, Sprague Avenue contained numerous underdeveloped parcels where redevelopment had been slow to occur. The Plan proposed increased zoning flexibility and support for mixed -use development to unlock the potential of these underperforming areas and increase development intensity where infrastructure could support it. Progress on the Sprague corridor has been notable, with the completion in October 2024 of the $4.6 million Sprague Avenue Stormwater and Multi -Modal Project, which added bike lanes and a signalized pedestrian crosswalk, and installed bio-infiltration swales and an enhanced STA bus stop. Spokane Transit has also implemented High Performance Transit improvements throughout the corridor. However, private redevelopment along Sprague has thus far remained limited. The Plan identified catalytic development opportunities, particularly the proposed new City Hall, as a means to stimulate private sector investment along the Sprague corridor while providing the regulatory flexibility needed to attract development partners for large, strategically located sites consistent with the City's vision. The new City Hall was completed and opened in 2017 at 10210 E. Sprague Avenue, representing a significant public investment in the corridor as envisioned. The City has also maintained Mixed -Use and Corridor Mixed -Use zoning districts allowing concurrent residential and commercial development, adopted SEPA milli exemption areas for streamlined review, and in 2 02 0 authorized sales and use tax credits for affordable housing. Land Use Element I Spokane Valley Comprehensive Plan Update 13 New Challenges and Opportunities This 2026 Comprehensive Plan Update, supported and informed by extensive community engagement, reflects a continued commitment to addressing the land use challenges first identified nearly a decade ago. At the same time, new challenges and opportunities have emerged and the remainder of this section will describe mutually supportive approaches to addressing both. Creating conditions for neighborhood commercial to grow will be an unintended benefit of substantially increasing allowable residential by -right density in all residential and mixed use zones as a part of this Plan related to state -mandated changes. These changes will also continue to address the catalytic development opportunity with increased densities in the MU and CMU zones raising residual land values and improving the financial return on potential investment in those areas. Housing Diversity and Affordability Washington State's recent housing legislation (including middle housing requirements) requires Spokane Valley to plan for a broader range of housing types beyond single-family homes while ensuring to the best of its ability that they are affordable at a variety of income levels. The City's Housing Action Plan already identified barriers including density limits, open space requirements, and building height restrictions for multifamily development. With housing costs rising regionally and the need to accommodate 20 years of projected growth through 2046, creating opportunities for townhomes, duplexes, accessory dwelling units, and other "missing middle" housing types while ensuring affordability will be critical - and now, mandated by State law. The challenge will lie in doing this in ways that feel compatible with existing neighborhood character. Leveraging Transit and Infrastructure Investments After investing significantly in the Sprague corridor improvements and High Performance Transit infrastructure, the City faces an opportunity to encourage transit -oriented development and achieve the density needed to make these investments successful. However, this requires overcoming the persistent challenge of Spokane Valley's auto - oriented development pattern and creating the walkable, mixed -use nodes that have remained elusive since 2016. The question is whether the City can translate public infrastructure investments into private development activity, particularly small-scale neighborhood commercial that serves local residents. Climate Resilience and Sustainabffity With Washington's Clean Building Law requiring energy audits of public buildings (including City Hall, CenterPlace, and the Police Precinct), greenhouse gas reduction goals, and the need to protect the Spokane Valley-Rathdrum Prairie Aquifer (the region's sole drinking water source), environmental sustainability will be a more prominent challenge Land Use Element I Spokane Valley Comprehensive Plan Update 14 than in 2016. Opportunities include expanding stormwater management approaches like the bio-infiltration systems on Sprague, supporting electric vehicle infrastructure, promoting tree canopy and urban forestry, and planning for climate adaptation. The City's Commute Trip Reduction program and multimodal improvements connect to these environmental objectives. Economic Development in Changing Markets The shift toward remote and hybrid work, e-commerce impacts on retail, and changing industrial space needs present both challenges and opportunities. The City may need to reconsider how it plans for commercial corridors dominated by big -box retail and aging strip malls, growing industrial areas constrained by space needs, and office space needs in a post -pandemic economy. Opportunities might include adaptive reuse strategies, supporting local entrepreneurship and small businesses, and creating flexible zoning that responds to emerging economic sectors. New and Emerging Trends The planning field has evolved beyond basic transit -oriented development to emphasize equitable implementation (known as equitable TOD, or eTOD) that explicitly addresses affordability. Washington State's 2 02 5 HE 1491 represents cutting -edge TOD policy, requiring minimum densities near transit, mandating affordable housing percentages, and eliminating parking minimums in station areas. Many communities have discovered that public infrastructure investment alone does not catalyze development —that pairing with regulatory reforms and streamlined approvals makes a real difference. Some cities have eliminated parking minimums entirely, significantly boosting the financial viability of smaller new developments, while others have implemented expedited review processes for TOD projects. Missing middle housing reforms are spreading rapidly, with over a dozen states passing enabling legislation since 2019, but planners are learning that zoning changes alone are insufficient. Memphis discovered that building codes, fire codes, and utility requirements designed for large apartment buildings make 3-8-unit projects financially infeasible, prompting code reforms that save 8-10% in construction costs. Best practices now include pre -approved housing designs that bypass discretionary review, proportional code requirements scaled to building size, and minimum lot size reductions. The Japanese model of nested zoning —where lower -intensity uses are automatically permitted in higher - intensity zones —offers an alternative that creates organic mixed -use development without prescriptive requirements. Climate resilience planning has matured into a comprehensive framework integrating water management, urban heat reduction, green infrastructure, and building decarbonization as interconnected strategies. Cities worldwide are adopting nature -based Land Use Element I Spokane Valley Comprehensive Plan Update 15 solutions like Copenhagen's bio-infiltration systems that treat stormwater while creating urban parks, and green infrastructure like Poland's planted bus stop roofs that retain 90% of stormwater and significantly reduce urban heat. The World Economic Forum emphasizes that 90% of urban emissions can be cut with existing technology while creating millions of jobs, positioning climate action as economic development. Leading jurisdictions now use climate forecasting data to design infrastructure for future conditions rather than past patterns, while building decarbonization has become a priority focus since buildings represent 40%of global CO2 emissions. With U.S. office vacancy rates reaching 20.10/o—the highest in 30 years —adaptive reuse has emerged as a major planning strategy requiring both financial incentives and regulatory streamlining. Boston offers 75%propertytax reductions for conversions, Calgary provides per -square -foot grants, and San Francisco waives transfer taxes, while Los Angeles and San Francisco make conversions by -right without discretionary review. However, not all buildings are suitable —pre -WWII structures with abundant windows, buildings 60 feet wide or less, and mid -rise buildings with certain floor plate shapes work best for residential conversion. Forward -thinking cities are expanding use tables to allow office conversions to daycares, schools, laboratories, and light industrial, recognizing that only about 10% of obsolete offices suit residential conversion and that use flexibility creates more revitalization opportunities. Implications for Spokane Valley The most successful communities are adopting comprehensive, integrated approaches rather than single -issue fixes. Leading practices include eliminating review processes for small projects that meet basic standards, testing new approaches through pilot programs in specific areas before citywide implementation, and establishing community land trusts and public/nonprofit partnerships for affordable housing near transit. Some growing cities are also shifting toward form -based codes in key areas that focus on building form and character rather than use separation, while implementing annual monitoring systems to track housing production, affordability metrics, and climate goals and adjust policies based on performance. The overarching lesson from successful cities is that flexibility and responsiveness to market conditions matter more than rigid master plans —the goal is to create frameworks that allow organic evolution while ensuring quality outcomes through performance standards rather than prescriptive rules. Future Land Use In light of stakeholder input and socioeconomic trends, as well as new and continuing GMA requirements, the City is substantially revising its land use regulations to implement the community's vision, increase flexibility for landowners and developers, respond to market Land Use Element I Spokane Valley Comprehensive Plan Update 16 opportunities - and to increase allowable housing density and variety across the city These changes are discussed in detail in the following section. Urban Growth Area Spokane Valley desires a safe, clean, and vital community, and its residents also value fiscal responsibility, economic growth, and flexibility for the business community These preferences very clearly inform the changes to the land use code that are advanced in this Comprehensive Plan. Nevertheless, changes must first and foremost accomplish the mandates of the GMA, which relies on the concept of channeling expected growth into existing urban areas. The revised land use regulations therefore provide a physical framework for the City's goals of expanding housing choices and enhancing neighborhood character while minimizing barriers to development and meeting GMA goals and requirements. Some previous designations have been merged, and additional land uses have been allowed in new areas of the city The Comprehensive Plan is required to include a future laud use map, which depicts these land use patterns (Figure LU-6). Land Use Element I Spokane Valley Comprehensive Plan Update 17 Exhibit LU-6: Future Land Use map, City of Spokane Valley, 2026-2046 narlo A: Limited Rezone + Upzone � ml �od,e Source: Spokane County and City of Spokane Valley, 2024, City of Spokane Valley, 2025,CommunityAttributes, Inc., 2026. Land for Residential Development CMU allows for a variety of uses with milli including multi -family at relatively higher densities with a mix of jobs and living in close proximity while being close to public transportation and services - in line with 1110 and 1220 Land Use Element I Spokane Valley Comprehensive Plan Update 18 Commercial and Industrial Lands Essential Public Facilities The Growth Management Act (GMA) requires comprehensive plans to include a process for identifying and siting Essential Public Facilities (EPF). According to the GMA, no local comprehensive plan may preclude the siting of EPF. The GMA defines Essential Public Facilities as those "that are typically difficult to site, such as airports, state education facilities and state or regional transportation facilities as defined in RCW 47.06.140, state and local correctional facilities, solid waste handling facilities, and in -patient facilities including substance abuse facilities, mental health facilities, group homes, and secure community transition facilities as defined in RCW 71.09.020" Factors that make these facilities difficult to site include the potential adverse impacts, such as noise, odor, traffic, and pollution generation The facilities can be either desirable or undesirable to jurisdictions. Some of the facilities are privately owned and regulated by public entities. Facilities also can be owned by the State and used by residents from throughout the state, such as universities and their branch campuses. Establishing an Essential Public Facilities (EPF) siting process is a mandate of the GMA. Including a process for siting EPF in the comprehensive plan has benefits, including minimizing difficulties in the siting process and addressing local impacts equitably Spokane Valley's Comprehensive Plan Land Use Element contains goals and policies for siting EPF. These policies are intended to guide the creation of provisions in the Land Use Code to site EPF that are not otherwise regulated by the Spokane Valley Municipal Code (SVMC). EPF that are otherwise regulated by the Spokane Valley Municipal Code will continue to be regulated as set forth in the SVMC without needing to use the siting policies set forth in the Land Use Element. Goals, Policies, and Strategies Goals LU-G1 Maintain a land use plan that enhances quality of life in Spokane Valley. LU-G2 Provide for land uses that are essential to Spokane Valley residents, employees, and visitors. LU-G3 Support the transformation of commercial, industrial, and mixed -use areas into thriving economic anchors. LU-G4 Ensure that land use plans,regulations, review processes, and infrastructure improvements support economic growth and vitality Land Use Element I Spokane Valley Comprehensive Plan Update 19 Policies LU-P1 Support unique, high -quality, and locally owned retail in appropriate locations. LU-P2 Preserve the natural features and amenities that make Spokane Valley attractive to residents and business owners. LU-P3 Ensure compatibility between adjacent residential and commercial or industrial uses. LU-P4 Support neighborhood efforts to sustainably cultivate produce. LU-PS Protect residential neighborhoods from incompatible land uses and adverse impacts associated with transportation corridors. LU-P6 Ensure that neighborhoods are served by safe and convenient motorized and non - motorized transportation routes. LU-P7 Maintain development regulations that are conducive to new and innovative development types on commercial, industrial, and mixed -use land. LU-P8 Ensure that freight -intensive operations have convenient access to designated truck routes and intermodal terminals. LU-P9 Continue to support the remediation of environmentally contaminated sites to return the land to productive use, leveraging programs such as Brownfield Reuse. LU-P10 Maintain an appropriate supply of productive industrial land and ensure there is available land for commercial and industrial growth. LU-P11 Collaborate with landowners and developers that seek to build projects that are consistent with the City's vision. LU-P12 Enable a variety of housing types and plan for housing affordable to all economic segments of the community. LU-P13 Locate higher intensities of development along major transit corridors and near transit centers and commercial areas. LU-P14 Provide for public open spaces sufficient to meet the needs of the community. LU-P1 S Provide a consistent and predictable process for the annexation of land into Spokane Valley. LU-P16 Identify land designations for potential annexation areas in the Comprehensive Plan for the adjacent Urban Growth Areas to the city Land Use Element I Spokane Valley Comprehensive Plan Update 20 Land Use Element I Spokane Valley Comprehensive Plan Update 21 X. Natural Resources Introduction Why the Natural Resources Element is Important The Natural Environment Element combines several environmental topics, including critical areas (wetlands, aquifer recharge areas, fish and wildlife habitat areas, frequently flooded areas, and geologically hazardous areas), surface water quality and quantity, shorelines, and air quality The diversity of Spokane Valley's natural environment is evident in ecosystems that range from the foothills of Mt. Spokane to the low-lying Rathdrum Prairie floodplains along the Spokane River. This diversity supports a broad spectrum of wildlife, from the moose of Mt. Spokane to the interior red -band trout in the Spokane River. Throughout the region, lakes, rivers, wetlands, and associated riparian areas provide linkages and corridors for wildlife. Spokane Valley's natural environment also includes the Spokane Valley/Rathdrum Prairie (SVRP) Aquifer, one of the most productive aquifers in the United States. Spokane Valley's economic development success in recent years is partially attributable to natural amenities that make the area beautiful and supply it with an array of recreation opportunities. The purpose of this chapter is to coordinate planning efforts to preserve and enhance this unique natural environment. By ensuring the availability of clean air and water and preserving critical areas and natural features, Spokane Valley will continue to grow as a healthy, sustainable, and inviting community Planning Context Balancing the conservation and protection of the natural environment with population growth, economic development goals, and increasing recreational access is a key purpose of statewide planning rules and regulations. Direction is provided through statewide planning goals, the GMA, and the Shoreline Management Act (SMA). Statewide Planning Goal 10 (RCW 36.70A.020) instructs jurisdictions to: 'Protect the environment and enhance the state's high quality of life, including air and water quality, and the availability of water." The GMA requires local governments to adopt ordinances that limit development in and near environmentally sensitive areas, which it refers to as critical areas. Critical areas include wetlands, aquifer recharge areas, fish and wildlife habitat, frequently flooded areas, and geologically hazardous areas. During municipal incorporation in 2003, the City adopted Spokane County's Critical Areas Ordinance (CAO) as an interim measure to regulate development in and near critical areas and thereby comply with the GMA In December Natural Resources Element I Spokane Valley Comprehensive Plan Update 1 2016, the City adopted its own CAD (via Ordinance 16-018, codified as Chapter 21.40 of the Spokane Valley Municipal Code), which now governs development in and near critical areas. The City has prepared an updated CAD to provide regulations that are specific to the city's unique natural environment. This Natural Environment Element of the Spokane Valley Comprehensive Plan provides the foundation for the CAD and other municipal plans and regulations and provides context for goals and policies related to the city's natural environments. Notably for Spokane Valley, all lands within the city are already characterized by urban growth, limiting the City's obligations under RCW 36.70A170. The only resource lands extant in the city are mineral resource lands, which are discussed in this element. Pursuant to the GMA, the City is required to designate natural resource lands and critical areas. Critical areas are discussed in more detail below. With regard to natural resources, pursuant to RCW 36.70A 170, the City is required to designate "where appropriate ... [a] gricultural lands ... [f] orestlands ... [and] [m] ineral resource lands that are not already characterized by urban growth and that have long-term significance for the extraction of minerals..." Further, pursuant to RCW 36.70A.060, the City must adopt development regulations to ensure conservation of mineral resource lands designated pursuant to RCW 36.70A.170. During its first update, the City did not designate any mineral resource lands and further, it has not designated any mineral resource lands since 2006. However, the consideration of mineral resource land designation is an important one for the City, as the city currently has several existing active surface (sand and gravel) mines. These take up significant acreage and, even with appropriate reclamation planning, create long-term impacts that can limit or preclude future industrial, commercial, or other productive use of the site, even after the mine closes. Although the city has existing mines and desires to allow those uses to continue, the City has determined not to designate any mineral resource lands at this time due to the extensive urban characteristics surrounding the mines and the wide availability of the gravel within the region as described further below. Community input emphasizes the Spokane River and surrounding natural areas, like the Dishman Hills and Minnehaha, as valued yet underutilized assets. Residents highlighted groundwater protection, river and shoreline health, and tree canopy as top priorities. The community envisions a city that conserves natural resources, manages mineral lands responsibly, and integrates environmental stewardship into development. Protecting critical areas, enhancing water quality, and leveraging natural assets are seen as key to improving quality of life, supporting economic growth, and creating a resilient, vibrant community Natural Resources Element I Spokane Valley Comprehensive Plan Update Current Conditions The majority of Spokane Valley is developed for residential, commercial, or industrial uses. Above ground, undeveloped natural areas within the city are generally located along the Spokane River and local streams, including associated riparian areas and wetlands. Natural, undeveloped areas also exist on forested cliffs and steep slopes, open areas between the Spokane River and Trent Avenue east of Millwood, and public parks such Mirabeau Point Park and Sullivan Park. These natural environments provide important recreational and scenic amenities to the city, as well as habitat for fish, birds, and terrestrial wildlife. Additionally, most of the city sits atop an extensive, sole -source aquifer that provides high quality drinking water and provides some return flows to the Spokane River. The aquifer moves through alluvium deposited by historic flood events. These layers of sand, gravel, clay, and silt provide mineral resources, which are actively mined at various gravel quarries within the city Natural areas are protected by various federal, state, and local plans or laws. This section describes the current condition of natural areas in the city within the context of these laws, which regulate critical areas, surface water, air quality, and shoreline areas. Mineral Resource lands The City has undertaken an extensive review process to determine the availability need, and appropriateness for mineral resource designation and protection within the city. It has conducted interviews with stakeholders; reviewed mineral resource needs due to estimated future construction utilizing information obtained from U SGS, Department of Natural Resources, stakeholders, WSDOT, and Spokane County; reviewed access to and availability of mineral resources through materials provided by the Department of Natural Resources; and has analyzed the current urban characteristics surrounding the existing mines within the city Based on data from the Department of Natural Resources, the city currently has 18 permitted surface mines with five of them having an active status and the remainder an inactive status. (Exhibit 1) The permitted area of the active mines totals 465 acres. The mined sand and gravel is used extensively in construction projects around the region. Reclamation for the closed mines generally consists of landscape planting and some reshaping of the slopes. Several of the mines have deep excavations that have exposed the SVRP Aquifer. The areas around the open mines generally consist of urban areas with developed industrial and heavy commercial uses, although one newer mine (Eden Pit No. 55-06) has open land to its north that is currently zoned for industrial use. All but one (Eden Pit No. 55-06) of the existing active mines have been in operation since the City's incorporation Other than permitting mining in the heavy industrial zone, the City has not Natural Resources Element I Spokane Valley Comprehensive Plan Update had additional protective regulations for the mines as it did not designate any mineral resource lands in the 2016 Comprehensive Plan. Due to the urban growth immediately surrounding the mines, additional protections for mining could likely negatively impact other existing industrial and commercial uses. Bolo/ pui Exhibit 1. Mine Locations Spokane Valley, 2025 nenrwo�n k -y Spokane Valley DIs!ma � penunlry O a` p Miningga r S O pdare U q Mono,olBa Eary �spoka^e Velor, Urban w<kArea Par-. peneopen spaces '-k- ///d p �Ae=pan:ns Source: City of Spokane Valley, 2025, FEMA, 2023, CAI, 2025 IN V.r.d.lk 0 'lb PrOw The mines within the city are but a small part of the extensive approximately 56 active mines within the County Mining is common throughout the region due to the extensive deep flood deposits of high -quality sand and gravel and similar alluvium that compose the SVRP Aquifer which are easily accessed due to the typically thin overburden. Additionally, there are numerous rock mines within the County. These flood deposits extend from Lake Pend Oreille on the east to the West Plains west of the City of Spokane. Accordingly, there are adequate options for gravel mining outside of the city and such mining has and is already occurring. Natural Resources Element I Spokane Valley Comprehensive Plan Update 4 Critical Area Protection Per the GMA, jurisdictions are required to protect critical areas through the adoption of policies and regulations. Critical areas include: (a) wetlands; (b) areas with a critical recharging effect on aquifers used for domestic purposes; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas. Spokane Valley recognizes the importance of protecting the ecological functions and social values provided by critical areas. These natural systems play valuable roles in stormwater disposal, flood prevention, and water quality preservation, as well as providing recreational opportunities. Protection of critical areas makes economic sense because the alternatives are development of expensive engineered systems for protection from floods and geological hazards and for purification of drinking water, or regulations to restore declining populations of sensitive species that are restrictive and expensive to implement. Wetlands There are few wetlands in the city (Exhibit 2); however, each plays a valuable role in providing aquatic habitat, preserving water quality, and maintaining water storage. Wetland types in the city include marshes, prairies, shrublands, forests, and vegetated ponds. By storing floodwater, wetlands reduce flooding and downstream erosion, trap and absorb sediments, and help protect water quality. Furthermore, wetlands discharge water to aquifers and streams, help replenish groundwater, and maintain base flows of surface water systems. In addition to these water quality and water storage functions, wetlands also provide habitat for birds, mammals, amphibians, reptiles, insects, and occasionally fish. Most wetlands within the city are associated with streams, Shelley Lake, or historical mining. They tend to be most affected by runoff from adjacent roadways and developed residential and commercial lands. Wetland quality is assessed using the Washington State Wetland Rating System, originally developed by the Department of Ecology in 2004 and subsequently refined through regional guidance updates. In planning for development in or near wetlands, the City strives to ensure that the critical functions of wetlands are not impacted, or, if impacts cannot be avoided, that they are compensated for elsewhere as part of the development project. Natural Resources Element I Spokane Valley Comprehensive Plan Update Exhibit 2. Map of City of Spokane Valley Hydrology and Flood Hazard 90 elfns mastar Plan F ,fI lona ',^/ellands i%Annwal Ounce of Fo,,,:i A- I% Chance of F noni,p, -o RFF' A=- Reg,ilato y Floodway Spokane Volley O,Can C,owti Boundn y O Spakana Vallay V u. c'paBoundary Pn,ks. Recreation, & Open Spncas O ❑SA Expansion Source: City of Spokane Valley, 2025, FEMA, 2023, CAI, 202S Note:. No Base Flood Elevation (BFE) is provided far this location. As a result no official flood elevation has been established on this map. Elevation requirements, ifapplicable, must he determined using hest available data and local floodplain regulations. Flooded Areas Frequently flooded areas are lands subject to a 1% or greater chance of being flooded in any given year (also known as the 100-year flood). These areas, shown in Exhibit 2, are designated by the Federal Emergency Management Agency (FEMA) as Special Flood Hazard Areas (SFHA) and are identified with specific flood zone labels such as Zone A (no flood elevations), AE (flood elevations are provided), All (ponded areas), and AO (unchannelized sheet flow). Also, within some AE zones, a floodway may be identified as a portion of the channel that must be protected from development to pass the flood without increasing the water surface elevation more than a designated height. The SFHA is the area where the National Flood Insurance Program's (NFIP's) floodplain management regulations must be enforced and the area where the mandatory purchase of flood insurance applies. The City regulates development in the SFHA in accordance with chapter 21.30 SVMC Floodplain Regulations. Any development on a parcel located within a Natural Resources Element I Spokane Valley Comprehensive Plan Update special flood hazard area requires a floodplain development permit ensuring the project is reviewed. Another mapped flood event is the 0.2% annual chance flood, also known as the 500-year flood. It is designated as Zone X but is an area of only moderate flood hazard and is not regulated by the City Special flood hazard areas within the city include Forker Draw, Spokane River, Glemose and Central Park drainage basins, Chester Creek, and the Saltese Creek -Shelley Lake area. These flood areas include, but are not limited to, streams, rivers, lakes, ponded areas, alluvial fans, and wetlands. They are natural physical features of a watershed that play an important role in stormwater conveyance, storage, and disposal as well as wildlife habitat and recreation Maintenance of the natural function of these areas protects residences, structures, and infrastructure and reduces the need to construct flood control facilities. The City is actively updating its flood maps and supports improved modeling of floodplains and floodways that accurately delineate the floodplains and minimize flood risk to affected land development. Spokane County is also actively working to update their floodplains in the Glenrose and Central Park basins, which presents an opportunity for coordinated flood hazard reduction. Surface Water Water quality and quantity influence the domestic, economic, and recreational quality and maintain the natural environments of Spokane Valley Historically, clean water has been taken for granted. As growth and development have increased, so have problems associated with maintaining water quality and quantity Industry, business, agriculture, commercial, and residential development all contribute to reduced water quality and quantity. To maintain adequate water quality and storage capacity as the city continues to grow and develop, a comprehensive approach must ensure future water quality and quantity Spokane Valley has a limited number of surface water bodies, which include the Spokane River and Shelley Lake. The Spokane River provides the region with significant economic, recreation, wildlife habitat, and aesthetic value. The Spokane River is listed as an impaired water body under Washington State's 303(d) program, with pollutants including PCBs, 2,3,7,8-Tetrachlorodibenzo-p-dioxin, lead, and zinc. To address these water quality issues, the Washington Department of Ecology and partner agencies have ongoing projects to reduce pollutant loads. The Spokane River Regional Toxics Task Force, formed in 2012, coordinates regional cleanup efforts. Total Maximum Daffy Loads (TMDLs) have been developed for PCBs, dissolved oxygen, and dissolved metals, including a new PCB TMDL finalized in October 2024 to set enforceable limits and guide reduction strategies. The use of the Spokane River as a receiving water for sewage effluent discharges and stormwater runoff makes it an important resource for waste assimilation. The increased Natural Resources Element I Spokane Valley Comprehensive Plan Update impervious area resulting from development changes the amount and the quality of runoff water. If left unmanaged, discharges of stormwater can cause flooding and water quality degradation, especially in water bodies like the Spokane River that are already impaired. Long-term solutions to stormwater problems require creative approaches on a case -by -case basis. In areas where development has already occurred, much of the natural stormwater system may be altered so that it no longer functions effectively. In these areas, stormwater regulations should target redevelopment, voluntary treatment enhancements, wetland conservation, and capital improvements in City treatment facilities. In areas where wetlands are filled or natural drainageways are altered, the cost of replacing natural water quality treatment functions with engineered stormwater treatment facilities can be substantial. In currently developing areas where stormwater disposal has not yet become a problem, it is important to preserve the natural drainageways and pervious characteristics of the landscape to prevent problems from occurring as a result of future development. Shorelines Waters with a mean annual flow of greater than 20 cubic feet per second (in the case of flowing water) or an area greater than 20 acres (in the case of standing water) are considered Shorelines of the State and are subject to the Shoreline Management Act (SMA). Within the city, the Spokane River and Shelley Lake are the only two Shorelines of the State managed under the City of Spokane Valley Shoreline Master Program (SMP). The extent of SMP jurisdiction includes the body of water together with an adjacent strip of land 200 feet wide, measured landward from the ordinary high water mark (common high water line of a stream or lake). Note that other waters within the city, including Saltese Creek and Chester Creek, although not regulated under the City's SMP, are important water resources and are protected under the City's CAD regulations as fish and wildlife habitats. The SMP also protects any additional critical areas within shoreline areas. This Comprehensive Plan does not propose changes to the SMP. The GMA (RCW 36.70A.480) requires that cities include the goals and policies of the adopted SMP in the Comprehensive Plan. The City's comprehensive SMP update was approved by the Department of Ecology in August 2 01S, with the City completing a periodic review of their SMP in 2 02 1. The update revised the existing shoreline program, including the goals, policies, regulations, shoreline environment designations (SEDs), administrative procedures, and definitions. Due to the length of the SMP goals and policies, they are adopted by reference in the Comprehensive Plan and can be viewed on the Department of Ecology's website. However, this section describes the overarching goal of the SMA, and the SEDs in an effort to summarize the plan for managing the city's shorelines. The overarching goal of the SMA is to prevent the inherent harm in uncoordinated and piecemeal development of the state's shorelines. Shorelines are among the most Natural Resources Element I Spokane Valley Comprehensive Plan Update ecologically productive and fragile of environments in the city. The intent of the City's SMP is to foster reasonable and appropriate use of the shorelines while protecting their natural character, preserving the ecology and resources, improving public access, and increasing recreational opportunities for the public. The SEDs developed for the SMP are based on existing land use patterns, the biological and physical character of the shoreline, and the goals and aspirations of the City. SEDs are analogous to zoning designations for areas within the shoreline jurisdiction. SEDs provide a uniform basis for applying policies and use regulations within each designation, and SEDs are intended to encourage appropriate uses and activities while providing for protection and restoration of shoreline ecological functions. It is anticipated that reasonable standards, restrictions, and prohibitions on shoreline developments will be instituted as shoreline regulations. This is necessary so that shoreline development will reasonably protect existing uses and shoreline character and ensure "no net loss" of shoreline ecological functions. Characteristics and general management policies for each of the designations can be found in the SMP. Spokane Valley is unique in its application of shoreline regulations with regard to riparian setbacks. Rather than applying generic shoreline setback widths as other cities have done, riparian setbacks in Spokane Valley are based on existing or potential high -quality shoreline resources that should be conserved to ensure no net loss of shoreline ecological functions. Aquifer Recharge Areas The SVRP Aquifer supplies potable water to most of the residents of Spokane County The aquifer and associated recharge areas underlie the entire City of Spokane Valley The aquifer begins in northern Idaho between Spirit Lake and the south end of Lake Pend Oreille. The aquifer flows south and west under Spokane Valley and downtown Spokane. The aquifer then turns north and discharges into the Little Spokane River. Aquifer deposits range from 150 feet to more than 600 feet in depth. Due to concerns regarding the maintenance of water quality of the aquifer, the U.S. Environmental Protection Agency designated the SVRP Aquifer a "Sole Source Aquifer" in 1978. The aquifer was only the second in the nation to receive such a designation. Although the aquifer provides high quality drinking water, it is highly susceptible to contamination due to the underlying geology of the area, which consists of sandy, gravelly glacial outwash that allows surface water to infiltrate rapidly. The aquifer is dynamic, with close to one billion gallons of water flowing into and out of the system each day. The Spokane River provides about 49% of the aquifer inflow and 59% of the aquifer outflow. The Spokane River stretch through Spokane Valley is primarily a gaining reach, where the river gains water from the aquifer. Natural Resources Element I Spokane Valley Comprehensive Plan Update Since 1977, more than SO monitoring wells in Washington and 28 wells in Idaho have been installed to monitor the impacts of land surface activities over the aquifer. The primary concern in the aquifer has been nitrate, which may cause health problems above certain levels in drinking water. Septic systems, fertilizer, and stormwater are typically major contributors to elevated nitrate levels in the aquifer. As development has intensified and the area has become more fully built out, chloride levels have increased, primarily because stormwater runoff gathers pollutants from roads and other impervious surfaces. Long-term monitoring shows that contaminants have reached the aquifer; however, overall water quality remains very good. Ongoing initiatives, including stormwater management upgrades and the continued expansion of sewer service, have helped reduce nitrate concentrations over time. Additionally, Spokane County's long-standing Aquifer Protection Area (APA) Program and the voter -approved APA tax, which was recently renewed, provide dedicated funding for groundwater monitoring, sewer extensions, stormwater improvements, and public education. More detailed information on program activities and outcomes is available through the County's Aquifer Protection Area website. Fish and Wildlife Habitat Fishing and the observation of wildlife are valued recreational activities that contribute to the local economy and quality of life in Spokane Valley Priority fish and wildlife habitat areas, as designated by the Washington Department of Fish and Wildlife (Exhibit 3), are considered critical areas and are necessary for both native resident and seasonal migratory animal species. Habitat conservation areas may include open areas with species richness, breeding habitat, winter range, migration corridors, and habitats that are of limited availability or high vulnerability to alteration, such as cliffs, talus, and wetlands. Chester Creek and Saltese Creek do not fall within the state's shoreline jurisdiction, but they contain valuable riparian habitat that provides shade, food, and cover for fish and wildlife species. The Washington State Department of Natural Resources Water Typing maps identify these streams as containing fish. These streams, and other unnamed drainages generally infiltrate into the ground before reaching the Spokane River above ground. This means that they provide important aquifer recharge functions and that, if contaminated, they could contaminate the aquifer. Urban landscaping, parks, and open spaces supplement fish and wildlife habitat areas by providing cover, food, or nest areas for a wide variety of wildlife. The loss of natural wildlife habitat to urban development can be partially offset by landscaping that includes a variety of native plants that provide food and shelter for wildlife. Natural Resources Element I Spokane Valley Comprehensive Plan Update 10 Exhibit 3. Map of Priority Species and Habitat Areas oI'�tiEl a„,�e„ o Spvmoe 71Z, 1--1—Pvu—F71a CM1-y 1 PM pine veu,Ut—„ ,Ah4— BN,,[I e whfe-Ienad— V= ax.� `.L-efa Wk nboa = ky Mcanmin elk '�`^ _ � B•3 Cm F f I f . mc: L -= C EFR'al e a POFFw_5� V Source: City of Spokane Valley, 2025,Fish and Wildlife 202S, 2023, CN, 202S Geological Hazards Geologically hazardous areas are not suited for development because of their susceptibility to erosion, sliding, earthquakes, or other geological events. Geologically hazardous areas include both erosion and landslide hazard areas where one or more of the following exist: • A slope of 25% or greater. • Soils identified by the Natural Resource Conservation Service as having severe potential for erosion. • Hydraulic factors such as existing on -site surface and groundwater or changes in hydraulic factors caused by proposals that create a severe potential for erosion or landslide hazard. Natural Resources Element I Spokane Valley Comprehensive Plan Update 11 • Areas that historically have been prone to landslides, which include active fault lines, areas adjacent to lakes, streams, springs, or anyone of the following geologic formations: alluvium, landslide deposit, or Latah formation. • Areas of uncompacted fill. • Areas that are unstable as a result of rapid stream or stream bank erosion. Exhibit 4 depicts the location of geologically hazardous areas within and adjacent to Spokane Valley There are limited geological hazards within Spokane Valley, most hazard areas are concentrated along the southern edge of Spokane Valley, near the foothills and canyon areas. These areas are generally unsuitable for high -density residential or commercial development. Steep slopes appear mainly along the southern boundary of the city, often overlapping with geological hazard areas. Fxhibit 4. Map of Geological Hazards u � r �JJJ ooll�n 1 oU�AEDflP,NEI CN ' � PO A 1._ E LEY 1 R'R111 CRO iH I 1POCA E A1Ff _ EwwaPAL BoUNOArr PAR PS. FECREAnoN. s OPEN 'PACES '4 � ,EO O c1 rnir.eos / iy O HEEP.LCPE 3_.02 CEE IEP Source: City of Spokane Valley, 2025,CN, 202S. Natural Resources Element I Spokane Valley Comprehensive Plan Update 12 Approach to the Natural Resources Element The City's approach recognizes that natural resources —such as surface and groundwater, wetlands, habitat areas, air quality, and geologic features, provide essential ecological services that support public health, economic vitality and overall quality of life. Effective planning and regulation are needed to balance conservation with development, ensuring that growth does not compromise the long-term functionality of these systems. This element emphasizes proactive planning, interagency coordination, and the use of best available science to guide land use decisions. By integrating natural resource considerations into development regulations, capital planning, and interrelated comprehensive plan elements, the City can reduce environmental risk, increase regulatory certainty, and promote more resilient development patterns. Challenges and Opportunities The primary challenge for Spokane Valley is to protect the city's natural environment while allowing for human use and economic growth. Without established codes and policies for the designation and protection of important natural resource areas, developers may not see the benefit of protecting natural resources, incorporating LID measures, and preserving valuable ecological functions such as water storage and treatment. Challenges specific to the City include: • Maintaining water quality and flows in the Spokane River. • Preventing contamination of the city's high quality groundwater and providing for adequate aquifer recharge. • Managing stormwater to minimize flooding and the impairment of surface waters. • Ensuring adequate protection of natural resources while supporting new development. • Developing resource conservation plans based on limited or inaccurate natural resource inventory data layers. • Maintaining air quality as the population increases. Managing Mineral Resource Lands Due to the urban development that has occurred within the city adjacent to the existing mines and the wide availability of the mineral resource outside of the city, the City has determined to not designate mineral resource lands at this time. While no formal designation is proposed, the City recognizes the economic importance of existing mining operations. It remains a priority to allow established mines to continue operating within their current property boundaries, consistent with applicable development regulations. These uses have historically coexisted with surrounding industrial activities without Natural Resources Element I Spokane Valley Comprehensive Plan Update 13 significant conflicts and continue to contribute to the local economy. The City's approach balances economic continuity with land use compatibility and environmental protection. Conservation of Resources Conservation land uses provide opportunities to benefit both humans and fish and wildlife. For example, protecting wetlands and natural habitats will benefit fish and wildlife as well as human recreational opportunities. Similarly, the protection and careful management of stormwater systems, aquifer recharge areas, and geologically hazardous areas can reduce property damage, improve drinking water quality, and enhance public safety A healthy and well -managed natural environment can also serve as an economic asset. Communities that invest in environmental quality often attract businesses, workers, and visitors seeking access to outdoor amenities and a high quality of life. Conservation efforts, when aligned with development planning, can reduce long-term infrastructure costs and increase community resilience to climate -related risks. Specific opportunities include: • Continuing with county and state government partners to pool watershed and stormwater planning resources. • Mineral resources are sufficiently abundant within the region such that the industry can continue to prosper within the city without the need to designate lands solely for this land use. • The City has the opportunity to develop updated data inventory layers, including wetland and stream mapping and fish presence assessments. • Planning for habitat conservation and restoration in public parks and open spaces can improve aesthetics and habitat quality for local native wildlife. Community and Economic Development Priorities Development priorities include leveraging natural assets to support sustainable growth, protect critical areas, and enhance quality of life. By treating natural resources as assets rather than constraints, the City can guide development that is environmentally responsible, economically competitive, and socially equitable. Policies and investments that integrate environmental stewardship, hazard preparedness, and equity help attract residents and businesses while building long-term community resilience. This foundation supports priorities in leveraging natural assets, promoting environmental justice, and strengthening wildfire preparedness and adaptation. Leveraging Natural Assets The community and economic development priorities can be strategically linked to natural environment protections. A healthy, robust natural environment can improve the quality of life, which will attract new businesses and residents. Development should not be allowed to Natural Resources Element I Spokane Valley Comprehensive Plan Update 14 encroach into critical areas, and effective measures should be encouraged to minimize impacts on water quality and quantity By framing natural resources as assets rather than constraints, the City can promote development patterns that are both environmentally responsible and economically competitive. This includes encouraging site designs that preserve natural features, incorporating green infrastructure, and aligning land use policies with long-term sustainability goals. Environmental Justice Environmental justice principles can be integrated into natural resource and critical area protections to support healthier, more resilient communities. By identifying areas where environmental burdens - such as poor air quality, flooding risk, or limited access to open space - fall disproportionately on certain populations, the City can tailor policies and investments to improve conditions. Planning, zoning, and permitting decisions should avoid concentrating new environmental impacts in already overburdened areas and should encourage proactive measures that reduce existing risks. More information can be found in the Land Use Planning Chapter. Wildfire Preparedness, Mitigation &Fire Adaption Wildfire resilience can be strengthened by aligning land use decisions with hazard mitigation strategies, such as steering development away from high -risk areas, maintaining defensible space, and encouraging fire-resistant site and building design. Integrating wildfire considerations across land use, capital facilities, and environmental policies helps create safer, more fire -adapted communities as climate conditions change. More information can be found in the Land Use Planning Chapter. New and Emerging Trends The field of land use and environmental planning is increasingly focused on integrated, systems -based approaches that recognize natural resources as essential infrastructure. Rather than treating environmental protection as a constraint on development, jurisdictions align natural resource planning with climate resilience, public health, economic development, and equity objectives. Emerging best practices emphasize flexibility, data -driven decision -making, and coordination across disciplines and jurisdictions. Emphasizing Environmental Justice and Public Health The planning field increasingly recognizes that environmental conditions and risks are not evenly distributed across communities. Certain populations and neighborhoods may experience disproportionate exposure to environmental hazards such as air and water pollution, flooding, noise, or limited access to open space and natural amenities. Addressing these disparities has become a core focus in natural resource and land use planning. Natural Resources Element I Spokane Valley Comprehensive Plan Update 1S Best practices include identifying overburdened or historically underserved areas where environmental risks and cumulative impacts are greater, using available data and community knowledge to inform planning decisions. Jurisdictions are increasingly seeking to avoid policies, zoning decisions, or infrastructure investments that would concentrate new or intensified environmental impacts in these areas. At the same time, planning efforts are prioritizing public and private investments that improve access to clean water, clean air, parks, tree canopy, and other natural features that contribute to community health and resilience. Incorporating Stormwater Management Practices Incorporating management practices in stormwater is cost effective and good for water and habitat quality. As regulatory requirements continue to evolve, local codes and ordinances will need to incorporate stormwater best management practices as standard practice in order for the City to obtain and maintain a municipal stormwater permit from the Washington State Department of Ecology. Integrating these practices into development regulations can also reduce long-term public infrastructure costs, minimize flooding and erosion, and increase resilience to more frequent and intense storm events. Climate Resilience and Hazard -Aware Planning Natural resource planning is increasingly integrated with climate adaptation and hazard mitigation as communities recognize that climate -related risks, including flooding, wildfire, extreme heat, and drought, are expected to intensify over time. Best practices emphasize anticipating future conditions rather than relying solely on historical data and using land use planning as a primary tool to reduce long-term risk to people, property, and ecological systems. Forward -looking climate data and projections are increasingly used to inform floodplain management, stormwater system design, habitat protection, and infrastructure planning. This approach allows jurisdictions to better account for changes in precipitation patterns, stream flows, wildfire behavior, and temperature extremes, reducing the likelihood of infrastructure failure and environmental degradation over time. More information can be found in the Climate and Resiliency Chapter. Goals and Policies The Goals and Policies listed here direct future focus areas to preserve and enhance the value of natural resources within the City of Spokane Valley as integral to quality of life. Goals NR-G1 Pursue flood hazard reduction while providing predictability for landowners. Natural Resources Element I Spokane Valley Comprehensive Plan Update 16 NR-G2 Protect the Spokane Valley-Rathdrum Prairie sole source aquifer from contamination and maintain high quality groundwater. NR-G3 Ensure that Critical Areas and Shoreline Master Program regulations are based on best available science and are consistent with required environmental policy NR-G4 Enhance riparian and large wooded areas throughout the city on public lands. Policies NR-P1 Model and delineate floodplain/floodway boundaries to correct inaccurate delineations. NR-P2 Regularly update stormwater management plans for sensitive riparian areas. NR-P3 Prepare and/or regularly update watershed plans for Chester Creek, Glenrose Channel, Saltese Creek, Forker Draw, and Central Park Basin. NR-P4 Prepare and/or regularly update an accurate, updated map of areas expected to be inundated by a 100-year flood, particularly in the Spokane River, Forker Draw, and Glenrose Channel areas. NR-PS The City has determined that a mineral resource land designation is not appropriate at this time, but the City will enable existing mineral extraction and mining operations that are currently in lawful operation within the city NR-P6 Work with state agencies to improve natural resource inventory data within the City. NR-P7 Coordinate with regional collaborators to protect and improve regional water quality NR-P8 Ensure that emergency response resources are available in the event of a spill. NR-P9 Educate the public about the Spokane Valley-Rathdrum Prairie Aquifer and Spokane River's susceptibility to contamination. Natural Resources Element I Spokane Valley Comprehensive Plan Update 17