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HomeMy WebLinkAbout2026, 04-21 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, April 21, 2026 6:00 p.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 During Council 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. Members of the public will be allowed to comment in-person or via Zoom as described below. Public comments will only be accepted for those items noted on the agenda as “public comment opportunity.”Citizens must register by 4 p.m. the day of the meeting to provide comment by Zoom. Please use the links below to register to provide verbal or written comment. Sign up to Provide Verbal Public Comment at the Meeting via Calling-In Submit Written Public Comment Prior to the Meeting Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- CALL TO ORDER INVOCATION: Pastor Kenny Lydick, Greenacres Baptist Church PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: Arbor Day GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government.This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters unrelated to City business, then the Council and/or Mayor may end that person’s public comment time before the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-in sheet will be provided at the meeting. ACTION ITEMS: 1. Resolution 26-005: Indigent Defense Caseload Standards – Tony Beattie \[public comment opportunity\] 2. Motion Consideration: CenterPlace Catering Contract –Erik Lamb \[public comment opportunity\] 3. Motion Consideration: Opioid Settlement Agreement – Tony Beattie \[public comment opportunity\] Council Agenda April 21, 2026 Page 1 of 2 NON-ACTION ITEMS: 4. Admin Report: Economic Forecast -Mike Basinger, Grant Forsyth 5. Admin Report: Ice Sports Facility Ground Lease –John Hohman, Gloria Mantz, Kelly Konkright INFORMATION ONLY(will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY:General public comment rules apply. COUNCILCOMMENTS MAYOR’S COMMENTS CITY MANAGER COMMENTS EXECUTIVE SESSION ADJOURNMENT Scan to access the meeting materials Council AgendaApril 21, 2026 Page 2 of 2 Proclamation City of Spokane Valley, Washington Arbor Day WHEREAS, Among the pioneers moving into the Nebraska Territory in 1854, was J. Sterling Morton from Detroit; he and his wife were lovers of nature and their new home in Nebraska was quickly planted with trees, shrubs, and flowers; and WHEREAS, On January 4, 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special tree-planting holiday be set aside for the planting of trees, with that first date set for April 10, 1872; that first observed Arbor Day holiday included the planting of more than a million trees in Nebraska; and WHEREAS, The tradition began in schools nationwide in 1882, and in 1885 Arbor Day was the date for its permanent observance; and WHEREAS, Today the most common date for the state observance is the last Friday in April; and all 50 states as well as many countries, recognize Arbor Day in some manner; and WHEREAS, Trees can reduce the erosion of topsoil by wind and water, cut heat and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen and provide habitat for wildlife; and WHEREAS, Trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and beauty to our community; and WHEREAS Trees in our city increase property values, enhance the economic vitality of business areas, and provide character to our community. NOW, THEREFORE, I, Laura Padden, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Council and the citizens of the City of Spokane Valley, do hereby proclaim Friday, April 24, 2026 as ARBOR DAY in the City of Spokane Valley, and I urge all citizens to celebrate Arbor Day, to support efforts to protect our trees and woodlands st Dated this 21 day of April 2026. Laura Padden, Mayor CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 21, 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: Resolution 26-005: Indigent Defense Caseload Standards GOVERNING LEGISLATION: Sixth Amendment to the United States Constitution; Criminal Rules for Courts of Limited Jurisdiction CrRLJ 3.1 Stds.; RCW 10.101.030; Ch. 1.17A Spokane County Code; Standards for Indigent Defense adopted by the Washington State Supreme Court; Order No. 25700-A-1644. PREVIOUS COUNCIL ACTION TAKEN: Interlocal Agreement 06-018; Resolution 15-006 Adopting Caseload Standards, adopted July 14, 2015; Amendment 06-018.01 Adding Investigative Support, adopted August 29, 2017; Administrative Report April 30, 2024; Informational Item May 21, 2024; Administrative Report October 22, 2024; October 29, 2024 Approval of Comments re Caseload Standards; April 7, 2026 Info Item re: Indigent Defense Standards. BACKGROUND: The Sixth Amendment to the United States Constitution guarantees “the poor not just an appointment of counsel, but also effective assistance of counsel.” State v. A.N.J., 168 Wash. 2d 91, 98, 225 P.3d 956, 959 (2010) (citing Strickland v. Washington, 466 U.S. 668, 688, 104 S.Ct. 2052, 80 L.Ed.2d 674 (1984)). In order to meet Constitutional requirements, the Washington State Supreme Court has adopted enforceable standards for the provision of indigent defense. Public defenders representing those accused of misdemeanors must meet a variety of standards, which include meeting the minimum requirements to practice law in the state of Washington, being familiar with WSBA guidelines for public defense, court rules, the Washington Rules of Professional Conduct, and mental health issues, along with completing seven hours of continuing legal education relating to public defense. The standards also set the maximum number of cases depending on case type. Standards adopted by the Supreme Court in 2012 capped the number of misdemeanor case credits an attorney could handle at 300 per 12-month period in jurisdictions that have adopted a case credit system. In early March, 2024, the Washington State Bar Association (“WSBA”) adopted updated standards for public defense pursuant to RCW 10.101.030. Pursuant to RCW 10.101.030, the WSBA Standards serve as guidelines for local agencies in developing their own local standards for public defense. The WSBA standards included a reduction in case credits to 120 in a 12-month period. The WSBA proposed a permanent rule change to the Washington State Supreme Court. The Supreme Court took public comment and conducted public hearings as it considered updating the official court rules to align with the WSBA’s standards. During that process the City submitted a comment letter voicing its concerns about the proposed rule changes. Ultimately, on June 9, 2025, the Supreme Court issued Order No. 25700-A-1644, which adopted the suggested reduction in case credits, but allowed jurisdictions to implement the standards in a phased approach. Pursuant to the Order, jurisdictions are required to reduce case credits per attorney to 120 over a ten-year period. Jurisdictions are required to reduce their case credits per defense attorney by at least 10% of the difference between the current standard and the new standard. The City contracts with Spokane County for the provision of public defense services. On December 16, 2025, Spokane County Commissioners adopted Resolution 25-0687, in conformance with the Supreme Court Order. As encouraged by the Supreme Court, Spokane County Resolution 25-0687 also adopts a case weighting system whereby misdemeanors are currently valued at one case credit each, and probation violations are reduced to one-third of a case credit. The standards adopted by the County also require the Public Defender and the Director of Law and Justice to conduct ongoing timekeeping studies to inform annual reviews of the case weighting system. The County is committed to reviewing the case credits afforded each type of case annually in order to ensure the system more accurately reflects the time and effort required for each case type. The reduction in caseloads contemplated by the County complies with the annual 10% reduction allowed by the Supreme Court Order. Pursuant to RCW 10.101.030, every jurisdiction is required to adopt indigent defense standards. Because the City contracts with Spokane County for these services, and due to that independent contractor relationship, the City’s adopted standards have consistently mirrored those of the County. Draft Resolution 26-005 repeals and replaces the City’s current standards in order to comply with the Supreme Court Order and the newly adopted court rules by adopting the updated County standards by reference. OPTIONS: Approve Resolution 26-005 adopting new standards for the delivery of public defense services; or take other action deemed appropriate. RECOMMENDED ACTION OR MOTION: I move to approve Resolution 26-005 adopting new standards for the delivery of public defense services. BUDGET/FINANCIAL IMPACTS: Staff are working to approve the recently received 2026 public defender cost estimate. Thus far, the City has not seen impacts to misdemeanor staffing levels due to the new caseload limits. The County’s case weights appear to result in caseloads that can be accommodated by their existing misdemeanor attorney staff. The County is conducting a public defense attorney time study that may lead to changes in their per attorney caseloads. The City is tracking this project to allow us to be able to report on any budget impacts beyond 2026 but has not received a status report to date. STAFF CONTACT: Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Draft Resolution 26-005 County Resolution 25-0687 WA Supreme Court Order No. 25700-A-1644 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 26-005 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING NEW STANDARDS FOR THE DELIVERY OF PUBLIC DEFENSE SERVICES PURSUANT TO RCW 10.101.030, AND OTHER MATTERS RELATING THERETO. WHEREAS, RCW 10.101.030 requires thatthe Cityadopt standards for the delivery of public defense services to meet the needs of public defense service recipients for sufficient, accessible, high quality defense services; and WHEREAS, on July 14, 2015, City Council adopted Resolution 15-006 providing for standards of indigent defense services; and WHEREAS, on June 9, 2025, the Washington Supreme Court issued Order No. 25700-A-1644 (the “Order”), which revised the public defender caseload standards and allows a phased compliance over a ten- year period; and WHEREAS, specifically, the Order reduces the maximum misdemeanor cases that a public defender can be assigned from 300 to 120, but allows the reduction to be phased in at 18 less cases per year over ten years; and WHEREAS, the Washington Supreme Court, in the Order, declined to adopt the Washington State Bar Association’s guidelines for case counting and case weighting and recognized that the structure and delivery of indigent defense services may vary by jurisdiction based on local conditions; and WHEREAS, the City is responsible for providing defense counsel for indigent defendants charged with misdemeanors and gross misdemeanors; and WHEREAS, the City currently contracts with Spokane County for the provision of indigent defense through the Interlocal Agreement for Public Defender Services in the City of Spokane Valley, executed March 24, 2006; and WHEREAS, in compliance with the Order, Spokane County revised its indigent defense standards via Resolution 25-0687, which adopted case weighting measures, annual reviews of those measures, and the required annual reduction of allowable cases by 10%; and WHEREAS, the City desires to adopt standards that are consistent with Spokane County’s for the provision of indigent defense in misdemeanor and gross misdemeanor cases. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington as follows: Section 1: The City Council hereby adopts by reference, to the extent required by law and to the degree applicable to the City’s responsibility in providing public defender services, chapter 1.17A of the Spokane County Code (“SCC”), Standards for the Delivery of Public Defender Services, as the City’s official standards for the provision of public defender services. To the extent required by law and as Resolution No. 26-005 Adopting Indigent Defense Standards applicable to the City, chapter 1.17A SCC as currently or subsequently amended is hereby incorporated herein by this reference. Section 2: Repeal of Resolution 15-006. This Resolution 26-005 supersedes and replaces Resolution 15-006, which is hereby repealed. Section 3: Effective Date. This Resolution shall be effective upon adoption. Adopted this __ day of ___________, 2026. City of Spokane Valley Laura Padden, Mayor ATTEST: Marci Patterson, City Clerk Approved as to Form: Office of the City Attorney Resolution No. 26-005 Adopting Indigent Defense Standards THE SUPREME COURT OF WASHINGTON ) ) O R D E R IN THE MATTER OF THE STANDARDS FOR ) INDIGENT DEFENSE IMPLEMENTATION OF ) NO. 25700-A-1644 CrR 3.1, CrRLJ 3.1, AND JuCR 9.2) ) ) ____________________________________________) The Washington State Supreme Court in October 2023 requested that the Washington State Bar Association (“WSBA”) Council on Public Defense (“CPD”) review a newly released National Public Defense Workload Study (“The Rand Study”) and provide recommendations, if any, to the Court. As a result of that review, the CPD proposed comprehensive revisions to the WSBA Standards forIndigent Defense Services. The WSBA Board of Governors, after receiving public comments, adopted the proposed revised Standards and forwarded them to the Court with a recommendation that the Court incorporate the WSBA-adopted revised Standards into the Court’s Standards in CrR3.1, CrRLJ 3.1, and JuCR9.2. The Court, in June 2024, published the WSBA proposed Standards for comment and held two public hearingson those proposed Standards on September 25, 2024 and November 13, PAGE 2 ORDER IN THE MATTER OF THE STANDARDS FOR INDIGENT DEFENSE IMPLEMENTATION OF CrR 3.1, CrRLJ 3.1, AND JuCR 9.2 2024. The Court has, to date, held three lengthy internal work sessions to review all of the comments and testimony, and to discuss each proposed Standard. Although the Court has not completed its full review, the Court is aware that: (1) budget planning is underway in local jurisdictions; (2) it would help that process for planners to know as soon as possible about any revised caseload standards that will be adopted; and (3) the crisis in the provision of indigent criminal defense services throughout our state requires action now to address the crisis and to support quality defense representation at every level. Thus, in advance of a full decision on all parts of the CPD’s proposal, we provide this summary communication of the Court’s conclusions on caseloads. The reality is that many aspects of indigent criminal defense services vary by structure and location, so the Court is adopting an approach which accommodates that diversity while fostering real and meaningful reductions in caseloads as soon as possible, where necessary. Now therefore, it is hereby ORDERED: 1. Effective January 1, 2026, the caseload standard for each full-time appointed felony attorney for any 12 month period shall be 47 felony case credits; and for each full-time appointed misdemeanor attorney for any 12 month period shall be 120 misdemeanor case credits; and for each full-time appointed attorney for a respondent in civil commitment proceedings for any 12 month period shall be 250 commitment case credits. Implementation of these caseload standards must be accomplished as soon as reasonably possible. Implementation may, however, be accomplished in a phased approach with an annual reduction of at least 10% of the difference between the current standard and the new standard (as measured on January 1, 2026), until the PAGE 3 ORDER IN THE MATTER OF THE STANDARDS FOR INDIGENT DEFENSE IMPLEMENTATION OF CrR 3.1, CrRLJ 3.1, AND JuCR 9.2 new standard has been met. Full compliance must occur no later than ten years from January 1, 2026. 2. The Court declines to adopt the mandatory method of case counting and weighting in the proposed standards. However, we endorse the importance of case weighting to measure case credits and actual case counts, including inherited cases, to make the mandatory caseload limits meaningful. Thus, case weighting to measure case credits is permissible and encouraged. Case weighting should rely on written policies and procedures that have been adopted and published by the local government entity responsible for employing, contracting with, or appointing counsel for indigent defendants and respondents. Such case weighting may use the method in the Rand Study relied upon by the WSBA CPD and the rules for weighting contained in the WSBA’s adopted Standards. All policies on case counting and weighing shall, at a minimum, comply with principles in the current court rule Standards 3.5 and 3.6. If no case weighting system is adopted, the maximum caseload count is the actual number of cases referenced above for each case type. 3. There shall be an evaluation of the progress and impact of these caseload standards three years after the effective date of these standards. Implementation shall continue during the evaluation. 4. Rule amendments concerning revised caseload standards will be announced in the near future, once the court’s review is complete. PAGE 4 ORDER IN THE MATTER OF THE STANDARDS FOR INDIGENT DEFENSE IMPLEMENTATION OF CrR 3.1, CrRLJ 3.1, AND JuCR 9.2 IT IS SO ORDERED, this 9thday of June,2025. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 21, 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: Motion to award 2026 CenterPlace Food Services Contract GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: Approval of original 2009 CenterPlace Food and Beverage Services contract and subsequent 2017, and 2023 contracts. Administrative Report on April 7, 2026. BACKGROUND: CenterPlace began utilizing an in-house caterer for food and beverage services in 2009. This has proven to be a beneficial service to our customers and one that continues to receive positive feedback. CenterPlace is currently offering in-house catering service through Inland Northwest Catering under an interim contract agreement. The prior CenterPlace food and beverage contract expired on December 31, 2025. Therefore, in November 2025 the Parks and Recreation Department began the process to develop a Request for Proposals (RFP) seeking responses to provide food and beverage services at CenterPlace beginning in 2026. The RFP was published on the City website on November 18, 2025 advertised in the Spokane Valley Herald and Spokesman Review on November 21 and November 28, 2025. Submittal responses were due on December 8, 2025. Four submittals were received. The City scored the submittals and invited the top three proposers to a tasting exercise and interview. Tasting exercises and interviews were conducted on December 15, 2025, at CenterPlace. The interview panel was comprised of six city staff members. The three caterers that participated in this process were Inland Northwest Catering (Longhorn BBQ), Mangia, and the Mirabeau Park Hotel. Each caterer provided a tasting for breakfast, lunch and dinner within a given price range. After the tastings, each caterer was interviewed by the interview panel for approximately 1 hour each. The tasting portion was scored by each panel member. After the interviews, the panel discussed the interviews, shared their impressions and provided feedback to the Parks Director. The panel felt that one caterer performed significantly better than the other two in both the taste testing and the interview. It was a unanimous decision by the interview panel to recommend Inland Northwest Catering for the 2026 contract. OPTIONS: Move to award the 2026 CenterPlace Food and Beverage Services contract to Inland Northwest Catering; or take other action deemed necessary and appropriate by Council. RECOMMENDED ACTION OR MOTION: Move to award the 2026 CenterPlace Food and Beverage Services contract to Inland Northwest Catering and authorize the City Manager to finalize and execute the contract in substantially the form attached. BUDGET/FINANCIAL IMPACTS:The City will retain 21% of Total Gross Revenues for all food and beverage services provided at CenterPlace up to $750,000, and thereafter 22% of gross revenues from $750,001-$850,000, 23% of gross revenues from $850,001-950,000, and 23.5% of gross revenues exceeding $950,000 in the same calendar year. For the purposes of this agreement, “Total Gross Revenue” includes any standard hospitality services fees, but excludes any applicable sales taxes or fees charged in connection with the use of credit or debit cards. Additionally, the contractor will pay the City $4,500 to be placed into a reserve fund to be used for repair and maintenance to the kitchen equipment at CenterPlace. STAFF CONTACT: Erik Lamb, Deputy City Manager ATTACHMENTS: Contract for CenterPlace Food and Beverage Services, PowerPoint Presentation house catering services began in 2009 house services derived from customer requests -- InInIncreased level of serviceRevenue opportunityPrevious contract expired December 31, 2025Current interim service contract through April 30, 2026 •••••• Integrate the event space rental with the catering sales process to make the experience less complex for customersUpdate catering contractIncrease revenuesImplement new reservation software •••• service dinner - Coffee service to full • Exclusive catering services with full access to the commercial kitchenDedicated Executive Chef and SalespersonAlcohol beverage serviceOutdoor cateringDiverse menu optionsExceptional customer serviceMinimum commission rate of 20% ••••••• were was identified as the recommended caterer. RFP Process occurred through November and December of 2025Written submissionsThree finalists for tasting exercise and interviewsSubmittals received from four companies:Mangia Catering, Inland Northwest Catering, and Mirabeau Park Hotel invited to the formal tasting exercise and interviews.Inland Northwest Catering •••••• Move to authorize the City Manager to execute the contract with Inland Northwest Catering • CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 21, 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: Motion Consideration: Opioid Settlement – Six Remnant Defendants GOVERNING LEGISLATION: SVMC 2.15.020; Spokane Regional Opioid Abatement Council MOU. PREVIOUS COUNCIL ACTION TAKEN: Numerous meetings from April 2022 through 2026: Approval of One Washington MOU for settlements with (1) opioid distributors (“Settlement I”); (2) pharmacies and manufacturers (“Settlement II”); (3) Johnson & Johnson; and (4) Kroger. Approved MOU establishing Spokane Regional Opioid Abatement Council August 29, 2023. Administrative report on opioid funding project options on August 13, 2024; Consensus to proceed to negotiate agreements with SRHD and Spokane County on September 24, 2024; Approval of Spokane County Interlocal March 31, 2026. BACKGROUND: Over the course of the previous four years, the State of Washington and litigating local jurisdictions secured settlements against various entities involved in the production, sale, and distribution of opioids. City Council chose to participate in each of the settlements secured by the State of Washington against various entities contributing to the opioid crisis, which include the following: The distributors settlement (“Settlement I”). The City is expected to receive a total of $140,844.29 through 2038, with payments ranging from $5,773 to $9,727.98 per year. The pharmacies and manufactures settlement (“Settlement II”). The City anticipates receiving a total amount similar to Settlement I over the course of 15 years. The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement II; however, estimates from the Attorney General show that the City is expected to receive a total of $140,021.39 through 2037 with payments ranging from $3,152.36 to $11,784.51 per year. The Johnson & Johnson settlement (“Settlement III”), included a one-time payment of $37,680.96 to the City. The Kroger settlement (“Settlement IV). The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement IV; however, estimates from the Attorney General show that the City is expected to receive approximately $14,000 through 2035 with payments ranging from $1,256.81 to $1,478.60 per year. In addition, a class-action lawsuit against McKinsey & Company was finalized in February 2024. Entities that entered into prior settlements were eligible to automatically receive funds from the McKinsey settlement. The City received $2,895.79 from the McKinsey settlement in September, 2024. In fall of 2025, City Council also approved settlements with Purdue Pharma and the Sackler family, and Generic Manufacturers from which the City expects to receive approximately $39,000. The City has received approximately $121,000 from the opioid settlements to date. Staff estimates the total amount it will receive from all of the settlements together is approximately $360,000.00, which will be paid over the course of the next decade. This item concerns a new national settlement involving claims against six regional distributors/dispenser defendants: Associated Pharmacies, Inc; J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc.. The total amount of the settlement is $97,625,000. This is a settlement for local governments only – there is no State involvement. In order to participate, the City must submit an executed participation form to the claims administrator by May 4, 2026. This settlement includes a release of potential claims related to the opioid epidemic against the six defendants. In exchange for said release, staff estimate the City will receive approximately $1,500, which can only be used for opioid remediation purposes. Council has already allocated its opioid settlement funds towards expanding the Spokane Regional Health District’s Opioid Dashboard, completing a needs assessment, as well as the expansion and operation of the Spokane Regional Stabilization Center. No further action by Council is required to expend these funds. OPTIONS: Authorize the City Manager or designee to execute and submit the necessary forms for participation in the Six Remnant Defendants’ Settlement Agreement.; or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: I move to authorize the City Manager or designee to execute and submit the necessary forms to participate in the Six Remnant Defendants’ Settlement Agreement. BUDGET/FINANCIAL IMPACTS: To date, the City has received approximately $121,000 as a result of the opioid settlements. Staff estimate the total amount the City will receive from all of the settlements together is approximately $360,000.00. These funds must be used for opioid remediation purposes. STAFF CONTACT: Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Six Remnant Defendants’ Combined Subdivision Participation and Release Form Remnant Settlement Documents: https://nationalopioidsettlement.com/remnant-settlements/ EXHIBITG Six (6)Remnant Defendants’ Combined SubdivisionParticipationandRelease Form (“Combined Participation Form”) Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State,Zip: Phone: Email: The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the six (6) Remnant Defendants’ Settlement Agreement (“RDSA”), dated February 23, 2026, and described further in Paragraph 1, and acting through the undersigned authorized official, hereby elects to participate in the RDSA, release all Released Claims against all Released Entities, and agrees as follows: 1. The Governmental Entity hereby elects to participate in the RDSA as a Participating Subdivision with each of the following six (6) Remnant Defendants that are parties to the RDSA: (1) Associated Pharmacies, Inc. (and American Associated Pharmacies),(2) J M Smith Corporation, (3) Morris and Dickson Co., L.L.C.,(4) Louisiana Wholesale Drug Company, Inc., (5) North Carolina Mutual Wholesale Drug Company, Inc., and (6) United Natural Foods, Inc. (and SuperValu). 2.TheGovernmental Entityisawareof and has reviewed the RDSA, understands that all capitalized terms not defined in this Combined Participation Form have themeanings defined in the RDSA, and agrees that by executing this Combined Participation Form,the Governmental Entity elects to participate in the RDSA and become a Participating Subdivision as provided in the RDSAs. 3. The Governmental Entity shall promptly, and inany event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in the RDSA. With respect to any Released Claims pending in In Re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice for each of six (6) Remnant Defendants listed in Paragraph 1 above substantially in the form found at https://nationalopioidsettlement.com/additional-settlements/. 4. The GovernmentalEntity agrees to the terms of each of the RDSA pertaining to Participating Subdivisions as defined therein. G-1 5. By agreeingtothe terms of the RDSA settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6. The Governmental Entity agreesto use any monies it receives through the RDSA solely for the purposes provided therein. 7. The GovernmentalEntitysubmits to thejurisdiction of theMDL Court and agreesto follow the process for resolving anydisputesdescribed in the RDSA. 8. TheGovernmental Entity has therightto enforce the RDSA as provided therein. 9. TheGovernmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes of the RDSA, including without limitation all provisions related to releaseof any claims,and alongwith all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in the RDSA in any forum whatsoever. The release provided for in the RDSA is intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in the RDSA the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The RDSA shall be a complete bar to any Released Claim against the Released Entities. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the RDSA. 11. In connectionwith the releases providedin the RDSA, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. Ageneralrelease does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party. G-2 A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims in the RDSA, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the RDSA. 12. The Governmental Entity understands and acknowledges that nothing herein is intended to modify in any way the terms of any of the RDSA, to which Governmental Entity hereby agrees. To the extent this Combined Participation Form is interpreted differently from the RDSA in any respect, the RDSA controls. I have all necessary power and authorization to execute this Combined Participation Form on behalf of the Governmental Entity. Signature: Name: Title: Date: G-3 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 21, 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: Economic Forecast GOVERNING LEGISLATION: N/A PREVIOUS COUNCIL ACTION TAKEN: N/A BACKGROUND: Dr. Grant Forsyth is the chief economist at Avista Corp. and was previously an economics professor at Eastern Washington University. He is here tonight to provide an economic forecast for Council. OPTIONS: Information only RECOMMENDED ACTION OR MOTION: None BUDGET/FINANCIAL IMPACTS: None. However, information on the economy may inform future discussions relating to the development of the 2027 Budget. STAFF CONTACT: Mike Basinger, Community and Economic Development Director ATTACHMENTS: PowerPoint Presentation Annual Growth Mar-26 Jan-26 Nov-25 Sep-25 Jul-25 May-25 Mar-25 Jan-25 Nov-24 Sep-24 Jul-24 May-24 Mar-24 Jan-24 Nov-23 Sep-23 Jul-23 May-23 Mar-23 Jan-23 Nov-22 Sep-22 Jul-22 May-22 Mar-22 Jan-22 Year, Same Month-over-Year Annual Growth Annual Growth Annual Growth Yield (%) Yield (%) 3Q 2025 4Q 2024 1Q 2024 2Q 2023 3Q 2022 4Q 2021 1Q 2021 2Q 2020 3Q 2019 4Q 2018 1Q 2018 2Q 2017 3Q 2016 4Q 2015 1Q 2015 2Q 2014 3Q 2013 4Q 2012 1Q 2012 2Q 2011 3Q 2010 4Q 2009 1Q 2009 2Q 2008 3Q 2007 4Q 2006 1Q 2006 Year, Same Month-over-Year CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 21, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE:Admin. Report–Ice Sports Facility Ground Lease GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: Administrative report on August 19, 2025 Administrative report on September 23, 2025 Motion Consideration allocating lodging tax funds for the Sullivan park infrastructure and the operations of the ice sports facility on December 16, 2025. BACKGROUND: In fall of 2024, the City was approached by a donor indicating an interest in developing and constructing a regional tourism facility to serve youth sports within Spokane Valley and the region and associated economic development facilities. The donor is partnering with Innovia Foundation, which has been tasked to lead the project on behalf of the donor. Staff identified the recently acquired Sullivan Property north of Sullivan Park as a potential location for the project. The donor has indicated a desire to provide a substantial portion of the project but requested some City participation. On August 19, 2025, City Council heard a report from Innovia Foundation discussing the potential project. Council directed Innovia to provide a proposal on the ice facility and the use of the City’s Sullivan property (Attachment A). On September 23, 2025, Innovia discussed a proposal for using the Sullivan property and constructing an ice sports facility. Innovia requested a long-term 99-year ground lease for the entire Sullivan property to construct and operate the ice sports facility and at least two related facilities that will complement the ice facility. The proposal included the option for the City to purchase the facility for $9.4 million. Innovia also requested that the City pay for certain infrastructure improvements which are estimated to cost $3.03M. The improvements include improvements to the Sullivan intersection and signal, two access roads to property and a sewer lift station. On September 30, 2025, the City hosted a public input session and staff discussed the ice sports facility proposal, estimated costs for the infrastructure requested by Innovia and potential economic impact for the project to the City and region. Council reached consensus to authorize the City Manager to negotiate ground lease terms with Innovia. On December 16, 2025, Council discussed the Lodging Tax Committee recommendations and moved to allocate $2M of Lodging Tax funds (Fund 104) for the infrastructure improvements for the Sullivan property to the City. Councill also allocated $600,000 and up $550,000 for 2029- 2031 from Fund 104 for the operations of the facility to Innovia. Since the fall of 2025, staff have been negotiating ground lease terms with Innovia. The material terms of proposed ground lease agreement are provided in Appendix C. The proposed ground lease agreement is included in Attachment D. OPTIONS: Consensus to consider the proposed ground lease agreement for approval at Council’s April 18, 2026 meeting or take other appropriate action. RECOMMENDED ACTION OR MOTION: Consensus to consider the proposed ground lease agreement for approval at Council’s April 28, 2026 meeting. BUDGET/FINANCIAL IMPACTS: The cost of the requested transportation improvements are estimated at $3.03M which are funded with $2M of Fund 104 and Fund 312. Fund 104 will also be used for the operations of the facility from 2027-2031 as recommended by the Lodging Tax Committee and approved by Council on December 16, 2025. Innovia will be responsible for the ongoing operations and development of the ice sports facility. Per the ground lease, the City has the option to purchase the property for $9.4M or exercise a right of first refusal to purchase the facility if a third-party desires to buy the ice sports facility at the same terms as the third party. The lease agreement does not obligate the City to purchase the facility. Funding will need to be identified in the future if Council desires to acquire the ice sports facility. STAFF CONTACT: John Hohman, City Manager ___________________________________________________________________________ ATTACHMENTS: Appendix A - Innovia Foundation Proposal Appendix B - Proforma Appendix C - Ground lease Terms Appendix D – Ground lease agreement PowerPoint Presentation QSPQPTFE! JDF!'!BTTPDJBUFE! GBDJMJUJFT!BU! TVMMJWBO! QSPQFSUZ TFQUFNCFS!28-!3136 ubcmf!pg! dpoufout Dpwfs!Mfuufs!4 Qspkfdu!Jogpsnbujpo!5 Bcpvu!22 Mfuufst!pg!Tvqqpsu!23 Qspkfdu!Tiffut!32 Qspkfdu!Ujnfmjof!35 Dpodfquvbm!Eftjho!Esbxjoht!36 Dpodfquvbm!Sfoefsjoht!3: JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 John HohmanSeptember 17, 2025 City Manager City of Spokane Valley 10210 E Sprague Avenue Spokane Valley, WA 99206 RE: Response to City Request for Information – Proposed Ice and Associated Facilities at Sullivan Property Dear Mr. Hohman, On behalf of a generous donor and longtime community member, Innovia Foundation extends our sincere appreciation to the City of Spokane Valley for the opportunity to collaborate on the proposed indoor ice-skating facility at the Sullivan property. We are grateful for the City’s request for information, dated August 25, 2025, and are pleased to submit the enclosed comprehensive proposal for your review and consideration by the City Council. This project represents far more than the construction of an arena. It is an investment in Spokane Valley’s vitality — expanding recreation, strengthening tourism, and driving long- term economic opportunity. The proposed facility will broaden access to ice sports while civic lives. We respectfully submit this proposal in a spirit of partnership, with the shared goal of creating a world-class civic asset that will serve Spokane Valley residents for generations. We look forward to working closely with you, the City Council, and City st advances. Respectfully, Shelly O’Quinn Innovia Foundation JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 qspkfdu!jogpsnbujpo 1. Introduction enhances Spokane Valley’s recreational, hospitality, and economic landscape. This initiative is more than the construction of an ice arena — it is an investment in community vitality, regional tourism, and sustainable economic growth. The vision for the Spokane Valley Ice Facility is to provide low- or no-cost opportunities for children and youth to participate in ice sports while building essential life and leadership skills. At ctural barriers that have historically limited access for economically challenged families. By providing equipment, mentorship, and inclusive resilience — qualities that will serve them throughout life. Meeting this vision addresses an urgent regional need. Current ice facilities are overscheduled, constrained by lack of consistent ice time. A modern, two-sheet facility will directly address this shortage, ensuring Spokane Valley residents and youth organizations have access to safe, high- quality, and inclusive ice sports opportunities. The project also aligns with the Spokane Valley Tourism Strategic Plan, which id sports tourism and recreation infrastructure. The impact reaches beyond sports. According to feasibility analysis, the new facility is projected to generate nearly $5.6 million in annual direct visitor spending and over 9,800 new hotel room nights once fully operational. Regional and national tournaments will draw families and athletes Valley as a family-friendly recreation destination. By integrating a state-of-the-art ice facility with lodging and dining amenities, this project delivers two transformative outcomes: 1. -enriching sports and leadership opportunities. 2. Establishing Spokane Valley as a regional hub for tourism, recreation, and community vitality. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 2. Project Description Facilities Overview Dual-Sheet Ice Arena: 65,000 SF facility with two NHL-size ice sheets, spectator seating, conditioned viewing areas, locker rooms, player support spaces, and concessions. Hotel Development: A potential 120- accommodating visiting teams, families, and traveling professionals while supporting nearby business activity. family dining, retail, or other visitor-serving uses. Anticipated Size & Key Components Ice Arena: 500-700 and team facilities. Hotel: 120 rooms with meeting/event space and visitor amenities. Food & Beverage: Full-service dining or retail tenant to complement the facility. Proposed Uses The Spokane Valley Ice Facility will serve as a multipurpose hub for sport, recreation, and tourism, including: Year-round youth and adult hockey programs, leagues, and clinics. -to-skate programs. School partnerships, after-school activities, and community events. Dedicated practice venue for the WHL Spokane Chiefs, elevating visibility and inspiring local youth. On-site lodging and dining options to serve teams, families, and local residents. 3. Funding Sources -layered strategy that combines private capital, philanthropic investment, and public partnership. This balanced ores the shared commitment of stakeholders to deliver a transformative community asset. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 Philanthropic Contributions Charitable Support through Innovia Foundation: Innovia Foundation, on behalf of a costs and ensure broad youth access. Naming Rights and Sponsorships: Corporate and philanthropic partners will be invited to support through naming opportunities, sponsorship packages, and recognition programs, creating enduring ties between community leaders and the project. Program Scholarships: Dedicated gifts will fund scholarships and program subsidies, ensuring that families of all income levels can participate in hockey and skating programs. Private Financing and Investment Equity Contributions: Private partners will contribute direct equity into hotel and hotel, providing professional management and generating a reliable revenue stream. Tenant Investments: Retail and food & beverage tenants will fund their own build-outs, reducing overall project cost while tailoring spaces to community demand. Public–Private Partnership with the City of Spokane Valley Land Lease: Favorable, long-term ground lease terms for the Sullivan property will provide the foundation for project viability and ensure alignment with City priorities. -site improvements — such as roadway access, utilities, — will reduce upfront development costs while improving the broader Sullivan corridor. Incentives and Tax Relief: Local tax incentives, including sales/use tax relief and targeted Purchase Option: The City will retain the ability to acquire the completed facility— projected to be valued at approximately $44 million— cure permanent public ownership of a state-of-the-art recreational and economic asset at a fraction of its market value. By exercising this option in the future, the City can transform a privately initiated development into a publicly owned community cornerstone, ensuring long-term local control, stability, and equitable access. This safeguard protects public y established. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 4. Operations of Facilities Revenues Youth & Adult Hockey Programming Fees: League play, clinics, and practice sessions across skill levels. Tournaments & Special Events: Regional and national events driving hotel occupancy, visitor spending, and local economic activity. -to-skate, and school groups to ensure consistent community use. -term revenue from hotel and retail parcels will contribute directly to facility operations. Food & Beverage & Retail Operations: Concessions, pro-shop sales, and restaurant/café tenants serving residents and visitors alike. Ownership & Management ies, hospitality, and events, ensuring professional oversight. This structure provides: Optimized scheduling to maximize ice time. High-quality customer service and engagement. Coordination with hotel/retail tenants for seamless visitor experiences. Partnerships with Spokane Chiefs and schools for training, practices, and educational programming. Sustainability The operational framework is designed to ensure long-term self- subsidy. Key measures include: -revenue tournaments. Economic Multipliers: Leveraging hotel, retail, and dining activity to strengthen the local economy. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 The building will meet the current Washington State Energy code which incorporates elevated environmental building design requirements. Reserves & Reinvestment: Establishing a capital reserve fund from operating surpluses for ongoing maintenance, upgrades, and equipment replacement. Together, these measures will ensure the Spokane Valley Ice Facility operates as a resilient, community-centered, and economically catalytic asset. 5. City Contributions and Expectations To unlock the full potential of this project, we respectfully request the City of Spokane Valley’s to ensure accountability and shared success. Ground Lease & Purchase Option We request a 99-year lease term for the 11-acre Sullivan parcel to establish a strong foundation for development. Under the proposed structure, the City also retains the option to purchase the completed facility — valued at $44 million — for only $9.4 million. This ensures project feasibility today while preserving the City’s ability to secure permanent public ownership tomorrow, at less than one-quarter of cost. Infrastructure Support & Reimbursement The facility requires infrastructure investment — including utility connections and roadway improvements. We respectfully request that the City provide funding -site improvements. This not only advances the facility but also strengthens the broader Sullivan corridor’s capacity for future economic growth. Tax Incentives & Exemptions We seek relief of construction-related sales/use tax exemptions. These incentives will reduce upfront costs, enabling greater investment in youth programming and amenities, while also generating recurring lodging tax revenues through tournaments and visitor activity. Collaboration & Permitting Partnership and permitting processes. By streamlining approvals, the City and development team can maintain momentum, reduce delays, and ensure timely, cost-very of the project. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 City Contribution Ground Lease & Purchase Option Favorable Provides immediate project viability while preserving lease terms for 11-acre Sullivan parcel, a pathway to permanent public ownership at with option to purchase $44M facility for extraordinary value. Ensures long-term civic control $9.4M. of a landmark asset. Infrastructure Support Funding for utilities, Strengthens safety, access, and future development -site improvements. capacity in the Sullivan corridor. Supports long-term economic growth. Tax Incentives & Exemptions Relief on Reduces development costs, enabling greater sales/use tax and potential allocation of lodging tax revenue. Generates recurring hotel and visitor tax revenues. Collaboration in Permitting & Accelerates project delivery while ensuring Environmental Processes Active City compliance and environmental stewardship. partnership in regulatory approvals. Demonstrates City commitment to tourism and recreation growth. 7. Additional Information Innovia Foundation is committed to full transparency, accountability, and collaboration with information at each stage, Innovia Foundation and its partners will: Provide Updated Materials on Request: At the City Council’s request, we will deliver details as the project progresses from planning to implementation. Share Feasibility and Market Data:Supplemental studies on projected economic impact, tourism growth, and community demand will be made available to validate assumptions and strengthen decision-making. Regular updates will be provided to the City Council, City phases. This commitment to open communication ensures that Spokane Valley residents, elected long-term impact. JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 8. Conclusion The Spokane Valley Ice Facility represents a once-in-a-generation opportunity to invest in the community’s youth, economy, and quality of life. At its core, the dual-sheet ice facility will expand access to ice sports, provide mentorship, and create leadership opportunities for young people — ensuring that every child, regardless o teamwork, and resilience. Complementary elements, including an on-site hotel, dining, and retail space, will enhance Spokane Valley’s reputation as a family-friendly regional destination while generating new revenue streams for local businesses, lodging tax collections, and long-term tourism growth. Equally important, the facility is structured to be sources, experienced professional operators, and balanced programming, it will serve residents community life, drives economic activity, and requires no ongoing operational subsidy from the City. Through the proposed purchase option, the City will also preserve the ability to acquire the completed facility — valued at $44 million — for only $9.4 million. This ensures that Spokane Valley can one day secure permanent public ownership of a world-class facility at an extraordinary value, protecting community interests for generations. By partnering together, Innovia Foundation, the City of Spokane Valley, and local stakeholders can deliver not only a modern ice arena but also a transformative investment in community vitality, youth opportunity, and regional economic growth. We respectfully submit this proposal with gratitude for the City’s consideration and look forward to continuing this collaborative process. 9. Attachments: Letters of Support Project Timeline Conceptual Design Drawings Conceptual Renderings JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 nbljoh!npsf!qpttjcmf Bt!uif!dpnnvojuz!gpvoebujpo!tfswjoh!Fbtufso!Xbtijohupo!boe!Opsui!Jebip-!Joopwjb!Gpvoebujpo!jt! b!usvtufe!qsftfodf!jo!uif!Jomboe!Opsuixftu!qspwjejoh!mfbefstijq-!wjtjpo-!boe!sftpvsdft!up!nffu!uif! fwpmwjoh!offet!pg!dpnnvojujft/!Gpdvtfe!po!jut!njttjpo!up!jhojuf!hfofsptjuz!uibu!usbotgpsnt!mjwft!boe! nfncfst!up!tusfohuifo!uif!qmbdft!qfpqmf!dbmm!ipnf/! 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Efooz!MbSvf OIM!Sfgfsff-!Sfujsfe Nfncfs-!Jomboe!Opsuixftu!Tqpsut!Ibmm!pg!Gbnf-!3135 JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 September15,2025 CityofSpokaneValleyCityCouncil 10210ESpragueAvenue SpokaneValley,WA99206 DearCouncilMembers, OnbehalfoftheSpokaneAmericansYouthHockeyAssociation,Iwanttothankyouforyour leadershipandexpressourstrongsupportfortheproposedSpokaneValleyIceFacilityatthe Sullivanproperty. Ourassociationservesmorethan450childrenandtheirfamilieseachyear.Despitethe tremendousinterestinourprograms,thelackofavailableicetimehascreatedsignificant barrierstoparticipation.Toooften,athletesareturnedaway,orfamiliesmustcommitto late-nightpracticesthatplaceunnecessarystrainonyoungplayers,parents,andsiblingsalike. Theadditionofamodern,two-sheetfacilityisnotjustaconvenience—itisanecessity.Beyond providingequitableaccessforfamilies,thisfacilitywouldopenthedoorforexpanded programming,newtournaments,andregionaleventsthatwillbringvisitorsandeconomic activitytoSpokaneValley.Itrepresentsaninvestmentinbothcommunityhealthandthelocal economy,whilealsogivingchildrenasafe,inclusivespacetodevelopskills,confidence,and lifelongfriendships. Werespectfullyurgeyoutomovethisprojectforward.Itwillhavealastingimpactonthousands offamilies,andensurethatSpokaneValleybecomesadestinationwhereyouthsports, communityengagement,andeconomicopportunitythrivetogether. Thankyouforyourthoughtfulconsiderationandsupport. Respectfully, LukeDamskov PresidentSpokaneYouthHockeyAssociation JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 September 16, 2025 RE: Spokane Valley Ice Complex I am writing to express Spokane Sports' support for a two sheet ice complex in the City of Spokane Valley. This initiative presents a unique opportunity to boost our community's economy through sports tourism, a sector that remains resilient even as traditional leisure and business travel softens. 63% of destinations report that The industry generates contributing to a total economic impact of $128 billion. This results in and supports 73.5 million hotel room nights generated. Source: 2023 Sports ETA State of The Industry report At home, initiatives through Spokane Sports inject approximately This translates to over $1.7 million weekly—new money that would not be realized without our efforts. This activity supports benefiting sectors ranging from hospitality to transportation. The Food & Beverage sector alone benefits from $20.9 million in direct sales, equivalent to the It could attract new revenue, and keep families in our community for tournaments and events, rather than sending them to compete elsewhere. Thank you for considering our endorsement of this vital project. We are excited about the possibilities it presents for or region’s future as a leading sports destination. All the best, Ashley Blake Spokane Sports CEO JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 September 15, 2025 City of Spokane Valley City Council 10210 E Sprague Ave Spokane Valley,WA99206 Dear Councilmembers, As Superintendent of Central Valley School District, I am writing to express our support for the proposed Spokane Valley Ice Facility. This initiative closely aligns with our district’s commitment to promoting student wellness, character development, and inclusive access to extracurricular opportunities. The promise of low-or no-cost access for youth is particularly impactful—it ensures that allstudents can experience the physical, social, and emotional benefits that come from participation in ice sports. Beyond recreation, the proposed facility represents a meaningful opportunity for educational collaboration. From integrating skating into our physical education curriculum to hosting leadership development programs and school-based events, we see this as adynamic space where students can learn, grow, and thrive in new ways. We commend the Innovia Foundation and the City of Spokane Valley for their vision and leadership in bringing this proposal forward. It is a project that will not only enhance community life but also enrich the educational landscape for years to come. We encourage your favorable consideration and look forward to future partnership opportunities that support the success and well-being of our students. Sincerely, John Parker, Superintendent Central Valley School District Jparker@cvsd.org JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 Dear City of Spokane Valley Council, On behalf of the Spokane Chiefs Hockey Club, I am writing to express our strong support for the addition of a new twin-sheet ice facility in the Spokane Valley. As one of the region’s premier youth hockey organizations, the Spokane Jr. Chiefs have skating are thriving. However, our ability to accommodate new athletes and grow the game is being severely limited by a lack of available ice time. A new twin-sheet ice rink in the Spokane Valley would serve as a cornerstone for the region’s hockey culture, providing a lasting impact on youth development, the Spokane exposure, more programs and clinics, a pathway for aspiring players, increased tourism and events and increased community engagement. Furthermore, a modern twin sheet facility opens the door to hosting regional and national- needed to support the long-term growth of ice sports in our region. A new facility will ensure the Spokane Valley is a key player in that growth. We respectfully urge the City Council to support this much-needed project. Investing in an additional ice facility is an investment in our youth, our community, and the future of improving recreational opportunities and we look forward to partnering with you to help make this vision a reality. Sincerely, Mark Miles President Spokane Chiefs Hockey Club 509-981-2854 mmiles@spokanechiefs.com JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 Qipup;!Dpmjo!Nvmwboz0 Uif!Tqplftnbo.Sfwjfx Sftqpotf Cfuxffo!Bvhvtu!29!boe!36-!3134-!uif!Psfhpo!Spbe!Gjsf!boe!Hsbz!Gjsf!efwbtubufe!Tqplbof!Dpvouz-! Xbtijohupo!Tubuf!ijtupsz/! sbqjemz!npcjmj{joh!sftpvsdft!boe!dpnnvojuz!tvqqpsu-!vmujnbufmz!sbjtjoh!pwfs!%2/4!njmmjpo!uispvhi!jut! sfhjpobm!qbsuofst-!boe!uifo!fyqboefe!uispvhi!dpousjcvujpot!gspn!joejwjevbmt-!cvtjofttft-!boe!dibsjubcmf! pshboj{bujpot-!fotvsjoh!bo!jnnfejbuf!boe!tvtubjofe!sftqpotf/! Sftpvsdf!Dfoufs/!Hsbout!xfsf!vtfe!up!nffu!vshfou!offet!jodmvejoh!gppe-!tifmufs-!hbt!dbset-!fnfshfodz! ipufm!tubzt-!boe!qspqbof!gps!ejtqmbdfe!gbnjmjft/!Cz!qppmjoh!gvoet!gspn!hfofspvt!epopst-!Joopwjb!dbo! offefe!nptu/! 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JNQBDU JOOPWJB!GPVOEBUJPO!!TVMMJWBO!QSPQFSUZ!QSPQPTBM1:/28/3136 qspkfdu!ujnfmjof CONCEPTUAL dpodfquvbm!eftjho!esbxjoht dpodfquvbm!eftjho!esbxjoht dpodfquvbm!eftjho!esbxjoht dpodfquvbm!eftjho!esbxjoht dpodfquvbm!sfoefsjoht dpodfquvbm!sfoefsjoht dpodfquvbm!sfoefsjoht nblf npsf qpttjcmf/ Joopwjb!Gpvoebujpo! 929!X/!Sjwfstjef!Bwf/!Tuf/!761 Tqplbof-!XB!::312 xxx/joopwjb/psh 612!)d*)4*!uby.fyfnqu!pshboj{bujpo FJO!$!:2.1:52164 Appendix C – Material Terms of Ice Arena Lease General Terms: City leases the land to Lessee for 75 years with an option to extend the lease for an additional 24 years if approved by both the City and Lessee. Lessee must use a portion of the parcel to develop, operate and maintain a youth ice sports complex – all at Lessee’s expense through the duration of the lease. Lessee must make the facility available to the general public and must provide at least 500 hours of use at free or discounted rates for economically disadvantaged persons. All revenue generated by the facility must be spent on operations, maintenance, capital improvements, and programming. Lessee must cause the remaining parcel to be developed for commercial uses allowed by the City’s zoning code at no expense to the City. All net revenue received by Lessee from development of the commercial parcels must be applied towards the expenses to operate, maintain, complete capital improvements and provide programming for the youth ice sports complex. At end of lease term, the City will own all improvements on the land unless it exercises its right of first refusal or option to purchase the improvements prior to the lease expiration. LTAC Funds: The youth ice sports complex is intended and expected to generate tourism activity within the City. Accordingly, City will provide Lessee with LTAC grant funds for operational expenses of the youth ice sports complex for years 2027 through 2031 as follows: The amount of LTAC funds contributed shall be the lesser of the amounts requested by Lessee or (a) $600,000 each year for years 2027 and 2028, and (b) $550,000 each year for years 2029 through 2031. Payment is on a reimbursement basis and only paid on expenses paid by Lessee supported by documents evidencing the expense was incurred. LTAC funds can only be used to reimburse for expenses to operate the youth ice sports complex. Lessee may apply for LTAC funding for years following 2031, but LTAC funds are not guaranteed past 2031. City’s Utility Responsibilities: City to complete: Transportation improvements for access to the land. These include (1) increasing the capacity of the existing improved access to the City’s tourism-related properties, which include the land to be leased, the existing dance hall, existing RC track, and existing Sullivan Park; and (2) improving existing unimproved access situated north of the existing improved access. Installation of a sewer lift station on the land and sewer line from the left station to the sewer main along Sullivan Road. The City agrees to maintain the lift station at City’s expense. Rent Rate: In consideration for the public benefits Lessee commits to providing the community by developing and operating the ice sports facility and devoting all of Lessee’s revenue from the commercial parcels to providing the public benefits, the City has agreed to a lease rate of $1/year through the duration of the lease. ROFR/Option to Purchase: The City has a right of first refusal (“ROFR”) and an option to purchase (“Purchase Option”) Lessee’s rights to the premises (including all improvements). ROFR: If Lessee receives a bona fide offer from a third party to purchase all of Lessee’s rights in the land and improvements thereon, it must first present the offer to the City. City may decide to purchase on the same terms as the third party offer. Option: o City’s Purchase Option cannot be exercised until (1) a certificate of occupancy has been issued for the Ice Sports Facility, and (2) Lessee’s debt to construct improvements on the land is $9.4 million or less. o Purchase Option expires 2 years after it could have first been exercised. o Price: $9.4 million If City exercises either the ROFR or Purchase Option, then it can condition its purchase on Lessee or a third party agreeing to operate and maintain the facility at their own expense. Assignment/Transfers: Lessee may assign its entire interest in all or any of the parcels to a third party, but third party is bound by the terms of the ground lease between City and Lessee. Obligation to operate and maintain youth ice sports complex follows transfer of interests in that parcel. Obligation to use commercial parcel net revenue for the youth ice sports complex follows any transfer of Lessee’s interest in those parcels. Subleasing: Lessee may sublease space to a third party, but (1) must be at fair market value, and (2) sublessee is bound to restrictions in City’s ground lease, and (3) Lessee is still ultimately responsible to ensure sublessee is not in breach of the master Lease. Reporting Requirements: Every year, Lessor must provide City with reports identifying the following: The dates and number of hours Lessee provided free or reduced-cost services for the public and the manner in which they were provided; The net revenue of the youth ice sports complex for the year (inclusive of gross revenues and expenses); The net revenue from development of the commercial parcels (inclusive of the gross revenue received by Lessee and Lessee’s expenses); and The uses to which Lessee applied the net revenue it received from the commercial parcels. TOURISM STRATEGIC PLAN TOURISM STRATEGIC PLAN REQUEST TO THE CITY ICE SPORTS FACILITY PROFORMA - ICE SPORTS FACILITY BENEFITS noissucsiD esaeL dnuorG 6202 lirpA detelpmoc tcejorp enilretaW 5202 llaF licnuoC ot lasoporP ytilicaF stropS ecI 5202 tpeS/guA dezilanif noitisiuqcA ytreporP navilluS 5202 gnirpS ytilicaf strops eci laitnetop rof noissucsid tsriF 4202 tcO punaelc noitanimatnoc setelpmoc TODSW 3202 llaF tcejorP enilretaW fo ngised setaitini ytiC 1202 detucexE ytreporP navilluS rof ASP 9102 snigeb noitagirrI doowtnerT htiw noitanidrooC 6102 snigeB NC tcejorP egdirB tseW dR navilluS 4102 GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS unknown value – current assessed value is $2.4M - A portion of Flora Park Ponderosa propertyA portion of Balfour ParkSummerfield Property Development and ongoing maintenance costs are unknown but would require pursuing grants and allocating funds for grant match and ongoing maintenanceDoes not generate revenueCity has other undeveloped park property Sell property Execute grand lease with another entity Develop the property as park Options for Sullivan property:As proposed, private investment offsets future development and ongoing maintenance of park property OPPORTUNITY COST NEXT STEPS