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Home My WebLink About2026, 03-10 Special Meeting Packet AGENDA SPOKANE VALLEYCITY COUNCIL SPECIAL COUNCIL MEETING Tuesday, March10, 2026 5:00p.m. Remotely via ZOOM Meeting and In Person at Spokane Valley City Hall, Council Chambers 10210 E. Sprague Ave. Spokane Valley, WA 99206 Please Silence Your Cell Phones DuringCouncil Meeting NOTE:Members of the public may attend Spokane Valley Council meetings in-person at the address provided above, or via Zoom at the link below. Noformalpublic comments or testimony will be accepted. Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- MEETING CONVENES AT 5:00P.M. PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA NON-ACTION ITEMS: 1. Admin Report: Comprehensive Plan Update –Steve Roberge, Mike Basinger & Guest 2. Admin Report: HCDAC Grant Applications–Gloria Mantz ADJOURNMENT Scan to access the meeting materials Council Agenda March 10,2026Special Meeting Page 1 of 1 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: March 10, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. Report pending legislation executive session AGENDA ITEM TITLE: Comprehensive Plan Periodic Update, Economic Development, Land Use, and Natural Resources Elements. GOVERNING LEGISLATION: RCW 36.70A. PREVIOUS COUNCIL ACTION TAKEN: Ordinances: 16-018; 18-014; 19-004; 20-008; 21-014 (adopting and amending Comprehensive Plan); 3/11/2025 Land Capacity Analysis report; 12/16/2025 Land Use Scenarios report. BACKGROUND: The Growth Management Act (GMA) requires the City to conduct an update of its Comprehensive Plan and Development Regulations by the end of December 2026. The update is intended to bring cities up to date with relevant changes in the GMA, recent case law and to respond to changes in land use and population growth. We have two deadlines, as further explained in the attached Element Review Process document. The first is associated with State grants to fund the update process and requires submittal of a draft plan prior to the end of June 2026. This review is intended to provide early feedback on the plan’s development before submitting grant deliverables to the Department of Commerce. The second is the statutory deadline for adopting the updated Comprehensive Plan by December 31, 2026. The review process has been designed to gain input, make necessary changes, and maintain the unique Spokane Valley character. The drafts provided have been reviewed by the Planning Commission and include the changes requested. To streamline the update of the Comprehensive Plan, the draft elements have been organized into three groups. This phased approach allows the Planning Commission, Public and Council to focus on specific thematic areas for review and feedback. The groups are structured as follows: The first group is before you tonight focused on foundational growth elements, including Economic Development, Land Use (specifically the Preferred Land Use Scenario), and Natural Resources. The second group will cover specialized and evolving topics like Housing, Climate & Resiliency, and Public & Private Utilities. The third group will cover essential infrastructure and community services, including Parks, Transportation, and Capital Facilities. This process is a key part of the 2026 Periodic Update mandated by the GMA. Throughout the adoption process the community will be able to provide feedback at the Planning Commission Comprehensive Plan Periodic Update, Economic Development, Land Use, and Natural Resource Elements Page 1 of 2 Public Hearings, the Spokane Valley Comprehensive Plan portal or by contacting the Community and Economic Development Department directly. Several pieces of new parking legislation must be implemented with the Comprehensive Plan that substantially limits parking that cities can require. For example, no more than one parking space per single-family home and ½ parking space per multi-family home could be required by the City. The legislation provides for the submittal of a study to show that implementation of the standards would be less safe than the current parking requirements. If the study meets certain criteria and is approved by Washington State Department of Commerce, alternative parking requirements could be used. It has been estimated the study would cost approximately $100,000. Staff recommends that we move forward with the study as the state’s requirements will greatly impact our community. OPTIONS: Not Applicable. RECOMMENDED ACTION OR MOTION: Not Applicable. BUDGET/FINANCIAL IMPACTS: There are no anticipated financial impacts. STAFF CONTACT: Steve Roberge, Planning Manager ATTACHMENTS: 1) Element Review Process 2) Economic Development, Chapter 3 3) Land Use, Chapter 4 4) Natural Resources, Chapter 10 5) Land Use scenario maps Comprehensive Plan Periodic Update, Economic Development, Land Use, and Natural Resource Elements Page 2 of 2 VALLEY 2046: COMPREHENSIVE PLAN UPDATE WORKING 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 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 (GMA). It must be drafted by mid-2026 and adopted by December 31, 2026, with Planning Commission recommendation 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 (SEPA) review using an Environmental Impact Statement (EIS). 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 1Review Session 2Review Session 3 •Economic Development•Housing•Parks Racially Disparate Impact •Land Use•Transportation Analysis Preferred Land Use•Capital Facilities •Climate & Resiliency Scenario •Public & Private Utilities •Natural Resources Finalized Commerce Started Comprehensive Element Draft June 2025 Plan MarchAprilJune Draft EIS Review Deadline December 2026 Summer 2026 June 2026 Planning Council City Council Three Working Sessions Dates RecommendationAdoption October 2026December 2026 Questions to 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? MARCH 2026 12345 Spokane Valley Comprehensive Plan Economic Development Element Review To City of Spokane Valley From: Community Attributes Date:March 2, 2026 Project: Comprehensive Plan Periodic Update Subject Economic Development Element Update Summary Key Themes & Approach: Emphasize opportunity for commercial and industrial business and development Maintain and promote a high quality of life Continue to invest in the local tourism economy Support local retailers amidst changes in macroeconomic conditions and consumer behavior Offer a positive and predictable business climate What has changed since 2016: Updated employment and industry data baselines Recognized outcomes of economic development efforts, goals, and strategies over the last decade Expanded and refreshed topical coverage: o Post-pandemic retail trends o Tight supply of industrial land o Resource scarcity and economic impacts of environmental events o Economic Development Element | Spokane Valley Comprehensive Plan Update 1 III. 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. 7§¸ ³§¤ %¢®®¬¨¢ $¤µ¤«®¯¬¤³ %«¤¬¤³ ¨² )¬¯®±³ ³ 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. 0« ¨¦ #®³¤·³ 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 | Spokane Valley Comprehensive Plan Update 2 Current Conditions This section presents the primary engines of employment and economic activity in Spokane Valley, highlighting the city’s assetsand strengths, and how they economy. Employment Exhibits 1 £ Α show employment in the City of Spokane Valleyand Spokane County in 2016 and 2025. Together, these exhibits show the increase in employment by industry since the 2016 Update. Exhibit 1 for the city excludes construction jobs. The remaining employmentinSpokane Valley increased by more than 13,100 jobs over the period, to 72,900 in 2025, according to Lightcast.io’s projections, representing a2.2%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 1 during that period; more than half of which were located in Spokane Valley. 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. 1 Minor inconsistencies limit direct comparisons only slightly. Countywide data are annual averages for 2016 and estimates for both years, presumably annual averages. Economic Development Element | Spokane Valley Comprehensive Plan Update 3 Exhibit 1.Total Employment by Industry, Spokane Valley, 2016 & 2025 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤Ǿ ,¨¦§³¢ ²³Ǿ 7 ²§¨¦³® 3³ ³¤ %¬¯«®¸¬¤³ 3¤¢´±¨³¸ $¨µ¨²¨®Ǿ ΕΓΕΙǿ #!)Ǿ ΕΓΕΙȁ Exhibit 2. Total Employment by Industry, Spokane County, 2016 & 2025 3®´±¢¤²Ȁ %¬¯«®¸¬¤³ 3¤¢´±¨³¸ $¤¯ ±³¬¤³Ǿ 7 ²§¨¦³® 3³ ³¤Ǿ ΕΓΕΘǿ#!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update4 %·§¨¡¨³ 3 presentsthe concentration ofemployment activity in the cityin 2025. Much of the city’s employment clusters in or nearIndustrial land uses(see Land Use Element). Dense employment clusters align with prominent employers in the city, includingAvista Stadium, Costco, andThe Home Depot located in the far northwest census tract.Kaiser Aluminum and the Spokane Valley Mall are both located in the north-centralregion of the city, and Amazon and the Spokane Business & Industrial Park operatein the northeastern region of the city. Growthin the northeasternsection of the citycan be attributed tothe recent designation of the Northeast Industrial Area (NIA). The NIA was ordinance (PAO) completed by the cityandusedgrant funding from the Washington State 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 3®´±¢¤²Ȁ Esri"´²¨¤²² ! «¸²³Ǿ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update5 2¤²¨£¤³ 7®±ªforce This section examines theworkforce of Spokane Valleyresidents. 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 with changesin employment. %·§¨¡¨³ 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 between2010and 2023, with this ratio increasingslightlyfrom 1.11 to 1.13.A similar trend can be observedforSpokane, Airway Heights, and Spokane County over the period, as the jobs-to-housingunitratios increased in all jurisdictions over the period. Excluding Post Fallssin their jobs-to-housing units ratiobetween 2000 and 2023. Exhibit 4. Jobs-to-Housing Units Ratio, Spokane Valley & Select Comparison Geographies, 2000, 2010, 2020 & 2023 3®´±¢¤²Ȁ 5ȁ3ȁ #¤²´² "´±¤ ´ǿ %¬¯«®¸¬¤³ 3³ ³´² ®¥ ³§¤ 0®¯´« ³¨® ¨ (®´²¤§®«£² ¥®± ³§¤ 5¨³¤£ 3³ ³¤²Ǿ 3³ ³¤²Ǿ #®´³¨¤²Ǿ 0« ¢¤²Ǿ £ ¥®± 0´¤±³® 2¨¢®Ȁ ΕΓΓΓǾ 5ȁ3ȁ #¤²´² "´±¤ ´ǿ #!)Ǿ ΕΓΕ6. .®³¤Ȁ "®³§ 3¯®ª ¤ 6 ««¤¸ £ ,¨¡¤±³¸ , ª¤ ¶¤±¤ ´¨¢®±¯®± ³¤£ ¨ ΕΓΓΓǿ §®´²¨¦ ´¨³ ¢®´³² ¯¤± ³§¤ ΕΓΓΓ $¤¢¤¨ « #¤²´² ¶¤±¤ ´ µ ¨« ¡«¤ȁ Labor Force Participation Rate showsthe proportion of residents aged 16and 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 | Spokane Valley Comprehensive Plan Update6 employment. %·§¨¡¨³ 5 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, thelabor force participationrate for both Washington and Idahodecreased slightly between 2016 and July 2025, whileSpokane County experienced a marginal increase between 2016 and 2023. Unemployment rates in each of the four geographies followed the same trend between 2016 and 2025, gradually decreasing up to the onset of the Covid-19 pandemic, spiking in 2020, 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 andeffectively did not change in the State of Idaho. Exhibit 5. Labor ForceParticipation& UnemploymentRates,Spokane County& Select Comparison Geographies,2016-2025 3®´±¢¤²Ȁ Ǿ ,®¢ « !±¤ 5¤¬¯«®¸¬¤³ 3³ ³¨²³¨¢²Ǿ ΕΓΔΘ ³® ΕΓΕΘǾ "´±¤ ´ ®¥ , ¡®± 3³ ³¨²³¨¢²Ǿ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. ΕΓΕΘȁ Understanding commute patterns forSpokane Valley residents, as well as workers employedin the citywho reside elsewhere, is critical to informing strategic and long-term Economic Development Element | Spokane Valley Comprehensive Plan Update7 decision-making, such as placemakingand development site selection, related to economic development. %·§¨¡¨³ 6 shows the top 10 commute destination for all Spokane Valley resident workersin 2022, the most recent year for whichdata are available. 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 resident workers commute to the Puget Sound region, including Seattle, Bellevue, and Tacoma. Locations outside the top 10 destinations are combined and given in the “all other locations” row, though none of the other locations individually would exceed 0.5% of all resident workers. Exhibit 6. Commute Patterns by Destinationfor Spokane Valley Residents, 2022 JurisdictionNumber of ResidentsProportion Spokane, WA15,87534.0% Spokane Valley, WA13,56529.1% Liberty Lake, WA2,7005.8% Seattle, WA1,3062.8% Coeur d'Alene, ID8711.9% Post Falls, ID7171.5% Airway Heights, WA5861.3% Bellevue, WA3360.7% Tacoma, WA2490.5% Millwood, WA2280.5% All Other Locations10,26022.0% 3®´±¢¤²Ȁ ȟ !«« *®¡²Ǿ ΕΓΕΕǾ #!)Ǿ ΕΓΕΙȁ .®³¤Ȁ ȏ!«« /³§¤± ,®¢ ³¨®²Ȑ ¨¢«´£¤² «« ¢®¬¬´³¤ £¤²³¨ ³¨®² ®´³²¨£¤ ®¥ ³§¤ ³®¯ ΔΓȁ Similarly, %·§¨¡¨³ 7 portrays the top 10 places 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. Locations outside the top 10 places of origin are combined and given in the “all other locations” row, though none of the other locations individually would exceed 0.8% of all workers Economic Development Element | Spokane Valley Comprehensive Plan Update 8 Exhibit 7. Jobs by Place of Residence for All Workers, Spokane Valley, 2022 JurisdictionNumber of ResidentsProportion Spokane, WA14,86525.9% Spokane Valley, WA13,56523.7% Post Falls, ID1,3862.4% 0701.9% Liberty Lake, WA1, Coeur d'Alene, ID1,0331.8% Otis Orchards-East Farms, WA7321.3% Cheney, WA5531.0% Fairwood, WA4930.9% Mead, WA4810.8% Airway Heights, WA4310.8% All Other Locations22,74639.7% 3®´±¢¤²Ȁ Job,¨µ¤ ȟ !«« *®¡² !¯¯«¨¢ ³¨®Ǿ 5ȁ3ȁ #¤²´² "´±¤ ´Ǿ ΕΓΕΘǿ #!)Ǿ 202Ιȁ .®³¤Ȁ ȏ!«« /³§¤± ,®¢ ³¨®²Ȑ ¨¢«´£¤² «« ¢®¬¬´³¤ ®±¨¦¨² ®´³²¨£¤ ®¥ ³§¤ ³®¯ ΔΓȁ 2¤³ ¨« Spokane Valley is home to manyshops, 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 the City’s 2017 Tourism Analysisreport. 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, 5) Expanding the fairgrounds and stadium district, and 6) Redeveloping Balfour Park. Taxable Retail Sales(TRS)is a measure of the total tax generatedsale of a product to the end user or consumer. %·§¨¡¨³ 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 2020, 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 | Spokane Valley Comprehensive Plan Update 9 Exhibit 8. Taxable Retail Sales per Capita, Spokane Valley& Select Comparison Geographies, 2016-2025 Sources:4 · ¡«¤ 2¤³ ¨« 3 «¤² ¡¸ Cityǉ #®´³¸ ¡¸ # «¤£ ± 9¤ ±Ǿ ΕΓΔΙ-202Ǿ Ǿ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. ¢ ¯¨³ µ «´¤²ǿ 4 · ¡«¤ 2¤³ ¨« 3 «¤² £ ³ ¥®± ΕΓΕΘ is year- 3¯®ª ¤ 6 ««¤¸Ȍ² %¢®®¬¨¢ $±¨µ¤±² 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. 2 than 4.2 million passengers in 2024, as well as nearly 67,300 tons in cargo handled. 2 Spokane International Airport Historic Passenger & Cargo Data, Spokane International Airport, - 2024%20passenger%20cargo%20data.pdf. Economic Development Element | Spokane Valley Comprehensive Plan Update10 3 Additionally, the Airport supports employment for over 3,000 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 4 approximately 18 miles west of Spokane Valley, and is home to more than 6,500 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 attractionsand institutions, including event venues such astheSpokane 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 3¯®ª ¤ #®´³¸ & ¨±, the 3¯®ª ¤ )£¨ ², a Minor League Baseball team that plays at !µ¨²³ 3³ £¨´¬, 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 2023 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 includesa particular emphasis on marketingthe city’s strengths and appeal as a destination brand. 5 , with an average In 2024, Spokane County hostedmore than 19.1 million visitor days length of stay of 1.8 days. In total, Washington State accommodated nearly 205 million 3 About Spokane International Airport, Spokane International Airport; https://business.spokaneairports.net/about-spokane-international. 4 Economic Impact Statement Fiscal Year 2024, Fairchild Airforce Base; https://www.fairchild.af.mil/Portals/23/documents/Community%20Engagement/FY24_Economic_Impact_A nalysis_v2.pdf?ver=v9beGFvnO1VYfLFGyGwmlw%3d%3d. 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://industry.stateofwatourism.com/wp-content/uploads/SWT-Visitation-Data-2024.pdf. Economic Development Element | Spokane Valley Comprehensive Plan Update 11 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. 3¯®ª ¤ (®®¯¥¤²³ 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 estimatedannual economic 6 impactof between approximately$39and $47million, dispersed throughout the economy via spending on lodging, entertainment, and dining. Another major regional draw is the 3¯®ª ¤ #®´³¸ )³¤±²³ ³¤ & ¨±, an annual event held in Spokane Valley that features live music, rodeo entertainment, and other events over a 10- 7 day span. The Interstate Fair generatedmore than $24 millionin total economic impact for the region, including spending from visitors, workers, performers, and volunteers. The County Interstate Fair typically attractsaround or over 200,000 attendeeseach year. Spokane Valley is also home to the 3¯®ª ¤ )£¨ ², a Minor League Baseball(MiLB) team that is a member of the High- Rockies.The Spokane Indians have playedin Spokane Valley since the late 1800s andhave 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 0« ³¤Ȍ² &¤±±¸ 3¯®±³² #®¬¯«¤·Ǿ "±®¶² 0 ±ªǾ -¨± ¡¤ ´ 0 ±ªǾ #¤³¤¨ « 4± ¨«, and $¨²§¬ (¨««². 4§¤ #®´±²¤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-The Course can host national and regional collegiate cross-country events, regional and local middle-and high-school cross- h. 6 Hoopfest History, Spokane Hoopfest Association, https://www.spokanehoopfest.net/hoopfest-history/. 7 Free Fair Program, 2025 Spokane County Interstate Fair, https://thespokanefair.com/wp- content/uploads/2025/09/2025-Spokane-Fair-Program_Updated-97-1.pdf. Economic Development Element | Spokane Valley Comprehensive Plan Update 12 Spokane Valley’s sports and recreation sector may soon grow further with )¢¤ 3§¤¤³², a 8 ice rink facility, with potential to develop commercial use as part of proposed, $44 million 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 9 recreational opportunities. Spokane Valley boasts more than 373 acres of park and open spaces, including Balfour Park, which the City is currently investing approximately $5 millionto improve and beautify. Other large parks in the City include Browns Park, Greenacres Park, Sullivan Park, Terrace View Park, and Myrna Park, where twelve acresof 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 contributeto sustained employment growth and economic activity. Prominent drivers of economic growth and employment include, at a minimum, aerospace and manufacturing operations such as + ¨²¤± !«´¬¨´¬Ǿ 3®«²³¨¢¤ !£µ ¢¤£ - ³¤±¨ «²Ǿ £ !-) -¤³ «²Ǿ AmazonǾ healthcare and related sectors, andmany industrial operators located at the 3¯®ª ¤ "´²¨¤²² £ )£´²³±¨ « 0 ±ª. Aerospace and Manufacturing + ¨²¤± !«´¬¨´¬ is a manufacturer of semi-fabricated aluminum products, primarily for use in the aerospace, defense, automotive, and general industrial sectors, headquartered in 10 at its Franklin, Tennessee. Kaiser Aluminum employs approximately 1,000 workers 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- 11 end 2024, Kaiser Aluminum either owns or leases nearly2.9million square feetof commercial space in Spokane Valley. 8 “Anonymous donor pledges $44 million for new Spokane Valley ice rink”, 4§¤ 3¯®ª¤²¬ -Review, https://www.spokesman.com/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. 10 “Kaiser completes $25M expansion at Trentwood”. 3¯®ª ¤ *®´± « ®¥ "´²¨¤²². https://www.spokanejournal.com/articles/17684-kaiser-aluminum-completes-25m-expansion-at- trentwood-facility. 11 Form 10- https://www.sec.gov/Archives/edgar/data/811596/000095017025024313/kalu-20241231.htm Economic Development Element | Spokane Valley Comprehensive Plan Update 13 Solstice !£µ ¢¤£ - ³¤±¨ «², a pure-play specialty materials manufacturer headquartered 12 expansion of its electronic in New Jersey, recently broke ground on a $200 million 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 13 materials line of business. 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. !-) -¤³ «² is a global manufacturer of advanced specialty materials and components, and 14 is currently underway to construct a new, 101,000-square-footfacility in Spokane Valley. AMI Metals specializesin 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. Healthcareand 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 # ¢¤±# ±¤ .®±³§¶¤²³, 0±®µ¨£¤¢¤ Healthcare, 3¯®ª ¤ #¸¡¤±+¨¥¤ ǉ 2 £¨ ³¨® /¢®«®¦¸ #¤³¤±, and -´«³¨# ±¤ 6 ««¤¸ 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 At the time of opening,this move createdat least 1,000 new full-time jobs forSpokane Valley and the region. Amazon also operates a second the Spokane International Airport of similar size, as well as a recently opened delivery station in Airway Heights. 12 “Solstice Advanced Materials Breaks Ground on $200 Million Spokane Expansion to Drive Semiconductor Innovation”, 3®«²³¨¢¤ )µ¤²³®± .¤¶², https://investor.solstice.com/news-releases/news-release- details/solstice-advanced-materials-breaks-ground-200-million-spokane. 13 “Honeywell plant now part of spin-off company”, 4§¤ *®´± « ®¥ "´²¨¤²², https://www.spokanejournal.com/articles/17693-honeywell-completes-spin-off-of-solstice-advanced- materials. 14 “Ami Metals, Inc., expands its footprint in Spokane Valley”, 7 ²§¨¦³® 3³ ³¤ $¤¯ ±³¬¤³ ®¥ #®¬¬¤±¢¤, https://www.commerce.wa.gov/ami-metals-inc-expands-its-footprint-in-spokane/. Economic Development Element | Spokane Valley Comprehensive Plan Update 14 Spokane Business and Industrial Park One of the most impactful drivers of employment and economic activity in the region is the 3¯®ª ¤ "´²¨¤²² £ )£´²³±¨ « 0 ±ª Ȩ4§¤ 0 ±ªȩ, which offers square feet of commercial space, 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 availableto accommodate any tenant. Major tenants at ThePark 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 2026, The Park had one available space for lease, an approximately 33,000-square-foot build-to- The Park is within the city’s Northeast Industrial Area (NIA), (SEPA) , 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 region’s 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 15 its subsidiaries employed nearly 2,000 workers, 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 and the region, primarily throughout the Minor League Baseball season, hiring seasonal workers and attracting local vendors to sell concessions. Analysis of real estate market data provides insight into economic development opportunities for Spokane Valley. This section provides an overview ofmarket data for 15 Form 10-Avista Corporation. https://investor.avistacorp.com/static--dbef-4d78-a361-ee591532dcf9. Economic Development Element | Spokane Valley Comprehensive Plan Update 15 several commercial real estate products, and hospitality typologies. Commercial Development Activity %·§¨¡¨³² 9 through 12 show the volume of deliveries by commercial typologybetween 2016 and 2025 for Spokane Valley and selected comparison geographies in the region. The term “Deliveries”, in this context,refersto the new development of commercial real estate, often given in square feetor, for multifamily, inhousing units. Generally, the data indicate that the majority of regional commercial real estate development activity occurred in Spokane and Spokane Valley, with these two citiestogether accounting forat least half of all o, multifamily, and retaildeliveries among the selectedcomparison geographies, and approximately 40% of industrial deliveries between 2016 and 2025. Spokane Valley led all other geographies in total industrial square footage delivered, followed by unincorporated Spokane County. The City of Spokane led these same geographies and retail square footage delivered, though these deliveries waned after the COVID-19 pandemic. While the City of Spokane also led in the number of multifamily housing units delivered, the City of Spokane Valley added more than 2,000 such units since deliveries of both industrial and multifamily types increased post-pandemic, suggesting that Spokane Valley competes well for the types of commercial real estate investment that have seen increased activity in recent years. Economic Development Element | Spokane Valley Comprehensive Plan Update 16 Exhibit 9. Total IndustrialDeliveries(Square Feet, Millions), Spokane Valley & Select Comparison Geographies, 2016-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Exhibit 10. Total Office Deliveries(Square Feet, Thousands), Spokane Valley & Select Comparison Geographies, 2016-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update17 Exhibit 11. Total Retail Deliveries(Square Feet, Thousands), Spokane Valley & Select Comparison Geographies, 2016-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Exhibit 12. Total Multifamily Deliveries(Housing Units), Spokane Valley & Select Comparison Geographies, 2016-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update18 Lease & Vacancy Rates %·§¨¡¨³² 13 through 16 depictby commercial typology between 2007and 2025 for Spokane Valley and comparison geographies in the region.Theseover 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, 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. Exhibit 13. Industrial Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update19 Exhibit 14. OfficeLease & Vacancy Rates, Spokane Valley & SpokaneCounty, 2007-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Exhibit 15. Retail Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Economic Development Element | Spokane Valley Comprehensive Plan Update20 Exhibit 16. Multifamily Lease & Vacancy Rates, Spokane Valley & Spokane County, 2007-2025 Sources:CoStarǾ ΕΓΕΘǿ #!)Ǿ ΕΓΕ6. Hospitality %·§¨¡¨³ ΐ7 conveysdemand for the hospitality sector in Spokane Valley and Spokane County, showing the monthly revenue per available room (RevPar)for hotels. This exhibit capturesthe cyclical demand for hotels, which demandand RevPartypically 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 thehospitality sector, there is a generally close relationshipbetween RevPar and occupancy rate. For example, increases in both RevPar and hotel occupancy rates in the citybetweenOctober 2024 and October 2025 increased over the same six-month occurrences, while both rates decreased over the other six periods. As the City of Spokane Valley is concerned withaccumulating increased TPA revenues, the stronger the performance of the hotel sector in terms of RevPar, this generally equates to increased TPA revenues. Economic Development Element | Spokane Valley Comprehensive Plan Update21 Exhibit 17. Monthly HotelRevenue per Available Room, Spokane Valley & Spokane County, 2007-2025 Sources:CoStarǾ ΕΓΕΘǿ#!)Ǿ ΕΓΕ6. 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 bolsteringcommercial growth. This Update callson 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. #§ ««¤¦¤² £ /¯¯®±³´¨³¨¤² Outlined below are issues of concern for the City of Spokane Valley and its residents, coupled with opportunities to achievesustained growth and economic development. Awareness of these areas guides the goals and policies to enhance the city’s quality of life througheconomic 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 Economic Development Element | Spokane Valley Comprehensive Plan Update22 millions of dollars in tax revenue each year. Industrial operations in Spokane Valley occupy 16 in 2025. more than 40% of total industrial commercial space in Spokane County 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 Analysiswithin the Future Land Use buildable land capacity for Industrial growth in Spokane Valley(See Exhibit LU-5 in Land Use section). Housing Affordability andJob Growth During the engagement process, some community members highlighted the challenging regulatory environment in Washington, noting the less complex regulatorysystem 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. 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 51% 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 Valleyhas accounted for 43% of all industrial space delivered in Spokane County. Deliveries of multifamily and oin 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 promotea business-friendly 16 CoStar Group, 2025. Economic Development Element | Spokane Valley Comprehensive Plan Update 23 environment, provide housing for a stable workforce, and enable and encourage businesses of all sizesto thrive. Placemaking & City Identity While Spokane Valleyhas a successful and thriving economy, some residents feel that there is a lack of placemaking and identity insome districts. 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 feelrepresent 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 & Underutilized 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. 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 opment infringes on recreational space. Environmental Impacts As covered extensively in the Natural Resources Element, environmental impacts such as few, . If these concerns are not addressed immediately and head on, they have the potential to divert much-needed city resources and funding from other problems. .¤¶ £ %¬¤±¦¨¦ Trends recently emerging activities that are impacting the economic and cultural landscape for communities across the United States. While some of these trends Economic Development Element | Spokane Valley Comprehensive Plan Update 24 bring with them trepidation, Spokane Valley can their potential impact on the city. Scarcity of Resources | Data & Distribution Centers intelligence(AI), data centers are becoming an increasingly popular development trend across the United 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. L of water each day, equivalent to the water usage of a town with a population between 17 10,000 and 50,000 residents. 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 . Though these operations typically occupy large swaths of land and property, they do not always employ enoughworkersto Dhave risen precipitously in recent years and will likely continue to increase. The uses of AI continue to multiply as the technology continues to develop, and a growing number of entities are adaptingits 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. Despiteconcerns surrounding AI, ranging from ethical considerationsto 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. 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 | Spokane Valley Comprehensive Plan Update 25 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 citypopulation, which decreased to 85% in 2023. City residentsidentifying 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. 3³± ³¤¦¨¢ 0±¨®±¨³¨¤² 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. 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 videodisplays. SupportEconomic 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 successfulin the city, this bolstersa steady and well-paidlocal workforce, which in turnenables increased business and tax revenues, greater levels of employment stability and growth, and a continued promotion of the city’s identity. The longevity and Economic Development Element | Spokane Valley Comprehensive Plan Update 26 success of local businesses provide the localworkforce 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 CreativelyAround 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--time homebuyers. Recent efforts in Washington have aimed to mitigate this crisis, t 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 2026 Comprehensive Plan Update. GOALS ED-G1 Cultivate economic opportunities and foster employment growth for Spokane Valley. ED-G2 Maintain and employ a city brand that supports economic growth and leverages existing community, economic, and natural assets. ED-G3Plan for economic development in a way that complements community ED-G4 Collaborate with relevant economic development stakeholders, including the business community, to grow a strong and healthy regional economy. ED-G5 Support and encourage the development of a strong workforce that helps Spokane Valley compete in targeted sectors as workplace needs evolve. ED-G6 stability. POLICIES ED-P1 Work collaboratively with the private sector to support catalytic development projects that are consistent with the City’s vision. Economic Development Element | Spokane Valley Comprehensive Plan Update 27 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 , for example). ED-P5Promote 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. 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 | Spokane Valley Comprehensive Plan Update 28 Spokane Valley Comprehensive Plan Land Use Element Review To City of Spokane Valley From: Community Attributes Date: March 2, 2026 Project: Comprehensive Plan Periodic Update Subject Land Use Element Update Summary Key Themes & Approach: Take a minimally invasive approach to meeting state requirements Ensure land availability to accommodate appropriate growth opportunities for Spokane Valley’s economy Leverage existing transportation corridors and mixed-use zones for multifamily development Provide for a wide variety of housing types What has changed since 2016: In “R” zones, accessory dwelling units (ADUs) and middle housing types must be allowed by right Some increases to multifamily density in multifamily and mixed-use zones Addition of multifamily as a permitted use in the RC zone Three land use scenarios are currently under consideration by staff, Planning Commission, and City Council Land Use Element | Spokane Valley Comprehensive Plan Update 1 IV. Land Use Introduction 7§¸ ³§¤ , £ 5²¤ %«¤¬¤³ ¨² )¬¯®±³ ³ 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 C®¬¯±¤§¤²¨µ¤ P« 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 ¥´³´±¤ « £ ´²¤ ¬ ¯ (FLUM) such as residential, commercial, industrial, recreational, and public uses. It i 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 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 daily 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 equity, and resilience. The land use element essentially determines where and how growth will occur over the 20- ¸¤ ± ¯« ¨¦ §®±¨¹®, making it the cornerstone of comprehensive planning in Washington State. Land Use Element | Spokane Valley Comprehensive Plan Update 2 #®´³¸¶¨£¤ 0« ¨¦ 0®«¨¢¨¤² &± ¬¤¶®±ª Under the Growth Management Act, Spokane Valley's Comprehensive Plan must be consistent with Spokane County's #®´³¸¶¨£¤ 0« ¨¦ 0®«¨¢¨¤² Ȩ#00²ȩ, which establish a common framework for developing county and city comprehensive plans. The CPPs 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 (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 And making provisions for essential public facilities consistent with regional siting processes. 10 years to ensure adequate capacity for projected growth. This , £ 5²¤ %«¤¬¤³ is structured to maintain consistency with these regional policy directives while addressing 0« ¨¦ #®³¤·³ Since adoption of the ΑΏΐΕ #®¬¯±¤§¤²¨µ¤ 0« , 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 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 city's continued attractiveness as a residential and business location within the Spokane metropolitan area. This Comprehensive Plan update ¯« ² ¥®± ¦±®¶³§ ³§±®´¦§ ΑΏΓΕ, responding to community preferences and economic conditions. The plan accommodates more moderate growth than that seen over the last decade primarily through increases in density. The community seeks to balance the community feel and excellent livability that Land Use Element | Spokane Valley Comprehensive Plan Update 3 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— 1 above the affordability benchmark—since 2020. Between 2010 and 2021, 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 comprehensive planning. (" ΐΑΑΏ (2021) now requires jurisdictions to plan for housing racially disparate impacts and displacement in housing policies. (" ΐΐΐΏ (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 (" ΐΒΒΖ (2023) 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 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. 1 According to the US Census, 33% of Spokane County households were cost-burdened in 2021. Land Use Element | Spokane Valley Comprehensive Plan Update 4 Current Conditions %·¨²³¨¦ , £ 5²¤ The city is substantially developed, with 2,540 acres, around 12.5% by parcel area, of the 2 total citywide parcel acreage 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 (%·§¨¡¨³ LU-1). Exhibit LU-1: Current Land Use Map, City of Spokane Valley, 2026 2 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 | Spokane Valley Comprehensive Plan Update 5 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ 3¯®ª ¤ #®´³¸ !²²¤²²®±Ǿ ΕΓΕΘǿ #®¬¬´¨³¸ !³³±¨¡´³¤²Ǿ )¢ȁǾ ΕΓΕΙȁ In 2026, single-family residential development accounts for 8,782 acres and approximately 3 43 percent of land use in the community (%·§¨¡¨³ ,5-2), down from 49% in 2016. 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. 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 2026. 3 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 | Spokane Valley Comprehensive Plan Update 6 Exhibit LU-2: Current Land Use by Area, City of Spokane Valley, 2026 Land Use TypeParcels% TotalAcres% Total Single-Family Residential25,21674.0%8,782 43.0% Vacant2,7588.1%2,548 12.5% Industrial7592.2%2,491 12.2% Multifamily Residential3,52110.3%1,890 9.3% Commercial1,2673.7%1,587 7.8% Institutional2820.8%1,299 6.4% Transportation & Utilities1610.5%793 3.9% Parks & Recreation600.2%536 2.6% Resource420.1%479 2.3% Total34,066100%20,404 100% 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ 3¯®ª ¤ #®´³¸ !²²¤²²®±Ǿ ΕΓΕΘǿ #®¬¬´¨³¸ !³³±¨¡´³¤²Ǿ )¢ȁǾ ΕΓΕΙȁ .®³¤Ȁ !££¨³¨® « ¬´«³¨¥ ¬¨«¸ ¨² «®¢ ³¤£ ¨ ¬¨·¤£ ´²¤ ¹®¤²Ǿ ¨¢«´£¨¦ #-5 £ -5Ǿ ¢ ³¤¦®±¨¹¤£ §¤±¤ £ ²¸¬¡®«¨¹¤£ ¨ ³§¤ ¬ ¯ ² #®¬¬¤±¢¨ «ȁ 2¤²®´±¢¤ « £ ¨¢«´£¤² ¬¨¨¦Ǿ ¦±¨¢´«³´± «Ǿ ¢´±±¤³ ´²¤ £¤²¨¦ ³¨®² £ ¥®±¤²³ « £ȁ $¤µ¤«®¯¬¤³ 4±¤£² 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 2019, 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 ¬´«³¨¥ ¬¨«¸ ¢®²³±´¢³¨® ¡®®¬ in the city. months of 2023, multifamily permits in Spokane Valley increased 144.4% compared to the year-earlier period. Major recent projects include: -¨± ¡¤ ´ 0« ¢¤ !¯ ±³¬¤³²: 300-unit, complex on the former Elks Lodge property (permitted 2023, expected completion 2025) /±¢§ ±£ 6¨²³ : 240 units across 7 buildings by Spokane Housing Authority 3 «³¤²¤ #±¤¤ª: 320 units planned across 10 buildings Multiple projects totaling 355 units permitted in Spokane Valley in early 2023 alone Land Use Element | Spokane Valley Comprehensive Plan Update 7 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 C transmission mains and sewer upgrades, though, importantly, the City relies on a number of locations. Retail The retail market in Spokane Valley has shown ±¤²¨«¨¤¢¤ £¤²¯¨³¤ §¨¦§ ¨³¤±¤²³ ± ³¤² 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 2010s. 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 2025, 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 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. Industrial Since 2016, the City of Spokane Valley has experienced a transformation of its industrial sector, evolving from traditional manufacturing into a ¬ ©®± ±¤¦¨® « «®¦¨²³¨¢² £ Land Use Element | Spokane Valley Comprehensive Plan Update 8 £¨²³±¨¡´³¨® §´ the company opening a 1.3 million-square- 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 strong demand for modern warehouse and distribution facilities. The City made strategic investments to accommodate this growth, particularly through development of the N®±³§¤ ²³ I£´²³±¨ « 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 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 2020 featuring 120,000 square feet of space with concrete-tilt construction, 36-foot clear heights, cross-dock capacity, 135-foot truck courts, . These coordinated efforts positioned Spokane Valley as a competitive location for modern - advanced manufacturing, food and beverage production, packaging, logistics, and aerospace including 32–37-foot 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 streamlined permitting processes, absence of local Business & Occupation taxes, and competitive workers’ compensation rates have reinforced Spokane Valley's attractiveness Land Use Element | Spokane Valley Comprehensive Plan Update 9 beyond. Population 4 Spokane Valley's population has grown to approximately 1ΐΏǾΑΏΏ residents as of 2025, representing a 7% increase since the 2020 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 2016-2025 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 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 Jursidiction2012201620202025Growth 2016-2025 Spokane Valley90,55094,160 102,976 110,200 1.76% Spokane 210,000214,500 228,989 234,700 1.00% Spokane County475,600492,530 539,339 566, 0001.56% 2¤²¨£¤³¨ « £ %¬¯«®¸¬¤³ '±®¶³§ 4 ±¦¤³² 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 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 ΑΏǾΘΐΒ ¤¶ ¯®¯´« ³¨®, 16,661 ¤¶ §®´²¨¦ units and 9,174 new jobs. Due to economic -year period, the city may see more or less growth than this target. With this Comprehensive Plan update, Spokane Valley must demonstrate capacity to accommodate these housing and job targets. 4 , Postcensal Estimates of April 1 Population Land Use Element | Spokane Valley Comprehensive Plan Update 10 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 LU-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 2020. Exhibit LU-4: New Housing Unit Allocations, City of Spokane Valley, 2026-2046 Spokane Valley Valley Existing Original Total # Adjusted Spokane Housing Units by Area Median Housing Units Allocation Units Built Valley Allocation Income BandIncome (AMI)(Estimate)(New Units)2020-2025(New Units) Emergency housingN/A07330 733 Extremely low0-30% PSH01,3800 1,380 Extremely lowPSH1,2654,80693 4,713 Very low31-50%6,5153,289478 2,811 Low51-80%21,5791,9601,582 378 Moderate81-100%7,4561,058475 583 High101-120%2,792872178 694 OtherAbove 120%4,1443,296990 2,306 Total 43,75116,6613,79512,866 3®´±¢¤Ȁ 3¯®ª ¤ #®´³¸ £ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΗǿ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ #®¬¬´¨³¸ !³³±¨¡´³¤²Ǿ )¢ȁǾ ΕΓΕΙȁ 2¤²¨£¤³¨ « £ *®¡ '±®¶³§ # ¯ ¢¨³¸ 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 &´³´±¤ , £ 5²¤ scenario envisioned in this element, a Land Capacity Analysis (LCA) has been completed. The table in &¨¦´±¤ LU-5 details the results of this LCA, providing a comparison of housing unit allocations to housing unit capacity determinations by income band 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 includes projections for new required Middle Housing types and ADUs under HB 1220, 1110 and 1337 legislation. Land Use Element | Spokane Valley Comprehensive Plan Update 11 Exhibit LU-5: New Housing Unit Allocations Versus Capacity, City of Spokane Valley, 2026-2046 3®´±¢¤Ȁ 3¯®ª ¤ #®´³¸ £ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΗǿ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ #®¬¬´¨³¸ !³³±¨¡´³¤²Ǿ )¢ȁǾ ΕΓΕΙȁ Commented \[BL1\]: This exhibit and related text 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 mix of uses within several structures (often of varying Placeholder – 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 (®´²¨¦ %«¤¬¤³ of this plan. The City of Spokane Valley has the ¦¦±¤¦ ³¤ 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. Approach to the Land Use Element '±®¶³§ 3³± ³¤¦¸ -based philosophy that is responsive to community preferences and current economic conditions. The city is planning for a «®¶¤± ¯®¯´« ³¨® ¦±®¶³§ ± ³¤ ³§±®´¦§ ΑΏΓΕ ³§ ¶§ ³ it ¤·¯¤±¨¤¢¤£ ®µ¤± ³§¤ « ²³ £¤¢ £¤, allowing the city to accommodate future growth Land Use Element | Spokane Valley Comprehensive Plan Update 12 through increases in density. This allows Spokane Valley to meet its state-mandated responsibilities—particularly around expanding the diversity and affordability of housing and planning for transit. Spokane Valley desires to balance growth while maintaining the community feel and excellent livability that residents value. Other emerging factors, such as -¯ £¤¬¨¢ ²§¨¥³² ¨ ±¤²¨£¤³¨ « ¯±¤¥¤±¤¢¤ £ ª¤¸ ¤¢®®¬¨¢ ²¤¢³®±² 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 infrastructure and current and future transit. This provides pathways to meet statewide housing obligations while working to avoid abrupt changes to neighborhood form. Moreover, this approach strives to preserve 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 transportation, the economy and the environment; Communicate well to maintain respectful dialogue and manage compromise. #§ ««¤¦¤² £ /¯¯®±³´¨³¨¤² Progress on Previous Challenges and Opportunities « ¢ª ®¥ ²¬ ««-²¢ «¤Ǿ ¶ «ª ¡«¤ ¤¨¦§¡®±§®®£ ¢®¬¬¤±¢¨ « areas as a primary land use challenge. The dominance of regional big- residential density in surrounding neighborhoods, created barriers for small independent retailers that rely on local 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 Land Use Element | Spokane Valley Comprehensive Plan Update 13 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 ³³± ¢³¨¦ ¤¶ £¤µ¤«®¯¬¤³ ³® ´£¤±´³¨«¨¹¤£ ±¤ ²Ǿ ¯ ±³¨¢´« ±«¸ «®¦ ³§¤ 3¯± ¦´¤ !µ¤´¤ ¢®±±¨£®±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. -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-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. ¢ ³ «¸³¨¢ £¤µ¤«®¯¬¤³ ®¯¯®±³´¨³¨¤²Ǿ ¯ ±³¨¢´« ±«¸ ³§¤ ¯±®¯®²¤£ ¤¶ #¨³¸ ( ««, to stimulate private sector investment along the Sprague corridor while 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 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 authorized sales and use tax credits for affordable housing. New Challenges and Opportunities This 2026 Comprehensive Plan Update, supported and informed by extensive community s a 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 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 Land Use Element | Spokane Valley Comprehensive Plan Update 14 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 C 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 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 Sustainability 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 than in 2016. Opportunities include expanding stormwater management approaches like the bio-ture, 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 Land Use Element | Spokane Valley Comprehensive Plan Update 15 post-pandemic economy. Opportunities might include adaptive reuse strategies, supporting emerging economic sectors. .¤¶ £ %¬¤±¦¨¦ Trends -oriented development to emphasize equitable implementation (known as e°´¨³ ¡«¤ 4/$, or eTOD) that explicitly addresses affordability. Washington State's 2025 HB 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, sting the smaller new developments, while others have implemented expedited review processes for TOD projects. -¨²²¨¦ ¬¨££«¤ §®´²¨¦ reforms are spreading rapidly, with over a dozen states passing enabling legislation since 2019, but planners are learning that zoning changes alone are designed for large apartment buildings make 3–8-unit 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. #«¨¬ ³¤ ±¤²¨«¨¤¢¤ ¯« ¨¦ 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 solutions like Copenhagen's bio-ltration systems that treat stormwater while creating urban parks, and green infrastructure like Poland's planted bus stop roofs that retain 90% es 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. —the highest in 30 years— £ ¯³¨µ¤ ±¤´²¤ Land Use Element | Spokane Valley Comprehensive Plan Update 16 regulatory streamlining. Boston offers 75% property tax 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- best for residential conversion. Forward-thinking cities are expanding use tables to allow creates more revitalization opportunities. Implications for Spokane Valley The most successful communities are adopting comprehensive, integrated approaches rather than single- small projects that meet basic standards, testing new approaches through pilot programs in 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 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 respond to market opportunities – and to increase allowable housing density and variety across the city. These changes are discussed in detail in the following section. 5±¡ '±®¶³§ !±¤ preferences very clearly inform the changes to the land use code that are advanced in this 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 Land Use Element | Spokane Valley Comprehensive Plan Update 17 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 ¥´³´±¤ « £ ´²¤ ¬ ¯, which depicts these land use patterns (Figure LU-6). Exhibit LU-6: Future Land Use map, City of Spokane Valley, 2026-2046 3®´±¢¤Ȁ 3¯®ª ¤ #®´³¸ £ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΗǿ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ #®¬¬´¨³¸ !³³±¨¡´³¤²Ǿ )¢ȁǾ ΕΓΕΙȁ , £ ¥®± 2¤²¨£¤³¨ « $¤µ¤«®¯¬¤³ -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 | Spokane Valley Comprehensive Plan Update 18 Commented \[EW2\]: Future Land Use section to be #®¬¬¤±¢¨ « £ )£´²³±¨ « , £² completed upon selection of preferred land use scenario by City Council. Essential Public Facilities The Growth Management Act (GMA) requires comprehensive plans to include a process for identifying and siting %²²¤³¨ « 0´¡«¨¢ & ¢¨«¨³¨¤² Ȩ%0&ȩȁ According to the GMA, no local comprehensive plan may preclude the siting of EPF. as those “that are , such as airports, state education facilities and state or regional transportation facilities as 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 71.09.020site include the potential adverse 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) ²¨³¨¦ ¯±®¢¤²² is a mandate of the GMA. Including a process for siting EPF in the g 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 | 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-P5 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. 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 LU-P15 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 | Spokane Valley Comprehensive Plan Update 20 Land Use Element | Spokane Valley Comprehensive Plan Update 21 Spokane Valley Comprehensive Plan Natural Resources Element Review To City of Spokane Valley From: Community Attributes Date:March 2, 2026 Project: Comprehensive Plan Periodic Update Subject Natural ResourcesElement Update Summary What has changed since 2016: The City’s approach to Natural Resources has remained mostly the same Spokane County voters approved a 20-year renewal and expansion of the !°´¨¥¤± 0±®³¤¢³¨® !±¤ Ȩ!0!ȩ ¯±®¦± ¬ in 2025, intended to protect the Spokane Valley- Rathdrum Prairie Aquifer map update for the Carnahan and Glenrose Flood Plains (currently at FEMA for hydraulic and hydrologic review) Natural Resources Element | Spokane Valley Comprehensive Plan Update 1 X. Natural Resources Introduction 7§¸ ³§¤ . ³´± « 2¤²®´±¢¤² %«¤¬¤³ ¨² )¬¯®±³ ³ The Natural Environment Element combines several environmental topics, including ity, 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- 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. 0« ¨¦ #®³¤·³ 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 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 2016, the City adopted its own CAO (via Ordinance 16- Natural Resources Element | Spokane Valley Comprehensive Plan Update 2 Spokane Valley Municipal Code), which now governs development in and near critical areas. city’s unique natural environment. This Natural Environment Element of the Spokane Valley Comprehensive Plan provides the foundation for the CAO and other municipal plans and regulations andprovides context for goals and policies related tothe city’s natural environments. Notably for Spokane Valley, all lands within the city are already , limiting the City’s obligations under RCW 36.70A.170. 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 - extraction of minerals….” Further, pursuant to RCW 36.70A.060, the City mustadopt development regulations to ensure conservation of mineral resource lands designated pursuant to RCW 36.70A.170. 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. , 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. 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 | Spokane Valley Comprehensive Plan Update 3 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 c Additionally, most of the city sits atop an extensive, sole-source aquifer that provides high 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 Natural Resources, stakeholders, WSDOT, and Spokane County; reviewed access to and availability of mineral resources through materials provided by the Department of Natural mines within the city. Based on data from the Department of Natural Resources, the city currently has 18 permitted surface mines with of them having an active status and the remainder an inactive status. (%·§¨¡¨³ 1) 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 (Eden Pit No. 55-06) of the existing active mines have been in operation since the City’s Natural Resources Element | 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. Exhibit 1. Mine Locations Spokane Valley, 2025 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ &%-!Ǿ ΕΓΕΖǿ #!)Ǿ ΕΓΕΘ 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 -quality sand and gravel and similar alluvium that compose the SVRP Aquifer which are easily accessed due to the typically thin overburden. Additionally, 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 | Spokane Valley Comprehensive Plan Update 5 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 ife habitat social values provided by critical areas. These natural systems play valuable roles in stormwater providingrecreational opportunities. Protection of critical areas makes economic sense because the alternatives are to restore declining populations of sensitive species that are restrictive and expensive to implement. Wetlands There are few wetlands in the city (%·§¨¡¨³ 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 absorb sediments, and help protect water quality. Furthermore, wetlands discharge water water systems. In addition to these water quality and water storage functions, wetlands also provide habitat for birds, mammals, amphibians, reptiles, . 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 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 | Spokane Valley Comprehensive Plan Update 6 Exhibit 2. Map of City of Spokane Valley Hydrology and Flood Hazard 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ &%-!Ǿ ΕΓΕΖǿ #!)Ǿ ΕΓΕΘ .®³¤Ȁ ȴ ¡¤¤ ¤²³ ¡«¨²§¤£ ® ³§¨² ¬ ¯ȁ %«¤µ ³¨® ±¤°´¨±¤¬¤³²Ǿ ¨¥ ¯¯«¨¢ ¡«¤Ǿ ¬´²³ ¡¤ £¤³¤±¬¨¤£ ´²¨¦ ¡¤²³ µ ¨« ¡«¤ Flooded Areas a 1% any given year (also known as the 100-%·§¨¡¨³ 2, are elevations), AE ( loodwayasa portion of the channelthat must be protected from developmenttopass water surface elevation more than a designated height. management regulations must be enforced and the area where the mandatory purchase of . 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 | Spokane Valley Comprehensive Plan Update 7 reviewed. % -year . It is an area of only and is not city include Forker Draw, Spokane River, Glenrose and Central Park drainage basins, Chester Creek, and the Saltese Creek- 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 control facilities. Surface Water Water quality and quantity 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 adequatewater 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 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, 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 Daily Loads (TMDLs) have been developed for PCBs, dissolved oxygen, and dissolved metals, including a new PCB TMDL stormwater runoff makes it an important resource for waste assimilation. The increased Natural Resources Element | Spokane Valley Comprehensive Plan Update 8 impervious area resulting from development changes the amount and the quality of runoff 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 ng 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 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 stripof 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 s. The SMP also protects any additional critical areas within shoreline areas. This Comprehensive Plan does not propose changes to the SMP. adopted SMP in the Comprehensive Plan. The City’s comprehensive SMP update was approved by the Department of Ecology in August 2015, with the City completing a periodic review of their SMP in 2021. The update revised the existing shoreline program, including the goals, policies, regulations, shoreline environment designations (SEDs), administrative 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 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 | Spokane Valley Comprehensive Plan Update 9 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 . 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 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 The aquifer is dynamic, with close to one The Spokane River .The Spokane River stretch through Spokane Valley is primarily a gaining reach, where the river gains water from the aquifer. Natural Resources Element | Spokane Valley Comprehensive Plan Update 10 Since 1977, more than 50 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 dri 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 areas, as designated by the Washington Department of Fish and Wildlife (%·§¨¡¨³ 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 The Washington State Department of Natural Resources Water Typing maps identify these into the ground before reachingthe Spokane River above ground. This means that they provide important aquifer recharge functions and that, if contaminated, they could contaminate the aquifer. 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 | Spokane Valley Comprehensive Plan Update 11 Exhibit 3. Map of Priority Species and Habitat Areas 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ &¨²§ £ 7¨«£«¨¥¤ 2025Ǿ ΕΓΕΖǿ #!)Ǿ ΕΓΕΘ not suited for development because of their susceptibility to erosion, sliding, earthquakes, or other geological events. A slope of 25% or greater. 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 Natural Resources Element | Spokane Valley Comprehensive Plan Update 12 Areas that historically have been prone to landslides, which include active fault lines, areas adjacent to lakes, streams, springs, or any one of the following geologic formations: alluvium, landslide deposit, or Latah formation. Areas that are unstable as a result of rapid stream or stream bank erosion. %·§¨¡¨³ 4 Spokane Valley. , most 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 Exhibit 4. Map of Geological Hazards 3®´±¢¤Ȁ #¨³¸ ®¥ 3¯®ª ¤ 6 ««¤¸Ǿ ΕΓΕΘǿ #!)Ǿ ΕΓΕΘ. Natural Resources Element | Spokane Valley Comprehensive Plan Update 13 Approach to the Natural Resources Element —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 e 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. #§ ««¤¦¤² £ /¯¯®±³´¨³¨¤² 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 ncorporating LID measures, and preserving the City include: Preventing contamination of the city’s high quality groundwater and providing for adequate aquifer recharge. 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 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 | Spokane Valley Comprehensive Plan Update balances economic continuity with land use compatibility and environmental protection. Conservation of Resources as human recreational opportunities. Similarly, the protection and careful management of 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. Continuing with county and state government partners to pool watershed and stormwater planning resources. 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 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 residents and businesses while building long-term community resilience. This foundation supports priorities in leveraging natural assets, promoting environmental justice, and 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 | Spokane Valley Comprehensive Plan Update 15 impacts onwater 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 space – fall disproportionately on certain populations, the City can tailor policies and 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. Preparedness, Mitigation & Fire Adaption mitigation strategies, such as steering development away from high-risk areas, maintaining -resistant site and building design. Integrating -adapted communities as climate conditions change. More information can be found in the Land Use Planning Chapter. .¤¶ £ %¬¤±¦¨¦ Trends systems- Rather than treating environmental protection as a constraint on development, jurisdictions alignnatural resource planning with climate resilience, public health, -driven decision-making, and coordination across disciplines and jurisdictions. evenly distributed across communities. Certain populations and neighborhoods may these disparities has become a core focus in natural resource and land use planning. Natural Resources Element | Spokane Valley Comprehensive Plan Update 16 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 lean 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 costoding and erosion, and increase resilience to more frequent and intense storm events. -Aware Planning - extreme heat, and drought, are expected to intensify over time. Best pract anticipating future conditions rather than relying solely on historical data andusing land use planning as a primary tool to reduce long-term risk to people, property, and ecological systems. Forward- management, stormwater system design, habitat protection, and infrastructure planning. This approach allows jurisdictions to better account for changes in precipitation patterns, 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 Natural Resources Element | Spokane Valley Comprehensive Plan Update 17 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-Enhance riparian and large wooded areas throughout the city on public lands. Policies NR-P1 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- Prepare and/or regularly update an accurate, updated map of areas expected to be inundated by a 100- Glenrose Channel areas. NR-P5 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 | Spokane Valley Comprehensive Plan Update 18 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: March 10, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Spokane County Housing and Community Development Grant Applications GOVERNING LEGISLATION: CDBG – Federal Department of Housing and Urban Development (HUD) 24 CFR § 570; Chapter 39.34 RCW PREVIOUS COUNCIL ACTION TAKEN: In 2023, Council elected to defer its entitlement and to participate as part of the urban county consortium for the next three-year cycle (2024-2026). BACKGROUND: The City of Spokane Valley participates in the Spokane County urban consortium for the HUD Entitlement Funds including the Community Development Block Grant, the Home Investment Partnership Program (HOME) and the Emergency Solutions Grants (ESG). Each year the Federal Department of Housing and Urban Development provides HUD entitlement funding to Spokane County. In 2023, the City entered into a new cooperation agreement that increased the City’s set-aside for CDBG, HOME and ESG based on its share of Consortium population which is approximately 33%. In previous agreements, the City did not have a set-aside for the HOME and ESG funds. Spokane County issued a Request for Proposals (RFP) for the use of HUD entitlement funds for the program year 2026, as well as several other funding sources for which the City does not have an entitlement. Proposals were due on February 20, 2026. Available funding amounts in the current RFP are as follows: Affordable Housing Funding – $3,350,000 total available HOME - $350,000 region-wide (City’s set aside approximately $117K) Document Recording Fees – $2M Affordable & Supportive Housing, Sales and Use Tax - $1M Community Development Funding CDBG - $1,050,000 region-wide (City’s set aside approximately $350K) o $1M for Capital and Public Works, and $50,000 for Public Service Homeless Services Funding - $1,995,232 total available* Consolidated Homeless Grant (CHG) - $360,232 Document Recording Fees - $1,500,000 for Homeless Services ESG - $135,000 region-wide (City’s set aside approximately $45K) *This portfolio can be subject to significant swings in funding availability. More firm estimates should be available when HCDAC reviews applications in mid-March to early April. HCDAC will likely need to select alternates to address gaps that may come up before BOCC approval. Community Development Block Grant – Disaster Recovery - $22,076,000 total available Page 1 of 2 Spokane County received 16 applications for the Affordable Housing and Community Development funds, with a total request of approximately $6,302,935, which is separate from the sole disaster relief application that asked for approximately $8.4M. The Housing and Community Development Advisory Committee (HCDAC) is currently reviewing and rating the applications for Affordable Housing and Community Development Block Grant and will provide funding recommendations on March 12, 2026. At tonight’s meeting, staff will discuss the applications with the rest of council and seek consensus on how to prioritize the applications. The HCDAC recommendations will be presented to the Board of County Commissioners for a formal funding decision on May 12, 2026. RECOMMENDED ACTION OR MOTION: Seeking consensus on how to prioritize the applications. BUDGET/FINANCIAL IMPACTS: There are no budget impacts for the City. STAFF CONTACT: Gloria Mantz, City Services Administrator and Eric Robinson, Homeless & Housing Coordinator ATTACHMENTS: PowerPoint Presentation Project Descriptions Page 2 of 2 NEW CONSTRUCTION NEW CONSTRUCTION NEW CONSTRUCTION Community Development CAPITAL/PUBLIC WORKS CAPITAL/PUBLIC WORKS PUBLIC SERVICES PUBLIC SERVICES