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HomeMy WebLinkAbout2026, 04-28 Formal A Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL A FORMAT Tuesday, April 28, 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 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: PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: 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 unre 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. CONSENT AGENDA: 1. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of Claim Vouchers, April 28, 2026, Request for Council Action Form: $2,641,981.34. b. Approval of Payroll for Pay Period ending March 31, 2026: $843,346.25. c. Approval of Payroll for Pay Period ending April 15, 2026: $758,296.32. Council Agenda April 28, 2026 Page 1 of 2 d. Approval of Council Meeting Minutes of February 10, 2026 e.Approval of Council Meeting Minutes of February 24, 2026 f. Approval of Council Meeting Minutes of March 3, 2026 g. Approval of Council Meeting Minutes of March 10, 2026 h. Approval of Council Meeting Minutes of March 17, 2026 i. Approval of Council Meeting Minutes of March 17, 2026 j. Approval of Council Meeting Minutes of March 31, 2026 ACTION ITEMS: 2.Motion Consideration Ice Sports Facility Ground Lease -John Hohman \[public comment opportunity\] 3. First Read: Ordinance 26-006 Opportunity Fund CTA -Kelly Konkright, Mike Basinger \[public comment opportunity\] NON-ACTION ITEMS: 4. Admin Report: Opportunity Zone Application Discussion Teri Stripes INFORMATION ONLY(will not be reported or discussed): 5. Monthly Department Reports 6. Fire Department Monthly Report GENERAL PUBLIC COMMENT OPPORTUNITY:General public comment rules apply. ADVANCE AGENDA 7. Advance Agenda COUNCILMEMBER REPORTS CITY MANAGER COMMENTS EXECUTIVE SESSION: ADJOURNMENT Scan to access the meeting materials Council AgendaApril28,2026 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing AGENDA ITEM TITLE: Approval of the Following Vouchers: CHECK DATES CHECK NUMBERS AMOUNT Explanation of Funds FundDescriptionFundDescription 001General Fund309Parks Capital Projects Fund 101Street Fund310Buildings Capital Project Fund 103Trails & Paths Fund311Pavement Preservation Fund 104Tourism Facilities Tax Fund312Capital Reserve Fund 105Hotel/Motel Fund314Railroad Grade Separation Fund 106Solid Waste Fund315Transportation Impact Fee Fund 107PEG Fund316Economic Dev Capital Proj Fund 108Affordable-Supportive Housing402Stormwater Management Fund 109Tourism Promotion Area Fund403Aquifer Protection Area Fund 110Homeless Housing Program 501Equip Rental/Replacement FundFund 120CenterPlaceOp Reserve Fund502Risk Management Fund 121Stabilization Res Fund631Check Clearing Fund 122Winter Weather Reserve Fund632Passthrough Fees & Taxes Fund 204LTGO Bonds Fund901Government Asset Fund 301REET 1 Capital Projects Fund999Pooled Cash Fund 302REET 2 Capital Projects Fund 303Street Capital Projects Fund Explanation of Cost Centers and Org Codes FA515419 Fac External Legal AdviceNR Cost Org Code Description Cost Org Code Description Center Center FA518200Fac Prop Management 11000Legislative Branch FA518300 Fac Bldg Maintenance CC511600Council Legislative Activities FA518399 Fac Bldg MaintenanceNR CC511700 Council Lobbying Activities FA594180 FacAdm Capital-Gen Svcs CC515450 Council Ext Legal Claims & Lit 30100 City Hall Maint. 12000Communications CH518300 CHall Bldg Maintenance PI557200 PIO Community Svcs CH518399CHall BldgMaintenance NR PI573999 PIO-Cult/Comm Events-OthCCE CH573900 Chall-Cult/Comm Events- 13000City Manager OthCCE 30200 CenterPlace Maint. CM513100CityMan Executive Office CX575500CX MP/Comm Center MX CM513199CtyMgrExecutive Office NR CX594750CPMnt Capital-Rec Facilities CM594139CtyMgr Capital-ExecutiveNR 30300Precinct Maint. 14000Financial Services PM521500 PrecMx Facilities FN514200Finance Financial Services PM521599 PrecMx FacilitiesNR 14500Finance 30301 Precinct Programs Maint/LE FP558700 FinPgm-Economic Development PS521500 PubSaf Police Facilities FP558709FinPgm-Economic Development 30500Balfour Maint. NR BM518300 BalfFac Maintenance FP565100 FinPgm-Welfare BM573900 BalFac-Cult/Comm Events- FP565109 FinPgm-Welfare NR OthCCE FP565300 FinPgm-Services for Disabled BM594180 BalfFac Capital-Gen Gov FP565400 FinPgm-Homless Services BM594590 BalFac Capital-Prop Dev FP565409 FinPgm-Homless Services NR 30600 Police Campus Maint. FP565500 FinPgm-Domestic Violence PC521500Police Campus Maintenance FP567000 FinPgm-Children Services 30900 Other City Facilities FP567009 FinPgm-Children Services NR OF518200 Oth Fac Prop Mgmt FP569000 FinPgms-Aging & Disability Svc OF518300 OthFac Maintenance FP569009 FinPgms-Aging & Dis Svc NR OF594180 OthFac Capital-Gen Gov 15000City Attorney 40000 Public Works Admin. CA515310 CityAtty Internal Advice PW518900CPW Oth Central Services CA515350 CityAttyInternal Litigation PW594440PubWks Capital-Street Ops CA515410 CityAtty External Advice 41000 Engineering CA515450 CityAtty External Litigation EG543100Eng Street OH Management CA594110 CityAtty Capital-Legal Svcs EG558500Eng BldgPermits & Plan Reviews 16000Public Safety 43000 Building PS512520 PubSaf Contracted Court BD521300 Bldg Crime Prevention PS515350 PubSaf Int Legal Litigation BD524600 Bldg Code Enforcement PS515910 PubSafIndigent Defense BD558500 BldgPermits & Plan Review PS521200 PubSaf Police Operations 44000 Planning PS521299 PubSaf Police OperationsNR PL558600Planning CP/ED Planning PS523600 PubSaf Prisoner Housing 45000 Housing & Homeless Svc. PS525600 PubSaf Disaster Prep Svcs Exp HS565400 Housing SS-Homeless Svcs PS554300 PubSaf Animal Control HS565499 Housing SS-Homeless SvcsNR PS586000 PubSafCourt Remittances Exp HH565400 HHAA-Soc Srv-Homeless PS594210 PubSaf Capital-Law Services Enforcement 46000 Economic Development PS594219 PubSaf Capital-Law EnforceNR ED558700 EcoDev CP/ED Economic Dev 17000Information ED558799 EcoDev CP/ED Economic DevNR Tech ED594570 EconDev Capital-Comm Svcs IT518800 IT IT Services 76000 Parks & Rec Admin. 18000Deputy City Mgr PR575599P&Radm Cult/Rec Fac DM513100 DCM Executive Office MP/CCtrNR 19000Human PR576800P&Radm Park Fac-Gen Parks Resources PR576899P&Radm Park Fac-Gen ParksNR HR515410 HumRes External Legal Advice 76100 Parks & Rec Recreation HR518100 HumRes Personnel Services RC571000 Rec Educ/Rec Activities 20000Administrative RC589300 Rec Custodial Remittances AD518900 City Administrative Svc-Gen 76200 Parks & Rec Aquatics AD594189 Administrative Svcs-Capital AQ576200 Aqua Park Fac-Pools 30000Facilities Admin. AQ576299 Aqua Park Fac-PoolsNR Cost Org Code Description GG553700 GenGov Pollution Control Center GG558700 GenGov Cp/ED Economc Dev AQ589300 Aqua Custodial Remittances GG558799 GenGov CP/ED Economic Dev 76300Parks Maintenance NR PX576800 ParksMnt Park Fac-Gen Parks GG5587OA GenGov ED Outside Agency Grant PX576900 ParksMnt Park Fac-Other GG559300 Gen Gov Property Development PX594760 ParksMnt Capital-Park Fac GG565199GenGov SS Outside Agency PX594769 PksMnt Cap-Prk Facilities NR Grant 76400Senior Center GG5651OA GenGov SS Outside Agency SC575500SenCtr Cult/Rec Fac MP/CCtr Grant 76500CenterPlace Activities GG565499 Gen Gov SS-Homeless CP571200CenterPlace Activities-Ed/Rec ServicesNR GG566000GenGovChem Dependancy Svcs 90000General Government GG567099 Gen Gov SS-Children ServicesNR GG513100 GenGov City Manager Activities GG589300GenGov Custodial Remittances GG514200 GenGov Financial Services GG591180 Gen Gov Debt Repmt-Gen Gov GG514299 GenGov Financial ServicesNR GG592180 Gen Gov DebtSvcCost-GG GG514400 GenGov Election Services GG594180 GenGov Capital-GenGov GG514900GenGov Voter Registration GG594189 GenGov Capital-GenGovNR GG517900 GenGov Other Emp Benefits GG594440 GenGOv Capital-Street Ops GG518100GenGov Personnel Services GG594519Capital-Affordable Housing NR GG518300 GenGov Facilities Maintenance GG597000 Gen Gov Transfer Out GG518639 GenGov General GrantsNR GG597099 Gen Gov Transfer OutNR GG518800 GenGov IT Services GG518850 GenGov Gen IT Services GG518900 GenGov Oth Central Services GG519000 GenGov Risk Management 508030JUDICIAL STABILIZATION TRUST 531000Miscellaneous Supplies Explanation of Object Codes 531001Office Supplies/Equipment 508001VEH LIC FRAUD 531004Operating Supplies 508002TRAUMA CARE 531006Safety Supplies 508003CNTY CRIME VICTIMS 531008Repair & Maintenance Supplies 508004AUTO THFT PREV 531009Janitorial Supplies 508005TRUM BRAIN INJ 531010Vehicle Supplies 508006LAB-BLD/BREATH 531012Holiday Decorations 508007WSP HIWAY ACCT 532001Vehicle Fuel 508008ACCESSCOMMACCT 535001Small Tools & Minor Equipment 508009MULTITRANSACCT 535004JAG Grant Supplies 508010HWY SAFETY ACT 535008Security Hardware 508011DEATH INV ACCT 535009Network Hardware 508012ST GEN FUND 40 535011Desktop Hardware 508013ST GEN FUND 50 535012Desktop Software 508014ST GEN FUND 54 535013Emp Health & Wellness Supplies 508015DNA ACCOUNT 535014Non Capital Server Hardware 508016JIS ACCOUNT 535018Non Capital Security Software 508017SCH ZONE SAFETY 535019Non Capital Network Software 508020DV PREV STATE 535020Non CapitalServer Software 508021DIST DRIV PREV 536006Capital Construction Materials 508022MC SAFE ACCT 539007TCD-Accident Damage Materials 508023WSBCC SURCHARGE 540001Merchant Charges (Bank Fees) 508024Sales Tax 508025SVFD Fire Fees 540002 Penalties & Interest 508027VUL RDWY USER 541000 Tourism Promotion 508028DOL TECH SUPP 541001 Accounting And Auditing 508029LAW LIBRARY 541002 Engineering & Architectural 541003GIS Services541077Spokane Valley Summer Theatre 541004 Contract Attorney Services 542001 Postage 541005Professional Services-General542002Telephone Service 541006 Land Survey Services542003 Cell Phone Service 541007Geo Technical Services542004Web Site Service 541008 Materials Testing Services 542008 Internet Service 541009Contracted ED Services542010Network Infrastructure Access 541010 Consulting Services 542011 Network Inf Access-SCRAPS 541011Contracted Street Maintenance543001Employee Travel Expenses 541012 Contracted Snow/Ice Removal 543010 Emp Travel Reimb -Fed Lobby 541013Broadcasting Services543011Pos 1 -Travel Expenses 541014 Contract Signal Maintenance543012 Pos 2 -Travel Expenses 541015WSDOT Snow/Ice Removal543013Pos3 -Travel Expenses 541017 Advertising 543014 Pos 4 -Travel Expenses 541018Legal Notices543015Pos 5 -Travel Expenses 541019 Transient Relocation/Transport 543016 Pos 6 -Travel Expenses 541020Decant Facility Usage543017Pos 7 -Travel Expenses 541021 Janitorial Services 544003 Taxes and Assessments 541023 Valley Youth Voice 545003 Equipment Rental 541024 811 Service545005 Computer Leases 541025 Encampment Cleanup 545007 Interfund Vehicle Lease 541026 Vehicle Towing/Relocation 545050 Operating Facilities Rent 541027 Homeless Outreach Services546001 Auto & Property Insurance 541028 Federal Lobbyist Services 546002 Payments to Claimants 541029 State Lobbyist Services546051 Public Defender 541030 COVID JAG LE Services 546052 Law Enforcement (Sheriff) 541031 Contracted Park Maint 546053 Law Enforcement Equipment 541032 Contracted IT Support546054 Spokane County Contracts 541033 Liquor Excise Tax546055 Spokane County Contracts - EMS 541034 Liquor Profits 546056 Law Enforcement Equipment 541040Watershed Studies546057Election Costs 541041 Uncollectible Accounts Expense 546058 Spokane County Air Poll Auth 541047Contracted SW Maintenance546059Street Maintenance-County 541054 Hearing Examiner Services 546060 District Court Contract 541060 Outside Agency Grants 546061 Prosecutor 541061 Visit Spokane 546062 LEC Labor Contract Settlement 541062 Sports Commission 546063 Jail:Contract Confinement 541063 Spokane County Fair & Expo 546064 Law Enforcement Vehicles 541064 Valleyfest546065 WSDOT Maintenance Contract 541065 Spokane Valley Heritage Museum 546066 Pretrial Services 541066 HUB 546067 Emergency Management 541067 Evergreen Region Volleyball 546068 Voter Registration 541068 Spokane Octoberfest546069 Animal Control 541069 Crave NW546070 Unemployment Claims 541070 Valleyfest Cycle Celebration 546071 Ecology Permit 541071 Farmers Market - JAKT546072 Utility Permits 541072 Northwest Winterfest 546923 2023 Settle & Adjust 541073 JAKT- Brews Beats and Eats 546924 2024 Settle & Adjust 5469252025 Settle & Adjust560000Capital Outlay -Budget Only 547001 Gas/Electric Service 561000 Land Acquisition 547002Water Service561001ROW Acquisition 547003 Sewer Service 561002 ROW Land Improvements 547004Waste Disposal561003Tennant Relocation -CIP 547005 Telvision Service 561005 Utilities Insallation/Removal 547006Utility Relocation562000Bldgs & StrctrConstruction 548001 Repair & Maintenance Services 562001 Building Purchases 548002Copier Service562002Building Improvements 548003 Vehicle Service - Rep & Maint 562003 Precinct Imp w/ JAG Funds 548007Building/Grounds Rep & Maint562005Park Buildings 548031 Desktop SW Subscript/Maint563000 Construction 548032Hosted Software as a Service563003Capital Traffic Control Equip 548033 Server HW Subscript/Maint 563005 Capital Stormwater Impr 548034Server SW Subscript/Maint563006Park Structures 548035 Network HW Subscript/Maint 563007 Utility Relocations - CIP 548036Network SW Subscript/Maint563008Construction -BNSF Expenses 548037 Security HW Subscript/Maint 563009 Construction - UPRR Expenses 548038 Security SW Subscript/Maint563041 Street Cap Imp 2011+ Budget 549000 City Wide Records Management 563099 Contingency - Budget Only 549001 Subscription Services 564000 Capital IT Equipment 549002 Memberships 564001 Capital Office Furniture/Equip 549003 Printing Services 564004 Capital PEG Equipment 549004 Registrations & Training 564005 Capital Machinery & Equipment 549005 Filing & Recording Fees 564006 Capital Vehicles 549006 Miscellaneous Services 564011 Capital Computer Hardware 549007 TCD-Accident Damage Services 564012 Capital Computer Software 549008 Code Enforcement Abatement Svc 564013 IT HW Lease Asset 549010 Education Reimbursement 565000 Park Construction 549011 Pos 1 -Registrations571001 Street Bonds - Principal 549012Pos 2 -Registrations571002Mirabeau Bonds -Principal 549013 Pos 3 -Registrations571003 LTGO '16 -Principal 549014Pos 4 -Registrations575001Lease Service (Principal) 549015 Pos 5 -Registrations582001 Debt Service - Other 549016 Pos 6 -Registrations583001 Street Bonds - Interest 549017 Pos 7 -Registrations583002 Mirabeau Bonds - Interest 549018 Vehicle License & Registration583003 LTGO '16 -Interest 549019 Homelessness Response Services 584001 Street Bonds - Issue Costs 549023 Discounts & Scholarships584002 Mirabeau Bonds - Issue Costs 549025 Professional Licenses 584003 LTGO '16 -Issue Costs 549026 Refund-prior period revenues 585001 Lease Service (Interest) 549031 COVID: Rental/Mortgage Asst 590000 Estimated Ending Fund Balance 549032 COVID: Utility Asst 599099 CIP Contingency Budget 549033 COVID: Food Insecurity 549034 COVID: Small Business Grants 549035 COVID: Non-profit Org Grants 549036 COVID: School Districts 549050 Emp Health/Welln Events - Serv Prepaid Expense Accounts GF001000 143700 Prepaid expenses fund 001 SF101000 143700 Prepaid expenses fund 101 SW402000 143700 Prepaid expenses fund 402 RECOMMENDED ACTION OR MOTION: Move to approve attached list of AP Check Run Reports \[Approved as part of the Consent Agenda, or may be removed and discussed separately.\] STAFF CONTACT: Chelsie Walls, Finance Director ATTACHMENTS: AP Check Run Reports 2 Qbhf 71214-71244 1403603137371436T228:-924/9:1403603137!1:;26;4:Tbsbi!EfGpse!)TEfGpse*bqxbssou J-!Uif!voefstjhofe-!ep!dfsujgz!voefs!qfobmuz!pg!qfskvsz-!uibu!uif!nbufsjbmt!ibwf!cffo!gvsojtife-!uif!tfswjdft!sfoefsfe-!ps!uif!mbcps!qfsgpsnfe!bt!eftdsjcfe!ifsfjo!boe!uibu!uif!dmbjn!jt!kvtu-!evf!boe! bo!voqbje!pcmjhbujpo!bhbjotu!uif!Djuz!pg!Tqplbof!Wbmmfz-!boe!uibu!J!bn!bvuipsj{fe!up!bvuifoujdbuf!boe!dfsujgz!tbje!Dmbjn/`````````````````````````````````````````````!!````````````````Gjobodf!Ejsfdup s!ps!eftjhoff!!!!EbufDpvodjm!nfncfs!sfwjfxfe;`````````````````````````````````````````````!!````````````````Nbzps!!!!!!!Ebuf`````````````````````````````````````````````!!````````````````Dpvodjm!Nfnc fs!!!!!!Ebuf! 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QbsltNou!Qbsl!Gbd.HfoQbsltNou!Qbsl!Gbd.HfoSfd!Fevd0Sfd!BdujwjujSfd!Fevd0Sfd!BdujwjujTunXbufs!Tupsn!EsbjobGmuNou!QX.Npups!Qppm!743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu! Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodft743!Dpvsu!Sfnjuubodf t743!Dpvsu!Sfnjuubodft743!Dvtupejbm!Sfnjuub 1503203137!26;31;17Tbsbi!EfGpse!)TEfGpse*bqxbssou QY687911QY687911SD682111SD682111TX642111GN659811QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU697111QU69:411 Djuz!pg!Tqplbof!Wbmmfz-!XB!BQ!Difdl!Svo!Sfqpsu 112112112112513612743743743743743743743743743743743743743743743 Sfqpsu!hfofsbufe;Vtfs;Qsphsbn!JE; CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 2026 Department Director Approval: Item: Check all that apply: consent old business new business public hearing information admin. report pending legislation AGENDA ITEM TITLE: Payroll for Pay Period Ending March 31, 2026 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: RECOMMENDED ACTION OR MOTION: Move to Approve above payroll. \[Approved as part of the Consent Agenda, or may be removed and discussed separately.\] STAFF CONTACT: Raba Nimri CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 2026 Department Director Approval: Item: Check all that apply: consent old business new business public hearing information admin. report pending legislation AGENDA ITEM TITLE: Payroll for Pay Period Ending April 15, 2026 GOVERNING LEGISLATION: PREVIOUS COUNCIL ACTION TAKEN: BACKGROUND: RECOMMENDED ACTION OR MOTION: Move to Approve above payroll. \[Approved as part of the Consent Agenda, or may be removed and discussed separately.\] STAFF CONTACT: Raba Nimri MINUTES City of Spokane Valley City Council Special Meeting Executive Session Tuesday, February 10, 2026 The meeting was called to order at 5:00 p.m. The meeting was held in person by Council and staff at the Spokane Valley City Hall. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Michael Kelly, Councilmember Kelly Konkright, City Attorney Pam Haley, Councilmember Tony Beattie, Senior Deputy City Attorney Jessica Yaeger, Councilmember Chad Knodel, IT Manager Al Merkel, Councilmem Marci Patterson, City Clerk Absent: Ben Wick, Councilmember ROLL CALL City Clerk Patterson called roll; all Councilmembers were present except Councilmember Wick. It was moved by Councilmember Merkel, seconded and unanimously agreed to excuse Councilmember Wick. Councilmember Wick arrived at 5:04 p.m. and joined the rest of council in the executive session in progress. 1. Executive Session Pending Litigation RCW 42.30.110(1)(i)\]. It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for approximately 20 minutes to discuss the pending litigation, and that no action will be taken upon return to open session. There was not any discussion. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. Council adjourned into executive session at 5:02 p.m. At 5:22 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 10 minutes. At 5:32 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 5 minutes. At 5:37 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 10 minutes. At 5:47 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 5 minutes. It was moved by Councilmember Haley, seconded and unanimously agreed to adjourn at 5:52p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes, 02-10-2026, Special Meeting Executive Session Page 1 of 1 Approved by Council: MINUTES City of Spokane Valley City Council Special Meeting Winter Workshop Tuesday, February 24, 2026 Mayor Padden called the meeting to order at 8:30 a.m. The meeting was held in person in Council Chambers, and also remotely via Zoom meeting. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Pam Haley, Councilmember Gloria Mantz, City Services Administrator Ben Wick, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember Robert Blegen, Public Works Director Michael Kelly, Councilmember John Bottelli, Parks & Rec Director Al Merkel, Councilmember John Whitehead, HR Director Mike Basinger, Economic Development Director Dave Ellis, Police Chief Virginia Clough, Legislative Policy Coordinator Dan Domrese, Accounting Manager Morgan Koudelka, Senior Admin. Analyst Sean Walter, Assistant Police Chief Chad Knodel, IT Manager Marci Patterson, City Clerk WELCOME: Mayor Padden welcomed everyone to the meeting and provided a brief overview of the meeting for the day. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present. NON ACTION ITEMS: 1. Introduction John Hohman, Erik Lamb City Manager Hohman provided an introduction to the winter workshop and a brief overview of the materials that would be discussed during the workshop. 2. City Vision Statement - John Hohman City Manager Hohman spoke about the current city vision and where we see the city going. Council spoke about growth and development within the city. Council spoke about the visions. 3. Update on Prior Council Budget Goals - John Hohman Mr. Hohman noted that it will be presented later in the meeting as discussions continued. 4. Law Enforcement Interlocal Agreement Discussion - Erik Lamb, Morgan Koudelka, Dave Ellis Mr. Lamb opened the conversation with a brief overview of the law enforcement contract and noted that no changes will be made, but simply a deep dive in costs, where our budget currently stands with the contract, and then noted that he would get into the information provided in the PowerPoint presentation. Mr. Lamb detailed the history of the agreement, the addition of the officers in the last couple of years, where the agreement currently stands, further detail into the law enforcement costs, multiple slides showing the cost increases, the five year history in the cost changes, a list of law enforcement costs by unit, the indirect costs, a list of the revenues, spoke about the vehicle replacements each year and costs associated with that. Mr. Council Meeting Minutes, Study Session: 02-24-2026 Page 1 of 4 Approved by Council: Lamb continued with the presentation with the law enforcement agreement services such as City Police Department Administration (Chief, Assistant Chief, Sergeant)Patrol, Traffic Unit (Enforcement and Investigation), Crime Prevention, Domestic Violence Unit (Investigation and Mitigation), School Resource Officers, K-9, and Spokane Valley Investigative Unit (Property and Drug Crimes Investigations). Mr. Lamb also reviewed the shared service units such as Major Crimes Unit (Investigation of Crimes Against Persons), Special Assault Unit (Sex Crimes Investigation), Spokane County Investigative Unit: (Property and Drug Crimes Investigations; Lieutenant only), Joint Terrorism Task Force, Safe Streets (Drug Task Force and Gang Enforcement), Emergency Operations Team (Marine and Search and Rescue), Public Information Officer, Training Office of Professional Standards (Investigations of complaints against officers and use of force), Air Support Unit, Forensics, Explosive Disposal, Regional Investigative Group 9 (Crime Analysis), Fleet Maintenance, SWAT (Hostage Negotiation), Tac Team (Crowd Control), Reservist and Explorer Units and Administrative Support. Mr. Lamb continued with an overview of the dedicated officers. Mayor Padden called for a recess at 10:00am for 10 minutes and that the meeting would resume at 10:10am. Mr. Lamb and Chief Ellis spoke about the current staffing levels, the patrol platoons, and the current SVPD civilian positions. They continued to review the key terms such as termination, independent contractor, dedicated officers, shared officers, Chief and Assistant Chief that come up throughout the contracts. Mr. Lamb also explained the reporting that is provided, workload indicators, performance measures, capital costs, cost/payment process, records retained, liability, the recent and upcoming issues, and discussion with council on the PowerPoint items presented. Mr. Lamb touched on the upcoming issues that included a helicopter purchase and potential costs for the training center, capital costs, RMS purchase/process, and the Real Time Crime Center future costs. They also discussed the recent settle and adjust issues, FCS review that is ongoing, SREC facility costs and the budget impacts from Spokane leaving (not direct, but paid ate. Mayor Padden called for a lunch recess at 12:00pm for 45 minutes and that the meeting would resume at 12:45pm. 5. Status Update - Public Safety Contract Costs - Erik Lamb, Morgan Koudelka Mr. Lamb opened the discussion with a PowerPoint presentation that included the SV Public Safety Agreement cost updates. Those included the nine agreements associated with public safety such as: Law Enforcement Services $38,512,539 (previously discussed), Detention Services $2,046,780, District Court $1,599,719, Public Defender $1,117,207, Prosecutor $400,000, Pretrial $210,681, Emergency Management $201,875, SCRAPS $389,516, Probation - no cost to city (exchange for fees), Contingency $200,000 with a total 2026 recurring Public Safety budget: $44,678,317. Mr. Lamb further explained the last time there was a completed reconciliation with each of the agreements. The detention services was last completed in 2023, District Court was also done in 2023, Public Defender was last completed in 2022, Prosecutor Services was completed in 2021, Pretrial completed in 2022, Emergency Management completed in 2022, SCRAPS is current as it is a fixed cost at $45,000 a year, and noted general issues that may have potentially caused the delay in receiving the completed reports. Council discussed the need for more current reconciliations in order to get a more accurate cost for each agreement. 6. Public Safety Coordinator - Erik Lamb Mr. Lamb provided details on the Public Safety Coordinator position and noted that it is not funded for 2026 and that the current public safety agreements are managed primarily by two administrative analysts and the Deputy City Manager and City Manager. While the analysts spend the majority of their time focused on public safety issues, the Deputy City Manager provides assistance and management over public safety in addition to overseeing five other departments and assisting the City Manager with other projects as needed. In recognition of the work required to manage the nine public safety agreements, in 2025, City Council determined to create a public safety coordinator position. Due to constraints on revenues and increasing costs elsewhere within City services, that position was not funded in the 2026 Budget and no public safety coordinator has been hired. Mr. Lamb went on to provide details on what estimated costs for a public safety coordinator position would include such as a vehicle for the employee and salary and benefits. Council Meeting Minutes, Study Session: 02-24-2026 Page 2 of 4 Approved by Council: 7. Business License Fees -Gloria Mantz, Erik Lamb Mr. Hohman detailed the need for additional staff to coordinate all the public safety contracts and agreements. Mr. Hohman also provided information on how we may fund that staff person. He noted that Ms. Mantz would further explain the business licenses and fees in our city. Ms. Mantz explained the business license fees and noted a comparison with our surrounding communities, the revenue, the public outreach that has taken place, the potential revenue if fees were incrementally raised each year, and the recommendation to raise those costs. The recommendation is to raise the fee from $25 to $60 for 2026, $75 for 2027, and $95 for 2028. 8. City Events - Gloria Mantz Mr. Hohman opened the conversation with an introduction to the opportunity for the city events that may be available within the community. Ms. Mantz presented a PowerPoint presentation that included an overview of the parks and recs events, the one-time events, the annual events, and other potential events. She provided details on the benefits and criteria for the events and a list of the city events. Ms. Mantz also spoke about the celebration of lights events and the costs associated with the event, the staff time for the event and the partners that we had for the event in 2025. She continued the presentation with the Cops and Kids Car Show and detailed the planning that went into the event, the staff time involved, the coordination with the police staff, the cost of the event and the attendance for the first year. Ms. Mantz continued with a review of the Farmers Market event and noted that JAKT will likely not run the event for 2026. She also detailed the costs to coordinate the event and what it would look like if staff were to carry out those duties and take on part of the event. She stated that current staff do not have the capacity to take on the market for 2026 without a sponsor or third party to assist, or a market operator. Ms. Mantz also noted what costs could be for supplies and things necessary to keep the events going each year. Ms. Mantz gave details on the letter of intent that was received from Valleyfest that requested the city take over the event and that Valleyfest 501c3 would dissolve and provide their funds to the city and that the city would take over all of the events associated with Valleyfest. She closed with other suggested events that have been brought up to the city but have no funding associated with them. Mr. Hohman asked for clarity on the events that have been reviewed. Mayor Padden asked that the celebration of lights continue and the cops and kids car show event as well. She is hesitant to take on new projects, especially something as large as Valleyfest. Councilmember Kelly noted that he agreed with the mayor. Council also asked about chamber being more involved in these opportunities. Council agreed that it would be too much to take on such a large event and suggested Valleyfest contact Valley Chamber to see if they would become a partner in the event. 9. Council Vision for 2027-2028 Budget Goals - John Hohman Mr. Hohman quickly walked through the budget themes and noted that the themes work better than some specific priorities. Mr. Hohman touched on the themes as listed: A safe and accountable community that maintains public safety and upholds services, enforcement and codes that keep our community safe. A connected and maintained network building and maintaining roads and systems that safely and efficiently move people and goods and protect the environment. A strong and diverse economy generating revenue to fund city services through the many places to live, eat, shop, work, play and access services. An exceptional quality of life creating opportunities for people to connect, have fun and improve their physical and mental health. A strategic and fiscally responsible government openly. Mr. Hohman noted that the wording could be crafted differently when presented at a council meeting and with more time dedicated to the themes. 10. Closing Remarks - John Hohman Mr. Hohman provided closing remarks and thanked staff and council and Chief Ellis for staying with us all day. Mr. Hohman noted that these workshops allow for more of a round table discussion and allow us to look deeper at some of the subject matter. The topics gave us a lot to work with, and we will continue to Council Meeting Minutes, Study Session: 02-24-2026 Page 3 of 4 Approved by Council: update with conversations that we have with the county. Staff will build costs and layout more details for the special events hosted by the city. We will report back to Valleyfest and let them know that a third party should take on that event. Deputy Mayor Hattenburg adjourned the workshop at 2:59pm. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes, Study Session: 02-24-2026 Page 4 of 4 Approved by Council: MINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, March 3, 2026 Mayor Padden called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Pam Haley, Councilmember Robert Blegen, Public Works Director Michael Kelly, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember Tony Beattie, Senior Deputy City Attorney Ben Wick, Councilmember Gloria Mantz, City Services Administrator Al Merkel, Councilmember Dave Ellis, Police Chief Virgina Clough, Legislative Policy Coordinator Jill Smith, Communications Manager John Bottelli, Parks & Rec Director John Whitehead, HR Director Glenn Ritter, Senior Engineer Adam Jackson, Engineering Manager Erica Amsden, CIP Engineering Manager Caitlin Prunty, Deputy City Attorney Justan Kinsel, IT Specialist Marci Patterson, City Clerk INVOCATION: Pastor Mike Drew with Valley Assembly Church provided the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: Betsy Wilkerson, City of Spokane Council President spoke about the Ordinance banning the sale of Kratom in the Spokane Valley and noted that the City of Spokane was also authorizing the ban on the sale of Kratom as well. She also spoke about how important it was for the communities to come together with this ban. PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After the Mayor explained the process, she invited public comments. Yvonne Johnson, Spokane Valley; Dr. Andrea Olson, Spokane Valley; Ben Lund, Spokane Valley; John Harding, Spokane Valley; William Hulings, Spokane; Justin Haller, Spokane; Sue Delucci, Spokane Valley provided comments. ACTION ITEMS: 1. Second Read: Ordinance 26-003 Banning the Sale of Kratom Caitlin Prunty Clerk Patterson read the title of the Ordinance and then it was moved by Deputy Mayor Hattenburg, seconded to approve Ordinance 26-003 prohibiting the sale of Kratom products within Spokane Valley Council Meeting Minutes: 03-03-2026 Page 1 of 3 Approved by Council: and establishing a penalty for a violation of such prohibition. Ms. Prunty provided a detailed PPT that included the history of the kratom ordinance and previous presentations, information on the current draft ordinance, and noting the violations that would be incurred if fined. Council discussed the advertising ban portion, the 30 day enforcement period, and when the violations would begin. Councilmember Merkel th amended the motion to extend the notification period to May 5. Councilmember Kelly seconded the th motion. Council discussed the potential for April 20 being a big sale day on some of the products and that date. Mayor Padden invited public comments. Will Hulings, Spokane; Ben Lund, Spokane Valley; Darryl Williams, Spokane Valley provided comments. Vote by acclamation on the amended motion: in favor: Councilmember Merkel. Opposed: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Haley and Kelly. Motion failed. Vote by acclamation on the original motion: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Wick, Haley, Merkel and Kelly. Opposed: Councilmember Yaeger. Motion carried. 2. Motion Consideration: South Sullivan Preservation (8th to 24th) Bid Award Erica Amsden It was moved by Deputy Mayor Hattenburg, seconded to award the South Sullivan Rd Preservation to Selland Construction, Inc. in the amount of $3,937,220 and authorize the City Manager to finalize and execute the construction contract. Ms. Amsden provided details on project and the bids received. She went over the bid tab spreadsheet and the photo of the project. Mayor Padden invited public comments; no comments were provided. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 3. Motion Consideration: Amended 2026 Federal Legislative Agenda Virginia Clough It was moved by Deputy Mayor Hattenburg, seconded to amend the 2026 Federal Legislative Agenda as presented. Ms. Clough provided details on the updated information that would be adjusted to the federal legislative agenda if approved. Councilmember Merkel moved to amend the motion to "include that under the public safety section". With no second to the amended motion, the motion died. City Manager Hohman noted that it is very late in the process to try and amend the agenda would be extremely difficult to change and set up the necessary meetings while in DC. Mayor Padden invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. NON-ACTION ITEMS: 4. Admin Report: Potential Grant Opportunity: Pedestrian/Bicycle Program & Safe Routes to Schools Adam Jackson Mr. Jackson provided a PowerPoint presentation on the pedestrian/bicycle program (PBP) and Safe Routes to School (SRTS) Program. Mr. Jackson detailed the grant program description and criteria for the grant, the recommended project applications that included Barker/Appleway Roundabout, Appleway Crossings, Arterial Crossings, Ped/Bike Safety Improvements (Sprague, Sullivan) and multiple citywide school zone flashing beacon & rectangular rapid flashing beacon installations. Mr. Jackson was looking for consensus to return with a motion. Council discussed the beacons or posted radar signs, potentially changing projects if awarded funding and Mr. Jackson noted that the projects listed are not fully designed and that they would be addressed at funding. Council provided consensus to return at a later date with a motion consideration for the grant opportunity. INFORMATION ONLY: (will not be reported or discussed) 5. 2025 Annual Hearing Examiner Report GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Padden stated that the general public comment rules still apply and called for public comments. No comments were provided. COUNCIL COMMENTS Councilmember Kelly thanked staff for accommodating him for the additional questions throughout the evening. Councilmember Wick spoke about broadband projects and noted that we were awarded funding. He also spoke about being selected as the AWC chair for the large city advisory committee. Council Meeting Minutes: 03-03-2026 Page 2 of 3 Approved by Council: Councilmember Merkelmade comments regarding it being an interesting day, noting the$300K Leonard Christian supported for the ice arena and spoke about his issues with local control. He also spoke about Veracrest road and the citizens noting that they are waiting on letter from the city. He closed with noted that he appreciated Betsy Wilkerson being here tonight and the collaboration with the city of Spokane. Councilmember Yaeger spoke about Kratom and not understanding where the correlation comes from with th the April 20 since that is a marijuana holiday. She also noted that we need to think of our service members right now and everyone involved in the conflict in the middle east. Councilmember Haley spoke about spoke about kratom and the need to ban the sale of it from our local stores. She spoke about a ribbon cutting she attended for a new mental health facility in our area. Deputy Mayor Hattenburg spoke about the SRTC board and noted that our Sullivan Trent project ranked the highest and that helps to keep the momentum going at the federal level for that project. COMMENTS Mayor Padden spoke about the all-day workshop and reviewed our vision and goals for the city. She noted that we are one of the few entities that studies and understands the budget and allows for public comment and education of the budget prior to adopting it each year. She spoke about the honest and open discussions that we have around the budget and how it aligns with our goals and vision for the city. CITY MANAGER COMMENTS City Manager Hohman provided clarification on the update regarding 24th and Veracrest project and noted that the city is currently coordinating with the fire department regarding access. Mr. Hohman also provided an update on the ice rink and noted the discussion on a potential lease and that staff is still looking at all the pieces of it. Mr. Hohman also noted that the $300K being supported by Senator Christian was not a city request for funds, it was from Innovia and was the senate version of the budget. Mr. Hohman also congratulated our Public Works Department on the Wellesley preservation project for a quality and construction award. Mr. Hohman closed noting that next week starts at 5:00pm for the comprehensive plan discussion and will be more of a workshop/roundtable setting. EXECUTIVE SESSION Potential Acquisition of Real Estate \[RCW 42.30.110(1)(b)\] & Potential Litigation \[RCW 42.30.110(1)(i)\]. It was moved by Deputy Mayor Hattenburg, seconded to adjourn into executive session for approximately 45 minutes to discuss the potential acquisition of real estate and potential litigation, and that no action will be taken upon return to open session. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. Council adjourned into executive session at 7:53 p.m. At 8:38 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 4 minutes. At 8:42 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. At 8:45 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. At 8:48 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 4 minutes. At 8:52 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 3 minutes. Mayor Padden adjourned from Executive Session and Council reconvened at 8:55 p.m. It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to adjourn at 8:55p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes: 03-03-2026 Page 3 of 3 Approved by Council: MINUTES City of Spokane Valley City Council Special Meeting Thursday, March 10, 2026 Mayor Padden called the meeting to order at 5:00 p.m. The meeting was held in person by Council and staff at the Spokane Valley City Hall and via Zoom. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Michael Kelly, Councilmember Tony Beattie, Senior Deputy City Attorney Pam Haley, Councilmember Robert Blegen, Public Works Director Ben Wick, Councilmember Kelly Konkright, City Attorney Jessica Yaeger, Councilmember John Bottelli, Parks & Rec Director Al Merkel, Councilmember Chelsie Walls, Finance Director Mike Basinger, Community & Econ. Dev. Director John Whitehead, HR Director Steve Roberge, Planning Manager Jill Smith, Communications Manager Jenny Nickerson, Building Official Sean Walter, Assistant Police Chief Eric Robison, Housing & Homeless Coordinator Chad Knodel, IT Manager Marci Patterson, City Clerk PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL City Clerk Patterson called roll; all Councilmembers were present. APPROVAL OF AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the agenda. NON-ACTION ITEMS: 1. Admin Report: Comprehensive Plan Update Steve Roberge, Mike Basinger & Guest Mr. Basinger provided a history of the previous comprehensive plan and how choices were made during the planning period last time it was reviewed. Mr. Weiss with Community Attributes Inc. presented a PowerPoint presentation that included information on the Comprehensive Plan overview, the economic development element, the land use element and preferred scenario, and the natural resources element. Mr. Weiss went into further details on the overall timeline, key themes for the economic development element such as 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, and offer a positive and predictable business climate. Some of the changes from 2016 were also discussed. Mr. Weiss also explained the scenarios for consideration with being a no action alternative, scenario A: limited rezone + upzone, or Scenario B: No rezone, stronger upzone. Council discussed the scenarios and liked scenario A for the flexibility as well as the limited rezone. Mr. Weiss continued the PowerPoint with the natural resources element overview. Mr. Roberge noted a need for a parking requirement review. Mr. Hohman gave further details on the need for a parking study and that the study looks at the impacts of our city and perhaps would assist with some relief from the Department of Commerce. In order to complete the parking study, we need funding added to the budget. This would allow us to apply for an exemption from the Dept. of Commerce regarding some of the parking requirements once the study is complete. Staff are looking for $100K to complete the study with Council Meeting Minutes, 03-10-2026, Special Meeting Page 1 of 2 Approved by Council: the consultant and would add that through a future budget amendment to move forward with the consultant and the study. There have not been a lot of these studies done as they are quite extensive and take a lot of time to complete and this request would come out of the fund balance. Councilmember Merkel noted that he considered this to be a public safety issue. Council discussed the need for the study and provided consensus to move forward with expenditure and consultant for the study. Mayor Padden called for a ten-minute recess at 7:15pm. 2. Admin Report: HCDAC Grant Applications Gloria Mantz Mr. Robison presented a PowerPoint presentation that included an overview of the Spokane County HCDAC grant applications. Mr. Robison went over the funding sources available, the timeline, the applications received that included some from affordable housing for Habitat for Humanity, Spokane Housing Aut Bethany Village, Cochran Development Threshold Apartment Homes, Greatest Matriarchs Society - HIRE Transitional Living for Families, and Spokane Neighborhood Action Partners - Riverwalk Point 1 Safety Modernization. The next category was community development and capital/public works and those applications included City of Spokane Valley- Grace Sewer Connection Assistance, Town of Fairfield- Rattler Run Road Sewer Crossing, The Salvation Army - Stepping Stones, Lutheran Community Services Northwest - Victim Advocacy and Education, The Salvation Army After the Bell, and The Salvation Army Food Bank, Greater Spokane Meals on Wheels. The Disaster Recovery category is for long term recovery group and the request is for rebuilding homes impacted by the Oregon and Gray Road Fires. Council discussed the applications at length and went over the amounts applied for and what the funds would be used for. Council noted that they wanted to make sure there was a mechanism in place to make sure funds would be used for what each entity put on the application. Ms. Mantz noted that since these were HUD dollars there would be federal regulations for the funding. It was moved by Councilmember Merkel, seconded and unanimously agreed to adjourn at 8:21p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes, 03-10-2026, Special Meeting Page 2 of 2 Approved by Council: MINUTES City of Spokane Valley City Council Special Meeting Community Conversations Tuesday, March 17, 2026 The meeting was called to order at 5:00 p.m. The meeting was held in person by Council and staff at the Spokane Valley City Hall. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Pam Haley, Councilmember Erik Lamb, Deputy City Manager Jessica Yaeger, Councilmember Jill Smith, Communications Manager Ben Wick, Councilmember Robert Blegen, Public Works Director Michael Kelly, Councilmember John Whitehead, HR Director Al Merkel, Councilmember John Bottelli, Parks & Rec Director Dave Ellis, Police Chief Absent: Erica Amsden, CIP Engineering Manager Tim Hattenburg, Deputy Mayor Rob Lochmiller, CIP Engineering Manager Marci Patterson, City Clerk OPEN HOUSE STYLE FORMAT: 1. Display Boards with Project Information Staff provided multiple conversation display boards with information on the Capital Improvement Projects. Information included boards on various projects happening within the city. Multiple staff members were available at the open house to provide additional detailed information on the projects and the budget and any other topics that the citizens wanted to speak about. Councilmembers were also available to speak with residents regarding their feedback on the projects and recommendations from the public. The meeting adjourned at 5:55p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes, Special Meeting Community Conversations 03-17-26 Page 1 of 1 Approved by Council: MINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, March 17, 2026 Mayor Padden called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. ___________________ Attendance: Councilmembers Staff Laura Padden, Mayor John Hohman, City Manager Tim Hattenburg, Deputy Mayor Erik Lamb, Deputy City Manager Pam Haley, Councilmember Robert Blegen, Public Works Director Ben Wick, Councilmember Gloria Mantz, City Services Administrator Michael Kelly, Councilmember John Bottelli, Parks & Rec Director Jessica Yaeger, Councilmember Tony Beattie, Senior Deputy City Attorney Al Merkel, Councilmember Dave Ellis, Police Chief Kelly Konkright, City Attorney Jill Smith, Communications Manager John Whitehead, HR Director Mike Basinger, Community & Econ. Dev. Director Jonny Solberg, IT Specialist Marci Patterson, City Clerk INVOCATION: Sheri Olson with Path of Life provided the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present. APPROVAL OF AMENDED AGENDA It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the amended agenda. SPECIAL GUESTS/PRESENTATIONS: Mr. Mike Frucci & Ms. Vicki Frucci, You Rock Recognition Award, Sheriff Nowels & Commissioner Brooks Deputy Mayor Hattenburg announced as the You Rock Recognition recipient for March. accepted the You Rock Award and thanked the council for the award. They spoke about their time with WSDOT and the active role they have with the Kiwanis in the community. Sheriff Nowels and Commissioner Brooks presented a PowerPoint presentation that reviewed the budget trends and investments for the Spokane Valley police and Spokane County sheriff. Sheriff Nowels spoke about contract costs, historical need for communication, the vision statement, focus on staffing with 40 new commissioned positions since 2019, ensure professional police services with an emphasis on training the deputies, an increase in the training increases the budget impacts, the training overtime costs from 2019- 2025, which laws are driving the costs, the operational drivers and effects, the technology increases create a cost increase, technology increases include the body cameras and laptops for each deputies, wage contract increases, noting that overall public safety budgets in other communities have also increased across the board and noted a regional Law Enforcement budget comparison of surrounding communities. PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After the Mayor explained the process, she invited public comments. Andrea Olson, Spokane Valley; David Baker, Spokane; Yvonne Johnson, Spokane Council Meeting Minutes: 03-17-2026 Page 1 of 5 Approved by Council: Valley; Ray Alvarado, Spokane Valley; Chris Pew, Elk; Jessica Brown, Spokane Valley; Tyler Zyph, Spokane Valleyprovided comments. Mayor Padden called for a ten-minute recess at 7:45 p.m. ACTION ITEMS: 1. Public Hearing: Emergency Interim Ordinance 26-002 Battery Energy Storage Systems - Kelly Konkright Mayor Padden opened the public hearing at 7:57 p.m. City Attorney Konkright provided details and background on the battery facilities and the need for the interim ordinance. Mayor Padden invited public comments. Rick Freier, Spokane Valley provided comments. Mayor Padden closed the public hearing at 8:01 p.m. 2. Resolution 26-003: Reaffirming Findings of Fact for Ordinance 26-002 Kelly Konkright It was moved by Deputy Mayor Hattenburg, seconded to approve Resolution 26-003 reaffirming ordinance 26-002 adopting emergency interim regulations concerning battery energy storage systems (BESS). Council discussed the findings of fact and City Manager Hohman noted that this provides a basis for the action you already took on the ordinance when you previously adopted it. Vote by acclamation: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Yaeger, Wick, Kelly and Haley. Opposed: Councilmember Merkel. Motion carried. 3. Public Hearing: Emergency Interim Ordinance 26-004 Reclassifying Marijuana Retail SalesTony Beattie Mayor Padden opened the public hearing open at 8:10 p.m. Mr. Beattie provided details and a background on the ordinance and the reclassification on the marijuana retail sales. Mayor Padden invited public comments. Steven Burks, Spokane Valley; Tyler, Spokane Valley; Kristi, Spokane Valley provided comments. Mayor Padden closed the public hearing at 8:20 p.m. 4. Resolution 26-004: Reaffirming Findings of Fact for Ordinance 26-004 Tony Beattie It was moved by Deputy Mayor Hattenburg, seconded to approve Resolution 26-004 reaffirming ordinance 26-004 adopting emergency interim regulations for reclassifying marijuana retail sales uses as legal nonconforming uses. Mr. Beattie noted that this resolution just reaffirms the ordinance that was already adopted and that the planning commission will review the ordinance. After much discussion regarding planning commission review Councilmember Merkel moved to amend the resolution to eliminate whereas number , but if we look at number 8, number 9, number 10, and number 11, so counting from the first whereas statement um I think that um I would like to eliminate those um whereas statements as being immaterial to the land use regulation. Not that I disagree Mr. Beattie provided clarification and noted that Councilmember Merkel was looking at the ordinance as the resolution findings of fact that we made in an ordinance and noted that that was what Councilmember Merkel wanted to do. Councilmember Merkel confirmed that clarification. Councilmember Merkel stated that he was ant to reaffirm. Mr. Konkright further clarified what the findings of fact does in the resolution and not the ordinance and explained how changes could be made. City Manager Hohman noted that this is just a pause to work with the planning commission to bring something back to the council to review where the locations of these shops should be located within the city and that tonight was the public hearing and would be to allow the public input to help shape the regulations moving forward. Councilmember Merkel then motioned to withdraw his previous amendment and change the amendment to do exactly as attorney Konkright suggested. Without a second on the motion, the amended motion failed. Councilmember Yaeger expressed some of her concerns regarding the ordinance. Councilmember Merkel continued to speak about concerns around allowing certain locations for the marijuana retail locations and felt that the current regulations were too strict and that the time period is too long for the businesses that exist. He specifically called out the planning commission and told them not to pass or forward an ordinance that looks like this to us. Mayor Padden interrupted Councilmember Merkel and stated that is not germane to what we are doing tonight and that it is not up to us to tell the Planning Commission what to do and we can have that conversation when the materials Council Meeting Minutes: 03-17-2026 Page 2 of 5 Approved by Council: come back to us. She asked if he would like to appeal her ruling and he appealed. Without a second, the appeal failed. Vote by acclamation: in favor: Mayor Padden, Deputy Mayor Hattenburg, Councilmembers Wick, Haley and Kelly. Opposed: Councilmembers Yaeger and Merkel. Motion carried. NON-ACTION ITEMS: 5. Admin Report: North Spokane Corridor Update Robert Blegen, Alexandra Proszek Mr. Blegen gave a brief background on the project and introduced Ms. Alex Proszek, Project Engineer with WSDOT. Ms. Proszek presented a PowerPoint presentation on the north Spokane corridor update. The update included a project overview, the miles left to complete, the current progress on the corridor, the rough cost in construction, the remaining work left to be completed, the yearly overview of the remaining project pieces left to complete, photos of stage 2 Trent interchange connection, , photo of the I-90/NSC Connection, the Freya to Appleway (Project 1) portion of the project, noted the community event on February 26th in choosing the style of pedestrian bridge and the location. She stated that the public chose Carnahan as the location for the bridge, the artist rendering for the bridges, and closed with noting the challenging delivery for certain portions of the bridge. Council discussed various topics within the presentation. It was moved by Councilmember Yaeger, seconded and unanimously approved to extend the council meeting to 9:30 p.m. 6. Admin Report: Spokane Regional CoC Homeless Management Information System (HMIS)/Longitudinal System Analysis Report - Gloria Mantz, Arielle Anderson Ms. Martinez and Ms. Anderson presented a PowerPoint presentation on the 2025 Longitudinal Systems Analysis (LSA). The information included an introduction to the LSA and noted it is an annual federally mandated report looking at the data within the Homeless Management Information System (HMIS) of those who were served in the following project types throughout the year: emergency shelter, transitional housing, rapid housing, permanent supportive housing. The LSA provides information on demographics, patterns of system usage, length of time homeless, needs of specific populations, exit destinations and retention of permanent housing. Ms. Martinez provided an overview on the key indicators and the measures reviewed from 2024 to 2025. They reviewed the system performance overview, a system performance map, the length of time homeless, exits by destination type, exits by pathway, graphs of the individuals return to homeless system, graphs of the returns by pathway, a review of demographics overview, demographics by age, race, and household composition. She closed with the key takeaways noting transitional housing interventions have improved long term outcomes for permanent housing placement and retention. Those placed into permanent housing have a 96% retention rate. Our projects with actual beds attached (i.e. not eviction prevention) served over 6,400 individuals in 2025 and this is a fraction of those we serve. With only 4% of those served returning and the areas of focus. Council discussed various points of the presentation. INFORMATION ONLY: (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: Mayor Padden stated that the general public comment rules still apply and called for public comments. Brad Hohn, Spokane Valley provided comments. COUNCIL COMMENTS Councilmember Kelly had nothing to report. Councilmember Wick congratulated SeaPort Airlines to our area. Councilmember Merkel noted that he interviewed Deputy Mayor Hattenburg about his teaching experience and spoke about the planning commission and the ordinance documents previously presented in the meeting. Councilmember Yaeger community to visit or volunteer at the center. Councilmember Haley had nothing to report. Deputy Mayor Hattenburg had nothing to report. COMMENTS Council Meeting Minutes: 03-17-2026 Page 3 of 5 Approved by Council: Mayor Padden spoke about concerns where she was quoted in the comments comparing the ice rink versus the performing arts center andcorrected the information andsaid thatthey are entirelydifferent. We own the land for the ice rink, and we will not be building the facility, and we are not responsible for the payments on the facility. The performing arts center would require that we would get the building and the payments associated with the building and responsible for the bonds as well. CITY MANAGER COMMENTS City Manager Hohman spoke about the Barker Corridor Project - Appleway to Sprague corridor project will start Monday. The public workshop on Pines GSP is tomorrow at CenterPlace from 5:00-6:30 p.m. Mr. Blegen came forward and spoke about support letters for Spokane County for an application for the fiscal year 2027 Congressional Directed Spending grant for improvements along the Centennial Trail. Council discussed the location and the grant and provided consensus for the mayor to sign the support letter. Mr. Blegen then spoke about the SRTMC budget and the recently approved transportation budget at the state level. Mr. Blegen explained that the letter of support would go to the Governor approving the funding for the SRTMC budget. It was moved by Councilmember Yaeger, seconded and unanimously approved to extend the council meeting to 9:45 p.m. Council discussed the support letter and provided consensus to send letter. Mr. Hohman continued with an update on the performing arts center and shared the feasibility study and noted that over the last couple of weeks we have worked with outside review teams trying to find the cost to the city. The request from the performing arts center is for the city to secure $28M in bond funds for them to use to complete the center. Mr. Hohman noted that we have very little debt and that we assumed the bonds for CenterPlace 20+ years ago. We also have bonds on this facility for $7-8M range and they were structured at what our previous rent costs were in the old building. Mr. Hohman stated that his job is to evaluate the requests and gather what is necessary to move forward with consultant reviews. Currently the feasibility study shows that it is optimistic on revenue side and expenditure side. Mr. Hohman stated that he wanted to hear from council regarding the need to hire two consultants to continue to evaluate the feasibility study. We would need a bond counsel and a financial consultant for the financial aspects of the assumptions of the feasibility study. Mr. Hohman stated that cost estimates are about $96K for the consultants and we do not have a line item for this and that is why he was speaking to the item this evening. We would need a budget amendment and council authorization to move forward with spending the $96K. Mr. Hohman strongly recommended the need for the outside assistance to review all the documents if there was going to be movement forward with the project. Deputy Mayor Hattenburg stated that he was not supportive of spending $96K and that we have not ever bonded a private business and it puts us at risk. City Attorney Konkright clarified that he believed we would have to own this building if providing bonds for it. City Manager Hohman stated that in his initial conversation with Pacifica that we would have to own it and that these are things we would have to identify and he was not sure logistically or financially that we could spend that kind of money. Council questioned what the total project would be worth once completed and Mr. Hohman stated that would be part of what would be analyzed and their ability to pay the bonds. If they couldn't, the city is on the hook for it. It was moved by Councilmember Merkel, seconded and unanimously approved to extend the council meeting thirty more minutes. Mayor Padden noted that we have heard the promises and predictions before and we have provided funding once before. They have lost bank support, lost private support, some private support is conditional, bond transfer the debt and build, maintain and operate to the city. If we are going to float bonds, we have a public safety campus to think about and roads to think about. It doesn't justify the need at the moment. Deputy Mayor Hattenburg requested to seek consensus to not move forward with the $96K expenditure. Council provided consensus with a 6-1 vote to not move forward with the expenses. City Manager Hohman continued his update and stated that there would be some of the council traveling to Washington D.C. next week and that there would not be a council meeting next Tuesday. Council Meeting Minutes: 03-17-2026 Page 4 of 5 Approved by Council: EXECUTIVE SESSION Pending Litigation \[RCW 42.30.110(1)(i)\]. (Proposed motion: I move Council adjourn into executive session for approximately 20 minutes to discuss pending litigation, and that no action will be taken upon return to open session.) It was moved by Deputy Mayor Hattenburg, seconded and unanimously approved to adjourn into executive session for approximately 20 minutes to discuss pending litigation, and that no action will be taken upon return to open session. Council adjourned into executive session at 9:49 p.m. At 10:09 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 4 minutes. At 10:13 p.m., Senior Deputy City Attorney Beattie requested to extend the Executive Session by an additional 2 minutes. Council returned to session at 10:15 p.m. It was moved by Councilmember Merkel, seconded and unanimously agreed to adjourn at 10:15p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes: 03-17-2026 Page 5 of 5 Approved by Council: MINUTES City of Spokane Valley City Council Meeting Formal B Format Tuesday, March 31, 2026 Deputy Mayor Hattenburg called the meeting to order at 6 p.m. The meeting was held in person by Council and staff in Council Chambers, and also remotely via Zoom meeting. ___________________ Attendance: Councilmembers Staff Tim Hattenburg, Deputy Mayor John Hohman, City Manager Pam Haley, Councilmember Erik Lamb, Deputy City Manager Michael Kelly, Councilmember Robert Blegen, Public Works Director Ben Wick, Councilmember Kelly Konkright, City Attorney Tony Beattie, Senior Deputy City Attorney Chelsie Walls, Finance Director Gloria Mantz, City Services Administrator Dave Ellis, Police Chief Absent: Jill Smith, Communications Manager Laura Padden, Mayor Virgina Clough, Legislative Policy Coordinator Jessica Yaeger, Councilmember Mike Basinger, Community & Econ. Dev. Director Al Merkel, Councilmember John Whitehead, HR Director John Bottelli, Parks & Rec Director Teri Stripes, Economic Development Specialist Adam Jackson, Engineering Manager Chad Knodel, IT Manager Marci Patterson, City Clerk INVOCATION: Pastor Phil Altmeyer with the Union Gospel Mission provided the invocation. PLEDGE OF ALLEGIANCE: Council, staff and the audience stood for the Pledge of Allegiance. ROLL CALL: City Clerk Patterson called roll; all Councilmembers were present except Mayor Padden and Councilmembers Yaeger and Merkel. It was moved by Councilmember Kelly seconded and unanimously agreed to excuse Mayor Padden and Councilmembers Yaeger and Merkel. APPROVAL OF AGENDA It was moved by Councilmember Wick, seconded and unanimously agreed to approve the agenda. SPECIAL GUESTS/PRESENTATIONS: PROCLAMATIONS: GENERAL PUBLIC COMMENT OPPORTUNITY: After the Deputy Mayor explained the process, he invited public comments. Ben Lund, Spokane Valley provided comments. CONSENT AGENDA: 1. Consent Agenda: Consists of items considered routine which are approved as a group. Any member of Council may ask that an item be removed from the Consent Agenda to be considered separately. Proposed Motion: I move to approve the Consent Agenda. a. Approval of Claim Vouchers, March 31, 2026, Request for Council Action Form: $4,956,997.75 b. Approval of Payroll for Pay Period ending February 15, 2026: $694,516.03 c. Approval of Payroll for Pay Period ending February 28, 2026: $766,178.68 Council Meeting Minutes: 03-31-2026 Page 1 of 4 Approved by Council: d. Approval of Payroll for Pay Period ending March 15, 2026: $716,532.07 e. Approval of Council Meeting Minutes of February 3, 2026 f. Approval of Council Meeting Minutes of February 10, 2026 g. Approval of Council Meeting Minutes of February 17, 2026 h. Approval of Council Meeting Minutes of February 17, 2026 i. Approval of Council Meeting Minutes of February 19, 2026 It was moved by Deputy Mayor Hattenburg, seconded and unanimously agreed to approve the Consent Agenda. ACTION ITEMS: 2. Motion Consideration: Potential Grant Opportunity: Pedestrian/Bicycle Program and Safe Routes to Schools- Adam Jackson It was moved by Councilmember Haley, seconded to authorize the City Manager or designee to apply for the projects identified in Table 1. Table 1. Fund Project Total Request PBP Barker/Appleway Roundabout $4,500,000 $4,300,000 PBP Appleway Crossings $1,100,000 $1,100,000 PBP Arterial Crossings $1,100,000 $1,100,000 Pedestrian/Bicycle Safety Improvements Planning: PBP $300,000 $300,000 Sprague (Argonne to Sullivan) and Sullivan (Sprague to Mission) Citywide School Zone Flashing Beacon, Speed Feedback Signs, SRTS $2,000,000 $2,000,000 and Rectangular Rapid Flashing Beacon Installations Mr. Jackson provided background on the grant details and provided a brief PowerPoint presentation that included a program description, the recommended applications, and the project cost estimates. Deputy Mayor Hattenburg invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. 3. Motion Consideration: Opioid Interlocal Agreement w/Spokane County Tony Beattie It was moved by Councilmember Haley, seconded to approve the interlocal agreement with Spokane County for the SRSC expansion project and annual operation costs. Mr. Lamb and Mr. Beattie gave a brief background on the funding that has been received thus far as well as what the opioid funding has been used for such as the Spokane Regional Health District for the dashboard expansion, a one-time needs assessment, and to Spokane County for the expansion of the Crisis Relief and Sobering Center. Deputy Mayor Hattenburg invited public comments; no comments were offered. Vote by acclamation: in favor: Unanimous. Opposed: None. Motion carried. NON-ACTION ITEMS: 4. Admin Report: Safe & Healthy Task Force Update Erik Lamb, Lance Beck, Zeke Smith Mr. Lamb provided an introduction of Mr. Lance Beck with GSI and Mr. Zeke Smith with Waters Meet Foundation. Mr. Beck and Mr. Smith provided a PowerPoint presentation that reviewed the Spokane Regional Safe and Healthy Task Force. Mr. Beck reviewed why the task force was created, the purpose of the task force, the vision of the task force, who represents the task force, the community representatives, the emergency response and health representatives, the government, justice and correctional representatives, a list of who is involved in the task force, and the progress of the task force thus far. Mr. Smith continued with the presentation and spoke about the Leifman Group Asset Assessment Report, the source material with the asset assessment, the key findings in the report, the task force advisory committees, the community and stakeholder engagement strategy, the groups that the task force members will engage, the next steps for the task force, noting early wins and building momentum, and a calendar of the next steps with meeting dates with final report to be provided around late May of 2026. Council discussed various points of the presentation and asked about the budget for the program. 5. Admin Report: Economic Trends Report Teri Stripes, Dr. Cullen & Dr. Jones Ms. Stripes gave a brief background and introduced Dr. Jones and Dr. Cullen. Dr. Jones and Dr. Cullen provided a PowerPoint presentation that included an overview on demographics, the civilian labor force Council Meeting Minutes: 03-31-2026 Page 2 of 4 Approved by Council: rebounds in second half of the year, the labor market: employment, the unemployment count and rate, a summary of aggregate employment measures, key sectors with employment numbers with a variety of graphs, and a summary of sector performance as measured by employment. They continued the presentation with a variety of graphs on housing as it pertains to residential building permits, multifamily building permits, the average valuation, the affordability for the median homebuyer and first time homebuyer, the rental affordability, the affordability for low income renters, the rental vacancy rate, the median home resale price, and noted that renters are spending more than 50% of income on shelter. They also reviewed the regional price parities on consumer goods, services, and a summary of housing construction and affordability. They continued with information and graphs on the retail sales determinant, the city taxable retail sales activity with growth that picked up in 2025, city retail sales activity, and noted that the WA taxable retail sales for 2025: gain of 3% over 2024. They noted that January 2026 is up slightly over prior January. Council discussed a variety of the topics covered in the presentation. Deputy Mayor Hattenburg called for a ten-minute recess at 7:30pm. 6. Admin Report: HCDAC Grant Application Discussion, Round Two Gloria Mantz, Eric Robison Ms. Mantz and Mr. Robison provided a PowerPoint presentation on the Spokane County Housing and Community Development Grant Applications. They provided details on the grant applicants, the funding sources and the available funding. They also provided details on timeline for the application process and the selection of the grant recipients. They spoke about the homeless services and that there was $2,100,768 available in funding, the applicants included the Salvation Army, the YWCA, Family Promise, Volunteers of America, and Catholic Charities. The next round of applicants were for homelessness prevention and total funding available is $465,768 and applicants included Family Promise, Community Frameworks, Cheney Outreach Center, and International Rescue Committee. The transitional housing and outreach funding included a total of $635,000 for both programs and applicants included Volunteers of America, Catholic Charities, the Salvation Army, Greatest Matriarchs Society, the City of Spokane Valley, City of Airway Heights, and Transitions. Councilmember Wick, Deputy Mayor Hattenburg, Ms. Mantz and Mr. Robison spoke about their choices for the where they felt funding would be best served. 7. Admin Report: Drug Overdose Report Chief Ellis Chief Ellis and Special Deputy Mark Voigtlaender presented a PowerPoint presentation that included the 2025 Spokane County Criminal Drug/Death Report. The report provided information, mapping and graphs on 2025 overdose deaths, the four year overdose death trend, the 2024 2025 overdose death map of the City of Spokane Valley, 2024 Fentanyl Purity, 2025 Naloxone Availability, and 2025 Spokane County Drug Seizure Trend. Council discussed the trends for the overdoses, the types of drugs and overdoses and where the drugs are coming from. INFORMATION ONLY: (will not be reported or discussed) GENERAL PUBLIC COMMENT OPPORTUNITY: Deputy Mayor Hattenburg stated that the general public comment rules still apply and called for public comments. No comments were offered. COUNCIL COMMENTS Councilmember nd the 92 Air Refueling Wing at Fairchild Air Force Base and then he will rotate to a new location, an event this Friday with the cops and Kiwanis with the Kiwanis donating $10K worth of stuffed animals to the officers, and spoke on the STA ballot measure. Councilmember Kelly spoke about the Lincoln Day Dinner that he attended. Councilmember Haley stated that she had nothing to report. COMMENTS Council Meeting Minutes: 03-31-2026 Page 3 of 4 Approved by Council: Deputy Mayor Hattenburg spoke about the Washington D.C. trip that he attended and spoke about a Muslem community event organized by Gonzaga students hosted atGonzagaUniversity that he attended and appreciated the event. CITY MANAGER COMMENTS City Manager Hohman spoke about the Washington D.C. event, the Department of Justice meeting in D.C., the Federal Railroad Administration meeting also in D.C., thanked staff member Greg Baldwin for his time rd anniversary. EXECUTIVE SESSION It was moved by Councilmember Haley, seconded and unanimously agreed to adjourn at 8:35p.m. ATTEST: ______________________________ Laura Padden, Mayor ___________________________ Marci Patterson, City Clerk Council Meeting Minutes: 03-31-2026 Page 4 of 4 Approved by Council: CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 2026 Department Director Approval: Check all that apply: consent old business new business public hearing informationadmin. reportpending legislationexecutive session AGENDA ITEM TITLE:Motion Consideration–Ice Sports Facility Ground LeaseAgreement 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. Administrative report on April 21, 2026 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 attached (Appendix B). The proposed ground lease agreement is included in Attachment C. On April 21, 2026, staff discussed the background for the waterline project, the acquisition of the Sullivan property, the Ice Sports facility proposal, the economic impact of this facility, the requested City infrastructure project and the negotiated ground lease terms. Staff also corrected misinformation regarding the project intent, history and its connection to the waterline project and the acquisition of the Sullivan property. Council reached consensus to bring a motion consideration authorizing the City Manager to execute the ground lease agreement as presented. Should council authorize the City the execution of the lease agreement, the City would advertise the infrastructure improvement project in late spring. It is recommended to include the improvements to the Western Dance Hall and Race Car (RC) lot in the contract which would include repaving and restriping the parking lot of the Western Dance Hall, relocating the barbeque pit that conflicts with the access road and grading the RC gravel lot. These improvements are estimated to cost approximately $493K. Council allocated $500K from Fund 312 for improvements to Sullivan Park. OPTIONS: Motion consideration to authorize the City Manager to execute the ground lease agreement; authorize the inclusion of the improvements to Sullivan Park with the City infrastructure project; or take other or take other appropriate action. RECOMMENDED ACTION OR MOTION: Move to authorize the City Manager to execute the ground lease agreement in substantially the same form as attached, and include the improvements to Sullivan Park with the City infrastructure project. 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. The cost of the improvements to the Western Dan Hall and RC lot are estimated at $493K and will be paid with Fund 312. The 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 - Ground lease Terms Appendix C – 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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Nz!qfstpobm!sfmbujpotijq!xjui!tfwfsbm!qfpqmf!jowpmwfe!gspn!cpui!uif!Lsblfo!boe!uif!OIM-! nblft!nf!fyusfnfmz!dpoefou!uibu!cpui!pg!uiptf!foujujft!bsf!dpnnjuufe!boe!fydjufe!bcpvu! hspxjoh!uif!hbnf!pvutjef!pg!uif!Hsfbufs!Tfbuumf!Nbslfu/!Uifsf!jt!b!vojrvf!pqqpsuvojuz!tjuujoh! sjhiu!jo!gspou!pg!vt!boe!uif!ujnf!jt!OPX/!Uiftf!xjoepxt!epo“u!sfnbjo!pqfo!gpsfwfs/ Uif!OIM-!uispvhi!uifjs!Joevtusz!Hspxui!Gvoe!boe!jojujbujwf!boe!uif!Lsblfo-!jt!dpnnjuufe!up! csjoh!uif!hsfbu!hbnf!pg!ipdlfz!up!bt!nboz!ljet-!jo!cjh!djujft!boe!tnbmm!dpnnvojujft-!bt!uifz! dbo/ Uijt!ofx!jdf!gbdjmjuz!xpvme!cf!b!ivhf!tufq!gpsxbse!jo!dbsszjoh!pvu!uibu!njttjpo/ J!sftqfdugvmmz!sfrvftu!uibu!zpv!hjwf!ju!zpvs!vunptu!dpotjefsbujpo!boe!bqqspwf!uif!qspqptbm!tp! uibu!uif!qfpqmf!xip!bsf!sfbez!boe!xjmmjoh!up!ep!uijt!xpsl-!dbo!hfu!tubsufe/ Tjodfsfmz! 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 B – 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. GROUND LEASE THIS GROUND LEASE (this “Lease”) is made and entered into as of ____________, 20__ (the “Commencement Date”), by and among the City of Spokane Valley, a municipal corporation (“City” or “Lessor”) and Ignite Youth Ice, LLC, a Washington limited liability company a wholly owned subsidiary of Innovia Ignite Foundation, a Washington , a nonprofit corporation described under Section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended, and Spokane Youth Ice, LLC, a Washington limited liability Company, as joint tenants (together the “Lessee”). RECITALS: A. This Lease concerns certain real property owned by the City and located at 2100 N. Sullivan Road in the City of Spokane Valley, Spokane County, State of Washington (referred herein as “Sullivan Property”). The Sullivan Property is comprised of an approximately twelve (12) acre parcel of land more particularly described in the attached Exhibit A. The City intends to subdivide the Sullivan Property into three or more separate legal lots and use all such lots to support tourism, accommodate tourist activities within the City, and provide recreation opportunities for youth in the community, as applicable. B. In 2023, the City retained a third-party consultant to conduct a Strategic Tourism Plan Update (“Tourism Study”). The study concluded that the tourism-generated economic activity within the City was sub-standard compared to other similarly situated municipalities. The Tourism Study further identified amenities that, if developed, would be expected to attract large numbers of out-of-town tourists to the City for multi-day events and generate significant tourism-related revenue. C. The Tourism Study specifically identified a cross-country course and ice sporting complex as facilities (a) for which there is high demand but low supply regionally, (b) that are reasonably expected to substantially increase the number of visitors entering and staying in the City for multiple days to attend events, and (c) that will therefore increase the number of visitors spending money for overnight stays, dining, shopping and other tourism-related economic activity in the City. D. Lessee has been working with a benefactor who desires to fund an ice sports complex that will provide recreational opportunities for youth within Spokane Valley and the Spokane region. The benefactor desires to remove barriers for youth ice sports participation, including economic barriers, limited availability for ice sheet practice times and having a facility that is located centrally within the region. E. Lessee submitted a proposal that the City ground lease the Sullivan Property to Lessee for Lessee to provide recreational opportunities for the youth in the City and surrounding area. Specifically, Lessee proposes to: (1) construct, operate, and maintain an approximately 80,000 square foot ice sports complex with two National Hockey League (“NHL”)-sized ice sheets, spectator seating, conditioned viewing areas, locker rooms, player support spaces and concessions (the Youth Ice Rink”) on approximately six (6) acres of the Sullivan Property; and (2) develop or cause development of the remaining Sullivan Property for commercial or other revenue-generating uses and apply all of Lessee’s net revenues from such development to financially support the operations, maintenance, and future capital improvements of the Youth Ice Rink. As part of the proposal, Lessee is proposing operations that will remove barriers to youth ice sports participation, including economic barriers, limited availability for ice sheet practice times, and having a facility that is located centrally within the region. This operation provides a public benefit to the City and the community. F. The City reviewed Lessee’s proposal and desires to ground lease the Sullivan Property to Lessee to (a) construct, operate, and maintain the proposed Youth Ice Rink at Lessee’s expense on approximately six (6) acres of the Sullivan Property, and (b) develop or cause development of the remainder - 1 - of the Sullivan Property for commercial or other revenue-generating uses to financially support the operations, maintenance, and future capital improvements of the Youth Ice Rink. G. Lessee desires to grant the City both a right of first refusal and an option to purchase all of Lessee’s interests in the Premises. H. The buildings, structures, parking areas, landscaping and other improvements located on the Sullivan Property as of the Commencement Date, if any, are collectively referred to as the “Existing Improvements”. I. The Sullivan Property, the Existing Improvements, the Leasehold Improvements and Alterations, together with any and all buildings, structures, systems, facilities and fixtures currently located and to be located within the Sullivan Property pursuant to this Lease, as well as all easements and other appurtenant rights, are referred to collectively as the “Premises”. J. Lessee agrees to demolish any Existing Improvements, as necessary, and develop the Sullivan Property by constructing, maintaining, and operating the Leasehold Improvements. Lessee further agrees that its operation of the Premises will include providing the public benefits identified in Sections 11 and 12 of this Lease. K. Lessee is willing to construct or cause construction of the Leasehold Improvements and operate the Premises in accordance with the terms and conditions set forth in this Lease on the express condition that Lessor enter into a long-term lease of the Premises on the terms and conditions set forth below. L. Lessor is willing to enter into a long-term lease of the Premises on the express condition that Lessee constructs the Youth Ice Rink and thereafter operates and maintains the Premises and provides the public benefits during the Term of this Lease on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the rents to be paid hereunder and of the agreements, covenants and conditions contained herein, the parties hereby agree as follows: 1. Basic Lease Information The following is a summary of basic lease information. Each term or item in this Section 1 shall be deemed to incorporate all of the provisions set forth below pertaining to such term or item and to the extent there is any conflict between the provisions of this Section 1 and any more specific provision of this Lease, the more specific provision shall control. Lessor: City of Spokane Valley 10210 E. Sprague Avenue Spokane Valley, WA 99206 Attn: City Manager Email Address: jhohman@spokanevalleywa.gov Lessees: Ignite Youth Ice, LLC 818 W. Riverside Avenue, Suite 650 Spokane, WA 99201 Attn: Shelly O’Quinn Email Address: soquinn@innovia.org - 2 - Spokane Youth Ice, LLC \[address\] \[address\] Attn: \[name\] Email Address: \[insert email address\] Term: Seventy-five (75) years from Commencement Date with one (1) 24-year extension exercisable upon mutual election of the Parties. Commencement Date: Date of this Lease Expiration Date: __________day and month of __, 2101 Annual Base Rent (Section 6): Annual Base Rent in the amount of $1/year for the Term. Use (Sections 9, 11 & 12): The Premises shall be used by Lessee for the development and operation of the Youth Ice Rink and other revenue- generating improvements to financially support the Youth Ice Rink that are allowed by applicable zoning regulations. 2. Definitions All capitalized terms not otherwise defined in this Lease (including in the recitals which are incorporated herein by this reference) shall have the meanings set forth in the Glossary attached to this Lease and made a part hereof. 3. Lease of Premises; Reservation of Rights 3.1. Lease of Premises. As of the Commencement Date, Lessor hereby demises and leases the Premises to Lessee, and Lessee hereby accepts and leases the Premises from Lessor on and subject to the terms and conditions set forth in this Lease. This Lease shall be subject to (a) all Applicable Laws and all zoning and other governmental regulations and entitlements now or hereafter in effect, and (b) all liens, assessments, encumbrances, restrictions, rights and conditions of law or of record existing as of the Commencement Date, TOGETHER WITH all appurtenances, rights, privileges, and easements benefiting, belonging, or pertaining thereto, and together with the buildings, structures, and improvements erected or to be erected thereon, whether presently or in the future. All rights and interests of the Lessor in any personal property contained within or used in connection with the Premises, are hereby made subject to this Lease for the Lease Term, subject to the Lessor’s right of first refusal and option to purchase all of Lessee’s interests, including Lessee’s leasehold estate, to the Premises pursuant to Section 38 hereof. Lessor and Lessee agree that from time to time, they each will promptly execute and deliver all further commercially reasonable instruments and documents, and take all further action, that may be necessary or desirable, in order to reflect the disposition of such personal property. 3.2. Reservation of Rights. 3.2.1. Inspection. Lessor shall be entitled, at reasonable times and upon reasonable notice to Lessee, and in a commercially reasonable manner, to go upon and into the Premises and the Improvements for the purposes of (i) inspecting the same; (ii) inspecting the performance by Lessee of the - 3 - terms, covenants, agreements and conditions of this Lease; (iii) posting and keeping posted thereon notices of non-responsibility for any construction, alteration or repair; (iv) performing (or permitting third parties to perform) any work, testing or monitoring in connection with any governmental requirements that is not otherwise the responsibility of Lessee under this Lease, and (iv) any other reason permitted under this Lease; provided that Lessor shall not materially and adversely impact the operations of Lessee at the Premises, and Lessor shall not interfere with the occupancy of any tenant at the Premises. 3.2.2. Repair of Damage. Lessor shall at Lessor’s sole cost and expense repair any damage done to the Premises to restore the Premises to the condition that existed immediately prior to the exercise by Lessor of its rights under this Section 3.2. 3.2.3.Entitlements and Agreements. As fee owner of the Premises and of other real property in the vicinity of the Premises, Lessor may desire from time to time to apply for entitlements, seek rezoning, or otherwise endeavor to negotiate agreements with the governmental entities having jurisdiction over Lessor’s property. So long as Lessor’s efforts (i) do not have a material adverse impact on Lessee’s use, operation, value or marketability of the Premises, or (ii) do not discriminate against the Premises or disproportionately burden the Premises as compared to other properties in the vicinity of the Premises, Lessee shall not publicly oppose or object to any such efforts by Lessor. 4. Acceptance Of Premises 4.1. Lessee’s Due Diligence. Prior to entering into this Lease, Lessee has made a thorough, independent examination of the Premises and all matters relevant to Lessee’s decision to enter into this Lease, and Lessee is thoroughly familiar with all aspects of the Premises and is satisfied that they are in an acceptable condition and meet Lessee’s needs. Without in any way limiting the generality of the foregoing, Lessee’s inspection and review has included, to the extent that Lessee in its sole discretion has deemed necessary or appropriate: 4.1.1. all matters relating to title, and all municipal and other legal requirements such as taxes, assessments, zoning, use permit requirements and building codes; 4.1.2. the physical condition of the Premises, the Existing Improvements, and the land underneath the Existing Improvements, including the soils and groundwater, any other geological conditions, engineering data (including, but not limited to, structural, seismic and engineering evaluations that might impact the Improvements), the presence or absence of known Hazardous Substances upon or in the vicinity of the Premises, and all other physical and functional aspects of the Premises; 4.1.3. the suitability of the Premises for the permitted use; 4.1.4. the boundaries of the Premises and all access rights to which the Premises are subject; 4.1.5. the development potential of the Premises and/or the zoning, land use, or other legal status of the Premises or compliance with any public or private restrictions on the use of the Premises, as the same are in effect as of the Commencement Date, or may be hereafter modified, amended, adopted, published, promulgated or supplemented; or the compliance of the Premises or Improvements with any Applicable Laws; 4.1.6. the availability, existence, quality, nature, adequacy and physical condition of utilities servicing the Premises; - 4 - 4.1.7. Lessee’s ability to obtain appropriate permits, licenses and Entitlements, and satisfy all licensing requirements under Applicable Laws; 4.1.8. all material information relating to the leasing and operation of the Premises (including occupancy as of the Commencement Date); and 4.1.9. the economics and feasibility of the development of the Improvements and the business operations Lessee intends to conduct on the Premises, including without limitation, market conditions and financial viability. 4.2. Acceptance of the Premises. Lessee acknowledges that, except as otherwise provided in this Lease, Lessor has made no representations or warranties, express or implied, regarding the Premises or matters affecting the Premises, whether made by Lessor, on Lessor’s behalf or otherwise, including, without limitation, the physical conditions beneath the Premises; title to, or the boundaries of the Premises; the presence, existence or absence of Hazardous Substances on, under or in the vicinity of the Premises; compliance of the Premises with Applicable Laws; traffic patterns, the availability of utilities, the development potential of the Premises, market data, economic conditions or projections; the suitability of the Premises for the permitted use; the economic feasibility of the business operations Lessee intends to conduct on the Premises; or any other matter pertaining to the Premises or the market and physical environments in which the Premises are located. Lessee acknowledges: (a) Lessee has engaged a sophisticated real estate developer with sufficient experience and expertise to evaluate the Premises, feasibility of the intended project, and the risks associated with acquiring a leasehold interest in the Premises upon the terms and conditions set forth herein; (b) Lessee has received sufficient information and had adequate time to make such an evaluation; (c) Lessee has entered into this Lease with the intention of relying upon its own investigation or that of third parties with respect to the Premises; (d) in connection with its investigations and inspections of the Premises, Lessee has had the opportunity to obtain the advice of advisors and consultants as Lessee deemed to be necessary, and that Lessee has reviewed thoroughly the reports of such advisors and consultants, as well as all materials and other information given or made available to Lessee by Lessor and by public and governmental entities; and (e) Lessee is not relying upon any statements, representations or warranties of any kind, other than those specifically set forth in or required pursuant to this Lease. Lessee further acknowledges that it has not received from or on behalf of Lessor any accounting, tax, legal, architectural, engineering, property management or other advice with respect to this transaction and is relying solely upon the advice of third party accounting, tax, legal, architectural, engineering, property management and other advisors. Lessee agrees and acknowledges that any surveys, reports, studies, plans or other documentary information about the Premises that may have been delivered to Lessee by Lessor were delivered merely as a courtesy, and without any representation or warranty relating to the validity of such documents; Lessee has not relied on such documents, and Lessee is responsible for verifying the accuracy and completeness of such documents and any information contained therein. Lessee has satisfied itself as to such suitability and other pertinent matters by Lessee’s own inquiries and tests into all matters relevant in determining whether to enter into this Lease. Except as otherwise specifically provided in this Lease, Lessee accepts the Premises and all conditions in the vicinity of or affecting the Premises in their existing condition and hereby expressly agrees that if any investigation, remedial or restoration work is required in order to conform the Premises to the requirements of Applicable Laws, Lessee shall assume sole responsibility for any such work. Except as otherwise specifically provided in this Lease, Lessee is acquiring on the Commencement Date a leasehold interest in the Premises in its “AS IS” condition and “WITH ALL FAULTS”. 5. Term 5.1. Term. The term of this Lease (the “Term”) shall be for the period stated in the Basic Lease Information, commencing on the Commencement Date and expiring at 11:59 p.m. on the Expiration Date - 5 - or on such earlier date as this Lease may be terminated as hereinafter provided. 5.2. Extension Options. Provided Lessee is not in Default beyond any applicable cure period, Lessee shall have the right (“Option”) to extend the initial Term of the Lease for twenty-four (24) additional years (an “Option Term”). Lessee may exercise this Option by providing Lessor with written notice of such exercise no later than nine (9) months prior to the expiration of the then-existing Term in effect, provided, at the time Lessee exercises such Option, Lessee is not in Default of this Lease. Following Lessee’s timely and valid exercise of the Option, Lessee shall prepare and Lessor shall execute and deliver to Lessee an amendment to this Lease confirming the Term as extended by the Option Term. There shall be no further options to extend or renew the Term beyond the Option Term. If Lessee elects not to exercise the Option as provided herein, the option privilege shall be extinguished and the Term shall end upon the expiration of the initial Term. 5.3. Terms of Extension Option. If the Option is exercised, as aforesaid, all of the same terms, provisions and conditions set forth in this Lease shall apply and Lessee shall pay the Base Rent in the amount and as required during the initial Term. 6. Rent 6.1. Rent. Commencing on the Commencement Date, Lessee shall pay Base Rent equal to $1 per year through the end of the Term (also referred to herein as “Annual Rent”). 7. Additional Rent 7.1. Additional Rent. As of the Commencement Date, each and every sum payable to Lessor pursuant to this Lease (other than the Annual Rent), each and every sum Lessee is obligated to pay to any third party in order to fulfill its obligations under this Lease (if unpaid), and each and every sum which Lessor pays to any third party to cure a default of Lessee under and in accordance with the provisions of this Lease shall be additional rent (“Additional Rent”). 7.2. Taxes. 7.2.1. Leasehold Excise Tax. To the extent required by Chapter 82.29A RCW, Lessee shall pay to Lessor leasehold excise tax (“LET”) on all “Taxable Rent”, as defined in chapter 82.29A RCW. Taxable Rent includes that portion of Annual Rent and other consideration considered “Contract Rent” as defined in chapter 82.29A RCW. Taxable Rent does not include that portion of Annual Rent and other consideration attributable to concessions or other intangible rights or to the Improvements, as the Improvements are not the property of Lessor and thus are exempt from leasehold excise tax. 7.2.2. Taxes. In addition to the LET described in 7.2.1 above, Lessee shall pay, but only if and to the extent applicable, all real and personal property taxes, assessments (including assessments for public improvements), rates, charges, license and permit fees, municipal liens, levies, excises or imposts, sales, use and occupancy taxes, business and occupation taxes, leasehold excise taxes on subleases or otherwise, gross receipts and similar taxes, any tax or charge assessed against the fair market value of the Sullivan Property or any part thereof, and any taxes levied or assessed in addition to or in lieu of, in whole or in part, such taxes, assessments or other charges of every name, nature and kind whatsoever, including without limitation all governmental charges of every name, nature or kind that are be levied, assessed, charged or imposed or may be or become a lien or charge (i) upon the Sullivan Property or any part thereof; (ii) upon the rent or income of Lessee; (iii) upon the use or occupancy of the Sullivan Property; or (v) upon Lessor by reason of its interest in the Sullivan Property. All of the foregoing taxes, assessments and other charges which are the responsibility of Lessee (other than LET) are herein referred to as “Taxes”. However, Lessor will not impose an assessment, tax, charge, license, or permit fee on Lessee’s development or use - 6 - of the Premises unless it is pursuant to a generally applicable law or policy that applies to other similarly situated persons. 7.3. Payment. Lessee shall pay all taxes incurred in association with this Lease, the Improvements and Operations and remit payments of the same to the appropriate taxing authority. 7.4. Right to Contest. Lessee shall have the right to contest, by appropriate proceedings and at Lessee’s sole cost and expense, the amount or validity, in whole or in part, of any Taxes; provided, however, that Lessee shall not have the right to contest the inclusion of the Premises in any existing assessment district currently affecting the Premises as of the Commencement Date. In the event the applicable taxing authority having jurisdiction over the contest proceedings allows the posting of security or some other method of deferring payment of the disputed Taxes, Lessee may do so; otherwise Lessee shall not postpone or defer payment of any disputed Taxes but shall pay such Taxes in accordance with Section 7.2 notwithstanding such contest. Lessor shall have no obligation to join in any such proceedings. Lesseeshall indemnify and defend Lessor against and hold Lessor harmless from and against any and all Claims, arising from or in connection with any such proceedings. 7.5. Proration. Any Taxes relating to a fiscal period of any taxing authority, only a part of which period is included within the Term, shall be prorated as between Lessor and Lessee so that Lessor shall pay the portion thereof attributable to any period outside the Term, and Lessee shall pay the portion thereof attributable to any period within the Term. 8. Sullivan Property Binding Site Plan. In accordance with the Spokane Valley Municipal Code and applicable Washington law, the City shall process, finalize, and record a Binding Site Plan dividing the Sullivan Property into up to four (4) but no less than three (3) separate parcels (hereinafter “Sullivan Property Binding Site Plan”). Whether to divide the Sullivan Property into 4 parcels rather than 3 parcels shall be in Lessee’s sole discretion. 8.1. The parcel on which the Youth Ice Rink is to be situated (hereinafter “Ice Complex Parcel”) shall be approximately six (6) acres in size. The other parcels are referred to herein as “Commercial Parcels”. 8.2. Nothing in this Section 8 prevents Lessee from beginning construction activity on the Sullivan Property to complete the Youth Ice Rink prior to the Sullivan Property Binding Site Plan being recorded, provided Lessee satisfies all applicable requirements of the Spokane Valley Municipal Code and Washington law. 9. Leasehold Improvements; Construction of Alterations 9.1. Ice Complex Parcel. As material consideration for this Lease, Lessee has agreed to undertake, at its sole cost and expense, the development of the Youth Ice Rink on the Ice Complex Parcel pursuant to the approved plans and specifications for development of the Youth Ice Rink (the “Ice Complex Project Plans”) attached as Exhibit B, and in accordance with the terms and conditions of this Lease (collectively, “Ice Complex Improvements”). The development of the Leasehold Improvements on the Ice Complex Parcel shall be referred to as the “Ice Complex Project”. The existing improvements on the Ice Complex Parcel, Leasehold Improvements and Alterations thereon, Easements and Appurtenances, and Lessee’s leasehold rights to the Ice Complex Parcel are collectively referred to as the “Ice Complex Premises”. 9.1.1. Lessor acknowledges that the aesthetic and conceptual aspects of the Ice Complex Project Plans and Ice Complex Project Documents, but not those aspects pertaining to Lessor’s decision- - 7 - making authority as a permitting agency, have been approved by Lessor as of the date hereof. Lessee may make material changes to said approved Ice Complex Project Plans and the Ice Complex Project Documents without obtaining Lessor’s prior approval so long as changes generally align with the aesthetics and conceptual aspects of the previously approved Ice Complex Project Plans and Documents., 9.1.2. Commencement of Construction – Ice Complex Improvements. Lessee shall cause Construction Commencement of the Youth Ice Rink to occur within one hundred eighty (180) Business Days following the Commencement Date, subject to extensions agreed to in writing by Lessor and Lessee, and subject to Unavoidable Delay (“Outside Construction Commencement Date”). Notwithstanding the foregoing, prior to commencement of any demolition or construction work on the Youth Ice Rink, Lessee shall have obtained all necessary permits and governmental approvals necessary to commence construction of the Youth Ice Rink. 9.1.3. Failure to Commence Construction – Ice Complex Improvements. In the event Lessee fails to cause Construction Commencement of the Youth Ice Rink to occur prior to the Outside Construction Commencement Date, and if such failure is not cured within a period of one hundred twenty (120) days after written notice from Lessor to Lessee of Lessor’s intention to exercise its rights to terminate this Lease due to such failure, then Lessor shall have the right to terminate this Lease following expiration of such 120-day period upon written notice to Lessee. If Lessor terminates this Lease under this Section 9.1.3 then (1) unless otherwise approved in writing by Lessor, Lessee shall take all action necessary to return Sullivan Property to its condition immediately prior to commencement of this Lease, and (2) this Lease shall be of no further force or effect. An Unavoidable Delay shall extend the deadlines Construction Commencement on a day-for-day basis up to ninety (90) days. Notwithstanding the foregoing, if Lessee in fact caused Construction Commencement prior to the date Lessor actually issues a notice of termination following expiration of such 60-day period, then such notice of termination shall be ineffective and this Lease shall remain in full force and effect. Further, the provisions of this subsection 9.1.3 shall be subject to the notice, cure and other rights of a Leasehold Mortgagee under Section 25 below, including the rights of a Leasehold Mortgagee to cure the failure and/or to cause commencement of construction to occur. 9.1.4. Substantial Completion – Ice Complex Improvements. Lessee shall achieve Substantial Completion of the Youth Ice Rink no later than the date which is three (3) years from the Commencement Date (“Target Substantial Completion Date”), which date may be extended for Unavoidable Delay; provided that such Target Substantial Completion Date shall not be extended due to Unavoidable Delay by more than twelve (12) months. Provided, however, if Lessee fails to achieve th Substantial Completion of the Youth Ice Rink prior to the last day of the forty-eighth (48) month after Commencement Date, Lessor shall have the right to terminate this Lease upon written notice to Lessee, in which case Lessee shall take all actions necessary to deliver and assign to Lessor the Lessee Materials, the Project Documents and the Construction Contract. Notwithstanding the foregoing, the provisions of this subsection shall be subject to the notice, cure and other rights of a Leasehold Mortgagee under Section 25 below, including the rights of a Leasehold Mortgagee to cure the failure and/or to cause Substantial Completion to occur. 9.1.5. Completion Guaranty. Lessee has or will enter into a completion guaranty in favor of Lessee’s Lender (“Completion Guaranty”). - 8 - 9.2.Improvements on Commercial Parcels. 9.2.1. As a material consideration for this Lease, Lessee agrees to (a) develop and operate or cause the development and operation of revenue-generating land uses on both Commercial Parcels at no cost to Lessor, and (b) use Lessee’s net revenue from the Commercial Parcels solely to pay for Lessee’s expenses to operate, maintain, and complete necessary capital improvements for the Ice Complex Parcel. The Commercial Parcels, Existing Improvements thereon, Leasehold Improvements and Alterations thereon, Easements and Appurtenances are collectively referred to herein as the “Commercial Premises”. The development of Leasehold Improvements on the Commercial Parcels shall be referred to herein as the “Commercial Project”. 9.2.2. The “revenue-generating land uses” that may be developed on the Commercial Premises are restricted by this Lease to those revenue-generating land uses authorized by the City of Spokane Valley’s municipal zoning code applicable to the Commercial Premises at the time the Lessor, as the permitting agency, receives a complete application for such development from Lessee or assignee, transferee, or subtenant that complies with all applicable requirements of this Lease. 9.3. Permits and Approvals. Lessee shall be solely responsible for obtaining, at its sole cost and expense, the approval of the Lessor, as the permitting agency, and the approval of any other governmental agencies with jurisdiction over the Premises for any building, electrical and plumbing permits, environmental impact analysis and mitigations imposed thereby, or other governmental action necessary to permit the development, construction and operation of the Leasehold Improvements and any Alterations in accordance with this Lease. Lessor shall cooperate with Lessee in Lessee’s efforts to obtain all permits and approvals and Lessor will assist in expediting the approval process by the permitting agency. Lessee shall apply for and prosecute any required governmental review processes for any discretionary approvals, comprehensive plan amendment, rezoning, variance or use permit only with the written approval of Lessor, such approval not to be unreasonably withheld, delayed or conditioned, and Lessee shall not submit any (i) environmental impact statement, addendum, checklist, or (ii) other State Environmental Policy Act document, or any consultant’s report containing information regarding Lessor, Lessor’s lands or Lessor’s tenants to any public agency without Lessor’s prior written approval, which Lessor may withhold in its sole discretion with respect to items in subparagraphs (i) and (ii) above. Lessee shall be solely responsible for compliance with all permits, conditions, and fees related to the Leasehold Improvements and/or any Alterations. 9.4. Design of Alterations After Certificate of Occupancy Issued – Ice Complex Parcel. The following provisions shall apply to all Alterations of Improvements on the Ice Complex Parcel: 9.4.1. The design of Alterations to the Ice Complex Premises or Improvements thereon, including without limitation, the site plan, structural plans, landscaping plan, materials, colors and elevations shall be functionally and aesthetically consistent with the use of and improvements on the Ice Complex Parcel at the time the Alteration is commenced. 9.4.2. If, in order to complete any Alteration to the Ice Complex Premises or Improvements thereon, Lessee is required by applicable law to obtain one or more permits from Lessor as the permitting agency, then Lessee shall submit to Lessor two (2) duplicate hard copy sets and one (1) electronic version of all design drawings for the proposed work of construction. 9.5. Prerequisites to Commencement of Construction – Ice Complex Parcel. In addition to all other requirements set forth in this Section, before commencing the construction of the Ice Complex Improvements and any Alterations thereof, and before any building materials have been delivered to the Premises by Lessee or under Lessee’s authority, Lessee shall: - 9 - 9.5.1.Furnish Lessor with all permits and approvals required to commence construction. 9.5.2. Procure and/or cause Lessee’s contractor to procure and keep in force during the course of construction the insurance coverage described below, subject to reasonable deductibles, and provide Lessor with certificates of such insurance in form satisfactory to Lessor. All such insurance shall comply with the requirements of this Section 9 and of Section 20. 9.5.2.1. During the course of construction, to the extent not covered by property insurance maintained by Lessee pursuant to Section 20. and for construction projects in excess of $1,000,000, builder’s risk property insurance on an “all risk” basis insuring against the perils of, fire and extended coverage, and physical loss or damage, including theft, vandalism and malicious mischief, collapse, false work, temporary buildings, and debris removal, including demolition resulting from the enforcement of any Applicable Laws, in the amount of the construction contract price, including all change orders, on a replacement cost basis until completion. The policy will cover the Youth Ice Rink Improvements or any Alterations in place on the Ice Complex Parcel, all materials and equipment stored on the Ice Complex Parcel and furnished under contract, and all materials and equipment that are in the process of fabrication at the premises of any third party or that have been placed in due course of transit to the Ice Complex Parcel when such fabrication or transit is at the risk of, or when title to or an insurable interest in such materials or equipment has passed to, Lessee or its construction manager, contractors or subcontractors (excluding any contractors’, subcontractors’ and construction managers’ tools and equipment, and property owned by the employees of the construction manager, any contractor or any subcontractor. 9.5.2.2. Commercial general liability, and if necessary, umbrella liability insurance for the construction project, which insurance may be effected by the policy required to be carried pursuant to Section 20. The policy will cover bodily injury and property damage, including but not limited to coverage for premises/operations, products/completed operations, elevators, contractual, personal and advertising, injury, and independent contractors. The policy will be written on an occurrence basis and in an amount not less than the amount at the time maintained by prudent Lessors of comparable construction projects in Spokane County and reasonably satisfactory to Lessor, but in any event not less than $25,000,000 in the aggregate. Lessor and the Lessor Parties shall be named as additional insureds, as their interest may appear. Any general aggregate shall apply per project. The policy shall contain a cross-liability clause or separation of insureds provision and an endorsement deleting the property damage exclusion as to explosion, underground, and collapse hazards. 9.5.2.3. Automobile and, if necessary, umbrella liability insurance including coverage for owned, non-owned, leased or hired vehicles, written on an insurance industry standard form or equivalent, with limits of not less than $5,000,000 each accident. This coverage shall be required only if Lessee or Lessee’s employees operate one or more automobiles in connection with Lessee’s construction or oversight of construction on the Ice Complex Parcel or Lessee’s operation and/or maintenance of the Ice Complex Parcel. 9.5.2.4. Provide Lessor with documentation verifying worker’s compensation insurance coverage exists for all workers engaged in the construction project, in the amounts and coverages required under workers’ compensation, disability and similar applicable employee benefit laws. 9.5.2.5. Employer’s liability Insurance with limits not less than $5,000,000 each accident or each employee for bodily injury by disease, or such higher amounts as may be required by law. - 10 - 9.6.General Construction Requirements. 9.6.1. Ice Complex Project Costs. Except as otherwise expressly provided herein, all construction and other work in connection with the Ice Complex Premisesand any Alterations shall be the responsibility of the Lessee, and shall be done at Lessee’s sole cost and expense and in accordance with the approved plans, specifications and materials. 9.6.2. Commercial Project Costs. As between the Lessor and Lessee, and except as otherwise expressly provided herein, all construction and other work in connection with the Commercial Premises and any Alterations shall be the responsibility of the Lessee and shall be done at Lessee’s sole cost and expense and in accordance with approved plans, specifications and materials. Nothing herein shall be interpreted as preventing Lessee from entering into subleases with third parties which obligate such sub- lessees to be responsible for said costs. 9.6.3. Compliance. Lessee shall construct all portions of the Ice Complex Project, Commercial Project and all Alterations in accordance with all Applicable Laws and all other applicable provisions of this Lease. Further, the Ice Complex Project shall be constructed in accordance with the plans and specifications that are in accordance with the provisions of this Section 9. 9.6.4. Safety. Lessee shall take all customary and necessary safety precautions during any construction. 9.6.5. As-Builts for thePremises. Lessee shall prepare (or require the general contractor to prepare) in accordance with normal construction practices, upon completing construction of any Leasehold Improvements on the Premises, record drawings (“as-builts”) showing clearly all changes, revisions and substitutions during construction, including, without limitation, field changes and the final location of all mechanical equipment, utility lines, ducts, outlets, structural members, walls, partitions and other significant features of the Ice Complex Premises and any Alterations. These as-built drawings and annotated plans and specifications shall be kept at the Ice Complex Premises and Lessee shall update them as often as necessary to keep them current. Lessee shall also make a copy of the as-built drawings and annotated plans and specifications and deliver electronic copies of the same to Lessor upon exercise of the Option by Lessor pursuant to Section 38.2,. 9.7. Construction Completion Procedures. Upon completion of any construction, Lessee shall deliver to Lessor evidence reasonably satisfactory to Lessor of the payment of all costs, expenses, liabilities and liens arising out of or in any way connected with such construction (except for Liens that are contested in the manner provided in Section 17), which shall include Lien waivers from all general contractors and subcontractors who participated in the construction. 9.8. On Site Inspection. Lessee agrees to allow Lessor to have an inspector on site during the construction on the Premises to satisfy Lessor’s duties and obligations as the permitting agency. No inspection performed or not performed by Lessor hereunder shall (a) give, or be deemed to give, Lessor any responsibility or liability for the Premises or any Alterations, or the design or construction thereof; (b) constitute, or be deemed to constitute, approval or acceptance of, any aspect of the design or construction of the Premises or any Alterations; or (c) constitute or be deemed to constitute a waiver of any of Lessee’s obligations hereunder. 10. Improvements And Alterations 10.1. During the Term, title to all Improvements and personal property now or hereafter located on the Premises shall be vested in Lessee until either (a) the Expiration Date, (b) the date when the Premises - 11 - are conveyed to Lessor following Lessor’s exercise of the Option to Purchase or Right of First Refusal, in which case title to all of Lessee’s interests in the Premises and Improvements shall transfer to Lessor, (c) Lessee, pursuant to and in compliance with the requirements of this Lease, assigns all its interest to a Parcel under this Lease to a third party who is not an Affiliate (as defined in Section 23.6) or wholly-owned subsidiary of Lessee, in which case the third party assignee shall be the owner of the Improvements then- existing on the Parcel(s) so conveyed, or (d) as otherwise provided in any sublease made by Lessee in compliance with the terms of this Lease. Notwithstanding the foregoing, the ownership and disposition of all personal property, trade fixtures and improvements installed by any subtenants of the Premises shall be as provided in their subleases with Lessee. Lessee’s leasehold interest in the Premises and interest in the Improvements shall not be conveyed, transferred or assigned, except as permitted under Sections 23 and 25. Any attempted conveyance, transfer or assignment of Lessee’s leasehold interest in the Sullivan Propertyor ownership interest in the Improvements, whether voluntarily or by operation of law or otherwise, to any person, corporation or other entity shall be void and of no effect whatever, except as permitted under Sections 23 and 25. Notwithstanding the foregoing, Lessee may from time to time replace the Leasehold Improvements and any Alterations, provided that the replacements for such items are of equivalent or better value and quality, and such items are free from any liens and encumbrances except for equipment leases and any other financings expressly permitted hereunder. 11. Operations, Maintenance, Capital Improvements, and Security of the Ice Complex Premises. 11.1. Operations. 11.1.1. Lessee is solely and exclusively responsible for performing or, pursuant to Section 11.3.4 of this Lease, entering into an agreement for the performance of Operations on the Ice Complex Parcel, including but not limited to the Youth Ice Rink. “Operations” means the routine and regular provision of all labor, materials, utilities and other services required to use, operate and manage the Premises, and shall include but not be limited to the following elements: (i) staffing the Premises and Improvements; (ii) scheduling, presenting and promoting hockey and skating events; and (iii) managing all other Operations in the Improvements and/or of the Premises. 11.1.2. Permitted Use. Subject to all provisions and limitations contained herein, the Ice Complex Premisesshall at all times during the Term be used and operated solelyfor the purposes stated in Section 1 and in this Section 11, and for no other purpose. Lessee acknowledges that the foregoing covenant is a material consideration for Lessor’s agreement to enter into this Lease. Any violation of said covenant shall constitute a material breach of this Lease and entitle Lessor to exercise any and all of its rights and remedies under this Lease or otherwise at law or in equity. 11.1.3. Prohibited Uses. Without limiting the foregoing or any other provision of this Lease, Lessee shall not do any act, or allow any subtenant or other user of the Ice Complex Premises to do any act, and in no event shall the Ice Complex Premises be used for a purpose other than that identified in Section 11.1.2. 11.1.4. Public Benefit. Upon Lessee’s receipt of a certificate of occupancy for the Youth Ice Rink, Lessee shall make the Youth Ice Rink available for use by the general public and through private reservations for such activities which are consistent with the purposes for which the Youth Ice Rink exists, which may include (but not necessarily be limited to): public skate sessions; open skate; youth and adult hockey lessons and clinics; youth and adult hockey divisions; adult and youth hockey club use; youth hockey development programs; youth hockey camps; youth learn to play programs; hockey coaching lessons; figure skating lessons and clinics (for adults and children); adult and youth figure skating club use; - 12 - figure skating coaching; figure skating camps; girls and women hockey programs; field trips; birthday parties; and ice rentals. 11.1.4.1. Each calendar year beginning in the year a certificate of occupancy is issued for the Youth Ice Rink, Lessee must make said facility available to the general public for at least five-hundred (500) hours of free or reduced cost services at reasonable times that facilitate meaningful public use. Lessee may provide this public benefit through philanthropic programs, such as financial needs- based scholarships and other programs serving economically disadvantaged members of the public. 11.1.4.2. Lessee shall provide a report to Lessor each year identifying the dates and number of hours Lessee provided the aforementioned free or reduced-cost services and the manner in which they were provided. 11.2. Maintenance of Ice Complex Parcel. 11.2.1. Lessee Maintenance Obligations. Lessee is solely and exclusively responsible for performing Maintenance of the Ice Complex Parcel. “Maintenance” means the routine and regular provision of all labor, materials, utilities and other services for: (i) performing all preventive or routine non- capitalized maintenance, including that which is stipulated in operating manuals for the Premises (and the equipment, fixtures and systems therein) as regular, periodic maintenance procedures; (ii) conducting regular non-capitalized maintenance for all systems of the Ice Complex Premises, including the heating, ventilation and air conditioning systems, electrical, plumbing and mechanical, technology infrastructure, vertical transportation, and roof; (iii) performing routine maintenance of the surface of the skating rinks; (iv) keeping all portions of the Premises clean and free from debris; and (v) performing all other non- capitalized routine repair and replacement of the Premises, all subject to normal wear and tear, casualty and condemnation. 11.2.2. No Obligation of Lessor to Repair. Lessor shall not be obligated to make any repairs, replacements or renewals of any kind, nature or description whatsoever to the Ice Complex Parcel or the Improvements, and Lessee hereby expressly waives any right under any Applicable Laws to (a) terminate this Lease due to Lessor’s refusal to make any repair, replacement or renewal, and/or (b) make repairs at Lessor’s expense. 11.3. Capital Improvements; Operations. 11.3.1. CapEx Work. After the certificate of occupancy is issued for the Youth Ice Rink, it may be necessary for Lessee to complete capital improvements (“CapEx Work”) in order for Lessee to operate the Youth Ice Rink in accordance with the terms of this Lease. 11.3.2. Expenses for Operations, Maintenance, and Capital Expenditures. Lessee is solely and exclusively responsible for and shall pay all costs and expenses associated or incurred in connection with performing (i) Operations, which includes payments to service debt incurred by Lessee to develop, maintain or operate the Ice Complex Premises (the “Operating Expenses”), (ii) expenses to complete CapEx Work (the “CapEx Expenses”) and (iii) Maintenance (the “Maintenance Expenses”) of the Ice Complex Premises. For the avoidance of doubt, the terms CapEx Expenses and Maintenance Expenses shall include reasonable reserves earmarked for CapEx Expenses and Maintenance Expenses respectively. Lessee covenants and agrees to provide sufficient funding to satisfy these obligations and acknowledges and agrees Lessor shall have no liability for the performance or cost and expense of any Operations or Maintenance. 11.3.3. Delegation of Operations. Maintenance and CapEx Work. The City acknowledges - 13 - that Lessee shall have the right to delegate performance of its Operations, Maintenance and CapEx Work obligations to a wholly-owned subsidiary of Lessee, or to an Affiliate controlled by or under common control with Lessee, provided that (i) Lessee promptly notifies the City of such delegation, (ii) Lessee shall not be released from liability to Lessor under this Agreement for the performance of all such duties and (iii) Lessee shall be responsible for ensuring that Operations, Maintenance, and CapEx Work are performed consistent with the terms of this Lease. 11.3.4. Outsourcing of Operations and/or Maintenance Duties. Lessee may outsource its Operations and/or Maintenance duties to a third-party independent contractor, provided Lessee notifies the City and certifies that the third-party operator has the knowledge and expertise necessary to operate and maintain such facilities in accordance with this Lease. Lessee shall not be released from liability to Lessor under this Agreement for any such outsourced Operations and/or Maintenance work and shall remain responsible for ensuring that such outsourced services are performed consistent with Lessee’s obligations under this Agreement. Lessee’s outsourcing of Operations and/or Maintenance duties shall in no manner limit Lessee’s duty to indemnify Lessor as provided herein. 11.3.5. Permits and Approvals. The Parties acknowledge and agree that Lessee is responsible for obtaining all necessary Permits and Approvals with respect to the use, management, Operations and Maintenance of the Premises. 11.4. Security and Emergency Management Plan. At Lessee’s expense, Lessee shall be solely responsible for security of the Ice Complex Premises and the safety of persons thereon. Lessee shall (a) maintain and shall regularly update a security and emergency management plan for the Premises in a form substantially similar to the example attached as Exhibit E, and (b) provide a copy thereof to the Lessor within seven (7) calendar days of the requesting the same. 12. Commercial Parcel Operations, Maintenance, Capital Improvements, and Restricted Use of Net Revenues of Commercial Parcels. 12.1. Permitted Use. Development and use of the Commercial Parcels is unrestricted except as otherwise specifically provided in this Lease. 12.2. Prohibited Uses. Without limiting the foregoing or any other provision of this Lease, Lessee shall not do any act, or allow any subtenant or other user of the Commercial Premises to do any act, and in no event shall the Commercial Premises be used for a purpose other than that identified in Section 12.1. 12.3. Operations, Maintenance, and Capital Improvements of Commercial Parcels. Lessee shall be solely responsible for Operations, Maintenance, CapEx Work of the Commercial Premises except as otherwise provided in Section 23 of this Lease. If Lessee subleases any portion of a Commercial Premises to another person or entity, then Lessee shall remain responsible to Lessor for compliance with this Lease unless otherwise agreed in a writing signed by Lessor after the Commencement Date of this Lease. 12.3.1. Expenses for Operations, Maintenance and CapEx Work. Between Lessee and Lessor, Lessee is solely and exclusively responsible for and shall pay all (i) Operating Expenses, (ii) CapEx Expenses, and (iii) Maintenance Expenses of the Commercial Premises. Lessee agrees Lessor shall have no liability for the performance or cost and expense of any Operations, Maintenance, or capital improvements. 12.3.2. No Obligation of Lessor to Repair. Lessor shall not be obligated to make any repairs, replacements or renewals of any kind, nature or description whatsoever to the Commercial - 14 - Premises, and Lessee hereby expressly waives any right under any Applicable Laws to (a) terminate this Lease due to Lessor’s refusal to make any repair, replacement or renewal, and/or (b) make repairs at Lessor’s expense. 12.3.3. Permits and Approvals. The Parties acknowledge and agree that Lessee is responsible for obtaining all necessary permits and approvals with respect to the use, management, operations and maintenance of the Commercial Premises. 12.4. Public Benefit. All net revenue received by Lessee from development of or Improvements on the Commercial Premises (“Commercial Net Revenue”) shall be used solely to pay for Lessee’s Operating Expenses, Maintenance Expenses, and CapEx Expenses of the Ice Complex Premises, and for the purposes set forth in 11.1.4. Lessee is prohibited from entering into any agreement or other arrangement in which Lessee receives less than fair market value for any right or privilege conveyed to any person or entity to develop and/or use the Commercial Premises. 12.4.1. At the time Lessee provides Lessor with the report identified in Section 11.1.4.2 of this Lease, Lessee shall also provide Lessor with a report that identifies the following (1) the net revenue of the Ice Complex Premises for the year to which the report pertains, including the gross revenue and expenses thereof along with a categorical itemization of each revenue source and expense, (2) the Commercial Net Revenue during the reporting year, including the gross revenue received by Lessee from each of the Commercial Premises as well as the expenses Lessee utilized to calculate the net revenue received therefrom, and (3) by category and amount, the uses to which Lessee applied the Commercial Net Revenue. 13. Net Lease; No Counterclaim or Abatement 13.1. Net Lease. The Rent due hereunder shall be absolutely net to Lessor and shall be paid without assertion of any counterclaim, offset, deduction or defense and without abatement, suspension, deferment or reduction. Lessor shall not be expected or required under any circumstances or conditions whatsoever, whether now existing or hereafter arising, and whether now known or unknown to the parties, to make any payment of any kind whatsoever with respect to the Premises or be under any obligation or liability hereunder, except if and solely to the extent expressly so provided elsewhere in this Lease. 13.2. Expenses of Lessor. Lessee shall pay to Lessor, within ten (10) days after the date of mailing or personal delivery of statements, for the following incurred by Lessor, after an Event of Default and expiration of any applicable cure period provided in this Lease: all reasonable costs and expenses, including attorneys’ fees, paid or incurred by Lessor: (a) required to be paid by Lessee pursuant to this Lease (including without limitation pursuant to any indemnity provision), (b) in enforcing any of Lessee’s covenants or obligations in this Lease following an Event of Default, (c) in protecting Lessor against or remedying any default of this Lease by Lessee, (d) in recovering possession of the Premises or any part of the Premises after an Event of Default, (e) in collecting or causing to be paid to third parties any amounts payable by Lessee under this Lease, within thirty (30) days of receiving notice of the amount that is then due and unpaid, (f) in connection with any estoppel requested by Lessee, or (g) in connection with any litigation (other than condemnation proceedings) commenced by or against Lessee to which Lessor shall without fault be made a party (unless defended by Lessee at Lessee’s cost). 13.3. Independent Covenants. The obligations of Lessee under this Lease shall be separate and independent covenants, and each covenant of Lessee shall be both a covenant and a condition. 14. Lodging Tax Funds to Partially Subsidize Operating Expenses. Upon issuance of a final certificate of completion for the Youth Ice Rink, the Ice Complex Premises will be real property owned by Lessee nonprofit organization, will have a useful life greater than three (3) years, and will have been - 15 - designed and will be operated to support and promote tourism within the City and Spokane County. Per the recommendation of Lessor’s Lodging Tax Advisory Committee and approval of Lessor’s City Council, both of which are hereby acknowledged, beginning in year 2027 and until the end of year 2031, Lessor shall transfer to Lessee a portion of tax revenues collected by Lessor pursuant to RCW 67.28.180 (“Lodging Tax Funds”) each year for Lessee to apply towards those reasonable Operating Expenses incurred by Lessee solely to operate, but not maintain or complete capital improvements for, the Ice Complex Premises so long as Lessee does not operate, or allow to be operated, a hotel or motel on the Commercial Parcels in any year in which Lessee receives Lodging Tax Funds. The Lodging Tax Funds shall be distributed to Lessee on a reimbursement basis for Operation Expenses incurred by Lessee, and shall be distributed to Lessee within fourteen (14) days after the Lessor receives a written reimbursement request from Lessee that is accompanied by a copy of invoices or other records demonstrating Lessee incurred each expense for which it seeks reimbursement, and Lessee shall not submit any reimbursement request to Lessor until thirty (30) days after the immediately preceding reimbursement request. The aggregate amount of Lodging Tax Funds contributed by the Lessor to Lessee shall not exceed the lesser of the amounts requested by Lessee for reimbursement or (a) six-hundred thousand dollars ($600,000) each year for years 2027 and 2028, and (b) five-hundred fifty thousand dollars ($550,000) each year for years 2029 through 2031. To receive Lodging Tax Funds for operation costs of the Ice Complex Premises for any year after 2031, Lessee will need to formally submit a complete request for such funding through Lessor’s official process for Lodging Tax Fund grants. Lessor’s administrative staff shall cooperate and facilitate Lessee’s request for funding past year 2031, but nothing herein shall be interpreted as a promise or commitment by Lessor to provide Lodging Tax Fund grants to Lessee past year 2031. 15. Utilities And Services 15.1 Lessee shall be solely responsible for, shall make all arrangements for, and shall pay for all utilities and services furnished to or used at the Premises, including without limitation, gas, electricity, water, telephone, cable and other communication services, security services, sewage, sewage service fees, trash collection, and any Taxes thereon. All service lines of such utilities shall be installed and connected and maintained at no cost or expense to Lessor other than as expressly provided in Section 15.2 herein. 15.2 Necessary transportation and sewer infrastructure improvements currently traverse or will traverse other City-owned property that is not subject to this Lease. In addition to serving the Ice Complex Premises, these infrastructure improvements will serve the Commercial Premises, the revenue of which shall be used exclusively to pay for the costs to maintain, make future capital improvements to, and operate the Ice Complex Premises, and by extension support tourism and accommodate tourist activities within the City. These infrastructure improvements will also serve existing tourism-generating facilities owned by the City. Construction of the transportation infrastructure improvements, installation of a sewer lift station on the Commercial Premises, and installation of a sewer line connecting the sewer lift station to the main sewer line that runs along Sullivan Road shall be at Lessor’s sole expense and shall be located as depicted in Exhibit C attached hereto. City shall complete and approve the design of the aforementioned transportation and sewer infrastructure improvements in accordance with Exhibit C, and shall complete construction of such improvements no later than June 30, 2027. All costs and expenses to install, maintain and operate said infrastructure improvements within or on the Premises (other than the aforementioned sewer lift station) shall be Lessee’s sole responsibility. Lessor hereby represents and warrants that on the Commencement Date of this Lease Lessor will begin and expeditiously complete the design work, public bidding process, and execution of binding construction contracts in order to complete construction of the infrastructure improvements required to be provided by Lessor pursuant to this Section 15.2 on or before June 30, 2027. 15.3 Lessor shall maintain the sewer lift station installed on the Premises at Lessor’s expense. Lessee agrees that it shall, at no expense to Lessor, (1) require all development of the Premises to include installation and implementation of one or more grease separator systems that, based on the scope and land - 16 - uses of the Premises, are adequate to separate grease from wastewater entering the sewer lift station from the Premises, and (2) ensure that the grease separator systems are maintained and functional. 16. Mechanics’ And Other Liens 16.1. No Liens. Lessee covenants and agrees to keep the Premises and every part thereof and all Improvements free and clear of and from any and all mechanics’, material suppliers and other liens for: (a) work or labor done, services performed, materials, appliances, or power contributed, used or furnished, or to be used, in or about the Premises for or in connection with any operations of Lessee; (b) the Ice Complex Project, Commercial Project, or any Alterations; or (c) any work or construction by, for or permitted by Lessee on or about the Premises or Improvements (collectively, “Liens”). Lessee shall (a) promptly and fully pay and discharge any and all claims upon which any such Lien may or could be based, and keep the Premises and Improvements free and clear of, and save and hold Lessor, the Premises and the Improvements harmless from, any and all such Liens and claims of Liens, damages, liabilities, costs (including, without limitation, attorneys’ fees and costs), suits or other proceedings pertaining thereto, and (b) provide Lessor with proof that all such obligations have been satisfied and discharged. 16.2. Lessor’s Interests. Nothing herein shall authorize Lessee to do any act that may encumber the fee simple title of Lessor in and to the Premises, nor shall the fee simple estate of Lessor therein be in any way subject to any claim of lien or encumbrance, whether claimed by operation of law or by virtue of any express or implied contract by Lessee. Any claim to a lien upon the Premises or any Improvements constructed thereon by Lessee, arising from any act or omission of Lessee, shall accrue only against the leasehold estate and shall in all respects be subject to the paramount fee simple title of Lessor. In no event shall any interest of Lessor in the Premises, including without limitation, Lessor’s right to receive Rent and its other rights and interest under this Lease (collectively, “Lessor’s Interest”), be subject or subordinate to any Lien. Without limitation of the foregoing, no work performed by, through, under or for Lessee pursuant to this Lease shall be deemed to be for the immediate use or benefit of Lessor to the end that no mechanic's or other liens shall be allowed against the estate of Lessor by reason of any consent given by Lessor to Lessee to improve the Premises. Prior to commencement of any work or the supplying of materials, Lessee shall provide to any contractor or subcontractor performing services or supplying materials for or to Lessee notice that such service and/or supplies are not at the direction of Lessor. 16.3. Lessor’s Right to Cause Release of Liens. If Lessee does not cause any Lien that Lessee does not contest in accordance with Section 17 to be released of record by payment or posting of a proper bond or insured over within thirty (30) days following the imposition of such Lien, Lessor shall have the right, but not the obligation, to cause the Lien to be released by any means Lessor may deem appropriate, and the amount paid by Lessor plus interest at the Interest Rate from the date of payment by Lessor, shall be Additional Rent, immediately due and payable by Lessee to Lessor upon demand. 17. Right To Contest Liens Lessee shall have the right to contest, in good faith, the amount or validity of any Lien, provided that, before doing so, Lessee shall give Lessor written notice of Lessee’s intention to do so within thirty (30) days after the recording of such Lien and provided further that Lessee shall, at its expense, defend itself and Lessor against such Lien and shall pay and satisfy any adverse judgment that may be rendered concerning such Lien before that judgment is enforced against the Premises. In addition, at the request of Lessor, Lessee shall either (a) procure and record a bond freeing the Premises from the effect of such Lien; or, (b) at Lessee’s election, cause such Lien to be insured over for the benefit of Lessor; or (c) post - 17 - alternative security that is reasonably acceptable to Lessor and meets the requirements of Applicable Law to cause the Lien to no longer attach to Lessor’s Interest. 18. Compliance With Laws Lessee, at Lessee’s sole cost and expense, shall comply with all Applicable Laws relating to this Lease, the Premises, and/or the Improvements during the Term. Lessee shall give Lessor prompt written notice of any violation of Applicable Laws by Lessee or its agents known to Lessee and, at its sole cost and expense, Lessee shall promptly rectify any such violation. Without in any way limiting the generality of the foregoing obligation of Lessee, Lessee shall be solely responsible for compliance with, and shall make or cause to be made all such Alterations to the Premises (including, without limitation, removing barriers and providing alternative services) as shall be required by the Americans with Disabilities Act (42 USC section 12101 et seq.), as the same may be amended from time to time, and any similar or successor laws, and with any rules or regulations promulgated thereunder. Any work or installations made or performed by or on behalf of Lessee or any person or entity claiming through or under Lessee in order to conform the Premises to Applicable Laws shall be subject to and performed in compliance with the provisions of this Lease. 19. Hazardous Substances 19.1. Hazardous Substances. Except as provided in this Section 19.1, no Hazardous Substance shall be used, treated, kept, stored, transported, handled, sold or Released at, on, under or from the Premises during the Term. Notwithstanding the foregoing, Lessee and Lessee’s Agents may use such quantities of standard janitorial, kitchen, and office products, and also such products as are incorporated into the functioning of building systems (e.g. HVAC units and elevators) that are typical or necessary to the permitted use of the Premises and may use such quantities of Hazardous Materials as is necessary and typical in connection with the construction and operation of the Premises, and then only in compliance with all Applicable Laws. Lessee shall (i) in all respects comply with all Environmental Requirements in its operation of the Premises and (ii) handle, treat, deal with and manage any and all Lessee’s Hazardous Substances in total conformity with all Environmental Requirements, other Applicable Laws, and prudent industry practices regarding Hazardous Substances management. 19.2. Permits; Inventories. Lessee shall, at its own expense, procure, maintain in effect and comply with all conditions of any and all permits, licenses, and other governmental and regulatory approvals required for Lessee’s use of Hazardous Substances at the Premises, including, without limitation, discharge of appropriately treated materials or wastes into or through any sanitary sewer serving the Premises. 19.3. No Lien. Lessee shall not suffer any lien to be recorded against the Premises as a consequence of any Lessee Environmental Activity, including any so-called state, federal or local Superfund lien related to the remediation of any Hazardous Substances in or about the Premises. 19.4. Indemnity for Environmental Claims. 19.4.1. To the greatest extent allowed by Applicable Laws, Lessee and its successors and assigns shall indemnify, protect, defend, reimburse, and save and hold harmless Lessor and the Lessor Parties from and against any and all Environmental Claims to the extent arising from or related to (a) Lessee Environmental Activity, (b) any non-compliance by Lessee with Environmental Requirements at the Premises, (c) any other acts or omissions of Lessee or Lessee’s Agents in or about the Premises which result in the Release of Hazardous Substances, or (d) Lessee’s demolition of the Existing Improvements and construction of the Improvements. Lessee’s obligations hereunder shall include, but not be limited to, the reimbursement of Lessor’s costs and expenses related to the defense of all claims, suits and administrative - 18 - proceedings (using counsel selected by Lessor in its sole discretion), even if such claims, suits or proceedings are groundless, false or fraudulent; participating in all negotiations of any description; and promptly paying and discharging when due any and all judgments, penalties, fines or other sums due against or from Lessor or the Premises. Notwithstanding anything to the contrary contained herein, Lessee’s indemnity shall not apply to the acts or omissions, negligence or willful misconduct of Lessor or any Lessor Party. 19.4.2. To the greatest extent allowed by Applicable Laws, Lessor and its successors and assigns shall indemnify, protect, defend, reimburse, and save and hold harmless Lessee and the Lessee Parties from and against any and all Environmental Claims to the extent arising from or related to (a) any non-compliance or violation of Environmental Requirements with respect to the Sullivan Property occurring prior to the Commencement Date, or (b) any other acts or omissions of Lessor or Lessor’s Agents in or about the Premises which result in the Release of Hazardous Substances. Lessor’s obligations hereunder shall include, but not be limited to, the reimbursement of Lessee’s costs and expenses related to the defense of all claims, suits and administrative proceedings (using counsel selected by Lessee in its sole discretion), even if such claims, suits or proceedings are groundless, false or fraudulent; participating in all negotiations of any description; and promptly paying and discharging when due any and all judgments, penalties, fines or other sums due against or from Lessee or the Premises. Notwithstanding anything to the contrary contained herein, Lessor’s indemnity shall not apply to the acts or omissions, negligence or willful misconduct of Lessee or any Lessee Party. 19.5. Obligation to Remediate. Notwithstanding the obligation of Lessee to indemnify Lessor pursuant to this Lease, during the Term of this Lease, Lessee shall, upon demand by Lessor, and at Lessee’s sole cost and expense, promptly take all actions to remediate the Premises from the effects of any Lessee Environmental Activity and to obtain regulatory closure determinations (referred to by several Environmental Requirements as “No Further Action Opinion Letters”) from all applicable Governmental Authorities or agencies having jurisdiction over the Premises, including without limitation the Environmental Protection Agency, Washington Department of Ecology, the City, and Spokane County. Lessee shall be responsible for all reporting obligations under applicable Environmental Requirements relating to Lessee Environmental Activity, and Lessee agrees to be named on any remediation orders as the primarily responsible party for such Lessee Environmental Activity, and Lessor shall be named, if Lessor consents in writing to be named, only secondarily liable. Lessor shall have the right to participate in all negotiations with the Governmental Authorities having jurisdiction over any remediation. Lessee’s remediation obligations with regard to Lessee Environmental Activity shall include, but not be limited to, the investigation of the environmental condition of the Premises, the preparation of any feasibility studies, reports or remedial plans, and the performance of any cleanup, remediation, containment, operation, maintenance, monitoring or restoration work, whether on or off of the Premises. Lessee shall take all actions required under Environmental Requirements to remediate the Premises from the effects of such Lessee Environmental Activity. All such work, including without limitation the contractor(s) performing the work and the work plan for the remediation, shall be reasonably approved in advance and in writing by Lessor. Lessee shall proceed continuously and diligently with such investigatory and remedial actions, provided that in all cases such actions shall be in accordance with all Applicable Laws. Any such actions shall be performed in a good, safe and workmanlike manner. Lessee shall pay all costs in connection with such investigatory and remedial activities, including but not limited to all power and utility costs, and any and all taxes or fees that may be applicable to such activities. Lessor’s environmental consultant shall have the right to be present during any testing or investigation on the Premises, and Lessee shall promptly provide to Lessor copies of testing results and reports that are generated in connection with the above activities and any that are submitted to any governmental entity. Promptly upon completion of such investigation and remediation, Lessee shall permanently seal or cap all monitoring wells and test holes in accordance with sound engineering practice and in compliance with Applicable Laws, remove all associated equipment, and restore the Premises to the maximum extent possible, which shall include, without limitation, the repair of - 19 - any surface damage, including paving, caused by such investigation or remediation. Lessee shall, in compliance with this Section 19.5 and Environmental Requirements, other Applicable Laws, and prudent industry practices regarding Hazardous Substances management, be responsible for the removal, disposal, and/or remediation of any Hazardous Substances present in the Premises during demolition of the Existing Improvements and construction of the Improvements. 19.6. Obligation to Notify. If Lessee or Lessor shall become aware of or receive notice or other communication in writing concerning any actual, alleged, suspected or threatened violation of Environmental Requirements, Release of Hazardous Substances, or liability for Environmental Claims in connection with the Premises, including but not limited to, notice or other communication concerning any actual or threatened investigation, inquiry, lawsuit, claims, citation, directive, summons, proceeding, complaint, notice, order, writ, or injunction, relating to same, then such party promptly shall deliver to the other party a written description of said notice or other communication within five (5) Business Days after receipt. Except as required by Applicable Laws, or as permitted by Lessor or Lessee in writing, Lessee and Lessor shall maintain the confidentiality of all information, reports and assessments regarding the environmental condition of the Premises, whether received by or prepared for Lessee or Lessor, unless otherwise required to be disclosed by Applicable Law. 19.7. Right to Remediate. If Lessee fails to perform or observe any of its obligations or agreements pertaining to Hazardous Substances or Environmental Requirements, then Lessor shall have the right, but not the obligation, without limitation of any other rights of Lessor hereunder, following thirty (30) days prior written notice to Lessee, and Lessee’s failure to commence remediation activities within the 30-day period, to enter the Premises personally or through Lessor’s Agents and perform the same. Lessee agrees to indemnify Lessor for the costs thereof and liabilities therefrom as set forth above in this Section. With respect to any work undertaken by Lessor to remediate the Premises from the effects of Lessee Environmental Activity pursuant to this Section, Lessee shall be named as generator of all Hazardous Substances that are disposed of in connection with the remediation, and all such Hazardous Substances shall be disposed of using Lessee’s hazardous waste generator number. 19.8. Statute of Limitations. Lessee hereby agrees that no statute of limitations relating to Lessee Environmental Activity, the presence of Hazardous Substances, the violation of Environmental Requirements or any other matter covered by this Section shall commence to run unless and until Lessor obtains actual knowledge of any of the foregoing in the course of any inspection or assessment conducted by Lessor, whether independently, from Lessee, or by written notice from a governmental agency with jurisdiction over the environmental condition of the Premises or from Lessee (each, a “Triggering Event”). In the event of a Triggering Event, Lessor and Lessee shall enter into a commercially reasonable agreement to toll all applicable statutes of limitation, which the parties shall renew periodically during the Term; provided that by entering into such agreement Lessor shall not be deemed to have waived any enforcement rights, and Lessee shall not be deemed to have waived any substantive defenses, available pursuant to this Lease or any Applicable Laws. 19.9. Existing Hazardous Substances. 19.9.1. Lessee’s Release. From and after the Commencement Date, Lessee hereby releases Lessor and all Lessor Parties from all liability to Lessee or Lessee Parties related to the Release of any Hazardous Substances in, on, under or about the Premises on or after the Commencement Date, except to the extent such liability arises as a result of the gross negligence or willful misconduct of Lessor or any Lessor Parties. 19.9.2. Lessor’s Release. Lessor hereby releases and agrees to hold harmless and - 20 - indemnify Lessee and all of its officers, employees, agents and representatives of Lessee (the “Lessee Parties”) from all liability to Lessor related to the (i) existence or Release of any Hazardous Substances in, on, under or about the Premises prior to the Commencement Date, as well as any (ii) migration, seepage or discharge on, under or in the Premises of Hazardous Substances originating off of the Premises, except to the extent such liability arises or is exacerbated as a result of the gross negligence or willful misconduct of Lessee following the Commencement Date. Notwithstanding the foregoing, Lessee shall not be released from its obligations pursuant to Section 19.5. 19.9.3. Other Claims. Nothing in this Section 19 shall prevent or limit Lessor or Lessee (separately or jointly) from pursuing claims against third parties who may have liability with respect to Environmental Claims and/or Hazardous Substances with respect to the Premises, whether arising before or after the Commencement Date. 19.10. General Provisions. 19.10.1. The provisions of this Section 19 shall survive any termination of this Lease. 19.10.2. The provisions of Section 20 (Insurance) shall not limit in any way Lessee’s obligations under this Section 19. If any governmental agency or department requires insurance or bonds with respect to any proposed or actual use, storage, treatment or disposal of Hazardous Substances by Lessee or any of Lessee’s Agents, Lessee shall be responsible for such insurance and bonds and shall pay all premiums and charges connected therewith; provided, however, that this provision shall not be deemed to modify the requirements of Section 20. 20. Insurance 20.1. Required Insurance. At all times during the Term and at its sole cost and expense, Lessee shall obtain and keep in force for the benefit of Lessee and Lessor the following insurance: 20.1.1. Property Insurance. Commercial property insurance covering the building, fixtures, equipment, tenant improvements (unless separately insured by subtenants) and betterments, with coverage at least as broad as the ISO special causes of loss form and specifically including the perils of earthquake, flood and terrorism. The amount of such insurance (other than earthquake, flood and terrorism coverage) shall be the Full Replacement Value. The amount and terms of earthquake, flood and terrorism coverage shall be as close to Full Replacement Value as is available at commercially reasonable rates given market deductibles and coverage limits and comparable to that carried by similar commercial properties in the greater Spokane area. Lessor shall be named as a loss payee on Lessee’s property insurance. Lessee’s property insurance shall be primary and non-contributory to any insurance or self-insurance maintained by Lessor. 20.1.1.1. “Full Replacement Value” means 100% of the actual costs to replace the Improvements (without deduction for depreciation but with standard exclusions such as foundations, excavations, paving and landscaping, as applicable to specific perils), including the costs of demolition and debris removal and including materials and equipment not in place but in transit to or delivered to the Premises. The Full Replacement Value initially shall be determined at Lessee’s expense by an appraiser or an insurer, selected by Lessee and reasonably acceptable to Lessor. Lessee shall notify Lessor of the determination of the Full Replacement Value by such appraiser or insurer. Lessor or Lessee may at any time, but not more frequently than once in any twelve (12) month period, by written notice to the other, require the Full Replacement Value to be redetermined, at Lessee’s expense, by an appraiser or insurer selected by Lessee and reasonably acceptable to Lessor. Lessee shall not cause the Full Replacement Value to be redetermined except in accordance with the preceding sentence. Lessee shall maintain coverage - 21 - at the current Full Replacement Value throughout the Term, subject to reasonable deductibles approved in writing by Lessor. 20.1.2. Worker’s Compensation. Worker’s Compensation Insurance in the amounts and coverages required in accordance with Applicable Laws, if applicable. 20.1.3. Employer's Liability Insurance. Employer's liability insurance in an amount not less than $5,000,000 each accident or per employee for bodily injury or from disease, if applicable. 20.1.4. Commercial General Liability Insurance. Commercial general and if necessary umbrella liability insurance covering the use and occupancy of the Premises and insuring against claims for bodily injury, property damage and other covered loss (however occasioned) occurring on the Premises during the policy term. Such coverage shall be written on an “occurrence” form, with such limits as may be reasonably required by Lessor from time to time, but in any event not less than $5,000,000 in the aggregate for the Premises, which Lessee shall increase as necessary during the Term to maintain adequate coverage over time that is comparable to the requirements in effect as of the execution of this Lease. 20.1.4.1. Such insurance shall (A) provide blanket contractual coverage, including liability assumed by and the obligations of Lessee under Section 21 for bodily injury, death and/or property damage; (B) provide Products and Completed Operations and Independent Contractors coverage and Broad Form Property Damage liability coverage without exclusions for collapse, explosion, demolition, underground coverage and excavating, including blasting; (C) provide liability coverage on all mobile equipment used by Lessee; and (D) include a cross liability endorsement (or provision) permitting recovery with respect to claims of one insured against another. 20.1.4.2. If commercial general liability insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 20.1.4.3. In the event that Lessee or any subtenant of Lessee is in the business of selling or serving alcoholic beverages, unless such insurance is separately provided by such subtenant, Lessee shall procure liquor liability insurance coverage (unless such insurance is separately provided by such subtenant), in an amount not less than $1,000,000 per occurrence and $2,000,000) in the aggregate. 20.1.4.4. Commercial Auto Liability. Automobile and, if necessary, umbrella liability insurance including coverage for owned, non-owned, leased or hired vehicles, written on an insurance industry standard form or equivalent, with limits of not less than $2,000,000 for each occurrence. Notwithstanding the foregoing, Lessee is not required to obtain commercial auto liability insurance coverage if Lessee (a) demonstrates such coverage is provided under other insurance coverage of Lessee, or (b) certifies in writing that no agent thereof will operate an automobile in connection with developing, operating, maintaining, or completing capital improvements on any portion of the Premises 20.1.5. Other. All other insurance that Lessee is required to maintain under Applicable Laws. 20.2. Policy Form and General. 20.2.1. Policies. All of the insurance policies required under this Lease and all renewals thereof shall be issued by one or more companies of recognized responsibility, authorized to do business in Washington, with a financial rating reasonably acceptable to Lessor. The proceeds of all property damage - 22 - and builder’s risk policies of insurance shall be payable to Lessee for application in accordance with this Lease, and Lessor shall be named as an additional insured, as its interest may appear. All liability insurance shall name as additional insureds Lessor, the Lessor Parties, and such other parties as Lessor reasonably may request, as their interest may appear. All deductibles and self-insurance retention shall be paid by Lessee. All insurance of Lessee shall be primary coverage to Lessor and the Lessor Parties. Any insurance or self-insurance maintained by Lessor shall be excess of Lessee’s insurance and shall not contribute to it. 20.2.2. Proof of Insurance; Renewals. Copies of Lessee’s certificates of insurance shall be delivered to Lessor within ten (10) days prior to the delivery of possession of the Premises to Lessee and thereafter within five (5) days prior to the expiration of the term of each such policy. As often as any policy shall expire or terminate, renewal or additional policies shall be procured and maintained by Lessee in like manner and to like extent. Lessee will give to Lessor thirty (30) days’ notice in writing in advance of any cancellation or lapse or of the effective date of any reduction in the amounts of insurance. Lessor reserves the right to require complete certified copies of all required insurance policies, including endorsements affecting the coverage required by the specifications at any time. 20.2.3. Increased Coverage. If either party shall at any time deem the limits of any of the insurance described in this Lease then carried or required to be carried to be either excessive or insufficient, the parties shall endeavor to agree upon the proper and reasonable limits for such insurance then to be carried and such insurance to the extent available at commercially reasonable rates, shall thereafter be carried with the limits thus agreed upon until further change pursuant to the provisions of this subsection. If the parties shall be unable to agree on the proper and reasonable limits for such insurance, then either party may submit the matter to arbitration pursuant to the then-current Expedited Procedures under the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association. 20.2.4. No Representation. No approval by Lessor of any insurer, or the terms or conditions of any policy, or any coverage or amount of insurance, or any deductible amount shall be construed as a representation by Lessor of the solvency of the insurer or the sufficiency of any policy or any coverage or amount of insurance or deductible, and Lessee assumes full risk and responsibility for any inadequacy of insurance coverage or any failure of insurers. 20.2.5. Lessor Rights. If Lessee fails to take out and keep in force each insurance policy required under this Section 20, or if such insurance is not be reasonably approved by Lessor and Lessee does not rectify the situation within five (5) Business Days after written notice from Lessor to Lessee, Lessor shall have the right, without assuming any obligation in connection therewith, to purchase such insurance at the sole cost of Lessee, and all costs incurred by Lessor shall be payable to Lessor by Lessee within thirty (30) days after demand as Additional Rent and without prejudice to any other rights and remedies of Lessor under this Lease. 20.2.6. Waiver of Recovery. Notwithstanding anything to the contrary contained herein, to the extent of property insurance proceeds received (or which would have been received had Lessee carried the insurance required by this Lease) with respect to the loss, Lessee hereby waives any right of recovery against Lessor and any other party maintaining a policy of property insurance with respect to the Premises or any portion thereof, or the contents of the Premises or the Improvements for any loss or damage sustained by Lessee with respect to the Premises, the Improvements, or any portion thereof, or the contents of the same or any operation therein, whether or not such loss is caused by the fault or negligence of Lessor. Lessee shall notify Lessor if the policy of insurance carried by it does not permit the foregoing waiver. 21. Indemnity And Release 21.1. Indemnity. To the greatest extent allowed by Applicable Laws, unless otherwise provided - 23 - herein, Lessee and its successors and assigns shall indemnify, protect, defend and save and hold harmless Lessor and the Lessor Parties (hereinafter collectively referred to as the “Lessor Indemnitees”) from and against, and shall reimburse Lessor and the Lessor Parties for, any and all claims, demands, losses, damages, costs, liabilities, penalties, causes of action and expenses, including, without limitation, reasonable attorneys’ fees and expenses (collectively, “Claims”), incurred in any way in connection with or arising from, in whole or in part, the following: (a) any default by Lessee in the observance or performance of any of the terms, covenants or conditions of this Lease on Lessee’s part to be observed or performed; (b) the use, occupancy or manner of use or occupancy of the Premises by Lessee, any of Lessee’s Agents, or any other person or entity claiming by, through or under Lessee; (c) the conduct or management of any work or thing done in or on the Premises by Lessee, any of Lessee’s Agents, or any other person or entity claiming by, through or under Lessee; (d) the design (including actual or alleged design defects), construction (including actual or alleged construction defects), removal, financing, maintenance, or condition of any Improvements during the Term; (e) the condition of the Premises during the Term; (f) any actual or alleged acts, omissions, or negligence of Lessee or Lessee’s Agents, subtenants or invitees, in, on or about the Premises; (g) any Lessee Environmental Activity during the Term; (h) any accident or other occurrence on the Premises, from any cause whatsoever during the Term; or (i) Lessee’s operation or management of the Premises. This indemnification will also inure to the successors and assigns of the Lessor Indemnitees and will also be binding upon the successors and assigns of Lessee, and this indemnification will survive the expiration or termination of this Lease. In case any claim, action or proceeding is brought, made or initiated against a Lessor Indemnitee relating to any of the above described events, acts, omissions, occurrences, or conditions, Lessee, upon notice from Lessor or such Lessor Party, shall at its sole cost and expense, resist or defend such claim, action or proceeding by attorneys reasonably approved by Lessor or such Lessor Party. Notwithstanding the foregoing, Lessee’s indemnity obligations described herein shall not apply to the extent a Claim arises or results from Lessor’s breach of its obligations under this Lease; the gross negligence or willful misconduct of Lessor, The foregoing indemnity is specifically and expressly intended to, constitute a waiver of Lessee's immunity under Washington's Industrial Insurance Act, RCW Title 51, to the extent necessary to provide Lessor with a full and complete indemnity from claims made by Lessee and its employees, to the extent provided herein. 21.2. Indemnification by Lessor. To the greatest extent allowed by Applicable Laws, unless otherwise provided herein, Lessor and its successors and assigns shall indemnify, protect, defend and save and hold harmless Lessee and all of its trustees, officers, employees, directors, agents, and consultants (hereinafter collectively referred to as the “Lessee Indemnitees”) from and against, and shall reimburse the Lessee Indemnitees for, any and all Claims incurred in any way in connection with or arising from, in whole or in part, the following (i) any actual negligence or willful misconduct of the Lessor, its agents or employees, or others working at the direction of the Lessor or on its behalf, in, on or about the Premises, and/or (ii) any default by Lessor in the observance or performance of any of the terms, covenants or conditions of this Lease on Lessor’s part to be observed or performed. This indemnification will also inure to the successors and assigns of the Lessee Indemnitees and will also be binding upon the successors and assigns of Lessee, and this indemnification will survive the expiration or termination of this Lease. In case any claim, action or proceeding is brought, made or initiated against a Lessee Indemnitee relating to any of the above described events, acts, omissions, occurrences, or conditions, Lessor, upon notice from such Lessee Indemnitee , shall at its sole cost and expense, resist or defend such claim, action or proceeding by attorneys reasonably approved by such Lessee Indemnitee. Notwithstanding the foregoing, Lessor’s indemnity obligations described herein shall not apply to the extent a Claim arises or results from the gross negligence or willful misconduct of Lessee, its agents or employees, or others working at the direction of the Lessee at the Premises, or claims exclusively between the undersigned parties arising from the terms or regarding the interpretation of this Lease. 21.3. Lessee’s Assumption of Risk and Waiver. As a material part of the consideration to Lessor for entering into this Lease, except as otherwise provided herein, Lessee agrees that neither Lessor - 24 - nor any Lessor Party shall be liable to Lessee for, and Lessee expressly assumes the risk of and waives, releases and discharges Lessor and all Lessor Parties from any and all claims, damages, liabilities, costs and expenses of any kind or nature relating in any manner, directly or indirectly, in whole or in part, to the Premises or this Lease, including without limitation: (a) the performance of any public or quasi-public works on or near the Premises; (b) any loss or theft of, or damage to, any Improvements or personal property; (c) any act or omission of any person accessing the Premises pursuant to an easement or right of entry reserved under this Lease or implied by Applicable Law; and (d) any past, present or future aspect, feature, characteristic, circumstance or condition arising out of or in connection with the Premises; provided, however, that this assumption of risk and waiver and release shall not apply to the negligence or willful misconduct of Lessor, or failure by Lessor to comply with any of its obligations under this Lease, or with respect to any indemnity obligations of Lessor hereunder. Without limiting the generality of the foregoing provisions of this Section 21.3, and notwithstanding anything to the contrary elsewhere in this Lease, neither Lessee or Lessor shall under any circumstances whatsoever be liable to the other for consequential damages or interference with light or other incorporeal hereditaments. The provisions of this Section 21.3 shall survive the expiration or earlier termination of this Lease. 22. Condemnation, Damage Or Destruction 22.1. Condemnation. The following terms and conditions shall apply in the event of a Condemnation. 22.1.1. Total Taking. If all of the Premises or any substantial part of the Premises (as shall in the reasonable discretion of Lessee make it economically unfeasible to continue to operate the remaining portion of the Premises) shall be taken as a result of a Condemnation (“Total Taking”), this Lease shall terminate as of the date of taking or as of the date of final judgment, whichever is earlier. All Awards with respect to Lessee’s interests with respect to such Total Taking shall be distributed as follows: (1) first to the Leasehold Mortgagee in an amount equal to the principal, accrued interest and other amounts due and payable under the Leasehold Mortgage; and (2) the remaining balance of the Award shall be paid to the Lessor and Lessee in accordance with Section 22.1.5 below. 22.1.2. Partial Taking. Upon any Condemnation which is not a Total Taking (“Partial Taking”), this Lease shall terminate as to the portion of the Premises subject to the Partial Taking. This Lease shall be terminated in its entirety if (i) Lessee elects to terminate the Lease in its entirety by delivering written notice to the Lessor within thirty (30) after the property condemned is transferred to the condemning agency (whether by agreement or court order for early use and possession, final judgment, or deed), or (ii) the Premises cannot be restored to an economically viable whole capable of operation in accordance with this Lease, and capable of generating sufficient revenues to pay the indebtedness under the Leasehold Mortgage, as and when due. If this Lease is terminated in its entirety due to a Partial Taking as set forth above, the Award shall be distributed as set forth in Section 22.1.1 above. If a Partial Taking occurs, and this Lease is not terminated pursuant to and in accordance with this Section 22.1.2, this Lease shall be deemed amended, effective as of the effective date of such Condemnation, such that the definition of the “Premises” shall include only that portion of the Premises that is not subject to such Condemnation, and the Award for such Partial Taking shall be distributed to the Leasehold Mortgagee, and used to repair and restore the Premises, as set forth in Section 22.1.4 below. 22.1.3. Effect of Condemnation. No Condemnation shall, except as otherwise provided herein, operate to terminate this Lease. Unless this Lease is terminated pursuant to and in accordance with this Section 22.1, no such Condemnation shall relieve or discharge Lessee from the payment of Rent, or from the performance and observance of any of the agreements, covenants and conditions herein contained on the part of Lessee to be performed and observed. - 25 - 22.1.4. Repair and Restoration. If a Partial Taking occurs, and (i) the Premises can be restored to an economically viable whole capable of operation in accordance with this Lease, and capable of generating sufficient revenues to pay the indebtedness under the Leasehold Mortgage, as and when due, and (ii) Lessee does not elect to terminate the entire Lease as provided in Section 22.1.2, then Lessee, as promptly as practicable and with all due diligence, shall cause the repair or reconstruction of or the making of Alterations to the Improvements as necessary to restore the Premises. All repairs and restoration shall be performed in accordance with the applicable provisions of this Lease. If a Partial Taking occurs and this Lease is terminated in its entirety, then Lessee must, at its sole cost and expense, undertake all work necessary to restore that portion of the Premises not condemned to the condition it was in prior to the Commencement Date of this Lease. 22.1.5. Allocation of Award. The amount of the Award due to Lessor and Lessee as a result of Condemnation shall be separately determined by the court having jurisdiction over such proceedings based on the following: Lessor shall be entitled to that portion of the Award attributable to the value of its interest in the Premises (or portion thereof subject to Condemnation, in case of a Partial Taking) subject to this Lease, as determined by the court; Lessee shall be entitled to that portion of the Award attributable to the value of Lessee’s leasehold interest in the Premises (or portion thereof subject to Condemnation, in case of a Partial Taking), as determined by the court. 22.1.6. Excess Award. If the total Award made in connection with any Condemnation for Lessee’s interests, and for severance damages to both Lessee’s and Lessor’s interests, exceeds the amount necessary to repair, restore, reconstruct, demolish and/or remove Improvements and Alterations as required under Section 22.1.4, then upon receipt by Lessor of satisfactory evidence that the work of repair, restoration, reconstruction, and/or removal of Improvements and Alterations required under Section 22.1.4 has been fully completed and paid for in accordance with the provisions of this Lease and that the last day for filing any mechanic’s or materialmen’s liens has passed without the filing of any, or if filed, any such lien has been released, such excess Award (which is attributable to Lessee’s leasehold interest in the Premises) shall first be paid to the holders of Leasehold Mortgages as their interests may appear, and to the extent required thereunder, and second be paid to the Lessee. 22.1.7. Temporary Taking. If the whole or any part of the Premises or of Lessee’s interest in this Lease shall be taken in condemnation proceedings or by any right or eminent domain for a temporary use or occupancy, the Term shall not be reduced or affected in any way and Lessee shall continue to pay in full the Rent due hereunder. Except only to the extent that Lessee is prevented from so doing pursuant to the terms of the order of the condemning authority, Lessee shall continue to perform and observe all of the other covenants, agreements, terms and provisions of this Lease as though such taking had not occurred. Lessee shall be entitled to receive the entire amount of any award made for such temporary taking whether such award is paid by way of damages, rent or otherwise, unless such period of temporary use or occupancy shall extend beyond the expiration date of the Term, in which case such award, after payment to Lessor therefrom of the estimated cost of restoration of the Premises, to the extent that any such award is intended to compensate for damage to the Premises, shall be apportioned by Lessor and Lessee as of such date of expiration in the same ratio that the part of the entire period for such compensation is made falling before the date of expiration and that part falling after, the date of expiration, bear to the entire period. 22.1.8. Participation in Settlement. Lessor and Lessee shall both have the right to participate in the settlement or compromise of any Awards. 22.2. Damage or Destruction. No loss or damage by fire or other cause resulting in either partial or total destruction of the Premises, the Improvements or any other property on the Premises shall, except as otherwise provided herein, operate to terminate this Lease. The following terms and conditions shall apply in the event of damage to or destruction of the Premises. - 26 - 22.2.1. No Effect on Rent. Except as expressly provided herein, no such loss or damage shall affect or relieve Lessee from Lessee’s obligation to pay Rent, and in no event shall Lessee be entitled to any proration or refund of Rent paid hereunder. Unless this Lease is terminated pursuant to and in accordance with this Section 22.2, no such loss or damage shall relieve or discharge Lessee from the payment of Rent, or from the performance and observance of any of the agreements, covenants and conditions herein contained on the part of Lessee to be performed and observed which are, under the circumstances at the time, capable of being performed and observed. 22.2.2. Determination of Damage. Upon the occurrence of any event of damage or destruction to the Premises or the Improvements or any portion thereof, Lessee shall promptly undertake to determine the extent of the same and the estimated cost and time to repair and restore the Improvements in accordance with the provisions of this Lease. Lessee shall notify Lessor of its estimation of such cost and time not later than one hundred twenty (120) days after the occurrence of the damage or destruction. 22.2.3. Repair and Restoration. If the Premises or the Improvements, or any portion thereof, are damaged or destroyed at any time during the Term, then Lessee, as promptly as practicable and with all due diligence (given the time required to obtain insurance proceeds and to obtain construction permits), shall either (a) cause the repair, reconstruction and replacement of the Improvements as nearly as possible given the circumstances and then-Applicable Law to their condition immediately prior to such damage or destruction and, except as otherwise approved in writing by Lessor or precluded by then- Applicable Law, to their same general appearance; or (b) remove the damaged or destroyed Improvements, unless otherwise agreed to in writing by the Lessor, restore the affected Parcel(s) to their original condition prior to the Commencement Date of this Lease, and immediately thereafter terminate this Lease as to the affected Parcel(s). Lessee shall immediately notify Lessor, in writing, whether it elected option (a) or (b) as soon as practicable under the circumstances. In the event Lessee elects option (a), then all repairs and restoration shall be performed in accordance with the provisions of Section 9, 11, and 12 of this Lease (as applicable). If Lessee chooses option (b), then upon Lessor’s request Lessee shall execute any writing(s) reasonably necessary to effect the release of its rights under this Lease to the affected Parcels. 22.2.4. Insurance Proceeds. If damage to or destruction of any portion of the Premises or Improvements thereon is covered by one or more insurance policies held by Lessee, then the insurance proceeds shall be applied in the following order: (1) to repair and restore the damaged or destroyed Premises and Improvements, but only if Lessee has elected to repair or restore the same; (2) to repay all loans secured by Leasehold Mortgages, if any; and (3) to Lessee. 22.2.4.1. The provisions of Section 22.2.4 do not apply to proceeds from insurance provisions covering damages to persons or property of third parties when the damage is alleged to have a causal relationship to the Premises or any act or omission related thereto. 22.2.5. Emergency Repairs. If a casualty occurs there is a substantial possibility that immediate emergency repairs will be required to eliminate defective or dangerous conditions and to comply with Applicable Laws pending settlement of insurance claims and prior to procuring bids for performance of restoration work. Notwithstanding any provision of this Section 22.2 to the contrary, Lessee shall promptly undertake such emergency repair work after a casualty as is necessary or appropriate under the circumstances to eliminate defective or dangerous conditions and to comply with Applicable Laws. 23. Assignment 23.1. Consent Required. Except as provided in Section 23.7 of this Lease, Lessee shall have the right to sell, assign, encumber, pledge or otherwise transfer all of its interests in or rights with respect to any Parcel of the Premises (herein referred to as a “Transfer”) without the prior written consent of Lessor - 27 - so long as Lessee and said transferee(s) are in compliance with Sections 23.2 through 23.5 of this Lease, and Lessee provides Lessor with advance notice of the Transfer. Any sale or other transfer permitted under Section 23.6 of this Lease shall not be deemed a Transfer hereunder. 23.2. Conditions of Transfer. 23.2.1.No Event of Default shall have occurred and remain uncured under this Lease; 23.2.2. Lessee shall have complied with all provisions of this Section 23, including Section 23.5; 23.2.3. The use by the transferee of the Parcel of the Premises to be assigned shall comply with the provisions of this Lease and shall not materially increase the risk of an Environmental Claim arising from any Lessee Environmental Activity to be conducted by the transferee at the Premises; 23.2.4. The proposed transferee shall be experienced with operating similar facilities (or development of similar facilities if the transferee is to develop the parcel being assigned).; 23.2.5. The proposed transferee shall not have filed a petition in bankruptcy, insolvency, reorganization, readjustment of debt, dissolution or liquidation under any law or statute of any government or any subdivision within five (5) years prior to the date of the proposed Transfer; 23.2.6. No civil or administrative judgments involving fraud or dishonesty, or criminal convictions of any kind, have been entered against the proposed transferee or its key people; and the proposed transferee does not pose a material risk of reputational damage or negative publicity to Lessor; 23.2.7. The proposed transferee shall not have been the subject of any default proceedings instituted by Lessor as landlord of property leased by the proposed transferee; 23.2.8. The proposed transferee shall be capable financially of performing Lessee’s obligations under this Lease and all other obligations relating to the Premises being transferred. 23.3. Assumption in Writing. Upon any Transfer, and for any Transfer to be valid, Lessee shall deliver to Lessor a fully executed copy of the assignment instrument, pursuant to which the proposed transferee shall unconditionally assume and agree to perform and observe all covenants and conditions to be performed and observed by Lessee under this Lease, including but not limited to Lessor’s rights identified in Section 38 and the requirements that (a) Lessee’s use of the Ice Complex Premises be restricted to the uses identified in this Lease, and (b) Lessee’s net revenue from the Commercial Premises shall be restricted to being used only in connection with operating, maintaining, and completing capital improvements to the Ice Complex Premises and programming consistent with the terms of this Lease, whether arising before or after the date of the assignment. The transferee shall specifically assume liability for the pre-existing physical condition of the portion of the Premises transferred, including the obligation to remediate the same from the effects of any Lessee Environmental Activity occurring prior to the assignment of this Lease, but not any other liabilities arising prior to the date of the Transfer. Any Transfer or attempted Transfer that fails to comply with this Section 23 shall be void and, at the option of Lessor, shall constitute an Event of Default. A Transfer shall relieve Lessee from liability under this Leasefor the specific portion of the Premises assigned to the transferee, but only if the Transfer was completed in accordance with the express terms of this Section 23. 23.4. Entire Interest. Lessee may Transfer its entire leasehold interest in any one of the three (3) Parcels under this Lease separate from the other Parcels, but Lessee is not entitled to Transfer (a) less than - 28 - all of its interest to a Parcel or (b) its title to any Improvements on a Parcel separately from all of its other interests in the same Parcel under this Lease. 23.4.1. In the event Lessee Transfers its interest under this Lease concerning the Ice Complex Premises, but does not Transfer the Commercial Premises to the same transferee, then Lessee (or, if applicable, prior and subsequent Commercial Premises transferees) shall continue to remit net revenues received from the Commercial Parcels to the Ice Complex Premises transferee for Operation Expenses, Maintenance Expenses, and CapEx Expenses of the Ice Complex Premises through the remaining duration of the Term. 23.4.2. In the event Lessee transfers its interests under this Lease concerning one or both of the Commercial Premises separate from the Ice Complex Premises, then the Transfer shall be void unless the terms of the assignment require such Commercial Premises transferees, through the remaining duration of this Lease, to remit to Lessee (or, if applicable, the prior or subsequent Ice Complex Premises transferee) that portion of the net revenue the transferees receive from said Commercial Premises that is equal to the fair market rent value of the Commercial Premises being assigned. Lessee (or the prior or subsequent Ice Complex Premises transferee) shall use such remitted funds for Operation Expenses, Maintenance Expenses, and CapEx Expenses of the Ice Complex Premises through the remaining duration of this Lease. 23.5. Financial Information. In connection with an assignment of this Lease other than transfers pursuant to Section 23.6, Lessee shall provide Lessor with reasonable current financial information for such assignee, which may include financial statements certified, reviewed or compiled by a certified public accountant, if available, or, in the absence thereof, a current (most recently available) balance sheet and current (most recently available) income statement certified by an officer of the assignee, reasonable evidence showing the assignee’s established access to capital, or other current financial information, as may be appropriate. 23.6. Permitted Transfers. Notwithstanding anything in this Lease to the contrary, Lessee shall have the right to assign no less than all of its interests in one or more Parcels (inclusive of improvements made thereon) under this Lease without Lessor approval, but with written notice to Lessor, prior to the issuance of a final certificate of occupancy for the Youth Ice Rink and thereafter (a) to one or more Affiliates of Lessee (for purposes of this Lease, an “Affiliate” shall mean any entity which is controlled by, under common control with, or controlling Lessee) or to any joint venture entity of which Lessee or an Affiliate of Lessee is a part; (b) in connection with a sale or other transfer of more than 50% of the voting stock or ownership interest of the Lessee entity to one or more new owners holding more than 50% interest, (c) to a lender or creditor, including a Permitted Leasehold Mortgagee, for security or collateral purposes, or (d) in connection with any merger, corporate reorganization or other corporate restructuring. In connection with any assignment (except for an assignment pursuant to clause (ii) in the preceding sentence), the assignee shall assume, in writing, the obligations of Lessee under the Lease with respect to the Parcels (including improvements thereon) assigned, which obligations accrue on and after the date of the assignment. 23.7. No Transfer Prior to issuance of Certificate of Occupancy for the Improvements. Lessee shall have no right to make any Transfer of its interests in the Ice Complex Premises prior to issuance of a final certificate of occupancy for the Ice Complex Premises Improvements (except with respect to a Permitted Transfer). Any attempted Transfer prior to issuance of a final certificate of occupancy for said improvements without the prior written consent of Lessor, which consent may be withheld by Lessor in its sole and absolute discretion, shall be void and shall constitute a breach of this Lease. - 29 - 23.8.Subletting. 23.8.1. Subleases Authorized. Lessee shall be entitled to enter into one or more subleases to sublease space within the Ice Complex Premisesand all or any portion of the Commercial Premisesto third parties (each, a “Subtenant”) without Lessor’s prior consent or approval, so long as (a) Lessee complies with the terms of this Section, (b) the sublease otherwise complies with the terms of this Lease, (c) Lessee receives fair market monetary rent for the sublease, and (d) Lessee’s net revenues from the sublease are used only for Operating Expenses, Maintenance Expenses, and CapEx Expenses of the Ice Complex Premises and programming to make the Ice Complex Premises available to economically disadvantaged persons at free or reduced rates. 23.8.2.Lessor Rights and Obligationsas to Subleases. In the event Lessor elects to terminate the Lease due to a Default by Lessee, any Sublease shall automatically become a direct lease between Lessor and the Subtenant, subject to all terms and conditions of such Sublease and the terms of this Lease as properly applicable to such Subtenant, without further action by any party. 23.8.3. Lessee Request for Direct Lease. Lessee may request Lessor to directly lease with a third-party tenant identified by Lessee for use of any one of the entire Commercial Parcels. Upon receiving such a request, Lessor may, exercising its sole discretion, elect to directly lease said Commercial Parcel to the third-party. In the event Lessor agrees to directly lease one or more Commercial Parcels to a third-party tenant, then: 23.8.3.1. The lease between Lessor and said third-party tenant must: (a) require the third-party tenant to pay rent in an amount no less than fair market value; and (b) require the third-party tenant to pay said rent directly to Lessor (or the prior or subsequent Ice Complex Premises transferee, as applicable). 23.8.3.2. Lessee (or, if applicable, the prior or subsequent Ice Complex Premises transferee) and Lessor shall execute an agreement (a) terminating Lessee’s leasehold rights to the entire Commercial Parcel leased to the third-party tenant; and (b) obligating Lessee to use rent payments received from the third-party tenant only as identified in Section 12.4 of this Lease and provide the reporting required by Section 12.4.1. 23.9. Paramount Title of Lessor. Notwithstanding any provision of this Lease, and notwithstanding any consent or approval which Lessor may give to any assignment, sublease, encumbrance or other transfer, all such interests shall be subordinate to Lessor's paramount fee simple title to the Premises, and all such interests shall be subject to extinguishment by Lessor's exercise of any termination rights accorded to Lessor under this Lease or expiration of this Lease. 24. \[Reserved\] 25. Leasehold Mortgages 25.1. Leasehold Mortgage. 25.1.1. Right to Encumber. Notwithstanding the provisions of Section 23 regarding Transfers of this Lease, but subject to the provisions of this Section 25, Lessee shall have the right at any time and from time to time to encumber Lessee’s interest in any parcel of the Sullivan Property subject to this Lease by one or more mortgages, deeds of trust or other security instruments (any such mortgage, deed of trust, or other security instrument that satisfies the requirements of this Section 25 being herein referred to as a “Leasehold Mortgage”) to secure repayment of loans made to Lessee for the purpose of financing - 30 - the construction of any Improvements made pursuant to the terms of this Lease or for the long-term financing of any such Improvements, provided that the indebtedness secured by a Leasehold Mortgage shall be payable over not more than the remaining portion of the Term. Copies of all such documents evidencing and/or securing the Leasehold Mortgage shall be provided to Lessor. 25.1.2. No Subordination of Fee. In no event shall Lessor’s fee interest in the Sullivan Property be subject or subordinate to any lien or encumbrance of any mortgage, deed of trust or other security instrument. 25.2. Notice to Lessor. 25.2.1. Required Notice. Each time Lessee enters into a Leasehold Mortgage, Lessee shall require the holder of such Leasehold Mortgage to provide Lessor with notice of such Leasehold Mortgage, together with a true copy of such Leasehold Mortgage and the name and address of the Leasehold Mortgagee. The provisions of this Section 25 shall apply in respect to such Leasehold Mortgage. In the event of any assignment of a Leasehold Mortgage or in the event of a change of address of a Leasehold Mortgagee or of an assignee of such Leasehold Mortgagee, notice of the new name and address shall be provided to Lessor. Lessee shall thereafter with reasonable promptness also provide Lessor from time to time with a copy of each material amendment, modification or supplement to such instruments. 25.3. Protection of Leasehold Mortgagees. If Lessee shall mortgage Lessee’s interest under this Lease in compliance with the provisions of Sections 25.1 and 25.2, then so long as any such Leasehold Mortgage shall remain unsatisfied of record, the following provisions shall apply: 25.3.1. Consent. No cancellation, surrender or modification of this Lease shall be effective as to any Leasehold Mortgagee unless consented to in writing by such Leasehold Mortgagee. 25.3.2. Notice of Default. Lessor, upon providing Lessee any notice of (a) any default under this Lease, (b) a termination of this Lease, or (c) a matter on which Lessor may predicate or claim a default, shall at the same time provide a copy of such notice to every Leasehold Mortgagee of which Lessor has been provided notice in accordance with Section 25.2 hereof. Lessor shall have no liability for the failure to give any such notice, except that no such notice by Lessor to Lessee shall be deemed to have been duly given unless and until a copy thereof has been so provided to every Leasehold Mortgagee of which Lessor has been provided notice in accordance with Section 25.2 hereof. From and after such notice has been given to a Leasehold Mortgagee, such Leasehold Mortgagee shall have the same period, after the giving of such notice upon it, for remedying any default or acts or omissions which are the subject matter of such notice, or causing the same to be remedied, as is given Lessee after the giving of such notice to Lessee, plus in each instance, the additional periods of time specified in Sections 25.3 and 25.4 hereof to remedy, commence remedying or cause to be remedied, the defaults or acts or omissions which are specified in such notice. Lessor shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Lessee. Lessee authorizes each Leasehold Mortgagee to take any such action at such Leasehold Mortgagee’s option and does hereby authorize entry upon the Premises by the Leasehold Mortgagee for such purpose. 25.3.3. Second Notice to Leasehold Mortgagee. Anything contained in this Lease to the contrary notwithstanding, if any Event of Default shall occur which entitles Lessor to terminate this Lease, Lessor shall have no right to terminate this Lease unless, following the expiration of the period of time given Lessee to cure such Event of Default or the act or omission which gave rise to such Event of Default, Lessor shall notify every Leasehold Mortgagee of Lessor’s intent to so terminate at least one hundred eighty (180) days in advance of the proposed effective date of such termination. The provisions of Section 25.4 hereof shall apply only if, during such one hundred eighty (180) day termination notice period, any - 31 - Leasehold Mortgagee shall: 25.3.3.1. Notify Lessor of such Leasehold Mortgagee’s desire to nullify such Notice; and 25.3.3.2. Pay or cause to be paid all Rent and other payments (i) then due and in arrears as specified in the termination notice to such Leasehold Mortgagee and (ii) any of the same which become due during such one hundred eighty (180) day period as and when they become due; and 25.3.3.3. Comply or in good faith, with reasonable diligence and continuity, commence to comply with all non-monetary requirements of this Lease then in default and reasonably susceptible of being complied with by such Leasehold Mortgagee; provided, however, that such Leasehold Mortgagee shall not be required during such one hundred eighty (180) day period to cure or commence to cure any Event of Default consisting of (i) Lessee’s failure to satisfy and discharge any lien, charge or encumbrance against Lessee’s interest in this Lease or the Premises junior in priority to the lien of the mortgage held by such Leasehold Mortgagee, or (ii) past non-monetary obligations then in default and not reasonably susceptible of being cured by such Leasehold Mortgagee, such as, by way of example only, the bankruptcy of Lessee or a court-ordered stay or injunction. If such Leasehold Mortgagee has not completed the cure within three hundred sixty five (365) days after the later to occur of (A) the receipt of Lessor’s termination notice or (B) three hundred sixty five (365) days after the date that any court with jurisdiction over Lessee or the Premises releases any stay, order or injunction, Lessor shall have the right to terminate this Lease upon written notice to Lessee and such Leasehold Mortgagee. 25.3.3.4. If more than one Leasehold Mortgagee notifies Lessor of such Leasehold Mortgagee’s desire to nullify such notice, the Leasehold Mortgagee whose Leasehold Mortgage is prior in lien shall have the right to nullify such notice and Lessor without liability to Lessee or any Leasehold Mortgage with a subordinate lien shall accept the cure tendered by the Leasehold Mortgagee whose Leasehold Mortgage is prior in lien. 25.4. Procedure on Default. 25.4.1. Cure of Default. If Lessor shall elect to terminate this Lease by reason of any Event of Default, and a Leasehold Mortgagee shall have proceeded in the manner provided for by Section 25.3.3, this Lease shall not be deemed terminated so long as such Leasehold Mortgagee shall: 25.4.1.1. Pay or cause to be paid the Rent and other monetary obligations of Lessee under this Lease as the same become due, and continue its good faith efforts to perform all of Lessee’s other obligations under this Lease excepting (A) obligations of Lessee to satisfy or otherwise discharge any lien, charge or encumbrance against Lessee’s interest in this Lease or the Leasehold Estate junior in priority to the lien of the Leasehold Mortgage held by such Leasehold Mortgagee, and (B) past non-monetary obligations then in default and not reasonably susceptible of being cured by such Leasehold Mortgagee, such as, by way of example only, the bankruptcy of Lessee; and 25.4.1.2. If not enjoined or stayed, take steps to acquire or sell Lessee’s interest in this Lease by foreclosure of the Leasehold Mortgage or other appropriate means and prosecute the same with due diligence within the time period described in Section 25.3.3.3. Nothing in this Section 25.4, however, shall be construed to extend this Lease beyond the original Term hereof, nor to require a Leasehold Mortgagee to continue such foreclosure proceedings after the Event of Default has been cured. If the Event of Default shall be cured and the Leasehold Mortgagee shall discontinue such foreclosure proceedings, this Lease shall continue in full force and effect as if Lessee had not defaulted under this Lease. - 32 - 25.4.2. Lease Remains in Effect. If a Leasehold Mortgagee is complying with Section 25.4, upon the acquisition of the Leasehold Estate herein by such Leasehold Mortgagee or its designee or any other purchaser at a foreclosure sale or otherwise and the discharge of any lien, charge or encumbrance against Lessee’s interest in this Lease or the Premises which is junior in priority to the lien of the Leasehold Mortgage held by such Leasehold Mortgagee and which Lessee is obligated to satisfy and discharge by reason of the terms of this Lease, this Lease shall continue in full force and effect as if Lessee had not defaulted under this Lease. 25.4.3. Assumption of Lease. The making of a Leasehold Mortgage shall not be deemed to constitute an assignment or transfer of Lessee’s interest under this Lease or the leasehold estate hereby created, nor shall any Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of Lessee’s interest under this Lease or of the leasehold estate hereby created so as to require such Leasehold Mortgagee, as such, to assume the performance of any of the terms, covenants or conditions on the part of Lessee to be performed hereunder. Notwithstanding the foregoing, the purchaser at any sale of Lessee’s interest under this Lease and of the leasehold estate hereby created in any proceedings for the foreclosure of any Leasehold Mortgage, or the assignee or transferee of the Lessee’s rights under this Lease and of the leasehold estate hereby created under any instrument of assignment or transfer in lieu of the foreclosure of any Leasehold Mortgage, including, without limitation, a Leasehold Mortgagee, shall be deemed to be an assignee or transferee within the meaning of this Section 25.4 and shall be deemed to have agreed to perform all of the terms, covenants and conditions on the part of Lessee to be performed hereunder from and after the date of such purchase and assignment only for as long as such purchaser or assignee is the holder of this leasehold estate. 25.5. New Lease. In the event of the termination of this Lease as a result of an Event of Default that has not been cured by either Lessee or the Leasehold Mortgagee, Lessor shall promptly, within a reasonable time, provide each Leasehold Mortgagee with written notice that the Lease has been terminated (the “New Lease Notice”), together with a statement of all sums which would at that time be due under this Lease but for such termination and of all other defaults, if any, then known to Lessor. Lessor agrees to enter into a new lease (the “New Lease”) of the Premises with such Leasehold Mortgagee or its affiliated designee for the remainder of the Term of this Lease, effective as of the date of termination, at the same Rent and upon the terms, covenants and conditions of this Lease; provided: 25.5.1. Such Leasehold Mortgagee shall make written request upon Lessor for such New Lease within sixty (60) days after the date such Leasehold Mortgagee receives Lessor’s New Lease Notice given pursuant to this Section 25.5. 25.5.2. Such Leasehold Mortgagee or such affiliated designee shall agree to remedy any of Lessee’s defaults of which such Leasehold Mortgagee was notified by Lessor’s New Lease Notice and which are reasonably capable of being so cured by Leasehold Mortgagee or such designee. 25.5.3. Any New Lease made pursuant to this Section 25.5 shall have the same priority with respect to any mortgage or other lien, charge or encumbrance on the Premises as this Lease, and the tenant under such New Lease shall have the same right, title and interest in and to the Premises and the Improvements as Lessee had under this Lease as of the date of the New Lease. 25.6. Conflicting Priorities. If more than one Leasehold Mortgagee shall seek to nullify a notice in accordance with Section 25.3.3.3 above or request a New Lease pursuant to Section 25.5, the Leasehold Mortgagee whose Leasehold Mortgage is prior in lien, or with the designee of such Leasehold Mortgagee, shall have the right to nullify such notice or obtain such New Lease. Lessor, without liability to Lessee or any Leasehold Mortgagee with an adverse claim, may rely upon a mortgagee title insurance policy issued by a responsible title insurance company doing business in the state where the Premises is located as the - 33 - basis for determining the appropriate Leasehold Mortgagee who is entitled to nullify such notice or obtain the New Lease. 25.7. Certain Defaults. Nothing herein contained shall require any Leasehold Mortgagee or its designee as a condition to its exercise of rights hereunder to cure any Event of Default which by its terms is not reasonably susceptible of being cured by such Leasehold Mortgagee or such designee in order to comply with the provisions of Sections 25.3 or 25.4. The financial condition of any Leasehold Mortgagee or successor to Lessee’s interest under this Lease or a new lease entered into pursuant to Section 25.5 shall not be a consideration in the determination of the reasonable susceptibility of cure of such Event of Default. No Event of Default, the cure of which, and no obligation of Lessee, the performance of which, requires possession of the Premises shall be deemed reasonably susceptible of cure or performance by any Leasehold Mortgagee or successor to Lessee’s interest under this Lease not in possession of the Premises, provided such holder is complying with the requirements described in Section 25.4.1 hereof and, upon obtaining possession, promptly proceeds to cure any such Event of Default then reasonably susceptible of cure by such Leasehold Mortgagee or successor. No Leasehold Mortgagee shall be required to cure the bankruptcy, insolvency or any related or similar condition of Lessee. 25.8. Eminent Domain. Lessee’s share, as provided in Section 22 of this Lease, of the proceeds arising from an exercise of the power of eminent domain shall be disposed of as provided for by any Leasehold Mortgage. 25.9. Insurance. A standard mortgagee clause naming each Leasehold Mortgagee as “loss payee” shall be added to any and all insurance policies required to be carried by Lessee hereunder. Any such insurance proceeds shall be disposed of as provided for by any Leasehold Mortgage. 25.10. Legal Proceedings. Lessor shall give each Leasehold Mortgagee of which Lessor has written notice prompt notice of any dispute resolution or legal proceedings between Lessor and Lessee involving obligations under this Lease. Each such Leasehold Mortgagee shall have the right to intervene, within sixty (60) days after receipt of such notice of dispute resolution or legal proceedings, in any such proceedings and be made a party to such proceedings, and the parties hereto do hereby consent to such intervention. Any intervening Leasehold Mortgagee shall be bound by the outcome of such proceedings. In the event that any Leasehold Mortgagee shall not elect to intervene or become a party to any such proceedings, Lessor shall give the Leasehold Mortgagee notice of, and a copy of any award or decision made in any such proceedings, which shall be binding on all Leasehold Mortgagees not intervening after receipt of Notice of such proceedings. 25.11. No Merger. So long as any Leasehold Mortgage is in existence, unless all Leasehold Mortgagees shall otherwise expressly consent in writing, the fee title to the Premises and the leasehold estate of Lessee therein created by this Lease shall not merge but shall remain separate and distinct, notwithstanding the acquisition of said fee title and said leasehold estate by Lessor or by Lessee or by a third party, by purchase or otherwise. 25.12. Notices. Notices from Lessor to the Leasehold Mortgagee shall be mailed to the address furnished Lessor pursuant to Section 25.2 and those from the Leasehold Mortgagee to Lessor shall be mailed to the address designated pursuant to the provisions of Section 33 hereof, as the same may be amended from time to time. All notices from any Leasehold Mortgagee or Lessor shall be given in the manner described in Section 33 and shall in all respects be governed by the provisions of that section. 25.13. Erroneous Payments. No payment made to Lessor by a Leasehold Mortgagee shall constitute agreement that such payment was, in fact, due under the terms of this Lease; and any Leasehold Mortgagee having made any payment to Lessor pursuant to Lessor’s wrongful, improper or mistaken notice - 34 - or demand shall be entitled to the return of any such payment or portion thereof provided the Leasehold Mortgagee shall have made demand therefor not later than twelve (12) months after the date of its payment. 25.14. Bankruptcy. In the event of any proceeding by either Lessor or Lessee under the United States Bankruptcy Code (Title 11 U.S.C.) as now or hereafter in effect: 25.14.1. Rejection of Lease by Lessee. If this Lease is rejected in connection with a bankruptcy proceeding by Lessee or a trustee in bankruptcy for Lessee, such rejection shall be deemed an assignment by Lessee to the Leasehold Mortgagee (or if there is more than one Leasehold Mortgagee, to the one highest in priority) of the leasehold estate and all of Lessee’s interest under this Lease, in the nature of an assignment in lieu of foreclosure, and this Lease shall not terminate, unless such Leasehold Mortgagee shall reject such deemed assignment by notice in writing to Lessor within thirty (30) days following the later of (i) rejection of the Lease by Lessee or Lessee’s trustee in bankruptcy or (ii) approval of such rejection by the bankruptcy court. If any court of competent jurisdiction shall determine that this Lease shall have been terminated notwithstanding the terms of the preceding sentence as a result of rejection by Lessee or the trustee in connection with any such proceeding, the rights of any Leasehold Mortgagee to a new lease from Lessor pursuant to Section 26.5 hereof shall not be affected thereby. 25.14.2. Termination of Lease by Lessor. If this Lease is rejected or otherwise terminated in connection with a bankruptcy proceeding by Lessor or by Lessor’s trustee in bankruptcy: 25.14.2.1. Lessee shall not have the right to treat this Lease as terminated except with the prior written consent of all Leasehold Mortgagees and the right to treat this Lease as terminated in such event shall be deemed assigned to each and every Leasehold Mortgagee, whether or not specifically set forth in any such Leasehold Mortgage, so that the concurrence in writing of Lessee and each Leasehold Mortgagee shall be required as a condition to treating this Lease as terminated in connection with such proceeding. 25.14.2.2. Unless this Lease is treated as terminated in accordance with Section 25.14.2.1, this Lease shall continue in effect upon all the terms and conditions set forth herein, including Rent, but excluding requirements that are not then applicable or pertinent to the remainder of the Term. The lien of any Leasehold Mortgage then in effect shall extend to the continuing possessory rights of Lessee following such rejection or other termination with the same priority as it would have enjoyed had such rejection or other termination not taken place. 25.14.3. If, in any bankruptcy or similar proceeding in which Lessor is the debtor, the Premises are sold or proposed to be sold free and clear of the interests of Lessee under this Lease, each of Lessee and any Leasehold Mortgagee shall be entitled to: (i) receive prior written notice of such proposed sale not less than ten (10) Business Days prior to the earliest date such sale or proposed sale is to or could occur; (ii) contest such sale or proposed sale; and (iii) petition for and receive adequate protection of their respective interests under this Lease, it being acknowledged and agreed that monetary damages are not, and will not be, adequate protection thereof. 25.15. Rights Against Lessee. The rights of a Leasehold Mortgagee hereunder shall not diminish any right or claim of Lessor against Lessee for damages or other monetary relief under this Lease; provided, however, such rights and claims of Lessor against Lessee shall, subject to the terms of this Lease, be subordinated to Leasehold Mortgagee’s rights and claims against Lessee under the Leasehold Mortgage. 25.16. Lease Amendments or Recognition Agreement Requested by Leasehold Mortgagee. In the event a Leasehold Mortgagee desires amendments to this Section 25 or desires to enter into a recognition agreement with Lessor, then Lessor agrees to negotiate in good faith any commercially - 35 - reasonable amendment or recognition agreement; provided that the form and content of such amendment or recognition agreement is not unreasonable and that such proposed amendment or recognition agreement does not reduce the Rent hereunder or otherwise adversely affect the rights of Lessor hereunder or its interest in the Premises, as determined by Lessor in its reasonable discretion. All reasonable expenses incurred by Lessor in connection with any such amendment or recognition agreement shall be paid by Lessee. 25.17. Lessor Purchase Right in the Event of Foreclosure. In the event a Leasehold Mortgagee desires to transfer the leasehold interest in the Premises by foreclosure sale, accept a deed in lieu of foreclosure, or acquire Lessee’s interest in this Lease by other means, the Leasehold Mortgagee shall provide Lessor no less than thirty (30) days prior written notice of its intention to exercise such right and Lessor shall have the right exercisable within thirty (30) days after receipt of such written notice to elect to acquire the entire interest in the loan and the Leasehold Mortgage for a price equal to the outstanding unpaid balance of principal and interest and premium, if any, of the indebtedness secured by the Leasehold Mortgage, sum of the outstanding unpaid balance of the indebtedness secured by the Leasehold Mortgage, together with any other amounts due and unpaid under the Leasehold Mortgage. The closing shall occur within thirty (30) days after the date of the election through escrow at a title company selected by Lessor and reasonably acceptable to Leasehold Mortgagee. At the closing, Lessor shall deliver to the Leasehold Mortgagee through escrow the purchase price equal to the outstanding unpaid balance of principal and interest and premium, if any, of the indebtedness secured by the Leasehold Mortgage, and Leasehold Mortgagee shall assign to Lessor all of its right, title and interest in the loan and the Leasehold Mortgage pursuant to documentation reasonably satisfactory to Lessor and the Leasehold Mortgagee. If Lessor fails to deliver into escrow the required funds with said thirty (30) day period with instructions to deliver said funds to Leasehold Mortgagee conditioned only upon receipt of the documentation necessary to enable the title company to insure Lessor as the sole beneficiary of the Leasehold Mortgage, the Leasehold Mortgagee shall be entitled to pursue its rights to acquire or transfer the leasehold estate pursuant to this Lease and the Leasehold Mortgage. If Lessor delivers said funds as required herein, the Leasehold Mortgagee’s rights under this Lease and the Leasehold Mortgage shall terminate and be of no further force and effect. 26. Events of Default and Remedies 26.1. Events of Default. The occurrence of any of the following shall be an “Event of Default” on the part of Lessee hereunder: 26.1.1. Failure to pay Rent or any other sums of money that Lessee is required to pay hereunder at the times or in the manner herein provided, when such failure shall continue for a period of fifteen (15) Business Days after written notice thereof from Lessor to Lessee. No such notice shall be deemed a forfeiture or a termination of this Lease. 26.1.2. Failure to perform any nonmonetary provision of this Lease when, except in the case of any provision which by its terms provides for no grace period, such failure shall continue for a period of thirty (30) days, or such other period as is expressly set forth herein, after written notice thereof from Lessor to Lessee; provided that if the nature of the default is such that more than thirty (30) days are reasonably required for its cure, then an Event of Default shall not be deemed to have occurred if Lessee shall commence such cure within said thirty (30) day period and thereafter diligently and continuously prosecute such cure to completion. No such notice shall be deemed a forfeiture or a termination of this Lease unless Lessor expressly so elects in such notice. 26.1.3. The abandonment of the Premises by reason of a course of conduct by Lessee that - 36 - reasonably evidences an interest to permanently relinquish its rights under this Lease. 26.1.4. Lessee shall admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy, insolvency, reorganization, readjustment of debt, dissolution or liquidation under any law or statute of any government or any subdivision thereof either now or hereafter in effect, make an assignment for the benefit of its creditors, consent to or acquiesce in the appointment of a receiver of itself or of the whole or any substantial part of the Premises. 26.1.5. A court of competent jurisdiction shall enter an order, judgment or decree appointing a receiver of Lessee or of the whole or any substantial part of the Premises and such order, judgment or decree shall not be vacated, set aside or stayed within sixty (60) days after the date of entry of such order, judgment, or decree, or a stay thereof shall be thereafter set aside and the receivership not thereafter vacated or set aside within sixty (60) days of the set aside of the stay. 26.1.6. A court of competent jurisdiction shall enter an order, judgment or decree approving a petition filed against Lessee under any bankruptcy, insolvency, reorganization, readjustment of debt, dissolution or liquidation law or statute of the Federal government or any state government or any subdivision of either now or hereafter in effect, and such order, judgment or decree shall not be vacated, set aside or stayed within sixty (60) days from the date of entry of such order, judgment or decree, or a stay thereof shall be thereafter set aside. 26.2. Lessor’s Remedies. Upon the occurrence of an Event of Default, Lessor shall have the following rights and remedies, subject to the rights of a Leasehold Mortgagee as set forth in Section 25 above: 26.2.1. The right to terminate this Lease subject to Section 26.2.1.1 below, in which event Lessee shall immediately surrender possession of the Premises in accordance with Section 28. In the event Lessee fails to surrender possession, Lessor shall have the right to terminate Lessee's right to possession by any lawful means. In such event Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee's default, including without limitation thereto, the following: (i) the worth at the time of award of any unpaid Rent that had been earned at the time of such termination; plus (ii) the worth at the time of award of the amount by which the unpaid Rent that would have been earned after termination until the time of award exceeds the amount of such rental loss that Lessee proves could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such rental loss that Lessee proves could be reasonably avoided; plus (iv) any other amount necessary to compensate Lessor for all damages directly caused by Lessee's failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom, including, without limitation, (A) any direct costs or expenses incurred by Lessor in recovering possession of the Premises and maintaining or preserving the Premises after such default and (B) such amounts in addition to or in lieu of the foregoing as may be permitted from time to time by Applicable Law to the extent that such payment would not result in a duplicative recovery. As used in (i) above, the “worth at the time of award” is computed by allowing interest at the Interest Rate. 26.2.1.1. In the event Lessor terminates this Lease for a default other than Lessee’s violation of Sections 9.1, 11.1.2, 11.1.4.1, 12.2, 12.4, or 38.1 of this Lease or for making a transfer in violation of Section 23 of this Lease, then Lessor shall assume the debt existing on the termination date that was (a) incurred by Lessee to complete Leasehold Improvements, and (b) recorded against the title to said Leasehold Improvements and/or the Premises. Otherwise, Lessee shall be responsible for all such debt and cause such debt to be removed as a charge against the Leasehold Improvements and Premises. - 37 - 26.2.2. The right to maintain this Lease in full force and effect and recover the Rent, and other monetary charges as they become due, without terminating Lessee's right to possession irrespective of whether Lessee shall have abandoned the Premises. In the event Lessor elects not to terminate this Lease, Lessor shall use commercially reasonable efforts to relet the Premises at such rent and upon such conditions and for such a term, and to do all acts necessary to maintain or preserve the Premises as Lessor deems reasonable and necessary without being deemed to have elected to terminate this Lease, including removal of all persons and property from the Premises. Such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Lessee. If Lessor relets the Premises or any portion thereof, such reletting shall not relieve Lessee of any obligation hereunder, except that Lessor shall apply the rent or other proceeds actually collected by it as a result of such reletting against any amounts due from Lessee hereunder, less any expenses incurred by Lessor in collecting such rents and arranging for or providing such services or fulfilling such obligations. 26.2.3. The right and power, as attorney-in-fact for Lessee, to enter and to sublet the Premises upon any vacancy while an Event of Default is outstanding, and Lessor is hereby authorized on behalf of Lessee, but shall have absolutely no obligation, to provide such services and fulfill such obligations and to incur all such reasonable expenses and costs as Lessor deems necessary in connection therewith. Lessee shall be liable immediately to Lessor for all reasonable costs and expenses Lessor incurs in collecting such rents and arranging for or providing such services or fulfilling such obligations. Lessor is hereby authorized, but not obligated, to relet the Premises or any part thereof on behalf of Lessee, to incur such reasonable expenses as may be necessary to effect a relet and make said relet for such term or terms, upon such conditions and at such rental as Lessor in its sole discretion may deem proper. Lessee shall be liable immediately to Lessor for all reasonable costs Lessor incurs in reletting the Premises including, without limitation, brokers’ commissions, expenses of remodeling the Premises required by the reletting, and other costs. If Lessor relets the Premises or any portion thereof, such reletting shall not relieve Lessee of any obligation hereunder, except that Lessor shall apply the rent or other proceeds actually collected by it as a result of such reletting against any amounts due from Lessee hereunder to the extent that such rent or other proceeds compensate Lessor for the nonperformance of any obligation of Lessee hereunder. Such payments by Lessee shall be due at such times as are provided elsewhere in this Lease, and Lessor need not wait until the termination of this Lease, by expiration of the Term hereof or otherwise, to recover them by legal action or in any other manner. Lessor may execute any lease made pursuant hereto in its own name, and the lessee thereunder shall be under no obligation to see to the application by Lessor of any rent or other proceeds, nor shall Lessee have any right to collect any such rent or other proceeds. Lessor shall not by any reentry or other act be deemed to have accepted any surrender by Lessee of the Premises or Lessee’s interest therein, or be deemed to have otherwise terminated this Lease, or to have relieved Lessee of any obligation hereunder, unless Lessor shall have given Lessee express written notice of Lessor’s election to do so as set forth herein. 26.2.4. The right to have a receiver appointed upon application by Lessor to take possession of the Premises and to collect the rents or profits therefrom and to exercise all other rights and remedies pursuant to Section 26.2. 26.2.5. The right to enjoin, and any other remedy or right now or hereafter available to a lessor against a defaulting lessee under the laws of the State of Washington or the equitable powers of its courts, and not otherwise specifically reserved herein. 26.2.6. Whether or not this Lease is terminated, the right to recover actual damages incurred by Lessor arising out of the Event of Default, or due to Lessee’s failure to indemnify Lessor pursuant to Section 21.1. 26.2.7. In the event of Lessee’s failure to surrender possession of the Premises as of the - 38 - Termination Date, and in addition to the remedies described in Section 28, the right to collect the Annual Rent during any holdover period in the amount of one hundred ten percent (110%) of the Fair Market Rental Value of the Premises as of the Termination Date. 26.3. Rights Cumulative. The various rights and remedies reserved to Lessor herein, including those not specifically described herein, shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity and the exercise of the rights or remedies provided for in this Lease or now or hereafter existing at law or in equity shall not preclude the simultaneous or later exercise by Lessor of any or all other rights and remedies. 26.4. Lessor’s Default. Lessor shall be in default under this Lease if Lessor fails to cure any breach of its obligations under this Lease within thirty (30) days after receipt of written notice from Lessee specifying in reasonable detail the nature of Lessor’s breach; provided, however, that if the nature of Lessor’s breach is such that more than thirty (30) days are required for performance, then Lessor shall not be in default if Lessor commences the cure of such breach within such thirty (30) day period and thereafter diligently prosecutes the same to completion. Lessee shall be entitled to actual (but not consequential) damages in the event of an uncured default by Lessor, but shall not have any right to terminate this Lease as a result of any Lessor default. 27. Lessor’s Right to Cure Defaults If Lessee shall fail or neglect to do or perform any act or thing herein provided by it to be done or performed and such failure shall not be cured within any applicable grace period provided in Section 26, then Lessor shall have the right, but shall have no obligation, to pay any amounts payable by Lessee to third parties hereunder, discharge any lien, take out, pay for and maintain any insurance required under Section 21, or do or perform or cause to be done or performed any such other act or thing (entering upon the Premises for such purposes, if Lessor shall so elect), and Lessor shall not be or be held liable or in any way responsible for any loss, disturbance, inconvenience, annoyance or damage resulting to Lessee on account thereof (except to the extent of Lessor’s gross negligence or willful misconduct), and Lessee shall repay to Lessor upon demand the entire cost and expense thereof. Lessor may act upon shorter notice or no notice at all if necessary in Lessor’s judgment to meet an emergency situation or governmental or municipal time limitation. Lessor shall not be required to inquire into the correctness of the amount or validity of any payable or lien that may be paid by Lessor, and Lessor shall be duly protected in paying the amount of any such payable or lien claimed, and, in such event, Lessor shall also have the full authority, in Lessor’s sole judgment and discretion and without prior notice to or approval by Lessee, to settle or compromise any such lien or payable. Any act or thing done by Lessor pursuant to the provisions of this Section 27 shall not be or be construed as a waiver of any default by Lessee, or as a waiver of any term, covenant, agreement or condition herein contained or of the performance thereof. Except in the case of an emergency situation or governmental or municipal time limitation, Lessor shall not exercise its rights hereunder until Lessor has given Lessee written notice of such default, and Lessee has failed to cure such default with thirty (30) days following the date of such notice from Lessor. 28. Surrender of The Premises 28.1. Surrender. Upon the termination of this Lease, whether at the expiration of the Term or prior thereto, Lessee shall surrender the Premises to Lessor in the condition in which the Premises is required to be maintained pursuant to the terms of this Lease, free and clear of all letting and occupancies other than any subleases Lessor has elected to recognize after such termination, and free and clear of all Liens or any other encumbrances, other than Liens Lessor has placed on the Premises. 28.2. Extinguishment of the Lessee’s Rights. Upon the Expiration Date or earlier termination - 39 - of this Lease (excluding as a result of Lessor’s exercise of the ROFR or Option to Purchase as set forth in Section 38 of this Lease) (“Termination Date”), all rights and interests of the Lessee in and to the Premises, and all persons whomsoever claiming by, through, or under the Lessee, shall immediately cease and terminate, and the Premises, including all improvements, engines, machinery, generators, boilers, furnaces, elevators, fire escapes, and all lifting, lighting, heating, cooling, refrigerating, air conditioning, ventilating, gas, electric and plumbing apparatus, appliances and fixtures, as well as other fixtures attached to or within the Premises, and all personal property located thereon, shall thence forward constitute and belong to and be the absolute property of the Lessor, without further act or conveyance, and without liability to make such compensation to the Lessee or to anyone whomsoever, and free and discharged from all and every lien, encumbrance, claim and charge of any character created or attempted to be created by the Lessee at any time. Lessee agrees, at the termination of this Lease, to surrender unto Lessor, the Premises, including the Improvements located thereon, in the same condition as when the construction of the Improvements were completed, only natural and normal wear and tear excepted. Upon or at any time after the Expiration Date, if requested by Lessor, Lessee shall, without charge to Lessor, promptly execute, acknowledge and deliver to Lessor a good and sufficient quitclaim deed of all of Lessee’s right, title, and interest in and to the Premises, and in any contracts relating to the operation, management, maintenance or leasing of the Premises or any part thereof, and shall deliver to Lessor all such other instruments, records and documents relating to the operation, management, maintenance or leasing of the Premises or any part thereof, including but not limited to all leases, lease files, plans and specifications, records, registers, permits, and all other papers and documents which may be necessary or appropriate for the proper operation and management of the Premises. Lessee agrees to indemnify, protect, defend, and hold harmless Lessor from and against any and all losses, costs, damages, claims, liabilities and expenses arising directly or indirectly, in whole or in part, out of any obligations or liabilities incurred by Lessee prior to the Termination Date with respect to any such items so assigned to Lessor. Any contracts, agreements or other obligations of Lessee relating to the Premises not designated by Lessor and assigned by Lessee to Lessor pursuant to this Section 28 shall immediately terminate and be of no further force or effect as of the Termination Date. 28.3. Personal Property. Any personal property of Lessee that remains on the Premises after the Termination Date may, at the option of Lessor, be deemed to have been abandoned by Lessee and may either be retained by Lessor as its property or disposed of, without accountability and at Lessee’s expense, in such manner as Lessor may determine in its sole discretion. 28.4. Holding Over. Lessee shall have no right to remain in possession of the Premises after the Termination Date. If Lessee remains in possession of all or any part of the Premises after the Termination Date with Lessor’s prior written consent: (i) Lessee’s occupancy of the Premises shall be deemed a month- to-month tenancy (not a renewal or extension of the Term), terminable by either party upon 30 days’ written notice to the other; (ii) tenant shall be liable Rent and all other expenses, obligations and payments at rates in effect for the immediately preceding year of the Term of this Lease; and (iii) Lessee’s occupancy of the Premises otherwise shall be subject to all applicable terms and conditions of this Lease as if the Term had not expired or this Lease had not been terminated, as the case may be. Nothing in this Section 28.4 shall be deemed or construed as a consent by Lessor to any holding over by Lessee. 29. \[Reserved\] 30. Representations And Warranties 30.1. Lessee’s Representations and Warranties. Lessee hereby represents and warrants to Lessor as follows: 30.1.1. Lessee Ignite Youth Ice, LLC is a disregarded entity for federal income tax purposes and therefore is considered a tax exempt entity by virtue of Ignite Foundation being a nonprofit - 40 - organization described under Section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended Both entities referred to herein as “Lessee” are dulyformed and validly existing under the laws of the State of Washington. Both entities referred to herein as “Lessee” have full limited liability power and authority to enter into and perform their obligations under this Lease and to develop, construct and operate the Premises as contemplated by this Lease. 30.1.2. Lessee has taken all necessary action to authorize the execution, delivery and performance of this Lease and this Lease constitutes the legal, valid, and binding obligation of Lessee. 30.1.3. Lessee has the right, power, legal capacity and authority to enter into and perform its obligations under this Lease and no approvals or consents of any person are required in connection with the execution and performance of this Lease. The execution and performance of this Lease will not result in or constitute any default or event that with notice or the lapse of time or both, would be a default, breach or violation of the organizational instruments governing Lessee or any agreement or any order or decree of any court or other governmental authority to which Lessee is a party or to which it is subject. 30.1.4. There are no defaults by Lessee or any circumstances which, with the giving of notice or the passage of time, would constitute a default by Lessee, under any agreement, contract, lease, loan, or other commitment to which Lessee is a party. 30.1.5. There are no claims, demands, litigation, proceedings or governmental investigations pending or threatened against Lessee. 30.1.6. The execution and delivery of the Lease, and the consummation of the transactions contemplated by the Lease do not violate any provision of law, any order, judgment or decree of any court binding on Lessee, any provision of any indenture, agreement, or other instrument to which Lessee is a party or by which Lessee is affected, and are not in conflict with, and will not result in a breach of or constitute a default under any such indenture, agreement, or other instrument or result in creating or imposing any lien, charge, or encumbrance of any nature whatsoever on the Premises. 30.2. Lessor’s Representations and Warranties. Lessor hereby represents and warrants to Lessee as follows: 30.2.1. Lessor is municipal corporation. 30.2.2. Lessor has taken all necessary action to authorize the execution, delivery and performance of this Lease and this Lease constitutes the legal, valid, and binding obligation of Lessor. 30.2.3. Lessor has the right, power, legal capacity and authority to enter into and perform its obligations under this Lease and no approvals or consents of any person are required in connection with the execution and performance of this Lease. The execution and performance of this Lease will not result in or constitute any default or event that with notice or the lapse of time or both, would be a default, breach or violation of the organizational instruments governing Lessor or any agreement or any order or decree of any court or other governmental authority to which Lessor is a party or to which it is subject. 30.2.4. The City is not aware of, nor has any information indicating that Spokane County (a) has used or intends to use tax revenue collected under RCW 67.28.180 or .181 et seq. to acquire, construct, operate or maintain a facility used by a professional sports franchise, or (b) has taken any other action that would prevent such tax revenues from being used to support the Lessee’s costs to operate the Spokane Valley Ice Sports Complex. - 41 - 31.No Waiver by Lessor No failure by Lessor to insist upon the strict performance of any term, covenant, agreement, provision, condition or limitation of this Lease or to exercise any right or remedy upon a breach thereof, and no acceptance by Lessor of full or partial rent during the continuance of any such breach, shall constitute a waiver of any such breach or of such term, covenant, agreement, provision, condition or limitation. No term, covenant, agreement, provision, condition or limitation of this Lease and no breach thereof may be waived, altered or modified except by a written instrument executed by Lessor. No waiver of any breach shall affect or alter this Lease but each and every term, covenant, agreement, provision, condition and limitation of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach. 32. No Dedication This Lease shall not be, nor be deemed or construed to be, a dedication to the public of the Premises, the areas in which the Premises are located or the Improvements, or any portion thereof. 33. Notices Any notice, consent or other communication required or permitted under this Lease shall be in writing and shall be delivered by hand, sent by expedited courier, sent by prepaid registered or certified mail with return receipt requested, or sent by electronic mail, and shall be deemed to have been given on the earliest of (a) receipt or refusal of receipt; (b) one (1) Business Day after delivery to an air courier for overnight expedited delivery service; (c) five (5) Business Days after the date deposited in the United States mail, registered or certified, with postage prepaid and return receipt requested (provided that such return receipt must indicate receipt at the address specified); or (d) on the day of its transmission by electronic mail if transmitted during the business hours of the place of receipt, otherwise on the next Business Day, provided that a copy of such notice, consent or other communication is also delivered pursuant to clause (b) or (c) above. All notices shall be addressed as appropriate to the addresses given in the Basic Lease Information (or to such other or further addresses as the parties may designate by notice given in accordance with this Section). 34. Nondiscrimination Lessee will not discriminate in employment on the basis of race, age, creed, color, national origin, religion, sex, national origin, veteran or military status, marital status, families with children status, sexual orientation or the presences of any sensory, mental or physical disability in regard to any position for which the employee is qualified, in compliance with (a) Presidential Executive Order 11246, as amended, including the Equal Opportunity Clause contained therein; (b) Section 503 of the Rehabilitation Act of 1973, as amended, and the Vietnam Era Veterans Readjustment Act of 1974, as amended, and the Affirmative Action Clauses contained therein; (c) the Americans with Disabilities Act of 1990, as amended; and (d) all other Applicable Laws. In its selection of tenants for the Premises, Lessee shall not discriminate on the basis of race, age, creed, color, national origin, religion, sex, veteran or military status, marital status, families with children status, sexual orientation or the presence of any sensory, mental or physical disability. Lessee will not maintain facilities which are segregated on the basis of race, color, religion, or national origin in compliance with Presidential Executive Order 11246, as amended, and will comply with the Americans with Disabilities Act of 1990, as amended, regarding its programs, services, activities and employment practices. - 42 - 35.Memorandum of Lease This Lease shall not be recorded. However, the parties hereto shall execute and acknowledge a memorandum hereof in the form attached hereto as Exhibit D, which shall be recorded concurrently with the execution of this Lease. 36. Nature of Relationship The relationship between Lessor and Lessee shall be solely that of landlord and tenant. Nothing contained in this Lease shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or co-ownership between Lessor and Lessee. Lessor shall not in any way be responsible or liable for the debts, losses, obligations or duties of Lessee with respect to the Premises or otherwise by reason of this Lease. All obligations to pay Rent, and to develop, operate, manage, maintain and repair the Premises shall be the sole responsibility of Lessee. 37. Lessee Not a Blocked Person Lessee represents and warrants that neither Lessee nor any person or entity owning any direct or indirect membership interest or other equity ownership interest in Lessee is now, or ever has been, named on (or now is or ever has been acting directly or indirectly for or on behalf of any person or entity named on) the list of “Specially Designated Nationals and Blocked Persons” published by the Office of Foreign Assets Control of the United States Department of the Treasury or any similar list maintained by the United States government or any other government (any person so named, a “Blocked Person”). If Lessee, or any person or entity owning any direct or indirect membership interest or other equity ownership interest in Lessee, at any time becomes a Blocked Person or acts directly or indirectly for or on behalf of any Blocked Person, such event shall constitute an Event of Default under this Lease, unless, within thirty (30) days after Lessee becomes aware of such Blocked Person or aware of actions taken directly or indirectly for or on behalf of such Blocked Person, Lessee initiates and diligently pursues steps to cause such Blocked Person to be removed from owning a direct or indirect membership or other equity ownership interest in Lessee or removed from the list of “Specially Designated Nationals and Blocked Persons.” 38. ROFR and Option to Purchase \[for discussion\]. 38.1. Lessor’s ROFR. For good and valuable consideration, the receipt of which is hereby confirmed, Lessee grants Lessor the exclusive and irrevocable right of first refusal to purchase (“ROFR”), upon the terms and conditions identified below, all of Lessee’s property interests in the Premises (including the Improvements thereon). This ROFR shall terminate when either: (1) Lessor does not timely exercise the ROFR after Lessee presents Lessor with a bona fide offer from a third party to purchase all of Lessee’s interests in the Premises and Lessee has transferred all of its interest in the Premises to said third party; or (2) Lessor exercises its Option to Purchase the Premises pursuant to Section 38.2 of this Lease and Lessee has transferred all of its interests in the Premises to Lessor. 38.1.1. If the Lessee receives a bona fide written offer from a third party (“Third Party Offer”) to purchase all of Lessee’s interests in the Premises, the Lessee shall promptly provide written notice of the Third Party Offer to the Lessor, including all material terms. The Lessor shall have sixty (60) days from receipt of such notice to elect, in writing, to purchase all of Lessee’s interests in the Premises on the same terms and conditions as set forth in the Third Party Offer. If the Lessor does not exercise this right within the specified period, the Lessee may proceed with the transaction on terms no more favorable to the third party than those offered to the Lessor. - 43 - 38.1.2. To exercise the ROFR, Lessor must provide written notice thereof to Lessee on or th before 11:59 pm on the sixtieth (60) day after Lessee provided the notice identified in Section 38.1.1. 38.2. Lessor’s Option to Purchase. Lessee, for additional good and valuable consideration, the receipt and sufficiency of which is hereby confirmed, hereby grants to Lessor an option to purchase all of Lessee’s interests in the Premises, inclusive of the Ice Complex Improvements, as provided herein (the “Option to Purchase”). 38.2.1. Option to Purchase Duration. Beginning on the date that Lessee notifies Lessor that the total debt incurred to complete the Leasehold Improvements and recorded against title thereto or the Premises (“Leasehold Improvement Debt”) is nine million four hundred thousand dollars ($9,400,000) or less, but in no case before the later of the certificate of occupancy being issued for the Ice th Complex Premises or the end of the 5 full year following Commencement Date of this Lease, Lessor shall have the right and option to purchase Lessee's right, title, and interest in and to the Premises, including the Ice Complex Improvements thereon. Thereafter, Lessor has seven hundred thirty (730) days to exercise and close its Option to Purchase (“Purchase Option Expiration Date”). The Option to Purchase shall be extinguished if, prior to Lessor exercising the same, (a) Lessor does not timely exercise the ROFR after Lessee presents Lessor with a Third Party Offer to purchase all of Lessee’s interests in the Premises, and (b) Lessee has transferred all of its interest in the Premises to said third party. 38.2.2. Notice of Outstanding Leasehold Improvement Debt. Beginning after the certificate of occupancy is issued for the Ice Complex Premises, Lessee shall notify Lessor (a) of the total outstanding Leasehold Improvement Debt at the end of each calendar year; and (b) when the total outstanding Leasehold Improvement Debt is equal to or below nine million four hundred thousand dollars ($9,4000,000). At any time during the Term, Lessee shall identify the total outstanding Leasehold Improvement Debt within a reasonable time after Lessor’s written request. 38.2.3. Exercise Notice. To exercise its Option to Purchase, Lessor must give Lessee and Leasehold Mortgagee notice of the same at least ninety (90) days before the Purchase Option Expiration Date. 38.2.4. ROFR Priority. If Lessee presents Lessor with a Third Party Offer during the timeframe identified in Section 38.2.1 prior to Lessor exercising its Option to Purchase, then Lessor may exercise the Option to Purchase only if (a) the Third Party Offer expired, (b) Lessee did not enter into a binding purchase and sale agreement for the Premises with the third-party who made the Third Party Offer, and (c) the Option to Purchase has not yet expired. 38.3. Option to Purchase – Terms of Purchase. If Lessor exercises its Option to Purchase the Premises and improvements thereon, then the following terms shall apply: 38.3.1. Purchase Price. If Lessor exercises its Option to Purchase the Premises and improvements thereon, the purchase price (“Purchase Price”) of the Lessee's right, title, and interest in and to such Premises thereon shall be nine million four hundred thousand dollars ($9,400,000). 38.3.2. Liens. Upon full payment of the Purchase Price, Lessee shall satisfy all monetary liens and encumbrances on the Premises. 38.3.3. Subleases. Lessor shall assume all of Lessee’s rights and obligations under Lessee’s subleases of space within or on the Premises to third parties, but only if said sublease was formed in compliance with the requirements of this Lease and only to the extent the terms of the sublease are not prohibited by this Lease. - 44 - 38.3.4. Closing. The conveyance of any Ice Complex Improvements to Lessor (together, the “Closing”) shall occur within sixty (60) days after the date of the election through escrow at a title company selected by Lessor and reasonably acceptable to Leasehold Mortgagees. At the Closing, Lessor shall deliver the Purchase Price to the escrow agent and the parties shall enter into the following documents: 38.3.4.1. Ground Lease Termination. Upon request by Lessor, Lessee shall execute and deliver without additional charge such documents as may be reasonably requested by Lessor to evidence and confirm the termination of Lessee's leasehold interest to the Premises under this Lease and the termination of all liens and encumbrances on the Premises, including but not limited to, a partial termination of lease and full reconveyance of Leasehold Mortgages or other security interests, each of which shall be executed in recordable form and such other documentation as may be necessary to evidence and confirm the termination of all property management contracts and other contracts affecting the Premises effective as of the date of termination. 38.3.4.2. Operating Lease/Management Agreement. As part of its option to purchase the Premises, the Cityand the Lesseeshalleachalso have the option of conditioning the purchase on (a) Lessee or an Affiliate thereof to lease or manage the Ice Complex Premises from the City and operate and maintain the same at no cost to the City, or (b) if Lessee and Affiliates decline to enter into such a lease or management agreement, then there shall be a third party approved by Lessor to lease the Ice Complex Premises from the City and operate and maintain the same at no cost to the City. If the City exercises this option, then at the Closing, the City and either Lessee, Affiliate or approved third party shall execute an Operating Lease or management agreement, with the City as landlord, and Lessee, Affiliate or approved third party as tenant/manager, with respect to the Ice Complex Premises (the “Operating Lease”). The terms of the Operating Lease shall, at a minimum, require (a) the Lessee, Affiliate, or approved third party (“Operating Lease Tenant”) to possess, operate, and maintain the Ice Complex Premises in accordance with and for the public benefit purposes identified in Section 11 of this Lease at Operating Lease Tenant’s own expense, (b) the City, as owner of the Commercial Premises, to transfer those net revenue it receives from the Commercial Premises to the Operating Lease/ manager Tenant, and (c) require the Operating Lease Tenant/manager to use the funds so transferred solely for operations, maintenance, and capital expenses of the Ice Complex Premises and programming to make the same available for use by economically disadvantaged persons free of charge or at a reduced cost. The minimum duration of the Operating Lease/management agreement shall be equal to the term of any debt the City incurred to purchase the Ice Complex Improvements. If the Operating Lease/manager Tenant is not the Lessee or an Affiliate thereof, then the Operating Lease Tenant or operation manager shall be selected by the City by publishing a request for qualifications and the City thereafter selecting a qualified candidate, if any, in accordance with the City’s established policies and procedures. Nothing herein shall be construed as preventing this condition from being satisfied by a management agreement or other similar agreement rather than a lease, but only if the agreement requires the Lessee, an Affiliate thereof, or a third party approved by Lessor to operate and maintain the Ice Complex Premises at no cost to the City. 38.3.4.3. Deed. At the Closing, all of Lessee’s interests to the Premises shall be conveyed to Lessor by Bargain and Sale Deed, subject only to those exceptions approved by Lessor. 38.3.4.4. General Assignment. At the Closing, Lessee and Lessor shall execute a general assignment whereby Lessee will assign to Lessor, and Lessor shall assume, all of Lessee’s interest in the plans and specifications, including all warranties, and all architectural and general contractor agreements, relating to the Premises and Improvements thereon. - 45 - 38.3.4.5. Bill of Sale. At the Closing, Lessee shall convey to Lessor the personal property of Lessee related to the Premises or Improvements, and the parties shall execute a bill of sale. 38.3.5. Excise Tax and Escrow Fees. At the Closing, Lessor shall be responsible for payment of all applicable real estate excise tax associated with the conveyance of the Premises to Lessor. Lessor and Lessee shall share equally the closing fee charged by the escrow agent. 38.3.6. Prorations. Real property taxes and assessments shall be prorated as of the date of Closing. Lessee shall be responsible for any and all deferred or abated taxes and related interest and charges, any past due taxes and assessments through the closing date and shall cause such to be paid and removed at or before Closing. The current year's taxes shall be prorated between the parties as of the date of Closing. In addition, insurance, interest, water and other utilities that are not separately metered constituting liens shall be prorated as of the date of Closing. 39. General Provisions 39.1. Confidentiality. Except for those matters that must be disclosed to perform the commitments of Lessee and Lessor under this Lease, and except as otherwise provided by Applicable Law, including but not limited to public record and public meeting laws, Lessee and Lessor agree that the provisions of this Lease are confidential business of Lessee and Lessor. Lessee shall not make any public announcements or advertise any affiliation with Lessor. Notwithstanding the foregoing, the provisions of this Section 39.1 shall not be applicable with respect to information that becomes public through parties other than Lessee, including information that may become public through information requests directed at Lessor and information that may become public as part of Lessor’s internal approval and ongoing reporting processes. Notwithstanding the foregoing, nothing contained hereby shall be deemed to prohibit Lessor or Lessee from disclosing the terms and provisions of this Lease: (i) in connection with the enforcement of the terms of this Lease; (ii) to the extent required by any subpoena or court order or requested by any governmental entity; (iii) in the case of Lessee, to any actual or proposed Leasehold Mortgagee; or (iv) to the extent required by the requirements of any applicable securities exchange; provided, however, in the case of any disclosure pursuant to clauses (ii) through (iv) above, Lessee shall notify the recipient of such information of the obligation to keep such information confidential. 39.2. Broker’s Commissions. Lessor and Lessee have used no broker or finder in connection with this transaction. Each party represents to the other party that the representing party has incurred no liability for any brokerage commission or finder’s fee arising from or relating to the negotiation or execution of this Lease, other than as set forth in this Section 39.2. Each party hereby indemnifies and agrees to protect, defend and hold harmless the other party from and against all liability, cost, damage or expense (including, without limitation, attorneys’ fees and costs incurred in connection therewith) on account of any brokerage commission or finder’s fee which the indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section 39.2 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may it be relied upon by, any person or entity not a party to this Lease. 39.3. No Third-Party Beneficiaries. This Lease shall not confer nor be deemed nor construed to confer upon any person or entity, other than the parties hereto, any right or interest, including, without limiting the generality of the foregoing, any third-party beneficiary status or any right to enforce any provision of this Lease, other than any Leasehold Mortgagee. - 46 - 39.4. Severability. In case any one or more of the provisions of this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Lease, and this Lease shall be construed as if such invalid, illegal or unenforceable provisions had not been contained herein. 39.5. Time of the Essence. Time is hereby expressly declared to be of the essence of this Lease and of each and every term, covenant, agreement, condition and provision hereof. 39.6. Headings. Section and subsection headings in this Lease are for convenience only and are not to be construed as a part of this Lease or in any way limiting or amplifying the provisions hereof. 39.7. Lease Construed as a Whole. The language in all parts of this Lease shall in all cases be construed as a whole according to its fair meaning and not strictly for or against either Lessor or Lessee. The parties acknowledge that each party and its counsel have reviewed this Lease and participated in its drafting and therefore that the rule of construction that any ambiguities are to be resolved against the drafting party shall not be employed nor applied in the interpretation of this Lease. 39.8. Construction. This Lease and each provision herein shall be given a fair and reasonable construction in accordance with the intention of the parties. This Lease was drafted as a mutual effort by the parties and shall not be interpreted against any single drafter. 39.9. Meaning of Terms. Whenever the context requires, the neuter gender shall include the masculine and the feminine, and the singular shall include the plural, and vice versa. 39.10. Attorneys’ Fees. In the event of any action or proceeding at law or in equity between Lessor and Lessee to enforce or interpret any provision of this Lease or to protect or establish any right or remedy of either party hereunder, the party not prevailing in such action or proceeding shall pay to the prevailing party all costs and expenses, including without limitation, reasonable attorneys’ fees and expenses (including reasonable attorneys’ fees and expenses of in-house attorneys), incurred therein by such prevailing party and if such prevailing party shall recover judgment in any such action or proceeding, such costs, expenses and attorneys’ fees shall be included in and as a part of such judgment. 39.11. Choice of Law. The interpretation, construction and enforcement of this Agreement, and all matters relating hereto, including applicability and interpretation of conflict of laws, shall be governed by the laws of the State of Washington. Any judicial proceeding brought by either of the parties against the other party or any dispute arising out of this Agreement, the Closing, or the Premises, or any matter relating thereto shall be brought in the Superior Court of the State of Washington (in Spokane County), or in the United States District Court for the Eastern District of Washington. In that regard, each party hereby waives any defense of inconvenient forum and any bond or other security that might otherwise be required of the other party with respect to such choice of judicial forum. 39.12. Binding Agreement. Except as otherwise stated herein, the terms, covenants and agreements contained in this Lease shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 39.13. Entire Agreement. This instrument, together with the exhibits hereto, all of which are incorporated herein by reference, constitutes the entire agreement between Lessor and Lessee with respect to the subject matter hereof and supersedes all prior offers, negotiations, oral and written. This Lease may not be amended or modified in any respect whatsoever except by an instrument in writing signed by Lessor and Lessee. - 47 - 39.14. Quiet Enjoyment. Lessee, upon paying the Rent and all other sums due hereunder and upon keeping and observing all of the covenants, agreements and provisions of this Lease on its part to be observed and kept, shall lawfully and quietly hold, occupy and enjoy the Premises during the Term without hindrance by anyone claiming by, through, or under Lessor. 39.15. Termination Not Merger. The voluntary sale or other surrender of this Lease by Lessee to Lessor, or a mutual cancellation thereof, or the termination thereof by Lessor pursuant to any provision contained herein, shall not work a merger, but at the option of Lessor shall either terminate any or all existing subleases or subtenancies hereunder, or operate as an assignment to Lessor of any or all of such subleases or subtenancies. 39.16. Modification of Lease. In the event of any ruling or threat by the Internal Revenue Service, or opinion of counsel, that all or part of the Rent paid or to be paid to Lessor under this Lease will be subject to the income tax on unrelated business taxable income, Lessee agrees to modify this Lease to in order to carry out the intent that this Lease shall not be subject to such tax; provided that such modifications will not result in any increase in Rent, or any increased obligations of Lessee under this Lease. Lessor will pay all Lessee’s reasonable costs incurred in reviewing and negotiating any such lease modification, including reasonable attorneys’ and accountants’ fees. 39.17. Lessor Consents and Amendments. Except as otherwise set forth in this Lease, Lessor may, in the exercise of its sole discretion, withhold its consent to any request by Lessee under this Lease including but not limited to requests to amend any Lease term. Except as otherwise provided in this Lease, in the event that Lessor shall fail to approve or deny any consent request within the applicable time period set forth in this Lease, Lessor shall be deemed to have disapproved such request. 39.18. Survival. The obligations of this Lease shall survive the expiration or earlier termination of this Lease to the extent necessary to implement any requirement for the performance of obligations or forbearance of an act by either party which has not been completed prior to the termination of this Lease. Such survival shall be to the extent reasonably necessary to fulfill the intent thereof, or if specified, to the extent of such specification, as same is reasonably necessary to perform the obligations and/or forbearance of an act set forth in such term, covenant or condition. Notwithstanding the foregoing, in the event a specific term, covenant or condition is expressly provided for in such a clear fashion as to indicate that such performance of an obligation or forbearance of an act is no longer required, then the specific shall govern over the general provisions of this Lease. 39.19. Estoppel Certificates. Either party, at any time and from time to time within ten (20) Business Days after receipt of written notice from the other party, shall execute, acknowledge and deliver to the requesting party a certificate stating (to the responding party’s best knowledge where applicable): (a) that Lessee has accepted the Premises (if true); (b) the Commencement Date and Expiration Date of this Lease; (c) that this Lease is unmodified and in full force and effect (or, if there have been modifications, that same is in full force and effect as modified and stating the modifications); (d) whether or not there are then existing any defenses against the enforcement of any of the obligations of Lessee under this Lease (and, if so, specifying same); (e) whether or not there are then existing any defaults by the parties in the performance of their obligations under this Lease (and, if so, specifying same); and (f) any other factual information relating to the rights and obligations under this Lease that may reasonably be required by requesting party. 39.20. Counterparts. This Lease may be executed in any number of counterparts and each of the counterparts shall be considered an original and all counterparts shall constitute one and the same instrument. - 48 - 39.21. Limitation of Liability. Notwithstanding anything herein to the contrary, the liability of the Lessee hereunder and each obligation of Lessee hereunder (including, but not limited to its indemnity obligations) under this Lease shall be “limited recourse obligations” and, accordingly, the Lessor's sole source of satisfaction of such obligations shall be limited to the Lessee's interest in this Lease, the Premises, the rents, issues and surplus related thereto and the other assets of the Lessee, and the Lessor shall not seek to obtain payment from any person or entity comprising the Lessee or who is a member, officer, director, agent or employee of Lessee or its member, notwithstanding the survival of any obligation of the Lessee beyond the Term. \[SIGNATURES APPEAR ON FOLLOWING PAGE\] - 49 - Lessor and Lesseehave executed this Lease as of the date first above written: LESSOR: City of Spokane Valley By: Its: LESSEES: Spokane Youth Ice, LLC By: Its: Ignite Youth Ice, LLC By: Its: GLOSSARY As used in this Lease, the following terms shall have the following meanings, applicable, as appropriate, to both the singular and plural forms of the terms herein defined: “Additional Rent” is defined in Section 7.1. “Affiliate” means (a) the legal representative, successor or assignee of, or any trustee of a trust for the benefit of, Lessee; (b) any entity of which a majority of the voting or economic interest is owned, directly or indirectly, by Lessee or one or more of the persons referred to in the preceding clause; (c) any entity in which Lessee or a person referred to in the preceding clauses is a controlling stockholder, controlling partner or controlling member (directly or indirectly); (d) any person or entity which is an officer, director, trustee, controlling stockholder, controlling partner or controlling member (directly or indirectly) of Lessee or of any person or entity referred to in the preceding clauses; or I any person or entity directly or indirectly controlling, controlled by or under common control with, Lessee or any person or entity referred to in any of the preceding clauses. For purposes of this definition, “control” means owning directly or indirectly fifty percent (50%) or more of the beneficial interest in such entity or the direct or indirect power to control the management policies of such person or entity, whether through ownership, by contract or otherwise. “Alterations” means any additional improvements, alterations, remodeling, or reconstruction of or to the Leasehold Improvements following the issuance of a certificate of occupancy for the Spokane Valley Ice Sports Complex. “Annual Rent” is defined in Section 1. “Applicable Laws” means (a) all applicable laws, statutes, codes, ordinances, orders, resolutions, rules, regulations and requirements, including, without limitation, all Environmental Requirements, of all federal, state, county, municipal and other Governmental Authorities and the departments, commissions, boards, bureaus, instrumentalities, and officers thereof; (b) all judicial rulings, decrees and orders; and (c) the American Insurance Association (formerly the National Board of Fire Underwriters) or any other body exercising similar functions relating to or affecting the Premises, the Improvements now or hereafter located on the Premises or the use, operation or occupancy of the Premises for the purposes permitted hereunder. In each instance, Applicable Laws shall include those existing as of the Commencement Date and those hereafter enacted. State laws shall prevail over federal law only where preemption is recognized by federal law. “Award” means the amount paid by the Condemning authority as a result of a Condemnation. “Basic Lease Information” means the information contained in Section 1. “Blocked Person” is defined in Section 37. “Buildings” means the Leasehold Improvements and all other buildings located on the Sullivan Property. “Business Days” means Monday through Friday, excluding federal and State of Washington legal holidays. Any references to “days” that are not expressly designated to be business days shall mean calendar days. Glossary “Claims”are defined in Section 21.1. “Closing” is defined in Section38.3.4. “Commencement Date” is defined in the introductory paragraph. “Commercial Parcels” is defined in Section 8. “Commercial Premises” is defined in Section 9.2.1. “Commercial Project” is defined in Section 9.2.1. “Condemnation” means any taking by exercise of right of condemnation (direct or inverse) or eminent domain, or requisitioning by military or other public authority for any purpose arising out of a temporary emergency or other temporary circumstance or sale under threat of condemnation. “Condemned” means having been subject to such taking and “Condemning” means exercising such taking authority. “Construction Commencement” means Lessee has obtained and closed on all necessary construction financing for the Ice Complex Project, and has commenced demolition of the Exiting Improvements for the purpose of constructing the Ice Complex Project. “Construction Contract” means the contract with a general contractor for construction of the Ice Complex Project, which shall by its terms be fully assignable to Lessor. “Development” or “Develop” means any acts necessary and appropriate to (a) obtain any required land use, zoning, environmental, building or other approvals and permits for the Design, Construction, operation and use of the Project, (b) obtain any required extension of public and private utility services for the Project, (c) obtain any required vehicular or pedestrian rights of way and access from or to the Project (including such rights granted herein), and (d) satisfy the legal requirements and insurance requirements in connection with the Design or Construction of the Project. “Environmental Claims” means all claims, demands, suits, actions (including, without limitation, notices of noncompliance, charges, directives, and requests for information), causes of action, orders, judgments, settlements, damages, losses, diminutions in value, penalties, fines, actions, proceedings, obligations, liabilities (including strict liability), encumbrances, liens, costs (including, without limitation, costs of investigation and defense of any claim (including, Lessor’s in-house counsel), whether or not such claim is ultimately defeated, and costs of any good faith settlement or judgment), and expenses of whatever kind or nature, contingent or otherwise, matured or unmatured, foreseeable or unforeseeable, including without limitation reasonable attorneys’ and consultants’ fees and disbursements, any of which are incurred at any time, arising out of or related to Environmental Requirements, including, without limitation: (a) Damages for personal injury, or injury to property or natural resources occurring upon the Premises or off the Premises, foreseeable or unforeseeable, including, without limitation, consequential damages, lost profits, lost rents, the cost of demolition and rebuilding of any improvements on real property, interest and penalties; (b) Claims brought by or on behalf of employees of Lessee; (c) Fees incurred for the services of attorneys, consultants, contractors, experts, laboratories and all other costs incurred in connection with the investigation or remediation of Releases of Hazardous Substances (whether or not performed voluntarily) or violation of Environmental Requirements, Glossary including, but not limited to, preparation of feasibility studies or reports, or the performance of any cleanup, remediation, removal, response, abatement, containment, closure, restoration or monitoring work required by any federal, state or local governmental agency or political subdivision, reasonably necessary to restore full economic use of the Premises or any other property, or otherwise expended in connection with such conditions, and including without limitation any attorneys’ fees, costs and expenses incurred in enforcing this Lease or collecting any sums due hereunder; and (d) Liability to any third person or governmental agency to indemnify such person or agency for costs expended in connection with the items referenced above. “Environmental Requirements” means all applicable present and future statutes, regulations, rules, ordinances, codes, common law, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises, and similar items, and all amendments thereto, of all governmental agencies, departments, commissions, boards, bureaus or instrumentalities of the United States, Washington, and political subdivisions thereof, and all applicable judicial, administrative and regulatory decrees, judgments, orders and written directives relating to the protection of human health, safety, wildlife or the environment, including, without limitation, (a) all requirements pertaining to reporting, licensing, permitting, investigation and/or remediation of emissions, discharges, Releases, or threatened Releases of Hazardous Substances, whether solid, liquid, or gaseous in nature, into the air, surface water, groundwater, or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of Hazardous Substances; and (b) all requirements pertaining to occupational health, the health and safety of employees or the public, including, without limitation, as amended from time to time, the Federal Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq., Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Section 9601 et seq., Federal Hazardous Materials Transportation Control Act, 49 U.S.C. Section 1801 et seq., Federal Clean Air Act, 42 U.S.C. Section 7401 et seq., Federal Water Pollution Control Act, Federal Water Act of 1977, 33 U.S.C. Section 1251 et seq., Federal Insecticide, Fungicide and Rodenticide Act, Federal Pesticide Act of 1978, 7 U.S.C. Section 136 et seq., Federal Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq., Federal Safe Drinking Water Act, 42 U.S.C. Section 300f et seq., Washington Water Pollution Control Act, RCW Chapter 90.48, Washington Clean Air Act, RCW Chapter 70.94, Washington Solid Waste Management Recovery and Recycling Act, RCW Chapter 70.95, Washington Hazardous Waste Management Act, RCW Chapter 70.105, Washington Hazardous Waste Fees Act, RCW Chapter 70.95E, Washington Model Toxics Control Act, RCW Chapter 70.105D, Washington Nuclear Energy and Radiation Act, RCW Chapter 70.98, Washington Radioactive Waste Storage and Transportation Act of 1980, RCW Chapter 70.99, Washington Underground Petroleum Storage Tanks Act, RCW Chapter 70.148, and any regulations promulgated thereunder. “Event of Default” is defined in Section 26.1. “Existing Improvements” is defined in Recital H. “Expiration Date” is stated in the Basic Lease Information. “Final Completion” means Substantial Completion has occurred and all punch list items have been performed and are completed. “Full Replacement Value” is defined in Section 20.1.1.1. “GAAP” means those principles of accounting set forth in pronouncements of the Financial Accounting Standards Board and its predecessors or pronouncements of the American Institute of Certified Public Accountants or those principles of accounting that have other substantial authoritative support and Glossary are applicable in the circumstances as of the date of application, as such principles are from time to time supplemented and amended. “General Construction Contract”that certain Construction Contract between the Lesseeand the General Contractor pursuant to which the General Contractor has agreed to Construct the Ice Complex Project and any exhibits and plans and specifications attached thereto, and any modifications, amendments or supplements thereto in accordance with the terms thereof. Lessor acknowledges receipt of a copy of the General Construction Contract. “General Contractor” means Garco Construction Inc., as contractor under the terms and conditions of the Construction Contract, and its permitted successors and assigns. “Gross Revenue”means for the period in question, all gross income, revenues and receipts, actually received by the Lessee (on an accrual basis in accordance with GAAP) relating to the Premises and/or Improvements, determined on the basis of GAAP, including but not limited to any and all of the following (but without duplication of any item): (a) gross, fixed, minimum and guaranteed rentals or revenue received under any subleases or in connection with any of Lessee’s operations conducted at the Premises; (b) late charges and interest received on late payments under any subleases; (c) amounts received as a result of provisions in subleases permitting the landlord thereunder to receive or share in receipts from the subleasing of space or assignment of such subleases; (d) parking fees and rentals; and (e)fees, charges, or payments received from onsite amenities (e.g., admission fees, concessions, vending machines, etc.). Notwithstanding the foregoing, Gross Revenues shall not include (i) proceeds of casualty insurance or condemnation awards (other than business interruption insurance proceeds, which will be included in the term Gross Revenue), (ii) proceeds from sales, financings, or other capital transactions, (iii) equity or capital contributions, or (iv) any gains on the sale or other disposition of investments or fixed or capital assets not in the ordinary course of business, (v) earnings on amounts that are irrevocably deposited in escrow to pay the principal of or interest on indebtedness of the Lessee, (vi) earnings or gains resulting from any reappraisal, revaluation, or write-up of assets, and (vii) interest or investment income earned on bank accounts, deposits or escrows. “Governmental Authorities” means all jurisdiction over the Premises. “Hazardous Substance” means any substance, material or waste: (a) the presence of which requires investigation or remediation under any Environmental Requirement; (b) which is or becomes listed, regulated or defined as a “hazardous waste,” “hazardous substance,” “hazardous material”, “toxic substance”, “hazardous air pollutant”, “pollutant,” “infectious waste,” “bio-hazardous waste”, “medical waste”, “radioactive waste”, or “contaminant” under any Environmental Requirement; (c) which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous to human health, safety, wildlife or the environment and is or becomes regulated under any Environmental Requirement; (d) the presence or Release of which at, on, under or from the Premises causes or threatens to cause a nuisance upon the Premises or to surrounding properties or poses or threatens to pose a hazard to the environment or the health or safety of persons on or about the Premises; or Glossary (e)the presence of which on adjacent properties could constitute a trespass by Lessee. Without limitation of the foregoing, Hazardous Substances shall include gasoline, diesel fuel and other petroleum hydrocarbons and the additives and constituents thereto, including MTBE; polychlorinated biphenals (PCBs); asbestos and asbestos-containing material; universal waste, lead; urea formaldehyde foam insulation; radon gas and microbial material (including mold). “Ice Complex Parcel” is defined in Section 8. “Ice Complex Premises” is defined in Section 9.1. “Ice Complex Project” is defined in Section 9.1. “Improvements” means Leasehold Improvements and all Alterations together with any and all buildings, structures, systems, facilities and fixtures to be located within the Sullivan Property pursuant to this Lease. “Interest Rate” means the rate of twelve percent (12%) per annum. “Lease” is defined in the introductory paragraph. “Lease Year” means each successive calendar year during the Term, provided that the first partial Lease Year shall commence on the Commencement Date and the last partial Lease Year shall end on the Termination Date. “Leasehold Improvements” means all construction, improvement or Alteration of the Sullivan Property pursuant to this Lease, including but not limited to all buildings, structures, systems, facilities and fixtures to be located on or within the Sullivan Property. “Leasehold Mortgage” is defined in Section 25. “Leasehold Mortgagee” means the holder of a Leasehold Mortgage. “Lessee” means Ignite Youth Ice, LLC and Spokane Youth Ice, LLC as joint tenants, including their permitted successors and assigns under this Lease. “Lessee Environmental Activity” means any use, treatment, keeping, handling, storage, transport, sale or Release at, on, under or from the Premises of any Hazardous Substance during the Term that arises out of, is the result of, or is related to the acts or omissions of Lessee or Lessee’s Agents, subtenants or invitees on or about the Premises during the Term. “Lessee Materials” means materials on the Sullivan Property to be incorporated into the Improvements of the Ice Complex Premises, but have not been so incorporated at the time Lessor terminates this Lease for Lessee’s failure to achieve Substantial Completion by the deadline identified in Section 9.1.4. “Lessee Parties” are defined in Section 19.9.2. “Lessee’s Agents” means Lessee’s employees, agents, contractors, subtenants and invitees. “Lessor” is defined in the introductory paragraph. “Lessor Parties” shall mean Lessor’s employees, city council members and the City Manager. Glossary “Lessor’s Agents”means Lessor’s employees and agents. “Lessor’s Interest” is defined in Section 16.2. “Liens” are defined in Section 16.1. “New Lease” is defined in Section 25.5. “New Lease Notice”is defined inSection 25.5. “Operating Expenses” shall mean and be limited to the following items for any stated time period, all of which must be reasonable, normal and customary in the ordinary course of the business of Lessee at and solely for the Premises, and actually incurred: (a) costs of utilities, air conditioning, heating and electricity for the Premises (except to the extent that sublessees, renters, licensees, concessionaires or others pay any such utilities directly); (b) all costs, expenses and fees paid in managing, maintaining, operating and repairing the Premises as required under the terms of this Lease, including without limitation, costs to relocate tenants, costs of repairs made as a result of any damage to the Premises caused by sublessees, renters, licensees, concessionaires or visitors to the Premises but excluding any costs of replacements, remodeling or rehabilitation of or capital improvements to the Premises or any part or portion thereof. Notwithstanding the foregoing, however, specific remodeling, rehabilitation or capital improvement cost items (collectively “Capital Cost Items”) may be included in Operating Expenses provided that each such item is either specifically authorized under this Lease or shall have been submitted by Lessee to Lessor and approved in advance and in writing by Lessor. Submission by Lessee to Lessor of requests for approval of Capital Cost Items shall be in writing and in reasonable detail, and shall include, among other things, a statement or explanation of the need for or desirability thereof, detailed plans, cost estimates and proposed means of payment and such other information as may be required under this Lease; (c) Reserved; (d) marketing and advertising costs and expenses incurred for the benefit of the Premises or any portion thereof; (e) expenses incurred with respect to security and insurance premiums on policies of insurance required to be maintained pursuant to this Lease or the Leasehold Mortgage; (f) Reserved; (g) Taxes; and (h) Fixed Rent due to Lessor under this Lease. Operating Expenses shall not include any depreciation of the Premises or any equipment, personal property, furniture or fixtures of or located on the Premises or amortization in lieu thereof or any federal or state business and occupation or income taxes payable by Lessee, or any property manager, or any other similar taxes measured by income. “Option” is defined in Section 38.2. “Premises”is defined in Recital I. “Project” is defined to refer to both the Ice Complex Project and the Commercial Project. “Project Documents” mean the Construction Contract, drawings, plans and specifications for construction of the Ice Complex Project. “Release” with respect to Hazardous Substances, means any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing, or other movement of Hazardous Substances into the environment; provided that “Release” shall not include the migration, seepage or discharge on, over or across the Premises of any Hazardous Substance that originates off of the Premises. “Rent” means Annual Rent and Additional Rent. Glossary “Substantial Completion” means the date that the Leasehold Improvements for the Ice Complex Premises are complete (other than minor punch list items) in accordance with the Project Documents and a temporary certificate of occupancy for the Ice Complex Project has been issued by the City such that Lessee, and Lessee’s subtenants are permitted to and could, pursuant to such certificate of occupancy, physically occupy the Improvements and carry out the Operations identified in Section 11. “Sullivan Property” is defined in Recital A. “Taxes” are defined in Section 7.2.2. “Term” is defined in Section 5.1. “Termination Date” means the Expiration Date or such earlier date as this Lease is terminated pursuant to any provision hereof. “Third Party Offer” is defined in Section 38.1.1. “Transfer” is defined in Section 23.1. “Triggering Event” is defined in Section 19.8. “Unavoidable Delay” means any delay due to war, insurrection, riots, civil disturbances, floods, fires, casualties, earthquakes, tsunamis, acts of God, acts of the public enemy, acts of terrorists, governmental embargo restrictions, inability to obtain materials through ordinary sources using commercially reasonable efforts (including the selection of alternative materials), bankruptcy, insolvency or dissolution of third party providers of services or capital to the Ice Complex Project, strikes, epidemics, quarantine restrictions, Unusually Severe Weather Conditions, unforeseen subterranean conditions that could not have otherwise been reasonable anticipated, any actions by any governmental authorities, or similar events or circumstances beyond Lessee’s reasonable control, and provided (i) Lessee shall use commercially reasonable efforts to seek to minimize the effects of any Unavoidable Delay, and (ii) the total length of time a delay may constitute Unavoidable Delay with respect to a specific event or circumstance shall not exceed the length of time for the actual event or circumstance plus a period of time thereafter in the exercise of reasonable diligence necessary to address the consequences associated with such event or circumstance (which, by way of example, for a casualty would include the length of time of the casualty itself and the time thereafter in the exercise of reasonable diligence to seek and secure insurance proceeds and necessary permits and the time to conduct the actual repairs of such casualty). “Unusually Severe Weather Conditions” means the occurrence of precipitation, low temperature, windstorms, or snow or ice which is reasonably unanticipated and causes construction projects in downtown Spokane Valley to cease work. Glossary EXHIBIT A LEGAL DESCRIPTION OF THE SULLIVAN PROPERTY \[See attached\] Exhibit B EXHIBIT B LESSEE’S DRAFT ICE COMPLEX PLANS \[On file with Lessor and Lessees\] Exhibit B EXHIBIT C LESSOR’S DRAFT INFRASTRUCTURE PLANS \[See attached\] Exhibit B EXHIBIT D MEMORANDUM OF LEASE \[See attached\] Exhibit B EXHIBIT E SECURITY AND EMERGENCY MANAGEMENT PLAN \[See attached\] Exhibit B I.C. 6-32-00088 Sullivan Pit Pit SitePS-C-144 Stockpile Site SP-C-6143 Assessor’s Parcel Number 45114.9009 That portion of Government Lot 8, Section 11, Township 25 North, Range 44 East of the Willamette Meridian, lying South of a line drawn parallelwith and 200 feet distant Southerly, when measured at right angles, from the southerly Spokane International Railway right of way line and North of the following described line: BEGINNING at a point on the East line of said Section from which point the Southeast corner of Section 11 bears South0°47' East 925.08 feet distant; Thence North 55°50' West 952.90 feet; Thence North 77°39' West 135 feet; Thence North 3°35' West 205 feet; Thence North 72°10' West 330 feet; Thence North 76°57'West to a point of intersection with the West line of Government Lot8; EXCEPT any part thereof lying within the East 100 feet of the North 575 feet of GovernmentLot 8; AND EXCEPT any portion lying within Sullivan Road; AND EXCEPT that portion conveyed to The County of Spokane by Quitclaim Deed recordedunder Auditor's File No. 504316B, described as follows: BEGINNING at the Southeast corner of Section 11, Township 25 North, Range 44 East, W.M.; Thence North 0°47' West 925.08 feet along the East line of Section 11; Thence North 55°50' West 36.60 feet to the Westerly right of way line of Sullivan Road andthe True Point of Beginning; Thence North 55°50' West 916.30 feet; Thence North 89°13' East 751.04 feet to the Westerly right of way line of Sullivan Road; Thence South 0°47' East 524.91 feet along the Westerly right of way line of Sullivan Roadto the True Point of Beginning; AND EXCEPT that portion conveyed to Spokane County by Quitclaim Deed recorded under Auditor's File No. 728210B, described as follows: BEGINNING at the Southeast corner of Section 11, Township 25 North, Range 44 East, W.M.; Thence North 0°47' West a distance of 1520.96 feet along the East line of said Section 11; Thence South 89°13' West a distance of 30 feet to a point on the West right of way line of Sullivan Road and the True Point of Beginning; Thence North 69°53.5' West a distance of 321.12 feet; Thence South 0°47' East a distance of 164.51 feet; Thence North 89°13' East a distance of 300 feet to a point on the Westerly right of way lineofSullivan Road; Thence Northerly along said right of way line to the True Point of Beginning; AND ALSO EXCEPT that portion conveyed to the Union Pacific Railroad Company by Quitclaim Deed recorded under Auditor's File No. 9112310430, described as follows: BEGINNING at the intersection of the West line of Government Lot 8, Section 11, Township 25 North, Range 44 East, W.M.,and a line drawnparallel with and 200 feet Southeasterly, when measured at right angles and/or radially,fromtheSoutheasterly right of way line of the Spokane International Railway; Thence North 74°53' East along said parallel line a distance of 1275.71 feet; Thence South 00°47' East a distance of 326.53 feet; Thence North 89°13' East a distance of 70.0 feet, more or less, to a point on the Westerly right of way line of Sullivan Road, which point is 30.0 feet Westerly, when measured at right angles, from the East line of said Section 11; Thence South 00°47' East along said Westerly right of way line a distance of 193.47 feet; Thence South 89°13' West a distance of 130.0 feet; Thence North 00°47' West a distance of 380.81 feet; Thence South 74°53' West a distance of 1213.78 feet, more or less, to the said West line ofsaid Government Lot 8; Thence North 00°54' West along said West line to the Point of Beginning; Situate in the County of Spokane, State of Washington. WHEN RECORDED RETURN TO: Lukins & Annis, P.S. Attn: James S. Black 717 W Sprague Avenue, Suite 1600 Spokane, WA 99201 MEMORANDUM OF GROUND LEASE Lessor: CITY OF SPOKANE VALLEY, a municipal corporation Lessee: IGNITE YOUTH ICE, LLC a Washington limited liability company SPOKANE YOUTH ICE, LLC a Washington limited liability company Parcel Nos. Reference Nos. of Related Documents: MEMORANDUM OF GROUND LEASE THIS GROUND LEASE (this “Lease”) is made and entered into as of the _____ day of April, 2026 (the “Commencement Date”), by and among the CITY OF SPOKANE VALLEY, a municipal corporation (“City” or “Lessor”) and Ignite Youth Ice, LLC, a Washington limited liability company a wholly owned subsidiary of Innovia Ignite Foundation, a Washington , a nonprofit corporation described under Section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended, and SPOKANE YOUTH ICE, LLC, a Washington limited liability Company, as joint tenants (together the “Lessee”) to give record notice of the following facts and circumstances:. 1. Lease. Lessor and Lessee are parties to that certain Ground Lease Agreement dated as of ___, 2026(the “Lease”). This Lease relates to certain real property owned by the Lessor and located at 2100 N. Sullivan Road in the City of Spokane Valley, Spokane County, State of Washington (referred herein as “Sullivan Property”). The Sullivan Property is comprised of an approximately twelve (12) acre parcel of land more particularly described in the attached Exhibit A. The Landlord intends to subdivide the Sullivan Property into three or four separate legal lots for the benefit of Lessee and Lessee’s use all such lots shall support tourism, accommodate tourist activities within the City, provide financing for a Youth Ice Rink as defined within the Lease, and provide recreation opportunities for youth in the community, as applicable. The Sullivan Property, together with any and all buildings, structures, systems, facilities and fixtures currently located and to be located within the Sullivan Property pursuant to this Lease, as well as all easements and other appurtenant rights, are referred to collectively as the premises (“Premises”). 2. Term of Lease. Subject to and upon the terms set forth in the Lease, the term of said Lease shall run for Seventy-five (75) years from Commencement Date with one (1) 24-year extension option exercisable upon the election of the Lessee. 3. Exclusive Use. The Premises shall be used for the development and operation of a Youth Ice Rink and other commercial purposes, the revenue of which will support the Youth Ice Rink as provided within the Lease. 4. Right of First Refusal//Option to Purchase. As set forth in the Lease, Lessee grants to Lessor both a right of first refusal and an option to purchase all of Lessee’s interests in the Premises allowing for the termination of the Lease. . 5. Other Provisions. The Lease provides various other financing, representations provisions, and covenants which are all contained explicitly within the Lease. 6. Counterparts. This Memorandum may be executed in any number of counterparts and by the parties hereto on separate counterparts. Each counterpart shall constitute an original of this Memorandum, but together the counterparts shall constitute one document. **Signatures on the following page** IN WITNESS WHEREOF, the Lessor has executed this Memorandum as of the date and year first above written. LESSOR: CITY OF SPOKANE VALLEY By: Its: LESSEES: IGNITE YOUTH ICE, LLC By: Its: SPOKANE YOUTH ICE, LLC By: Its: STATE OF WASHINGTON ) : ss. County of Spokane ) On this ____ day of April, 2026, personally appeared before me ______________________, an authorized representative of the City of Spokane Valley, a municipal corporation, to me known to be the individual described in and who executed this Memorandum of Ground Lease, and acknowledged that he/she signed the same as his/her free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN UNDER my hand and official seal the day and year in this certificate first above written. Notary Public (Signature) (Print Name) My appointment expires: STATE OF WASHINGTON ) : ss. County of Spokane ) On this ____ day of April, 2026, personally appeared before me ______________________, an authorized representative of IGNITE YOUTH ICE, LLC, a Washington limited liability company, to me known to be the individual described in and who executed this Memorandum of Ground Lease, and acknowledged that he/she signed the same as his/her free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN UNDER my hand and official seal the day and year in this certificate first above written. Notary Public (Signature) (Print Name) My appointment expires: STATE OF WASHINGTON ) : ss. County of Spokane ) On this ____ day of April, 2026, personally appeared before me ______________________, an authorized representative of SPOKANE YOUTH ICE, LLC, a Washington limited liability company, to me known to be the individual described in and who executed this Memorandum of Ground Lease, and acknowledged that he/she signed the same as his/her free and voluntary act and deed, for the uses and purposes therein mentioned. GIVEN UNDER my hand and official seal the day and year in this certificate first above written. Notary Public (Signature) (Print Name) My appointment expires: Exhibit A Legal Description Emergency Action Plan (EAP)for the \[FACILITYNAME\] Location: \[Address\] I. PURPOSE AND SCOPE The purpose of this Emergency Action Plan (EAP) is to provide a structured and systematic response to emergencies occurring at the ____________ facility known as ______. This plan II. THREAT EVALUATION Potential threats include: Medical emergencies (injury, illness, cardiac events) Active shooter or armed assailant Fire Severe weather (e.g., lightning) Lost or missing persons Animal or insect threats (e.g., wasps, wildlife) III. EMERGENCY PERSONNEL SafetyDirector: o_____________ willact as Event Director and EAP administration for the facility. o. Safety Coordinator:Liaison with emergency responders, supervises evacuation if necessary, coordinates medical response, communicates with EMS. :Report incidents and guide participants, trained in crowd management. IV. EMERGENCY COMMUNICATION Primary method: Two-way radios Police Fire EMS:911 -urgent issues: Crime check (509)456-2233 Spokane County Emergency Management: (509) 477-2204 Poison Control: 1-800-222-1222 V. EMERGENCY VEHICLE ACCESS POINTS Clearly marked access points: 1.________________________________ 2.________________________________ VI. EMERGENCY EQUIPMENT ON SITE ___________ First Aid Kits: Located at _______________ Fire Extinguishers: Located at _________________ VII. CHAIN OF COMMAND 1.SafetyDirector 2.Safety Coordinator 3.Emergency Responders (take over upon arrival) VIII. MEDICAL TREATMENT RESPONSIBILITY EMS services will assume control for advanced medical care upon arrival P IX. FIRST AID LOCATIONS ______________________________ X. A. Medical Emergency 1.Call 911 immediately. 2.Administer First Aid/CPR if trained. 3.Clear the area to allow emergency personnel access. 4.Report incident to Supervisor and complete an incident report. 1.Call 911. 2. 3.Do not re- 1.Monitor NOAA alerts and local news. 2.Shelter guests in a secure structure or evacuate as needed. 3.Cancel or postpone outdoor events if necessary. 4.Document and assess post-storm damage. 1.Notify supervisor and call 911 immediately. 2.Gather description and last known location. 3.-wide coordinated search. 4. 5.Assist law enforcement upon arrival. 1.Evacuate the immediate area. 2.Call 911. 3.Do not attempt cleanup unless trained, equipped . 4. 1.Call 911. 2.Follow Run, Hide, Fight protocol. 3. 4.Remain in secure location until “All Clear” from authorities. 5.Cooperate with law enforcement. 1.Drop, Cover, and Hold On. 2. 3. 4.Do not re-enter until cleared. 1. 2. 3.Notify appropriate utility company. J.BOMB THREAT RESPONSE 1. Take all threats seriously 2. Do not touch suspicious items 3. Call 911 4. Evacuate the area following instructions from authorities 5. . XI. WEATHER-SPECIFIC GUIDELINES Suspend outdoor events/activity if lightning is within 10 miles. outdoor events/activities. XII. TRAINING AND DRILLS Scenario- XIII. PLAN REVIEW AND UPDATES post- incident assessments, and facility layout changes. Prepared By: _________________, Ignite Youth Ice, LLC Date: ______________ _____________ GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS GROUND LEASE TERMS MOTION CONSIDERATION AND NEXT STEPS CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 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: First Read: Ordinance 26-006 Code Text Amendment -TPA Opportunity Fund GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101 PREVIOUS COUNCIL ACTION TAKEN: On Aug. 21, 2025, the TPA Hotel Commission approved a recommendation to City Council to commit $1,325,000 in 2026 TPA revenue for destination marketing and event recruitment services. This budget was based on projected tourism travel and historical revenue generation. The Commission also recommended including $450,000 in 2025 TPA carryover funds, creating a total 2026 budget of $1,775,000. In addition, the Commission recommended a 2026 Work Plan that uses budgeted funds to purchase destination and sports recruitment marketing services, technology services, and to establish an “Opportunity Fund” to market events and venues in and near Spokane Valley. On Sept. 9, 2025, City Council heard an administrative report and recommended by consensus that staff bring forward a motion to approve the 2026 TPA budget of $1,775,000 and Work Plan. On Sept. 16, 2025, City Council approved a motion to approve the recommended 2026 TPA Budget of $1,775,000 and Work Plan. On Oct. 16, 2025, the TPA Commission approved a recommendation to City Council to divide the 2026 TPA budget of $1,775,000 into four allocations: $875,000 for destination marketing; $700,000 for sports recruitment and marketing; up to $30,000 for technology services; and $170,000 for an Opportunity Fund to support destination events and venues, while also granting the TPA Commission the authority to administer the fund. The Commission was informed at this meeting that an amendment to the city Municipal Code may be necessary to allow the Commission to administer the Opportunity Fund. On Oct. 28, 2025, City Council heard an administrative report and recommended by consensus that staff bring forward a motion to (1) place $170,000 of 2026 TPA revenue into an Opportunity Fund to distribute to destination venues and events based on presented criteria that will be approved by City Council and adopted in the SVMC; and (2) grant the TPA Commission administrative authority to review Opportunity Fund applications and award funding. On Nov. 18, 2025, City Council approved a motion to place $170,000 of 2026 TPA revenue into an Opportunity Fund to distribute to destination venues/events and grant the TPA Commission administrative authority to review Opportunity Fund applications and make grant funding decisions subject to Council review, all pursuant to authority and criteria that Council will review and adopt by separate ordinance at a later date. On Feb. 19, 2026, the TPA Commission, by unanimous consensus, recommended that City Council approve the draft text amendments to Chapter 3.21 of the Spokane Valley Municipal Code (attached hereto as Ordinance No. 26-006). If adopted, these code text amendmentswillenable TPA revenue to be utilized tooperate a “Tourism Opportunity Fund” and grant the TPA Commission administrative authority to review applications and award funding, pending City Council oversight by placing the funding award on the next regularly scheduled consent agenda of City Council, or on the next available non-consent agenda if the funding award is time sensitive and the consent agenda is not an option. BACKGROUND: After City Council approved placing $170,000 of 2026 TPA revenue into an Opportunity Fund on Nov. 18, 2025, city staff in collaboration with the City Attorney’s Office determined that a code text amendment would be necessary to fully implement the program. City Attorney Kelly Konkright and Tourism and Marketing Manager Lesli Brassfield met with the TPA Commission on Dec. 18 to explain the code text amendment process, and discuss first draft edits to Spokane Valley Municipal Code Section 3.21, the section that authorizes the TPA program. Discussions continued at the Jan.15 TPA Commission meeting and were focused on finalizing draft text that identifies the type and amount of information (criteria) that should be included in the application process to help commissioners determine if a funding request should be approved. In addition, there was discussion regarding the decision process, and authority of the Commission to award funding. As experts in the lodging industry with a broad understanding of what type of events or venues generate overnight hotel stays, commissioners recommended to city staff that the application process be simple, and require only the necessary information to determine the potential “destination” value of an event or venue. Staff recommended that the Commission’s decision to award funding be validated by City Council by placing the Commission’s funding award decision on the Council’s next consent agenda, or on the next available non-consent agenda if the Opportunity Fund award is time sensitive. If a councilmember does not approve of the Commission’s decision, the councilmember would have the option to request that the item be pulled from the consent agenda for Council discussion and action. A final draft of the code text amendments was presented to the TPA Commission on Feb. 19, and the Commission, by unanimous consent, recommended that the draft as presented go forward to City Council for consideration. OPTIONS: (1) Move to advance Ordinance 26-006 adopting amendments to chapter 3.21 SVMC creating the Tourism Opportunity Fund to a second reading and authorize the City of Spokane Valley Tourism Promotion Area Commission to administer the same, or (2) take other action as appropriate. RECOMMENDED ACTION OR MOTION: Move to advance Ordinance 26-006 adopting amendments to chapter 3.21 SVMC to a second reading. BUDGET/FINANCIAL IMPACTS: City Council has approved placing $170,000 in 2026 TPA revenue into the Opportunity Fund. This funding would be available for the TPA Commission to distribute after approval of text amendments to Chapter 3.21 SVMC. STAFF CONTACTS: Mike Bassinger, Community & Economic Development Director; Kelly Konkright, City Attorney ATTACHMENTS: Proposed Ordinance 26-006: An Ordinance of the City of Spokane Valley Amending Title 3, Chapter 21 of the Spokane Valley Municipal Code Creating the Tourism Opportunity Fund and Authorizing the Spokane Valley Tourism Promotion Area Commission to Administer the Same. CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 26-006 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING CHAPTER 3.21 OF THE SPOKANE VALLEY MUNICIPAL CODE TO ESTABLISH A TOURISM OPPORTUNITY FUND, AND OTHER MATTERS RELATING THERETO. WHEREAS, the City of Spokane Valley City Council adopted Ordinance No. 22-016 which (1) established the Spokane Valley Tourism Promotion Area (“TPA”) comprised entirely of the corporate limits of the City pursuant to RCW 35.101.020, (2) established the Spokane Valley Tourism Promotion Area Commission (“TPA Commission”) to make recommendations for use of TPA tax revenue received by the City, (3) established a tax under RCW 35.101.050 and a separate tax under RCW 35.101.057 on overnight lodging within the TPA, and (4) restricts the City’s use of such tax revenue for the purpose of promoting tourism within the City; and WHEREAS, on August 21, 2025, the TPA Commission recommended using a portion of TPA tax revenues to fund a “Tourism Opportunity Fund” from which the TPA Commission may, subject to review and approval by City Council, award funds to venues or event organizers to help defray the costs of locating a tourism-generating event within the City and incentivize such tourism-generating events to locate within the City; and WHEREAS, on November 18, 2025, the City of Spokane Valley City Council (1) approved a duly made motion to create the Tourism Opportunity Fund and fund it in 2026 with $170,000 from TPA funds for year 2026 and (2) directed City staff to propose amendments to the Spokane Valley Municipal Code to identify criteria for disbursements to be made from the Tourism Opportunity Fund to venues or event organizers; and WHEREAS, on February 19, 2026, the TPA Commission, by unanimous vote, recommended that City Council approve the presented draft text amendments to Chapter 3.21 of the Spokane Valley Municipal Code in order for the TPA Commission to begin administering the Tourism Opportunity Fund; NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, ordains as follows: Section 1. Amendment to SVMC 3.21.050. Spokane Valley Municipal Code 3.21.050 shall be amended as follows: 3.21.050 Uses of lodging charge revenue. A. The uses described in SVMC 3.21.050 are limited to tourism promotion pursuant to RCW 35.101.010(4) and may include payment of administrative costs associated with operation of the tourism promotion area as determined by the city council. B. Revenue from lodging charges collected from the charges under Chapter 3.21 SVMC shall only be used for the following purposes: 1. The general promotion of tourism within Spokane Valley and the Spokane metropolitan area as specified in the annual tourism promotion area work plan/budget, to be adopted annually; City of Spokane Valley Ordinance No. 26-006 2. The marketing of convention, trade shows, and events that benefit local tourism and the lodging business in Spokane Valley; 3. The marketing of Spokane Valley and the Spokane metropolitan area to the travel industry to benefit local tourism and the lodging businesses in Spokane Valley; 4. The marketing of Spokane Valley and the Spokane metropolitan area to recruit sporting events in order to benefit local tourism and the lodging businesses in Spokane Valley; 5. To operate a fund established hereby and referred to herein as the “Tourism Opportunity Fund”. The purpose of the Tourism Opportunity Fund is to incentivize significant trade events, special interest events, entertainment events, and/or sporting events to locate within or near the City when said events are reasonably expected to generate a substantial amount of tourism within the City, including but not limited to overnight stays in lodging businesses. The funds may be used to mitigate an event organizer’s expenses to locate an event within or near the City, or for a venue within or near the City to offer amenities for an event in order to incentivize an event organizer to locate a specific event at said venue. C. Pursuant to RCW 35.101.130, the city council shall have sole discretion as to how the revenue derived from the lodging charge imposed pursuant to Chapter 3.21 SVMC is to be used for tourism promotion. In exercising its discretion on use of these funds, city council shall consider the recommendation(s) of the Spokane Valley hotel/motel tourism promotion area commission established pursuant to SVMC 3.21.070. (Ord. 22-016 § 5, 2022). Section 2. Amendment to SVMC 3.21.070. Spokane Valley Municipal Code 3.21.070 shall be amended as follows: 3.21.070 Hotel/motel tourism promotion area commission. A. The hotel/motel tourism promotion area commission (also referred to in this Chapter as “the commission”) is created as an advisory body to make recommendations to the city council for use of revenue derived from that portion of the taxes/charges imposed by this SVMC 3.21 et seq. that city council has not designated for the “Tourism Opportunity Fund” established in SVMC 3.21.050(B)(5). B. Tourism Opportunity Fund: 1. The commission is authorized and directed to receive and review complete written applications for funding from the Tourism Opportunity Fund. Except as otherwise provided herein, the commission shall review pending complete Tourism Opportunity Fund applications, if any, at each regularly scheduled meeting of the commission. If delaying review of a complete application until the next regularly scheduled meeting renders the request moot, then upon receiving a Tourism Opportunity Fund request the City shall (1) schedule a special meeting of the commission to review the request, and (2) provide notice thereof to the public in accordance with applicable law. 2. Tourism Opportunity Fund Application: An event organizer or venue may apply for a funding award from the Tourism Opportunity Fund by submitting a written application to the hotel/motel tourism promotion area commission. If an applicant is applying for multiple non-associated events, then they must submit a separate application for each event. To be eligible for consideration, the application must include the following: i. The applicant’s name, phone number, email address, and physical mailing address. If the applicant is an entity, then the applicant must also identify what type of entity it is (i.e. corporation, limited liability company, etc.) and whether it is a for-profit or non-profit entity. City of Spokane Valley Ordinance No. 26-006 ii. Detailed description of the proposed event. The description shall include (a) the date(s), location(s), and specific venue(s) of the event; (b) the purpose(s) of the event and a description of the activities that will occur at the event; and (c) whether the event is intended to be a one-time event, an event that will repeat on a recurring basis (including the expected interval between events), or part of a series of associated events. iii. Whether the applicant is a venue owner or operator and, if so, identify (a) whether and specifically how the applicant intends to use the funds to recruit one or more events to said venue, (b) the specific event(s) to be recruited, (c) any pertinent deadlines that applicant must meet in order to recruit said event(s), and (d) the date by which the applicant anticipates being notified whether the event will locate at the applicant’s venue. iv. Whether the event will be held at the identified location if the application for funding from the Tourism Opportunity Fund is denied and, if not, the alternate location or locations at which the applicant may hold the event. v. Identify the market demand for the event along with an explanation of how the event will generate tourism activity within the City, including but not limited to (1) the total projected number of “tourists,” as defined in RCW 35.101.010(5), that are reasonably expected to attend the event, and (2) the projected number of overnight stays in lodging businesses within the City by tourists as a result of the event. vi. Identify the demographic and geographic market(s) to which the event is or will be targeted. This information should be demonstrated by market data and research. If the applicant has data regarding one or more past similar events, and the data demonstrates whether and the extent to which those past events generated tourism in the area where it was held, then said data must be included with the application unless applicable law prevents the applicant from doing so. vii. The marketing plan that the applicant will implement to attract tourists to attend the event, which plan must include a marketing budget, strategy, and timeline. viii. Identify (a) the amount of funds the applicant is requesting from the Tourism Opportunity Fund, and (b) the specific expenses of the event for which the funds will be used, or the amenities that the venue will provide using the funds, if the application is approved. xiv. Identify the methods the applicant will use in order to (1) measure the total number of lodging room nights of tourists that were generated by the event for hotels within the City and outside of the City, but within Spokane County, and (2) quantify the actual economic impact on hotels of the event in the tourism promotion area based on an average daily rate. 3. Review by the Commission: In reviewing applications for use of the Tourism Opportunity Fund, the commission shall determine whether each of the following criteria are met: i. The applicant may be a person, nonprofit entity, or for-profit entity, but must be either (a) a venue owner or operator; or (b) an event organizer/organization. ii. The proposed use of the funds must be for an approved use identified in RCW 35.101 et seq. or SVMC 3.21 et seq. iii. The event must be either a destination convention, conference, trade show, association gathering, sports event, entertainment event, or similar event that is expected to generate tourism activity in the City. City of Spokane Valley Ordinance No. 26-006 iv. The event cannot be a private wedding, memorial, family reunion, or similar private social event. v. The date of proposed event must be identified in the application and be within five (5) years after the application was submitted. vi. The applicant must demonstrate that the event will generate substantial tourism within the City, including but not limited to overnight stays of tourists within the City. vii. The event does not include any activity that is contrary to applicable law. 4. Decision of the Commission: i. The commission must deny all Tourism Opportunity Fund applications that do not satisfy all of the criteria identified in subsections B.2. and B.3. herein. If an application meets all of the criteria, then the commission may grant the request, in full or in part, only if and to the extent the expected return on investment to the economy within the tourism promotion area warrants an award from the Tourism Opportunity Fund. The commission does not have authority to award funds in amounts greater than that requested by the applicant in their written application. ii. The commission’s decision on any given application shall be placed on the next regularly scheduled consent agenda of City Council. Alternatively, the commission’s decision may be presented as a non-consent agenda item at the next regularly scheduled Council meeting rather than on the next regularly scheduled consent agenda if the next regularly scheduled City Council meeting does not include a consent agenda. The commission’s decision shall be final immediately following said City Council meeting unless the City Council vetoes the commission’s decision by majority vote at said meeting. If City Council vetoes the commission’s decision, then the application shall be deemed denied in its entirety. 5. Before receiving any funds awarded from the Tourism Opportunity Fund, a successful applicant must first execute an agreement containing terms identified by the City. Said agreement must include the following terms in addition to other terms the City deems appropriate: i. Identify the total amount of funds awarded from the Tourism Opportunity Fund. ii. Identify a mandatory process for seeking fund disbursements, including whether the funds will be disbursed on a reimbursement basis for qualified expenses incurred for the event or an alternative basis. If the disbursement is on a reimbursement basis, then the applicant must provide invoices or other evidence demonstrating the expenses submitted for reimbursement are qualified expenses for the event that the applicant actually paid. If the disbursement process is not on a reimbursement basis, then within forty-five (45) days after receiving a disbursement, the applicant must provide the City with invoices or other evidence sufficient to establish that the disbursed funds were used for uses authorized by the agreement. iii. Require the applicant to apply the awarded funds only for the specific purpose(s) authorized by the commission and specifically identified in the agreement, iv. Require the applicant, within sixty (60) days after the event has concluded, to complete and submit a report to the City identifying the event’s total economic lodging impact within the tourism promotion area, including but not limited to the total overnight stays generated by the event and the total number of tourists that attended or participated in the event; City of Spokane Valley Ordinance No. 26-006 v. Require the applicant to indemnify the City for any claims arising out of any matter or situation related to the event other than claims alleging injury or damage resulting solely from negligence of the City; vi. Require the applicant to procure insurance naming the City as an additional insured with coverage limits in amounts that the City deems sufficient to satisfy the applicant’s indemnity obligations; and vii. Provide that a breach of the agreement by the applicant entitles the City to (a) a return of any funds disbursed to but not yet expended by the applicant, (b) be reimbursed by the applicant for funds spent in violation of the agreement, (c) deny pending or future applications submitted by the applicant for funding from the Tourism Opportunity Fund; (d) terminate the agreement; and (e) demand any other relief authorized by applicable law. viii. Provide that funds from the Tourism Opportunity Fund (a) cannot be used for any event other than the event identified in the application and for which the commission awarded said funds, and (b) must be returned to the City for deposit back into the Tourism Opportunity Fund if the event is cancelled or otherwise does not occur at the location identified in the application. C. Appointments to or removals from the hotel/motel tourism promotion area commission shall be made by the mayor, with confirmation by a majority of council pursuant to the then-currently adopted governance manual. D. The hotel/motel tourism promotion area commission shall be composed of five voting representatives from the following hotel chain scales, as defined by Smith Travel Research (STR). If no representative from a hotel in the corresponding chain scale is willing or able to serve on the hotel/motel tourism promotion area commission, that position may be made available to a representative of any lodging business within the boundaries of the tourism promotion area: 1. One economy hotel; 2. One midscale hotel; 3. One upper midscale hotel; 4. One upscale hotel; 5. One full-service hotel over 200 rooms. A commission member may only represent one type of property identified in SVMC 3.21.070(B)(1) through (5) at any given time, and an ownership group may only represent one such property on the commission at any given time. E. In addition to the above voting commission members, there shall be one nonvoting ex officio member as assigned by the city manager, who will function as a liaison between the city council and the hotel/motel tourism promotion area commission. F. For appointment of the initial hotel/motel tourism promotion area commission, three members shall have a three-year term, and two members shall have a two-year term. Upon the expiration of the initial three-year term, the term for those three positions shall thereafter convert to a two-year term. G. Members of the hotel/motel tourism promotion area commission shall serve without compensation. City of Spokane Valley Ordinance No. 26-006 H. All meetings of the hotel/motel tourism promotion area commission are subject to Washington’s Open Public Meetings Act, Chapter 42.30 RCW, and Washington’s Public Record Act, Chapter 42.56 RCW. (Ord. 22-016 § 7, 2022). Section 3. Amendment to SVMC 3.21.080. Spokane Valley Municipal Code 3.21.080 shall be amended as follows: 3.21.080 Spokane Valley tourism promotion area annual work plan/budget. A. The hotel/motel tourism promotion area commission shall develop a recommended annual work plan/budget for use of Spokane Valley TPA revenues. The work plan shall include (1) recommended activities and programs for funding from the taxes/charges authorized by Chapter 3.21 SVMC, (2) a complete list of projects for which application was made for funding for that year, and (3) the amount of funding, if any, to designate for the Tourism Opportunity Fund in the City’s budget for the upcoming fiscal year. The recommended work plan/budget shall be submitted to the city council in written form no later than November 15th of each calendar year for inclusion in the City’s annual budget adoption process. B. The city council may by motion approve the proposed work plan/budget, or instead return the proposed work plan/budget to the hotel/motel tourism promotion area commission for further recommendations. C. The city council may not add a project to the annual work plan/budget that was not previously considered by the hotel/motel tourism promotion area commission. If such action is proposed by city council, the proposed work plan/budget shall be returned to the hotel/motel tourism promotion area commission for further discussion and recommendation, providing at least 20 days for comment unless the comment period is waived by the hotel/motel tourism promotion area commission. After the comment period, the city council may exercise its sole discretion as to how the revenue derived from the charge is to be used to promote tourism, pursuant to RCW 35.101.130(1). D. After the annual work plan/budget is adopted by city council, it shall govern the use of revenue derived from the charges during the calendar year in which annual work plan/budget was approved. The city council may make amendments to the annual work plan/budget by motion, subject to compliance with the requirements of SVMC 3.21.080(C) regarding review and comment period by the hotel/motel tourism promotion area commission. E. The hotel/motel tourism promotion area commission shall provide a written report to the city council at least fifteen (15) days prior to when the annual work plan/budget is due to the city council. The report shall include information on the previous year’s operations of the tourism promotion area such as (but not limited to): 1. The number of hoteliers paying the tourism promotion area fee; 2. A summary of key factors influencing Spokane Valley’s visitor industry in the past year; 3. An outline of major initiatives including visitor marketing and promotion, recruitment of group meetings or sporting events occurring in the past year; 4. The level of hotel occupancy and associated room demand contrasted to previous year; 5. The level of TPA per-room night proceeds contrasted to previous year; 6. The number of group meetings or sporting events that were booked, or in which significant support services were provided by the booking organization. This would include the number of participants and estimated economic impacts; City of Spokane Valley Ordinance No. 26-006 7. Other relevant efforts and impacts of the TPA activities. (Ord. 22-016 § 8, 2022). Section 4. Severability. If any section, subsection, sentence of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this chapter. Section 5. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as provided by law. Passed this _______ day of __________, 2026 ____________________________ Mayor Laura Padden ATTEST: _____________________________ City Clerk, Marci Patterson Approved As To Form: ____________________________ Office of the City Attorney Date of Publication:___________ Effective Date:_______________ City of Spokane Valley Ordinance No. 26-006 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: April 28, 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: Administrative Report: Resolution 26-XXX to authorize Opportunity Zone Designation Application and Letter of Support PREVIOUS COUNCIL ACTION TAKEN: None BACKGROUND: The first federal Opportunity Zone (OZ) Round 1.0 legislation, which determined eligible census tracts that qualify for various tax incentives to augment economic development, was enacted by Congress in 2017, with an expiration date of December 2028. The City had no Opportunity Zones designated under round 1.0. In July 2025, Congress passed House Resolution 1 (Public Law 119-21), making Opportunity Zones permanent with set designation cycles every 10 years. It’s estimated that investments in the first round of designations totaled $90 to $100 billion across 5,600 low-income neighborhoods in the U.S. In OZ Round 2.0, the federal government has identified eligible census tracts across the country that qualify for Opportunity Zone status again. State governors can nominate up to 25 percent of eligible tracts within their state for consideration for OZ Round 2.0 designation. The Washington State Department of Commerce is accepting applications from April 28 to May 28, 2026, for the Governor’s consideration. Governors must submit nominations to the U.S. Treasury by July 1, 2026. New OZs will be made official on January 1, 2027, and ready for investment. There are five identified census tracts in the City of Spokane Valley that are eligible for Opportunity Zone status under Round 2.0. City staff has determined that Census Tract 53063012300 (Tract 123) demonstrates the strongest need for investment, has available, properly zoned land, and offers additional incentives to further leverage investment. OPTIONS: Consensus for staff to bring forth a motion to approve Resolution 26-XXX authorizing the City Manager or his designee to submit an Opportunity Zone designation application and Letter of Support to the Department of Commerce for Tract 123 or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: Consensus for staff to bring forth a motion to approve Resolution 26-XXX authorizing the City Manager or his designee to submit an Opportunity Zone designation application and Letter of Support to the Department of Commerce for Tract 123. BUDGET/FINANCIAL IMPACTS: The application requires no direct investment from the City. There are no immediate impacts on City tax revenues, as all tax benefits provided to investors are at the Federal level. However, investments in the City will likely translate into future improvements, resulting in increased property values and, subsequently, increased property tax collections. STAFF CONTACT: Teri Stripes, Economic Development Specialist ATTACHMENTS: PowerPoint Presentation Draft Resolution Draft Letter of Support 2 WHAT IS IT? Identify Promote Apply GOAL WHY CENSUS TRACT 123 CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 26-XXX A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AUTHORIZING AND SUPPORTING AN APPLICATION FOR AN OPPORTUNITY ZONE DESIGNATION; AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO WHEREAS,in July 2025, the President of the United States signed H.R. 1, the One Big Beautiful Bill Act,which,among many other initiatives,madeOpportunity Zones permanent and established designation cycles to takeplace every ten years; and WHEREAS, itisestimated that investments across the first round of designations area staggering $90-100 billion across 5,600 low-income neighborhoods in the U.S.; and WHEREAS, the City had no designated Opportunity Zones under the first round; and WHEREAS, the Washington Department of Commerce is acceptingapplications from April 1 to May 1, 2026for second round nominations; and WHEREAS, the City strongly supportssecuring anOpportunityZone designation for one of our five eligibleCensus Tracts; and WHEREAS, the City has determined that Census Tract 53063012300 (Tract 123)demonstrates the strongest needfor investment, has properly zonedland available, and offers additional incentives to further leverage the investment. Investmentin this Census Tract meets all Community Plans and goals. NOW THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington, as follows: Section 1. Authorization to submit Opportunity Zone Designation Application. City Council authorizes the CityManager or designee to complete and submit anapplication to the Washington State Department of Commerce forTract 123. This Resolution and aLetter of Support may accompany the application. Section 2. Effective Date. This Resolution shall take effect immediately upon its passage and approval. ADOPTED by the City Council onthis____day of ____________, 2026. ATTEST:CITY OF SPOKANE VALLEY Marci Patterson, City ClerkLaura Padden, Mayor Approved as to form: Office of the City Attorney Resolution No.26-XXX-INTENTION TO APPLY FOR AN OPPORTUNITY ZONE DESIGNATION Page 1of 1 DateXXXXX DearGovernor Bob Fergusonand Department of Commerce, On behalf of the Spokane Valley City Council,weare writing in support of the City’sapplication foran Opportunity Zone nomination and future designation inthe City of Spokane Valley.An Opportunity Zone designation provides the City of Spokane Valleywith the unique opportunity to leverage our local public investments, state initiatives, and private-sector investments in ourlowest- income Census Tract, which is home to a large at-risk population. A designationwill leverage WSDOT investments in I-90 and US 395, help implement new GMA goals and policies to better serve disadvantaged communities, and spur investment in new affordable housing.This designation will also leverage Spokane Transit's recent investment in a High- PerformanceTransportation route serving a large proportion of residentswithout cars. It will also build on the city’sactions taken a few years ago to remove barriers to housing infilldevelopment by adopting a SEPA Planned Action for housing development in this area. This fall, the City intends to evaluate addinga WA State Multi-Family Tax Exempt target area for this Census Tract to encourage homeownership, as well as mixed-income rental projects targeting units for low-income and workforce households.When adding rooftops to this area, we should see an expansion of our year- round indoor farmers market at the Conservation District, and/or attract private investment to offer groceries in this USDA-designated Food Desert. Asacityfocused onfosteringeconomic development, wegreatly value what an Opportunity Zone could bring to the community and look forward to actively promoting the incentive and exploring new and innovative ways to make the area increasingly attractive to private development. Our goalis to interrupt the cycle of poverty and improve the quality of life for our citizens. Though cities and organizations within our region are submitting individual applications, please note that those of us in Spokane County have been working diligently to coordinate our efforts and outreach, and to understand the benefits of each of the census tracts nominated for your consideration. We believe you will find the nominations from Spokane County will leverage community assets and resources,and are poised to attract private investment. We have enclosed Resolution ____in support of our Nomination Application. Please accept our heartfelt thanks forconsidering what this designation can do for our community. Sincerely, Laura Padden,Mayor OnbehalfoftheCityofSpokaneValleyCouncil Spokane Valley Police Department Accredited Since 2011 Services provided in partnership with the Spokane County Sheriff’s Office andthe Community, Dedicated to Your Safety. Monthly Reportfor January2026 New Deputies Commissioned in January: Jeremiah “Jeremy” Haney is 30 years old and recently moved to Post Falls, ID with his wife and two young children. He was born in Long Beach, CA and raised in Monrovia, CA. He graduated from Monrovia High School in 2013. He was hired in 2018 to be a Deputy Sheriff for the Riverside County Sheriff’s Office where he has worked since 2018. He was assigned to work patrol at the Perris Station. Haney is being hired as a Deputy Sheriff-Lateral. Justin and Kassandra West are married, and they recently moved to Hayden, ID from Bakersfield, CA. Justin was born in Clovis, CA and raised in Bakersfield, CA. Both Justin and Kassandra began their law enforcement careers with the Bakersfield Police Department. Justin graduated from Centennial High School in Bakersfield in 2010. Justin has over sevenyears of experience working for BPD. His last assignment was as a K-9 handler assigned to Patrol. Kassandra was born and raised in Bakersfield. She graduated from South Hill School in Bakersfield in 2010. She attended California State University Bakersfield between 2010-2015 earning an BA in Criminal Justice and a Master of Arts (MA) in Public Administration. She began her law enforcement career with Bakersfield Police Department in 2019. She was recently assigned as a Senior Police Officer to the Training Division where she served as an FTO Coordinator. Justin and Kassandra are both being hired asDeputy Sheriff-Laterals. Events Attended by Chief Ellis: Commissioning ceremony for four new deputies Cops & Kids Car Show Preparation meeting WA FIFA World Cup 2026 Preparedness meeting Spokane Regional Emergency Communications (SREC) Governing Boardmeeting Martin Luther King Parade Meeting with Partners WithFamilies and Children Law Communication Advisory Board monthly meeting Joint Terrorism Task Force monthly meeting Guest speaker at the Rotary Club’s meeting at the Mirabeau Hotel Senate State Government, Tribal Affairs and Elections Committee meeting Spokane County Emergency Management meeting Page 1 Patrol Incidents: Suspected Impaired Driver Arrested for Felony and Misdemeanor Charges Following Rollover Crash - Spokane Valley Sheriff’s Deputies arrested a suspected impaired driver at the scene of a rollover crash. The adult male suspect was arrested and booked into jail on several felony and misdemeanor charges. A young juvenile passenger received medical aid for serious but non-life- threatening injuries. In early January, at approximately 3:45 am, Spokane Valley Sheriff’s Deputies responded to the report of a collision near the intersection of N. Houk Road and E. Mansfield Avenue. Responding deputies were advised that the suspect, armed with a knife, was now fighting with witnesses. Arriving deputies detained the 38-year-old male suspect and began their investigation. Initial information indicates that the suspect, with his young juvenile son as a passenger, was suspected of driving while impaired at the time of the crash. He tried to leave the scene with his son but was confronted by several witnesses, and a physical fight ensued. The male suspect brandished a knife and threatened to stab the witnesses, but they were able to disarm him. The suspectand the juvenile, who suffered a substantial laceration during the crash, were transported to the hospital for additional medical care. The witnesses involved were not injured. Through their investigation, deputies developed probable cause to charge the suspect with Vehicular Assault, Felony Harassment th (2 counts), DUI, Reckless Endangerment, and Assault 4 Degree (2 counts). After the suspect was medically cleared, he was transported and booked into the Spokane County Jail on his charges. Hours-Long Standoff Successfully Ends with the Arrest of an Armed Suspect in Crisis, Several Weapons Recovered -Spokane Valley Deputies responded to what was initially reported as a rd welfare check of an adult male who was possibly in crisis at an apartment complex on E. 3 Avenue, east of University Road. Deputies later learned the male suspect had pointed a gun at a person in the complex, had several weapons in his apartment, and had made statements that he might try to force a violent encounter with law enforcement. SWAT and additional resources responded to the location and eventually took the suspect into custody without injury. Deputies seized firearms (12), air rifles (2), several holsters, and a large amount of ammunition in various calibers. In early January, at approximately 4:00 pm, Spokane Valley Deputies received a call rd regarding a welfare check of an adult male at an apartment complex in the 11000 block of E. 3 Avenue in Spokane Valley. Deputies learned the 57-year-old male suspect was possibly in crisis and made statements about potentially forcing law enforcement into a deadly encounter. Additional information indicated that the suspect been known to answer the door with a gun in his hand. Trying to avoid a violent encounter, deputies attempted to contact the suspect via phone, but he did not answer. Approximately 30 minutes later, Spokane County Emergency Communications (SREC) advised deputies of a related call where a victim reported the suspect had pointed a pistol at him, causing him to fear for his safety and life. Deputies at the scene continued conducting interviews and nd established a perimeter. With probable cause to arrest the male suspect for Assault 2 Degree and Displaying Weapons Apparently Capable of Producing Bodily Harm, information that he was in crisis and had access to weapons, they requested the assistance of the SWAT Team, Crisis Negotiators, and additional resources. They also worked to obtain a search warrant for the residence, while giving announcements advising the suspect to surrender and warnings that force may be used if he failed to do so. At approximately 7:10 pm, the male suspect exited his apartment and was taken into custody without incident by SWAT Team members. With a valid search warrant, deputies recovered and seized 12 firearms, two air rifles, several holsters, and a large amount of ammunition in various nd calibers.The suspectwas transported and booked into the Spokane County Jail for felony Assault 2 Degree and a misdemeanor charge of Displaying Weapons Apparently Capable of Producing Bodily Harm. Page 2 Retail Theft Escalates to Robbery After Suspect Assaults Loss Prevention Employees-Spokane Valley Deputies responded to a reported theft at a business on E. Montgomery Avenue, west of N. Argonne Road. As deputies responded, they were informed that the incident escalated, and an employee was holding the suspect on the ground. Deputies arrived and, through their investigation, developed probable cause to charge the suspect with several felony and misdemeanorcrimes. In mid-Januar, at approximately 7:25 pm, Spokane Valley Deputies responded to a reported theft at a store in the 9000 block of E. Montgomery Avenue in Spokane Valley. The caller, a customer, advised that Loss Prevention (LP) was attempting to detain a possible shoplifter. He later suggested that the situation appeared to be escalating, and LP was now holding the suspect down on the ground in the parking lot. At approximately the same time, an LP Officer called and advised that they detained an uncooperative theft suspect who had assaulted them during an attempt to flee. Deputies arrived and learned the 31-year-old male suspect was observed walking through the store with his large (estimated 75 pounds) dog while concealing multiple items inside his clothing. As LP continued to observe the suspect’sactions, he walked to the front of the store, past all points of sale, and exited without paying for the merchandise. LP contacted the suspect in front of the store, where he let his dog off its leash, saying something to the effect of, “get him.” The dog went past the LP Office and went to the store manager, biting his wrist. The bite was momentary and did not break the victim’s skin. The LP Officer approached the suspect and attempted to detain him, but he turned toward the LP Officer and delivered a knee strike. The male suspect threw a dog bone from his coat and turned to escape. He shoved the LP Officer and struck him in the face with an open hand. Eventually, despite the suspect’s continued assaultive behavior, LP Officers detained him in handcuffs. Thankfully, the injuries to the store employees were visible but believed to be minor. As a result of the theft and assaults, the male suspect was trespassed from all locations related to this store. Approximately $125 in stolen property was recovered and returned to the store. Despite the amount of the attempted theft/robbery, the suspectwas arrested with approximately $516 on his person and a baggie containing an unknown substance. A check of the suspect’s name revealed an unrelated felony arrest warrant out of Grant County. He was transported to a hospital for his safety due to the possible consumption of an unknown substance. After being medically cleared, the suspect was transported strd and booked into Spokane County Jail for charges of Robbery 1 Degree, Theft 3 Degree, and two th counts of Assault 4Degree. ALPR Camera Helps Deputies Locate Stolen Vehicle, Suspect Arrested - Spokane Valley Deputies responded to an ALPR Alert and, during a search of the area, located the reported stolen vehicle in a nearby parking lot. After the subsequent investigation, they arrested the driver and booked him into jail on felony and misdemeanor charges. They released the recovered stolen vehicle to the registered owner. In late January, at approximately 7:55 am, Spokane Regional Emergency Communications (SREC) advised Spokane Valley Deputies of an Automated License Plate Reader (ALPR) Stolen Vehicle Alert on E. Broadway, east of Sullivan Road. Deputies began searching the area for the reported stolen car, a silver 1998 Honda CRV, locating it minutes later in the parking lot of a business. Deputies contacted the 37-year-old male driver and detained him during the investigation. The suspect was advised of his rights and agreed to answer questions. He explained that earlier in the morning, he traded his vehicle, a 2013 Impala, to a guy for the reported stolen CRV and some drugs. He had no paperwork for either car or to corroborate his statement. Deputies confirmed the Honda CRV’s license plate and VIN, showing it was reported as stolen from the area of the 13300 block of E. Mission Avenue earlier in the month. They contacted the victim, the registered owner, and released the CRV to them. Deputies arrested the male suspect, and during the following search, they located a baggie containing a rocklike substance believed to be Page 3 Methamphetamine. Later, a field test showed a presumptive positive result for Methamphetamine. The suspectwas transported and booked into the Spokane County Jail for charges of Possession of a Stolen Motor Vehicle and Possession of a Controlled Substance, Methamphetamine. Deputies Continue to Arrest Retail Theft Suspects, Juveniles, and Adults - Spokane Valley Deputies continue working with Spokane Valley businesses to identify and hold accountable those who choose to steal merchandise. In late January, at approximately 3:45 pm, deputies were notified of a possible theft at a store located in the 5000 block of E. Sprague Avenue. They later ndrd arrested a 48-year-old male suspect, charged with Burglary 2 Degree, Theft 3Degree, and Possession of a Controlled Substance-Fentanyl. Store Loss Prevention (LP) notified deputies that they had observed the suspect concealing items, and they provided a description of him. Deputies contacted the suspect as he exited the store, past all points of sale, without purchasing the merchandise, and detained him. During the investigation, they learned that the male suspect had previously been trespassed from the business and recovered a stolen Lego set, valued at $26.97. After being advised of his rights, the suspect agreed to answer questions. He admitted to stealing the Legos because he did not have the money to purchase them. Because the suspect had been trespassed (notice signed by the male suspect provided by LP), he unlawfully entered the store and committed theft; he was arrested ndrd for Burglary 2 Degree and Theft 3Degree.During a search after his arrest, deputies located two glass pipes and a piece of folded up tin foil that had a pea-sized chunk of an off-white powdery substance believed to be Fentanyl. He was booked into the Spokane County Jail for the three charges noted, one felony and two misdemeanors. In late January, at approximately 1:10 pm, deputies responded to a theft call at a business in the 13700 block of E. Sprague Avenue. Deputies later located and arrested a 17-year-old juvenile suspect for rd Theft 3 Degree and Minor in Possession/Consuming Alcohol. They recovered five stolen liquor bottles, two partially consumed, valued at approximately $161. Store Loss Prevention (LP) reported two juvenile males stole alcohol from the business and left on foot. Responding deputies located and detained two juvenile males (16, 17), who matched the description given by LP, walking south on Blake Road, from Sprague Avenue. During the investigation, deputies learned LP recognized both juveniles from previous theft incidents. This time, they watched the 17-year-old grab multiple liquor bottles and put them in his backpack. The 16-year-old was not observed stealing any merchandise. LP contacted the pair as they left the store without paying and told them to return the stolen items, but they refused and left on foot. Deputies located and seized five bottles of alcohol in the 17-year-old’s backpack, noting two had been opened and partially consumed. They did not locate stolen property in the 16-year-old’s possession, and he was not charged. Deputies transported the 17-year-old to the rd Spokane County Juvenile Detention Facility, where he was booked for Theft 3 Degree and Minor in Possession/Consuming Alcohol. In late January, at approximately 8:45 pm, deputies responded to a theft call at a business in the 15500 block of E. Sprague Avenue. After the investigation, they arrested two juvenile males (15, 16). Both rd were charged with Theft 3 Degree, and one received additional charges of Minor in Possession/Consuming Alcohol and Possession of Cannabis Products Under 21. A third juvenile (16) was listed as a runaway and later released to Child Protective Services. Store Employees reported that a group of males, whom they recognized from previous theft incidents, entered the store, stole alcohol, and left on foot. Responding deputies located a large group of males, who matched the description provided by employees, on Sullivan Road, just south of Sprague Avenue. Store employees positively identified three of the juvenile males as being in the store at the time of the theft, and specifically, the two juveniles who stole merchandise (approximately $40 in alcohol/snacks). After watching store surveillance video, they observed the 15-year-old walk out of the store without paying for food items (chips). During a search, deputies located consumed alcohol containers and food products, all believed to have been stolen, in the 16-year-old’s backpack.They also seized a vape device believed to contain Page 4 cannabis/THC. Both were transported and booked into the Spokane County Juvenile Detention rd Facility for Theft 3Degree.The 16-year-old was additionally charged with Minor in Possession/Consuming Alcohol and Possession of Cannabis Products Under 21. In late January, at approximately 12:10 pm, deputies responded to a business in the 14700 block of E. Indiana Avenue regarding a theft suspect assaulting an LP employee. Upon arrival, deputies learned that LP observed a 16-year-old male suspect take a necklace, valued at approximately $135, and leave the store without paying. With the assistance of a family member, the suspect returned to the store with the stolen necklace and was detained by the LP employee. While in the LP office, after returning the stolen necklace, the suspect became agitated and tried to leave. In the process, the suspect had to be subdued after he hit an LP employee in the head.Because the assault occurred after the return of the stolen property and not during the theft, the 16-year-old male suspect was not charged with robbery. However, he was transported and booked into the rdth Spokane County Juvenile Detention Facility for Theft 3 Degree and Assault 4Degree. Frigid Spokane River Quickly Changes a Multi-Time Convicted and Wanted Felon’s Mind in His Attempt to Avoid Arrest - Spokane Valley Deputies responded to a Domestic Violence (DV) call in late January, where they established probable cause to arrest the suspect, a wanted, multi- time convicted felon, on felony and misdemeanor DV charges. The following day, when a deputy attempted to contact the suspect on the Centennial Trail, he fled on foot. Eventually, he entered the fast-moving, extremely cold Spokane River to try to evade his inevitable arrest. As the ice- cold current began taking him downstream, the suspect appeared to realize he had made a poor, possibly life-ending choice, and he worked his way back to shore. He was provided medical treatment before being transported and booked into jail on a felony warrant, and new felony and misdemeanor DV charges. In late January, at approximately 9:55 pm, Spokane Valley Deputies responded to a reported Domestic Violence (DV) incident in the 15800 block of E. Indiana Avenue. Deputies learned that earlier in the day, the 31-year-old male suspect grabbed the adult female victim’s arm and forcefully ripped her from the passenger seat of her sister’s car, while at the intersection of N. Crestline Street and E. Euclid Avenue. Against her will, he dragged her to a red F150 that he was driving, pushed her inside, and left while threatening her. From experience, she did not fight back, stating she was afraid the suspect would physically assault and injure her as he had done in the past. Additionally, after the male suspect showed her a handgun the week before, she feared he might be armed. Near E. Trent Avenue and N. Hamilton Street, she jumped from the slow-moving truck. The suspect grabbed her arm, trying to keep her in the vehicle, but she broke free, and he drove away. The victim and a witness said they observed the suspect in the red F150 in a parking lot in the 15900 block of E. Indiana Avenue. Prior to contacting them, deputies checked the area and located the truck but did not find the suspect. During the investigation, deputies developed probable cause to stth charge the suspect with Kidnapping 1 Degree (DV), Felony Harassment (DV), and Assault 4 Degree (DV). They also learned that he had an active felony Washington State Department of Corrections (DOC) Escape Community Custody Hold for his arrest (original charge: Burglary). Unfortunately, efforts to locate the suspect were unsuccessful. At the end of January, at approximately 10:50 am, a deputy checking the area for the suspect noticed the F150 still parked in the parking lot, unoccupied. He spoke with the business’ employees, and while he grabbed some information from his patrol car, one of the employees approached him and said a female with a dog and the possible suspect were near the truck. He drove his marked patrol car back to the truck and noticed a female, an associate of the suspect’s, inside the F150. When he asked her where the male suspectwas, she said she didn’t know.Believing she was being deceptive, he continued to talk with her about the suspect’s location. Although she denied knowing where he was, her body language led the deputy to believe the suspecthad gone north, toward the Centennial Trail and Spokane River.The deputy Page 5 walked toward the trail, then west, and noticed a male who matched the suspect’s description starting to pick up his pace.He yelled at the male suspect, identified himself, and told him to stop.He informed the male suspect that he was under arrest, and via radio, advised Spokane Regional Emergency Communications (SREC) and other responding deputies that he was in foot pursuit. The deputy chased the suspect for over aquarter of a mile, keeping him in sight the entire time. Shortly before the N. Sullivan Road Bridge, he observed the suspect walk to the Spokane River and enter the water. He slowed his pace, advised responding deputies of the situation, and called out to the suspect, trying to keep him in sight as he slowly drifted downstream. He again told the suspect, now clinging to a boulder just west of the bridge, that he was under arrest. Due to his extensive criminal history, including unlawful possession of firearms, in addition to the seriousness of his recent crimes, the deputy also gave the suspect use-of-force warnings. As additional deputies began to arrive, the suspect slowly worked his way out of the frigid water and onto shore, where they took him into custody. He was provided medical treatment before being transported and booked into jail. Deputies also seized the red Ford F150 as evidence, pending a valid search warrant. After he was medically cleared, the st suspect was booked into the Spokane County Jail on new felony charges of Kidnapping 1 Degree th (DV), and Harassment (DV) in addition to misdemeanor charges of Assault 4 Degree (DV) and Resisting Arrest. He is also being held on his felony Washington State DOC Hold. At his court appearance, Spokane County Superior Court Commissioner K. Stewart set the suspect’s total case bond at $50,000 in addition to his DOC Hold. SCAM Warning: We will NEVER Call or Text You and Demand Payment The Spokane County Sheriff’s Office and Spokane Valley Police want to warn everyone of a continued SCAM in our area. It appears these criminals are using publicly accessible information to identify and contact family members of people who were recently arrested and are in jail. The SCAMMER uses this information to call the arrestee’s family members, claiming to be an employee of the Sheriff’s Office, Detention Services, or Spokane County Pretrial Services. The scammer then tells the potential victim thattheir loved one will be released IF they pay a fee, typically $1,500, using a non-typical payment method. This is another SCAM! 1. We will NEVER call or text you and demand payment. 2. If you need to pay taxes/fines/fees, Spokane County generally accepts cash, check, credit/debit cards, or money orders. The payment method is up to you. 3. Non-typical payment options, cash apps, crypto coins, Apple cards, and others are not accepted. 4. ALWAYS contact the law enforcement agency, court, or government office directly, using the contact information you know or have verified yourself, to confirm any potential problem. Do NOT use the phone number, email address, or other contact information the scammer provides. 5. IF you’re unsure, for any reason, STOP and VERIFY. Again, we will NEVER call or text you and demand payment. Page 6 Sheriff’s Community Oriented Policing Effort (SCOPE): January Monthly Events: There were no events for the month Volunteer Hours: *Includes estimated volunteer service hours that are provided in the City of Spokane Valley. These two locations cover both Spokane Valley and the unincorporated portion of the county. December: Location# VolunteersAdmin Hours L.E. Hours Total Hours Central Valley13191127.5318.5 East Valley* 7 117.5 18 135.5 Edgecliff3124.595219.5 University15 72.5 21.5 94 West Valley* 13 175 24 199 TOTALS 51 680.5 286 966.5 Volunteer Value ($41.70 per hour) $40,303.05 for January 2026 Handicap Parking Patrols: Spokane Valley # of Disabled # of # of Non - # of Vol. # of Hrs. Infractions Warnings Disabled Issued Issued Infractions Issued January0000 0 February March April May June July August September October November December Total Page 7 # of Disabled # of # of Non - # of Vol. # of Hrs.Infractions Warnings Disabled Issued Issued Infractions Issued Spokane County January0000 0 February March April May June July August September October November December Total Latent Fingerprint Team: TotalSpokane Valley Total Incidents given to team 5039 Appointments made 3327 No shows7 5 Prints lifted115 109 Business/Vacation Checks: Business Checks = 218Vacation Checks = 36 th Parking Tickets = 08/Thierman School Patrol = 10 days Graffiti: The Graffiti Team were not active in January. SCOPE Incident Response Team (SIRT): Current number of members 12 On-Scene Hours (including travel time) responding to County = 48 Spokane Valley = 0 crime scenes, motor vehicle accidents and providing traffic control Special Events: NoneCounty = 0 Spokane Valley = 0 Total Volunteer Hours for the month 627 Current YTD Volunteer Hours 627 *************************** Page 8 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Burglary -Spokane Valley Time Period: January 2026 80 70 60 50 2021 2022 40 2023 30 2024 2025 20 2026 10 - 202120222023202420252026 January 53 57 54 45 49 34 February 45 40 56 55 32 - March 43 64 48 38 54 - April 41 50 66 60 41 - May 49 43 47 55 52 - June 44 48 48 56 39 - July 54 51 43 45 31 - August 59 67 50 54 27 - September 39 54 56 45 48 - October 38 57 54 42 36 - November 62 64 36 54 53 - December 55 40 41 67 44 - DƩğƓķ ƚƷğƌ ЎБЋ ЏЌЎ ЎВВ ЏЊЏ ЎЉЏ ЌЍ * IBR Offense: Burglary/Breaking & Entering 220 Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Rape -Spokane Valley Time Period: January 2026 12 10 8 2021 2022 6 2023 2024 4 2025 2026 2 - 202120222023202420252026 January 2 10 5 - 2 2 February 3 2 9 4 3 - March 5 6 6 4 1 - April 5 7 7 3 4 - May 7 2 7 1 5 - June 4 4 7 2 2 - July 4 - 2 1 5 - August 5 4 6 4 1 - September 3 5 8 6 1 - October - 2 10 5 1 - November 4 7 3 3 3 - December 4 4 5 5 3 - DƩğƓķ ƚƷğƌ ЍЏ ЎЌ АЎ ЌБ ЌЊ Ћ *IBR Offense: Rape - Forcible 11A, Sodomy - Forcible 11B, Sexual Assault with Object 11C Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Assault -Spokane Valley Time Period: January 2026 100 90 80 70 60 2021 2022 50 2023 40 2024 30 2025 2026 20 10 - 202120222023202420252026 January 72 74 81 71 55 93 February 52 81 62 63 68 - March 65 93 75 79 73 - April 69 75 88 69 60 - May 70 65 59 84 68 - June 56 68 74 95 68 - July 79 60 78 80 91 - August 68 81 70 72 63 - September 61 79 71 73 92 - October 74 94 68 65 91 - November 54 75 58 56 64 - December 90 66 59 64 84 - DƩğƓķ ƚƷğƌ БЊЉ ВЊЊ БЍЌ БАЊ БАА ВЌ * IBR Offense: Aggravated Assault 13A & Simple Assault 13B Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Robbery -Spokane Valley Time Period: January 2026 16 14 12 10 2021 2022 8 2023 6 2024 2025 4 2026 2 - 202120222023202420252026 January 8 6 8 3 3 5 February 6 4 5 2 3 - March 5 3 4 4 2 - April 9 2 8 7 2 - May 7 5 6 4 2 - June 3 7 6 1 4 - July 5 5 6 6 4 - August 6 15 4 2 5 - September 4 2 2 4 4 - October 7 5 4 6 5 - November 4 6 3 4 3 - December 7 11 6 - 4 - DƩğƓķ ƚƷğƌ АЊ АЊ ЏЋ ЍЌ ЍЊ Ў * IBR Offense: Robbery 120 Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Motor Vehicle Theft -Spokane Valley Time Period: January 2026 90 80 70 60 2021 50 2022 40 2023 2025 30 2026 20 2022 10 - 202120222023202420252026 January 29 39 33 23 24 31 February 25 35 21 34 21 - March 25 57 31 18 17 - April 24 42 33 33 30 - May 28 43 46 31 19 - June 26 34 39 27 37 - July 24 51 78 25 24 - August 41 67 40 28 29 - September 40 44 43 37 26 - October 42 51 36 28 29 - November 54 65 19 21 25 - December 55 48 37 29 26 - DƩğƓķ ƚƷğƌ ЍЊЌ ЎАЏ ЍЎЏ ЌЌЍ ЌЉА ЌЊ * IBR Offense: Motor Vehicle Theft 240 Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Theft From Motor Vehicle (Vehicle Prowl) -Spokane Valley Time Period: January 2026 140 120 100 2021 80 2022 2023 60 2024 40 2025 2026 20 - 202120222023202420252026 January 87 78 67 49 64 62 February 105 89 55 62 34 - March 75 97 67 61 48 - April 86 73 49 52 57 - May 77 57 86 54 66 - June 69 73 56 53 88 - July 66 67 57 37 50 - August 116 73 54 51 62 - September 127 72 61 43 63 - October 120 84 50 68 65 - November 79 92 45 47 62 - December 84 80 69 75 68 - DƩğƓķ ƚƷğƌ ЊͲЉВЊ ВЌЎ АЊЏ ЏЎЋ АЋА ЏЋ * IBR Offense: Theft From Motor Vehicle 23F Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Damage/Destruction/Vandalism (MALMS) -Spokane Valley Time Period: January 2026 250 200 150 2021 2022 100 2023 2025 2026 50 - 202120222023202420252026 January 131 136 165 103 121 131 February 121 133 130 134 98 - March 104 195 135 119 121 - April 132 174 139 114 104 - May 133 150 163 131 148 - June 158 176 157 146 125 - July 133 133 165 136 128 - August 176 164 131 142 117 - September 163 151 121 128 125 - October 196 158 109 125 105 - November 141 169 96 124 120 - December 128 135 126 144 121 - DƩğƓķ ƚƷğƌ ЊͲАЊЏ ЊͲБАЍ ЊͲЏЌА ЊͲЎЍЏ ЊͲЍЌЌ ЊЌЊ IBR Offense: Destruction/Damage/Vandalism 290 Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Homicide -Spokane Valley Time Period: January 2026 3 2 2 2021 2022 2023 1 2024 2025 2026 1 - 202120222023202420252026 January - - - - - - February 1 1 1 - - - March 1 - - - - - April 1 - - - - - May - 1 - - 1 - June - - 1 - - - July 1 - - 1 - - August 1 - - 1 - - September 1 - 1 - - - October 2 1 - - - - November 1 - - - - - December - - - - - - DƩğƓķ ƚƷğƌ В Ќ Ќ Ћ Њ Ώ *IBR Offense: Murder/Non-Negligent Manslaughter 09A Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Identity Theft -Spokane Valley Time Period: January 2026 25 20 15 2021 2022 2023 10 2024 2025 2026 5 - 202120222023202420252026 January 12 10 17 13 10 15 February 18 23 12 10 13 - March 20 15 15 18 17 - April 23 10 23 17 14 - May 18 7 12 16 11 - June 12 14 15 10 18 - July 13 14 7 7 9 - August 22 14 14 14 7 - September 22 6 13 12 14 - October 16 10 9 18 16 - November 13 15 12 13 9 - December 13 9 10 13 8 - DƩğƓķ ƚƷğƌ ЋЉЋ ЊЍА ЊЎВ ЊЏЊ ЊЍЏ ЊЎ *IBR Offense: Identity Theft 26F Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 DUI -Spokane Valley Time Period: January 2026 45 40 35 30 2021 25 2022 20 2023 2024 15 2025 10 2026 5 - 202120222023202420252026 January 21 29 19 13 9 11 February 24 28 28 18 18 - March 15 25 27 24 17 - April 18 23 25 15 17 - May 20 19 35 13 16 - June 30 17 24 25 20 - July 17 23 27 20 19 - August 7 29 16 22 18 - September 19 21 21 25 26 - October 25 27 23 22 26 - November 19 24 18 19 27 - December 34 20 42 15 18 - DƩğƓķ ƚƷğƌ ЋЍВ ЋБЎ ЌЉЎ ЋЌЊ ЋЌЊ ЊЊ * IBR Offense: DUI 90D Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Drugs -Spokane Valley Time Period: January 2026 60 50 40 2021 30 2023 2024 20 2025 2026 10 - 202120222023202420252026 January 31 - 7 27 21 27 February 36 4 1 30 26 - March 4 6 5 27 20 - April 2 6 5 28 34 - May 4 6 4 26 39 - June 2 6 2 20 25 - July - 9 4 34 23 - August 3 5 22 28 30 - September 1 8 53 17 24 - October 1 2 39 20 34 - November 1 6 41 22 25 - December 6 6 31 30 36 - DƩğƓķ ƚƷğƌ ВЊ ЏЍ ЋЊЍ ЌЉВ ЌЌА ЋА * IBR Offense: Drugs/Narcotics Violations 35A and Drug Equipment Violations 35B Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Fraud -Spokane Valley Time Period: January 2026 120 100 80 2021 2022 60 2023 2024 40 2025 2026 20 - 202120222023202420252026 January 64 55 55 67 61 71 February 57 80 67 78 57 - March 97 56 80 85 71 - April 96 55 76 85 70 - May 63 56 73 91 74 - June 63 49 59 71 73 - July 81 58 70 61 60 - August 92 77 62 80 58 - September 79 64 55 63 74 - October 59 66 63 81 54 - November 70 52 56 62 63 - December 66 62 57 65 57 - DƩğƓķ ƚƷğƌ ББА АЌЉ ААЌ ББВ ААЋ АЊ * IBR Offense: Pretenses/Swindling/Con Games 26A, Fraud - Credit Card/ATM 26B, and Fraud - False & Fraud - Impersonation 26C Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Forgery -Spokane Valley Time Period: January 2026 16 14 12 10 2021 2022 8 2023 6 2024 2025 4 2026 2 - 202120222023202420252026 January 13 4 12 11 8 7 February 8 11 12 9 7 - March 10 9 15 6 9 - April 10 9 14 7 9 - May 10 7 11 11 14 - June 6 14 6 7 7 - July 13 9 14 11 7 - August 2 7 15 6 9 - September 14 7 8 11 7 - October 11 11 9 12 14 - November 14 12 8 11 8 - December 8 9 7 12 5 - DƩğƓķ ƚƷğƌ ЊЊВ ЊЉВ ЊЌЊ ЊЊЍ ЊЉЍ А *IBR Offense: Counterfeiting/Forgery 250 Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Theft -Spokane Valley Time Period: January 2026 300 250 200 2021 2022 150 2023 2024 100 2025 2026 50 - 202120222023202420252026 January 196 197 202 182 171 184 February 185 198 158 189 193 - March 193 203 159 202 174 - April 185 198 175 209 142 - May 161 179 209 197 189 - June 185 219 218 208 207 - July 156 234 181 172 172 - August 176 233 146 197 214 - September 194 190 152 200 188 - October 210 221 194 207 199 - November 201 240 150 167 200 - December 200 190 183 226 188 - DƩğƓķ ƚƷğƌ ЋͲЋЍЋ ЋͲЎЉЋ ЋͲЊЋА ЋͲЌЎЏ ЋͲЋЌА ЊБЍ * IBR Offense: Theft - Pocket-Picking 23A, Theft - Purse-Snatching 23B, Theft - Shoplifting 23C, Theft From Building 23D, Theft From Coin-Operated Machine 23E, Theft of Motor Vehicle Parts/Accessories 23G, and Theft-All Other 23H Produced: 02/09/2026 Duration (hh:mm:ss) Duration (hh:mm:ss) Μ Duration (hh:mm:ssDuration (hh:mm:ss) Duration (hh:mm:ss) Duration (hh:mm:ss) SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Call ActivityHeat Maps -Spokane Valley January 2026 Citizen Calls by Day of Week and Hour {ǒƓķğǤaƚƓķğǤǒĻƭķğǤ‘ĻķƓĻƭķğǤŷǒƩƭķğǤCƩźķğǤ{ğƷǒƩķğǤƚƷğƌ 0 14 7 10 9 29 10 20 99 1 9 8 12 11 8 13 15 76 2 12 13 11 7 7 3 10 63 3 3 7 5 4 11 4 9 43 4 7 8 4 10 12 6 10 57 5 10 4 7 9 7 7 9 53 6 7 9 13 11 11 19 9 79 7 5 17 20 21 16 18 14 111 8 13 22 20 23 27 31 19 155 9 11 19 19 24 24 34 17 148 10 20 28 22 25 27 28 30 180 11 20 28 23 39 40 40 29 219 12 29 27 35 30 34 40 38 233 13 24 21 18 23 51 40 33 210 14 28 25 18 31 40 38 31 211 15 38 42 30 31 34 44 37 256 16 25 29 23 31 32 47 34 221 17 25 36 22 24 34 38 46 225 18 28 26 26 25 28 33 31 197 19 19 19 18 15 45 38 23 177 20 21 22 17 29 22 26 20 157 21 14 15 19 20 34 24 28 154 22 22 13 13 14 15 31 33 141 23 19 6 16 13 20 21 17 112 ƚƷğƌ ЍЋЌ ЍЎЊ ЍЋЊ ЍАВ ЏЉБ ЏЌЌ ЎЏЋ ЌͲЎАА Total Deputy Involved Incidents by Day of Week and Hour {ǒƓķğǤaƚƓķğǤǒĻƭķğǤ‘ĻķƓĻƭķğǤŷǒƩƭķğǤCƩźķğǤ{ğƷǒƩķğǤƚƷğƌ 0 10 8 20 5 18 14 18 93 1 11 12 16 10 8 13 14 84 2 11 10 5 7 3 6 9 51 3 4 7 4 10 10 3 9 47 4 4 8 4 7 8 5 8 44 5 14 8 11 10 11 7 13 74 6 14 10 24 12 18 19 18 115 7 11 13 24 19 16 16 21 120 8 11 29 34 27 26 30 21 178 9 14 15 26 32 38 45 31 201 10 19 22 37 31 33 33 30 205 11 17 31 27 33 43 49 22 222 12 25 23 34 30 30 38 31 211 13 17 24 29 36 47 47 19 219 14 21 33 26 36 39 38 22 215 15 23 39 33 31 23 33 39 221 16 19 24 21 20 27 34 24 169 17 20 25 17 23 27 35 22 169 18 21 26 21 23 27 30 22 170 19 23 14 19 21 33 36 24 170 20 24 24 18 24 17 29 37 173 21 20 20 20 26 30 22 38 176 22 17 26 17 22 33 33 36 184 23 15 19 17 18 26 18 21 134 ƚƷğƌ ЌБЎ ЍАЉ ЎЉЍ ЎЊЌ ЎВЊ ЏЌЌ ЎЍВ ЌͲЏЍЎ tƩƚķǒĭĻķʹ ЉЋΉЉВΉЋЉЋЏ SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Citizen CallFor Service (CFS) -Spokane Valley Time Period: January 2026 6,000 5,000 4,000 2021 2022 3,000 2023 2024 2,000 2025 2026 1,000 - CallSource(Multiple Items) 202120222023202420252026 January 3,680 3,792 3,917 3,919 3,663 3,577 February 3,342 3,652 3,681 3,612 3,394 March 4,052 4,475 4,277 4,029 2,553 April 4,078 4,072 4,392 4,169 3,908 May 4,415 4,382 5,115 4,271 4,241 June 4,810 4,463 5,176 4,466 4,431 July 4,993 4,880 5,163 4,801 4,891 August 4,583 4,840 4,951 4,449 4,572 September 4,397 4,504 4,520 4,405 4,415 October 4,471 4,408 4,331 4,166 4,291 November 3,966 3,874 3,843 3,611 3,606 December 4,252 3,850 3,825 3,864 3,818 DƩğƓķ ƚƷğƌ ЎЊͲЉЌВ ЎЊͲЊВЋ ЎЌͲЊВЊ ЍВͲАЏЋ ЍАͲАБЌ ЌͲЎАА ΫĻǣĭƌǒķĻƭ ĭğƌƌƭ ŷğƓķƌĻķ ĬǤ /ƩźƒĻ /ŷĻĭƉ ƚƓƌǤ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Citizen CFS With DeputyResponse -Spokane Valley Time Period: January 2026 3,000 2,500 2,000 2021 2022 1,500 2023 2024 1,000 2025 2026 500 - CFS_OICFS GroupSV 202120222023202420252026 January 2,295 2,181 2,294 2,185 1,971 2,194 February 2,073 2,125 2,105 2,041 2,011 March 2,399 2,663 2,477 2,131 1,552 April 2,475 2,318 2,487 2,152 2,329 May 2,605 2,529 2,732 2,295 2,418 June 2,712 2,463 2,651 2,295 2,433 July 2,544 2,530 2,659 2,401 2,739 August 2,528 2,741 2,558 2,325 2,583 September 2,312 2,666 2,450 2,280 2,460 October 2,453 2,510 2,449 2,226 2,430 November 2,221 2,273 2,264 1,957 2,189 December 2,326 2,224 2,201 1,999 2,277 DƩğƓķ ƚƷğƌ ЋБͲВЍЌ ЋВͲЋЋЌ ЋВͲЌЋА ЋЏͲЋБА ЋАͲЌВЋ ЋͲЊВЍ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 CitizenCFS Without Deputy Response -Spokane Valley Time Period: January 2026 3,000 2,500 2,000 2017 2018 1,500 2019 2020 1,000 2021 2022 500 - 202120222023202420252026 January 1,385 1,611 1,623 1,734 1,692 1,383 February 1,269 1,527 1,576 1,571 1,383 March 1,653 1,812 1,800 1,898 1,001 April 1,603 1,754 1,905 2,017 1,579 May 1,810 1,853 2,383 1,976 1,823 June 2,098 2,000 2,525 2,171 1,998 July 2,449 2,350 2,504 2,400 2,152 August 2,055 2,099 2,393 2,124 1,989 September 2,085 1,838 2,070 2,125 1,955 October 2,018 1,898 1,882 1,940 1,861 November 1,745 1,601 1,579 1,654 1,417 December 1,926 1,626 1,624 1,865 1,541 DƩğƓķ ƚƷğƌ ЋЋͲЉВЏ ЋЊͲВЏВ ЋЌͲБЏЍ ЋЌͲЍАЎ ЋЉͲЌВЊ ЊͲЌБЌ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Deputy Initiated Incidents -Spokane Valley Time Period: January 2026 2,000 1,800 1,600 1,400 1,200 2021 2022 1,000 2023 800 2024 600 2025 2026 400 200 - GroupSV CFS_OIOI 202120222023202420252026 January 1,114 848 1,616 1,637 1,721 1,451 February 983 771 1,472 1,515 1,416 March 1,000 1,252 1,879 1,411 939 April 997 967 1,436 1,469 1,669 May 1,003 1,207 1,449 1,277 1,498 June 1,155 1,068 1,237 1,125 1,667 July 767 1,197 1,369 1,457 1,664 August 567 1,239 1,550 1,284 1,701 September 725 1,160 1,573 1,388 1,469 October 813 1,132 1,612 1,432 1,896 November 1,102 1,177 1,655 1,481 1,480 December 907 917 1,509 1,324 1,453 DƩğƓķ ƚƷğƌ ЊЊͲЊЌЌ ЊЋͲВЌЎ ЊБͲЌЎА ЊЏͲБЉЉ ЊБͲЎАЌ ЊͲЍЎЊ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Total Deputy Involved Incidents -Spokane Valley Time Period: January 2026 5,000 4,500 4,000 3,500 3,000 2021 2022 2,500 2023 2,000 2024 1,500 2025 2026 1,000 500 - GroupAll CFS_OIAll 202120222023202420252026 January 3,409 3,029 3,910 3,822 3,692 3,645 February 3,056 2,896 3,577 3,556 3,427 March 3,399 3,915 4,356 3,542 2,491 April 3,472 3,285 3,923 3,621 3,998 May 3,608 3,736 4,181 3,572 3,916 June 3,867 3,531 3,888 3,420 4,100 July 3,311 3,727 4,028 3,858 4,403 August 3,095 3,980 4,108 3,609 4,284 September 3,037 3,826 4,023 3,668 3,929 October 3,266 3,642 4,061 3,658 4,326 November 3,323 3,450 3,919 3,438 3,669 December 3,233 3,141 3,710 3,323 3,730 DƩğƓķ ƚƷğƌ ЍЉͲЉАЏ ЍЋͲЊЎБ ЍАͲЏБЍ ЍЌͲЉБА ЍЎͲВЏЎ ЌͲЏЍЎ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Crime Check CallFor Service (CFS) -Spokane Valley Time Period: January 2026 900 800 700 600 2021 500 2022 400 2023 2024 300 2025 200 2026 100 - 202120222023202420252026 January 622 352 580 646 651 733 February 659 458 556 715 636 March 760 529 656 740 432 April 739 477 656 711 688 May 767 509 685 746 745 June 736 502 655 764 755 July 723 523 664 737 744 August 728 563 647 835 827 September 656 551 568 720 818 October 603 658 537 844 735 November 500 609 521 665 670 December 480 483 556 724 661 DƩğƓķ ƚƷğƌ АͲВАЌ ЏͲЋЊЍ АͲЋБЊ БͲБЍА БͲЌЏЋ АЌЌ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 CAD Call Type COP -Spokane Valley Time Period: January 2026 300 250 200 2023 150 2024 2025 100 2026 50 - CallTypeCOP GroupSV 2023202420252026 January 120 39 28 February 87 43 March 9 73 36 April 94 51 36 May 75 64 42 June 57 45 28 July 34 53 38 August 44 47 31 September 51 43 24 October 129 38 37 November 243 30 28 December 184 25 36 DƩğƓķ ƚƷğƌ ВЋЉ ЏАЏ ЍЊБ ЋБ Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Ticket Charge Details -SpokaneValley Date Range: January 2026 ChargeCount (blank)2 204.21.060: TURN SIGNAL LAMP VIOLATION1 46.09.470.3A: ORV-PVT RD NO SEATBELT/HELMET1 46.12.650.8: FAIL TO TRANSFER TITLE W/I 45 DAYS3 46.16A.030.2: OPER VEH W/O CRNT/PRPR REG & PLATE7 46.16A.030.5.L: FL RENEW EXPIRED REG <= 2 MTHS11 46.16A.030.5.O: FL RENEW EXPIRED REG >2 MTHS34 46.16A.180.1: FAIL TO SIGN/CARRY/DISPLAY VEH REG1 46.16A.180.2: OPER/POSSESS VEH W/O REGISTRATION2 46.16A.200.7B: DISPLAY CHANGED/DISFIGURED PLATE1 46.16A.320.6: TRIP PERMIT VIOLATION1 46.20.005.C: NO VALID OPER LICEN W/O ID COMPLICI1 46.20.005: DRIVING WITHOUT A LICENSE10 46.20.015: DRIVING MOTOR VEHICLE WITH AN EXPIRED LICENSE WITH VALID IDENTIFICATION26 46.20.017: LICENSE NOT IN POSSESSION1 46.20.031: OPERATING MOTOR VEHICLE WHILE INELIGIBLE FOR LICENSE1 46.20.342.1B: DWLS 2ND DEGREE5 46.20.740: MV IGNITION INTERLOCK DRIVE VEH WO2 46.30.020: OPERATING A MOTOR VEHICLE WITHOUT INSURANCE45 46.37.020: LAMPS, OPERATE VEH WO HEADLGHT WHEN REQ1 46.37.040: LAMPS, HEADLAMPS REQ1 46.37.050: DEFECTIVE LIGHTS2 46.37.070.3: REAR CTR HI-MOUNTED STOP LAMP REQ2 46.37.200: LAMPS, DEFECT TURN SIGNALS-STOP LAMPS3 46.37.220: LAMPS, DEFECT MULTIPLE BEAM HEADLIGHTS1 46.37.270: DRIVE WITHOUT TWO HEADLIGHTS2 46.37.510.4: FRONT SHOULDER SEAT BELT VIOLATON1 46.37.685.1A: DISPLAY NON-MATCH LICENSE PLATE1 46.52.020.2: DRIVER DUTY DAMAGE ONLY HIT/RUN1 46.52.020: OLD CODE:VEH(HIT/RUN PERSON AT1 46.61.050: DISREGARD TRAFFIC SIGNAL SIGN4 46.61.055.4: FAIL TO STOP AT SIGNAL MARK2 46.61.055: FAIL TO OBEY TRAFFIC CONTROL LEGEND6 46.61.140: IMPROPER LANE USAGE8 46.61.145.1: FOLLOW VEHICLE TOO CLOSELY3 46.61.180.1: FAIL TO YIELD TO VEHICLE APPROACHING INTERSECTION8 46.61.185.1: FAIL YIELD LEFT TURN MOTOR VEHICLE2 46.61.190.2: FAIL STOP AT STOP SIGN/INTERSECTION7 46.61.190.3: FAIL YIELD AT YIELD SIGN/INTERSECTION2 46.61.200: FAIL TO STOP AT INTERSECTION/STOP SIGN1 46.61.205.1: FAIL YIELD PRIVATE RD MOTOR VEHICLE1 46.61.290.3C: TURN LANE, IMPROPER USE CENTER1 46.61.290: TURN, PROHIBIT-IMPROPER3 46.61.305: FAIL TO SIGNAL STOP-TURN UNSAFE LANE2 46.61.310: FAIL TO SIGNAL2 Produced: 2/9/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Ticket Charge Details -SpokaneValley Date Range: January 2026 ChargeCount 46.61.400.05U: SPEED 5 OVER (40 OR UNDER)23 46.61.400.1: SPEEDING TOO FAST FOR CONDITIONS3 46.61.400.10: SPEED 10 OVER (OVER 40)3 46.61.400.10U: SPEED 10 OVER (40 OR UNDER)71 46.61.400.11U: SPEED 11 OVER (40 OR UNDER)4 46.61.400.13U: SPEED 13 OVER (40 OR UNDER)2 46.61.400.14U: SPEED 14 OVER (40 OR UNDER)3 46.61.400.15: SPEED 15 OVER (OVER 40)1 46.61.400.15U: SPEED 15 OVER (40 OR UNDER)16 46.61.400.16U: SPEED 16 OVER (40 OR UNDER)4 46.61.400.17U: SPEED 17 OVER (40 OR UNDER)1 46.61.400.19U: SPEED 19 OVER (40 OR UNDER)3 46.61.400.20: SPEED 20 OVER (OVER 40)1 46.61.400.20U: SPEED 20 OVER (40 OR UNDER)2 46.61.400.22U: SPEED 22 OVER (40 OR UNDER)1 46.61.400.24U: SPEED 24 OVER (40 OR UNDER)1 46.61.400.26: SPEED 26 OVER (OVER 40)1 46.61.400.28U: SPEED 28 OVER (40 OR UNDER)1 46.61.400.29U: SPEED 29 OVER (40 OR UNDER)2 46.61.400: SPEED 47 MPH OVER (LIMIT 40 & UNDER1 46.61.440.01-05: SCHOOL/PLAYGROUND CROSSWALK SPEED 1-5 MPH OVER13 46.61.440.16-20: SCHOOL/PLAYGROUND CROSSWALK SPEED 16-20 MPH OVER1 46.61.500: RECKLESS DRIVING3 46.61.502: OLD CODE:VEH(DWUIL/DRUG)NEW7 46.61.504: OLD CODE:VEH(PHY/UNIL/DRUG)NEW2 46.61.519: VEH(LIQ/OPEN CONTAINER)1 46.61.525: NEGLIGENT DRIVING 2 DEGREE2 46.61.605.1: UNSAFE OR IMPROPER BACKING1 46.61.655.7C: FAIL TO SECURE LOAD1 46.61.670: VEH DRIVE WITH WHEELS OFF ROADWAY1 46.61.672.1: PER ELECTRONIC DEVICE WHILE DRIVING16 46.61.672.4: PER ELECTRONIC DEV DRIVE 2ND/SUBSEQ1 46.61.687: FAIL TO USE CHILD RESTRAINTS1 46.61.688: FAIL TO WEAR SAFETY BELT4 46.61.745: CANNABIS IN MOTOR VEHICLE VIOLATION2 46.61.780: BICYCLE-DEF EQUIP1 66.44.270.3A: MINOR POSS AND/OR CONSUMPTION LIQUOR1 69.50.4013.1A: POSSESSION OF CONTROLLED SUBSTANCE14 7.105.450.1: PROTECTION ORDER VIOLATION10 9.41.050.2: LOADED PISTOL IN CAR W/OUT PERMIT1 9.41.250.1B: FURTIVELY CARRY DANGEROUS WEAPON2 9.41.250: WEAPONS VIO, POSS DANGEROUS WEAPON \[POSSESS\]1 9A.36.041.2: ASSAULT 4TH DEGREE30 9A.36.150: DV INTER WITH REPORTING1 9A.46.020.1: HARASSMENT1 Produced: 2/9/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Ticket Charge Details -SpokaneValley Date Range: January 2026 ChargeCount 9A.46.020.2A: HARASSMENT1 9A.48.090.1A: MALICIOUS MISCHIEF-3D1 9A.48.090: MALICIOUS MISCHIEF-317 9A.52.070.1: CRIMINAL TRESPASS FIRST DEGREE2 9A.52.070: TRESPASS 18 9A.52.080: TRESPASS 22 9A.52.100.1: VEHICLE PROWLING 2ND DEGREE1 9A.56.050.1A: THEFT 3RD DEG-NOT EXCEED $750 VALUE1 9A.56.050: OLD CODE: THEFT-3D13 9A.76.020: OBSTRUCT LE OFF6 9A.76.040: OBSTRUCT GOVT-RESISTING ARREST2 9A.76.175: OBSTRUCT GOVT-MAKING FALSE OR MISLEADING STATEMENT TO PUBLIC SERVANT2 9A.84.030: DISORDERLY CONDUCT1 9A.86.010.7A: DISCLOSING INTIMATE IMAGES2 9A.90.120.2A: CYBER HARASSMENT1 SV7.50.020: UNLAWFUL CAMPING3 Grand Total548 Produced: 2/9/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Criminal Ticket Counts -Spokane Valley Time Period: January 2026 250 200 150 2021 2022 2023 100 2024 2025 2026 50 - MapGroupsAll TicketType(Multiple Items) 202120222023202420252026 January 124 127 163 140 105 144 February 128 109 142 126 124 March 117 155 143 141 141 April 123 136 130 134 127 May 126 123 166 144 113 June 125 132 136 136 117 July 107 153 137 134 133 August 88 177 140 139 122 September 110 129 160 125 158 October 112 139 146 112 198 November 115 139 158 130 153 December 117 114 178 126 159 DƩğƓķ ƚƷğƌ ЊͲЌВЋ ЊͲЏЌЌ ЊͲАВВ ЊͲЎБА ЊͲЏЎЉ ЊЍЍ *Ticket type of Criminal Non Traffic & Criminal Traffic Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Non -Criminal Ticket Counts -Spokane Valley Time Period: January 2026 800 700 600 500 2021 2022 400 2023 300 2024 2025 200 2026 100 - MapGroupsAll TicketType(Multiple Items) 202120222023202420252026 January 195 193 543 516 526 316 February 172 156 464 460 476 March 166 253 539 390 383 April 198 201 320 398 386 May 212 408 450 318 406 June 353 224 363 222 686 July 284 187 416 310 503 August 132 211 605 273 404 September 178 250 499 375 349 October 216 236 491 397 587 November 295 364 504 374 292 December 157 202 382 414 263 DƩğƓķ ƚƷğƌ ЋͲЎЎБ ЋͲББЎ ЎͲЎАЏ ЍͲЍЍА ЎͲЋЏЊ ЌЊЏ *Ticket Type of Infraction Non Traffic & Infraction Traffic Produced: 02/09/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 All Ticket Counts -Spokane Valley Time Period: January 2026 900 800 700 600 2021 500 2022 400 2023 2024 300 2025 200 2026 100 - MapGroupsAll TicketTypeAll 202120222023202420252026 January 319 320 706 656 631 460 February 300 265 606 586 600 March 283 408 682 531 524 April 321 337 450 532 513 May 338 531 616 462 519 June 478 356 499 358 803 July 391 340 553 444 636 August 220 388 745 412 526 September 288 379 659 500 507 October 328 375 637 509 785 November 410 503 662 504 445 December 274 316 560 540 422 DƩğƓķ ƚƷğƌ ЌͲВЎЉ ЍͲЎЊБ АͲЌАЎ ЏͲЉЌЍ ЏͲВЊЊ ЍЏЉ *All ticket types except parking Produced: 02/09/2026 Spokane Valley Police Department Accredited Since 2011 Services provided in partnership with the Spokane County Sheriff’s Office andthe Community, Dedicated to Your Safety. Monthly Reportfor February2026 Events Attended by Chief Ellis: WA FIFA World Cup 2026 Preparedness meeting Radio Subcommittee Meeting Quarterly In-Service Training Spokane Regional Emergency Communications (SREC) Building Committee meeting SpokaneRegional Emergency Communications (SREC) Governing Boardmeeting Law Communication Advisory Board monthly meeting Joint Terrorism Task Force monthly meeting Patrol Incidents: Deputy Successfully De-escalates Situation and Arrests Erratic Suspect Armed with a Stolen Claw/Pry Bar-A Spokane Valley Deputy arrested an erratic, possibly high/intoxicated adult female suspect armed with a stolen claw/pry bar, after she damaged the wood door of a residence.The deputy contacted the suspect at a home, where she was found beating on the solid wood front door, causing damage.He told her to stop, she was not free to leave, and she turned toward the deputy and raised the claw/pry bar above her head, indicating a possible violent attack.The deputy drew his Taser, ordered the suspect to drop the tool, and used his radio to request the assistance of additional deputies.Although this could have ended in the use of deadly force, fortunately, the suspect did not attack, and the deputy effectively de-escalated the tense situation, safely taking the suspect into custody. This same suspect was arrested in December of rdnd 2023, charged with felony Assault 3Degree and Malicious Mischief 2Degree, after she ran from a deputy, violently kicked him in the torso, and damaged his patrol car. In early February, th at approximately 1:40 pm, a Spokane Valley Deputy responded to a vehicle prowling call near E. 10 Avenue and S. Oberlin Road.The caller stated a female suspect entered a vehicle and stole a “claw” tool.He described the suspect, saying she appeared possibly high or intoxicated, and that she was last seen walking south on Oberlin Road.The deputy arrived in the area and observed the 36-year-old female suspect running in front of a home in the 1000 block of S. Oberlin Road.He exited his fully marked patrol car, ordered the female suspect to stop, and told her that she was not free to leave.She ran away from him, ignored his commands, and went to the front door of the residence.She began hitting the solid wood door with what was later determined to be the stolen claw/pry bar.The deputy Page 1 continued to approach, advising the suspect to stop again, but she suddenly turned toward him and raised the claw/pry bar above her head in what appeared to be the start of a violent attack.The deputy created distance, drew and activated his Taser, ordered her to stop, and via radio, requested the response of additional deputies. He told the female suspect to drop the tool, warning her that she would be tased if she did not comply, as she took a couple of steps toward him. Thankfully, the deputy successfully de-escalated the tense situation, the suspect dropped the claw/pry bar as instructed, and then sat down on the porch. The deputy ordered her to get down on the ground, but she refused. He gave the suspect multiple additional commands, but she continued to ignore them, while yelling gibberish. He gave more commands, again warning her that he would use his Taser, and she finally complied. He took her into custody and advised her of her rights. The female suspect admitted to taking the tool from the truck, requested to be medically evaluated for difficulty breathing, and was later medically cleared by medics. The victim homeowner told deputies that he wanted to pursue charges for the damage the female suspect caused to his door. The victim of the vehicle prowling and theft stated he did not want to press charges against the suspect and deputies returned the stolen tool to him. The suspect was transported and booked into the Spokane County Jail, charged with felony nd Malicious Mischief 2 Degree. U.S. Marshals Fugitive Task Force Arrests Convicted Felon Wanted on a Felony Assault Charge in Connection with a Major Crimes Detectives Investigation - The U.S. Marshals Service Pacific Northwest Violent Offender Task Force, assisted by a Spokane County Sheriff’s Office K9 Unit, located and arrested the wanted convicted felon after a short foot pursuit. The suspect was wanted for felony assault stemming from a Major Crimes Detectives investigation. He also had two valid misdemeanor warrants for his arrest. In mid-February, at approximately 6:25 pm, the U.S. Marshals Service Pacific Northwest Violent Offender Task Force (PNVOTF), with a Spokane County Sheriff’s Office K9 Unit assisting, arrested a 39-year-old male wanted convicted felon after a th short foot pursuit near the intersection of E. 35 Avenue and S. Fiske Street. The suspect’s active nd felony warrant, for Assault 2Degree, stems from a reported person with a weapon call in January at th a residence in the 6800 block of E. 10 Avenue in Spokane Valley. Spokane Valley Deputies spoke to the adult male victim, who advised he was violently assaulted by an unknown male, armed with a baseball bat. Major Crimes Detectives continued the investigation and, using data from ALPR cameras and other law enforcement resources, identified a possible suspect vehicle based on its distinctive characteristics. As the investigation progressed, detectives identified the male suspect as nd the assault suspect, established probable cause to charge him with Assault 2Degree, and obtained a no-bond felony warrant for his arrest. The male suspect also had valid misdemeanor warrants for th Violation of a Protection Order and Assault 4 Degree. After his arrest, the suspect was medically cleared before being booked into the Spokane County Jail on his felony and misdemeanor warrants. ALPR Camera Leads to Wanted Felon’s Arrest on Slew of Charges -Spokane Valley Deputies responded to an ALPR Alert regarding a vehicle driven by a wanted suspect and, during a search of the area, located the black GMC with Montana license plates.In a parking lot, a traffic stop was attempted; however, the suspect ignored commands and fled recklessly. Before the suspect could reenter the roadway and endanger unsuspecting motorists, a PIT maneuver was used to end the pursuit quickly. The suspect, a convicted felon, was arrested for multiple misdemeanor and felony charges, including an active felony warrant.In mid-February, at approximately 3:10 pm, Spokane Regional Emergency Communications (SREC) advised Spokane Valley Deputies of an Automated License Plate Reader (ALPR) Alert regarding a black GMC Yukon with Montana license plates, associated with a wanted 37-year-old male convicted felon. The suspect was wanted for two counts of felony Violation of a Superior Court Domestic Violence (DV) No- Page 2 Contact Order of Protection stemming from a patrol investigation earlier in the month. At that time, a Real-Time Crime Center Analyst advised deputies that the male suspect had previously been contacted in a black GMC Yukon with Montana license plates. This matched the victim’s description of the vehicle the suspect was observed driving when he left the location after violating the court order of protection. The male suspect was also wanted on a confirmed felony Washington State Department of Corrections (DOC) warrant (original charge: felony Malicious Mischief). It was also noted that the suspect previously claimed to have a BB gun that he intended to use to force law enforcement to shoot him. Days later, at approximately 3:50 pm, a Spokane Valley Police Sergeant observed the black GMC driving west on E. Mansfield Avenue approaching E. Mirabeau Pkwy. He got behind the SUV, confirmed the license plate, and requested additional deputies to respond and assist. He followed the GMC, now eastbound on E. Indiana Avenue, as he waited for assistance. Unfortunately, the suspect suddenly signaled and turned into a business parking lot in the 13800 block of E. Indiana Avenue. Now in an uncongested area, the sergeant activated his emergency lights, hoping the male suspect would pull over. Instead, he continued driving toward the front of the store, and the sergeant activated his siren with the hope the suspect would stop. The suspect turned back north and pulled into a parking stall. The sergeant exited his patrol car and advised the suspect that he had a warrant for his arrest and to place his hands outside the window. The male suspect failed to comply with his lawful order, which the sergeant repeated, and the suspect replied, “I don’t have a warrant.” He again told the suspect that he indeed had a warrant, warning him not to make things worse, but the suspect rolled up his window and fled, driving over grass and a concrete curb. The sergeant got in his patrol car and pulled around in front of the male suspect, blocking his ability to enter traffic on E. Indiana Avenue. He exited his vehicle and again gave the suspect commands. Defiant, the suspect put the GMC in reverse. The sergeant tried to pin the Yukon in and prevent the suspect from escaping, but he drove through the attempt, going west in the parking lot. As the male suspect drove around the northwest corner of the business, the sergeant prepared to conduct a PIT maneuver to safely end the slow-speed pursuit before the suspect could reenter traffic and risk the safety of unsuspecting motorists. When the suspect turned east, around the back of the business, the sergeant conducted the PIT, causing the GMC to slide. The male suspect suddenly accelerated, trying to regain control, and crashed through a concrete/fenced divider, landing in a loading dock area. With the vehicle now immobilized and with additional deputies assisting, the suspect was taken into custody. Deputies contacted an adult female passenger, who told them that when they originally pulled over, she planned to get out of the vehicle and had removed her seat belt. The suspect then chose to flee, causing her to fear for her safety. She screamed at the male suspect to stop, but he did not listen. She suffered minor injuries and was transported to a hospital as a precaution and for additional evaluation. During a search following the suspect’s arrest, deputies removed a clear plastic bag containing a crystallized substance, believed to be Methamphetamine, from his pants pocket. A field test of the substance showed a presumptive positive result for Methamphetamine. The suspect was transported and booked into the Spokane County Jail for new charges of Attempting to Elude a Police Vehicle, Reckless Endangerment, Obstructing Law Enforcement, Resisting Arrest, Possession of a Controlled rd Substance, Driving While Suspended 3 Degree, along with his previous two counts of felony Violation of a DV Order of Protection and his felony Washington State DOC warrant/hold. Automated License Plate Reader (ALPR) Helps Deputies Locate a Suspect Wanted on 17 Felony Child Sexual Assault Charges -Spokane Regional Emergency Communications (SREC) advised of an Automated License Plate Reader (ALPR) Alert regarding a vehicle registered to a suspect wanted on several Child Sexual Assault charges. Deputies quickly located the vehicle near S. Sullivan Road and E. Sprague Avenue.Multiple Spokane Valley and Spokane County Sheriff’s Deputies, along with additional resources, responded to the traffic stop. The armed suspect, known to have made statements about forcing law enforcement to shoot him, was not Page 3 cooperative, which created a standoff situation. Several additional resources responded, including Crisis Negotiators and Behavioral Health Units.Thankfully, they de-escalated the tense situation and safely took the suspect into custody. Deputies recovered and seized a loaded pistol found in the suspect’s front waistband area. In mid-February, at approximately 10:40 am, Spokane Regional Emergency Communications (SREC) advised of an Automated License Plate Reader (ALPR) Alert regarding a vehicle registered to a suspect wanted on several felony Child Sexual Assault charges. Deputies also received information that the adult male suspect had former military training and was a safety concern due to previously making statements that he would force law enforcement to shoot him. A Spokane Valley Deputy located the suspect vehicle within seconds as it traveled south on Sullivan Road from E. Sprague Avenue. Multiple Spokane Valley and Spokane County Deputies responded to assist. The36-year-old male suspect/driver stopped in a parking lot located in the 15300 block of E. Sprague as deputies in fully marked patrol cars made contact. Deputies issued commands to the suspect, which he initially followed. The suspect advised that he was armed with a pistol, but then became argumentative and began making statements of self- harm. Additional resources, including Crisis Negotiators, Behavioral Health Units, and other assets, were called to assist as deputies at the scene established a perimeter to keep unsuspecting people in the area safe. Hours later, efforts to de-escalate the tense situation were successful, and the male suspect was taken safely into custody. Deputies recovered and seized a loaded pistol from his front waistband area. The suspect was transported and booked into the Spokane County Jail on 17 felony Child Sexual Assault charges stemming from an ongoing Sexual Assault Unit investigation. Deputies Locate Reckless Driver and the Armed Suspect in Separate Hit-and-Run Collisions, but Despite Efforts to De-escalate, Incident Tragically Ends - Spokane Valley Deputies responded to a reported hit-and-run property damage collision. Additional deputies searched the area, locating the armed suspect and his vehicle. Despite deputies’ efforts to de-escalate the extremely tense situation, and multiple commands for him to drop the handgun, the suspect told deputies to shoot him so he wouldn’t have to. At one point, he moved the firearm from his head and set it on the ground as deputies worked to gain his cooperation. Unfortunately, he moved to pick the weapon up, and deputies used less lethal options, but they were ineffective. Sadly, the man shot himself. Deputies immediately provided medical aid, and the male was transported to the hospital with a life-threatening injury and was later pronounced deceased. Per a mutual aid request, Spokane Police Department Detectives responded to assist Major Crime Detectives and Forensic Unit personnel with the investigation. Initial information indicates that in mid- February, at approximately 11:10 pm, Spokane Valley Deputies responded to a reported hit-and-run, property damage collision in the 600 block of N. Bowdish Road. Callers stated an unknown suspect, driving a blue Dodge pickup, rammed into two unoccupied, parked cars and left the scene. Additionally, deputies were advised that a neighbor was attempting to follow the suspect in a gray Chevrolet. The neighbor following the suspect vehicle called 911, provided the license plate for the Dodge, and said the suspect had hit a mailbox at another location. He stated the Dodge was near the intersection of N. Van Marter Road and E. Valleyway Avenue when it turned west. The adult male driver stopped, got out of the Dodge, and began walking toward the witness. As he did, he pulled a black, unknown object from his pocket and held it in his hand. Unsure if the male was holding a gun, wallet, or some other object, the witness backed away. The male suspect put the object back in his pocket and returned to the Dodge. At approximately 11:21 pm, deputies located the Dodge on E. Valleyway Avenue and N. Raymond Road and advised the male was holding a gun to his head. They gave several commands for him to drop the weapon, as the male suspect told deputies to shoot him, so he didn’t have to do it himself. Deputies worked to de-escalate this extremely tense situation, and at one point, the male placed the gun on the ground. He suddenly reached to pick the weapon back up, and deputies deployed less-lethal options, attempting to prevent him from arming Page 4 himself. Unfortunately, less lethal options were ineffective. He grabbed the gun and ran to the front of his vehicle, appearing to use it as cover.Not knowing if he planned to shoot at them or force a violent encounter, they held their position and continued their efforts to get him to surrender peacefully. At approximately 11:22 pm, the male suspect stood up, moved the firearm back up to his head, and fired. Deputies immediately gave emergency medical aid until they were relieved by Spokane Valley Firefighters. The male was transported to the hospital, where he was later pronounced deceased. Per a mutual aid request, Spokane Police Department Detectives responded to assist Major Crimes Detectives in conducting an investigation. Spokane Forensic Unit personnel also responded to assist with evidence processing. Deputies only used less lethal options and did not fire their assigned firearms (lethal force). This remains an active investigation, and no additional information is available at this time. ALPR Alert: Stolen Vehicle Recovered, Suspect, a Five-Time Convicted Felon, Arrested, and Passenger Also Arrested on Several Warrants - Spokane Valley Deputies responded to an Automated License Plate Reader (ALPR) Alert regarding a reported stolen vehicle and located it within minutes. The recovered stolen vehicle was returned to its owner, and deputies arrested the driver, a five-time convicted felon. A passenger, who lied about his name, was also arrested for multiple warrants after deputies determined his true identity. In mid-February, at approximately 10:10 am, Spokane Regional Emergency Communications (SREC) advised of an Automated License Plate Reader (ALPR) Alert regarding a reported stolen Toyota SUV. Deputies began searching for the vehicle and, within minutes, located it traveling east on E. Sprague Avenue near Pines Road. They confirmed the license plate and activated their emergency lights to conduct a traffic stop in the 13000 block of E. Sprague Avenue. During the traffic stop, they detained the four individuals inside the vehicle. Deputies confirmed that the SUV was reported stolen to the Spokane Police Department earlier in the month, after the victim left it running unattended to warm up. The 23-year-old male driver is a five-time convicted felon and he was advised of his rights. The suspect invoked his right to remain silent and declined to answer questions. A 30-year-old male passenger provided a false name to the deputies. After additional investigation, they confirmed his real identity and learned he had six active misdemeanor warrants for his arrest (two counts of Possession of a th Controlled Substance, two counts of Violation of a Court Order of Protection, Assault 4 Degree, and rd Theft 3 Degree).After interviewing the other two passengers, deputies did not establish probable cause to charge them with a crime, and they were released. The 23-year-old male was transported and booked into the Spokane County Jail for Possession of a Stolen Motor Vehicle, a felony. The 30-year- old male suspectwas transported and booked into the Spokane County Jail for his six warrants, two counts of Possession of a Controlled Substance, two counts of Violation of a Court Order of Protection, thrd Assault 4 Degree, and Theft 3 Degree, and a new charge of Possession of a Controlled Substance. U.S. Marshals Service and Spokane County Sheriff’s Office Real Time Crime Center Locate and Arrest Non-Compliant Sex Offender in Spokane Valley - Spokane Valley, Washington -In late February, the United States Marshals Service Pacific Northwest Violent Offender Task Force, with the support of the Spokane County Sheriff’s Office Real Time Crime Center (RTCC), located and arrested a male suspectnear the 15000 block of E 24th Ave in Spokane Valley.The suspect was wanted on a Washington State Department of Corrections warrant for failing to comply with the terms and conditions of his probation stemming from convictions for Rape in the Third Degree involving a 15-year-old female and Communication with a Minor for Immoral Purposes, and he was additionally arrested on a Spokane County Superior Court warrant for Failure to Register as a Sex Offender.The U.S. Marshals Service is committed to assisting state, local, and tribal law enforcement in investigating, pursuing, locating, and apprehending non-compliant sexoffenders who fail to Page 5 comply with their sex offender registration requirements, placing the highest priority on those who have committed violent acts and crimes against children.The arrest and investigation were conducted by members of the United States Marshals Service Pacific Northwest Violent Offender Task Force, the Spokane County Sheriff’s Office – Major Crimes, Spokane County Sheriff’s Office Real Time Crime Center (RTCC), and the Washington State Department of Corrections - Community Response Unit (CRU) FREE 2026 Washington State Boater Education Classes Although it’s not summer yet, it will be boating season before you know it, and we want you to be prepared. The Spokane County Sheriff’s Office Marine Unit invites you to attend one of their scheduled FREE Washington State Boater Education Classes. Effective January 1, 2014, every person born after January 1, 1955, is required to have the Boater Education Card to operate any vessel with 15 or more horsepower. This applies to Washington State residents operating vessels on Washington waterways. Classes will be held on the following dates, from 9 am – 4 pm, at the Spokane County Sheriff’s Office Training Center, 13033 W. SR 902, Spokane, WA 99224. April 25, 2026 May 16, 2026 June 13, 2026 June 27, 2026 July 11, 2026 August 8, 2026 Additional Information What is the Boater Education Card? The Boater Education Card is proof that you have successfully completed all of the components of an approved boater safety course. This card allows boating in Washington. ** Exemptions Education is not required if: Your vessel has an engine that is under 15 hp. You were born prior to January 1, 1955. You hold a valid U.S. Coast Guard Marine Operator’s License. You Must Carry the Card Vessel operators who are required to have the Washington Boater Card must carry the card on board the vessel and have it available for inspection by an enforcement officer. Not carrying your Washington Boater Card when required can result in a $99 fine. Questions? Please contact Deputy J. Ebel at jmebel@spokanesheriff.gov Page 6 Sheriff’s Community Oriented Policing Effort (SCOPE): February Monthly Events: There were no events for the month of February. Volunteer Hours: *Includes estimated volunteer service hours that are provided in the City of Spokane Valley. These two locations cover both Spokane Valley and the unincorporated portion of the county. December: Location# VolunteersAdmin Hours L.E. Hours Total Hours Central Valley1324892340 East Valley* 10 91 25.5 116.5 Edgecliff384.523107.5 University13 131.5 46 177.5 West Valley* 10 172.5 23 195.5 TOTALS 49 727.5 209.5 937 Volunteer Value ($41.70 per hour) $39,072.90 for February 2026 Handicap Parking Patrols: Spokane Valley # of Disabled # of # of Non - # of Vol. # of Hrs. Infractions Warnings Disabled Issued Issued Infractions Issued January0000 0 February0000 0 March April May June July August September October November December Total # of Disabled # of # of Non - # of Vol. # of Hrs.Infractions Warnings Disabled Issued Issued Infractions Issued Spokane County Page 7 January0000 0 February0000 0 March April May June July August September October November December Total Latent Fingerprint Team: TotalSpokane Valley Total Incidents given to team 4123 Appointments made 2518 No shows5 2 Prints lifted4235 Business/Vacation Checks: Business Checks = 9Vacation Checks = 4 Graffiti: The Graffiti Team was not active in February. SCOPE Incident Response Team (SIRT): Current number of members 12 On-Scene Hours (including travel time) responding to County = 18 Spokane Valley = 22 crime scenes, motor vehicle accidents and providing traffic control Special Events: NoneCounty = 0 Spokane Valley = 0 Total Volunteer Hours for the month 616 Current YTD Volunteer Hours 1243 Abandoned Vehicles: The team for handling abandoned vehicles is again active. There were two volunteers working in both January and February. In January, there were 11 vehicles tagged. In February, there were 5 vehicles tagged and 4 were towed. *************************** Page 8 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Burglary -Spokane Valley Time Period: February 2026 80 70 60 50 2021 2022 40 2023 30 2024 2025 20 2026 10 - 202120222023202420252026 January 53 57 54 45 49 34 February 45 40 56 55 32 34 March 43 64 48 38 54 - April 41 50 66 60 41 - May 49 43 47 55 52 - June 44 48 48 56 39 - July 54 51 43 45 31 - August 59 67 50 54 27 - September 39 54 56 45 48 - October 38 57 54 42 36 - November 62 64 36 54 53 - December 55 40 41 67 44 - DƩğƓķ ƚƷğƌ ЎБЋ ЏЌЎ ЎВВ ЏЊЏ ЎЉЏ ЏБ * IBR Offense: Burglary/Breaking & Entering 220 Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Rape -Spokane Valley Time Period: February 2026 12 10 8 2021 2022 6 2023 2024 4 2025 2026 2 - 202120222023202420252026 January 2 10 5 - 2 2 February 3 2 9 4 3 3 March 5 6 6 4 1 - April 5 7 7 3 4 - May 7 2 7 1 5 - June 4 4 7 2 2 - July 4 - 2 1 5 - August 5 4 6 4 1 - September 3 5 8 6 1 - October - 2 10 5 1 - November 4 7 3 3 3 - December 4 4 5 5 3 - DƩğƓķ ƚƷğƌ ЍЏ ЎЌ АЎ ЌБ ЌЊ Ў *IBR Offense: Rape - Forcible 11A, Sodomy - Forcible 11B, Sexual Assault with Object 11C Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Assault -Spokane Valley Time Period: February 2026 100 90 80 70 60 2021 2022 50 2023 40 2024 30 2025 20 2026 10 - 202120222023202420252026 January 72 74 81 71 55 93 February 52 81 62 63 68 57 March 65 93 75 79 73 - April 69 75 88 69 60 - May 70 65 59 84 68 - June 56 68 74 95 68 - July 79 60 78 80 91 - August 68 81 70 72 63 - September 61 79 71 73 93 - October 74 94 68 65 91 - November 54 75 58 56 64 - December 90 66 59 64 84 - DƩğƓķ ƚƷğƌ БЊЉ ВЊЊ БЍЌ БАЊ БАБ ЊЎЉ * IBR Offense: Aggravated Assault 13A & Simple Assault 13B Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Robbery -Spokane Valley Time Period: February 2026 16 14 12 10 2021 2022 8 2023 6 2024 2025 4 2026 2 - 202120222023202420252026 January 8 6 8 3 3 5 February 6 4 5 2 3 3 March 5 3 4 4 2 - April 9 2 8 7 2 - May 7 5 6 4 2 - June 3 7 6 1 4 - July 5 5 6 6 4 - August 6 15 4 2 5 - September 4 2 2 4 4 - October 7 5 4 6 5 - November 4 6 3 4 3 - December 7 11 6 - 4 - DƩğƓķ ƚƷğƌ АЊ АЊ ЏЋ ЍЌ ЍЊ Б * IBR Offense: Robbery 120 Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Motor Vehicle Theft -Spokane Valley Time Period: February 2026 90 80 70 60 2021 50 2022 40 2023 2025 30 2026 20 2022 10 - 202120222023202420252026 January 29 39 33 23 24 31 February 25 35 21 34 21 17 March 25 57 31 18 17 - April 24 42 33 33 30 - May 28 43 46 31 19 - June 26 34 39 27 37 - July 24 51 78 25 24 - August 41 67 40 28 29 - September 40 44 43 37 26 - October 42 51 36 28 28 - November 54 65 19 21 25 - December 55 48 37 29 26 - DƩğƓķ ƚƷğƌ ЍЊЌ ЎАЏ ЍЎЏ ЌЌЍ ЌЉЏ ЍБ * IBR Offense: Motor Vehicle Theft 240 Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Theft From Motor Vehicle (Vehicle Prowl) -Spokane Valley Time Period: February 2026 140 120 100 2021 80 2022 2023 60 2024 40 2025 2026 20 - 202120222023202420252026 January 87 78 67 49 64 59 February 105 89 55 62 34 43 March 75 97 67 61 48 - April 86 73 49 52 57 - May 77 57 86 54 66 - June 69 73 56 53 88 - July 66 67 57 37 50 - August 116 73 54 51 62 - September 127 72 61 43 63 - October 120 84 50 68 65 - November 79 92 45 47 62 - December 84 80 69 75 68 - DƩğƓķ ƚƷğƌ ЊͲЉВЊ ВЌЎ АЊЏ ЏЎЋ АЋА ЊЉЋ * IBR Offense: Theft From Motor Vehicle 23F Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Damage/Destruction/Vandalism (MALMS) -Spokane Valley Time Period: February 2026 250 200 150 2021 2022 100 2023 2025 2026 50 - 202120222023202420252026 January 131 136 165 103 121 131 February 121 133 130 134 98 101 March 104 195 135 119 121 - April 132 174 139 114 104 - May 133 150 163 131 148 - June 158 176 157 146 125 - July 133 133 165 136 128 - August 176 164 131 142 117 - September 163 151 121 128 125 - October 196 158 109 125 105 - November 141 169 96 124 120 - December 128 135 126 144 121 - DƩğƓķ ƚƷğƌ ЊͲАЊЏ ЊͲБАЍ ЊͲЏЌА ЊͲЎЍЏ ЊͲЍЌЌ ЋЌЋ IBR Offense: Destruction/Damage/Vandalism 290 Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Homicide -Spokane Valley Time Period: February 2026 3 2 2 2021 2022 2023 1 2024 2025 1 2026 - 202120222023202420252026 January - - - - - - February 1 1 1 - - - March 1 - - - - - April 1 - - - - - May - 1 - - 1 - June - - 1 - - - July 1 - - 1 - - August 1 - - 1 - - September 1 - 1 - - - October 2 1 - - - - November 1 - - - - - December - - - - - - DƩğƓķ ƚƷğƌ В Ќ Ќ Ћ Њ Ώ *IBR Offense: Murder/Non-Negligent Manslaughter 09A Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Identity Theft -Spokane Valley Time Period: February 2026 25 20 15 2021 2022 2023 10 2024 2025 5 2026 - 202120222023202420252026 January 12 10 17 13 10 15 February 18 23 12 10 13 8 March 20 15 15 18 17 - April 23 10 23 17 14 - May 18 7 12 16 11 - June 12 14 15 10 18 - July 13 14 7 7 9 - August 22 14 14 14 7 - September 22 6 13 12 14 - October 16 10 9 18 16 - November 13 15 12 13 9 - December 13 9 10 13 8 - DƩğƓķ ƚƷğƌ ЋЉЋ ЊЍА ЊЎВ ЊЏЊ ЊЍЏ ЋЌ *IBR Offense: Identity Theft 26F Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 DUI -Spokane Valley Time Period: February 2026 45 40 35 30 2021 25 2022 20 2023 2024 15 2025 10 2026 5 - 202120222023202420252026 January 21 29 19 13 9 11 February 24 28 28 18 18 25 March 15 25 27 24 17 - April 18 23 25 15 17 - May 20 19 35 13 16 - June 30 17 24 25 20 - July 17 23 27 20 19 - August 7 29 16 22 18 - September 19 21 21 25 26 - October 25 27 23 22 26 - November 19 24 18 19 27 - December 34 20 42 15 18 - DƩğƓķ ƚƷğƌ ЋЍВ ЋБЎ ЌЉЎ ЋЌЊ ЋЌЊ ЌЏ * IBR Offense: DUI 90D Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Drugs -Spokane Valley Time Period: February 2026 60 50 40 2021 30 2023 2024 20 2025 2026 10 - 202120222023202420252026 January 31 - 7 27 21 27 February 36 4 1 30 26 34 March 4 6 5 27 20 - April 2 6 5 28 34 - May 4 6 4 26 39 - June 2 6 2 20 25 - July - 9 4 34 23 - August 3 5 22 28 30 - September 1 8 53 17 24 - October 1 2 39 20 34 - November 1 6 41 22 25 - December 6 6 31 30 36 - DƩğƓķ ƚƷğƌ ВЊ ЏЍ ЋЊЍ ЌЉВ ЌЌА ЏЊ * IBR Offense: Drugs/Narcotics Violations 35A and Drug Equipment Violations 35B Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Fraud -Spokane Valley Time Period: February 2026 120 100 80 2021 2022 60 2023 2024 40 2025 2026 20 - 202120222023202420252026 January 64 55 55 67 61 71 February 57 80 67 78 57 53 March 97 56 80 85 71 - April 96 55 76 85 70 - May 63 56 73 91 74 - June 63 49 59 71 73 - July 81 58 70 61 60 - August 92 77 62 80 58 - September 79 64 55 63 74 - October 59 66 63 81 54 - November 70 52 56 62 63 - December 66 62 57 65 57 - DƩğƓķ ƚƷğƌ ББА АЌЉ ААЌ ББВ ААЋ ЊЋЍ * IBR Offense: Pretenses/Swindling/Con Games 26A, Fraud - Credit Card/ATM 26B, and Fraud - False & Fraud - Impersonation 26C Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Forgery -Spokane Valley Time Period: February 2026 16 14 12 10 2021 2022 8 2023 6 2024 2025 4 2026 2 - 202120222023202420252026 January 13 4 12 11 8 7 February 8 11 12 9 7 4 March 10 9 15 6 9 - April 10 9 14 7 9 - May 10 7 11 11 14 - June 6 14 6 7 7 - July 13 9 14 11 7 - August 2 7 15 6 9 - September 14 7 8 11 7 - October 11 11 9 12 14 - November 14 12 8 11 8 - December 8 9 7 12 5 - DƩğƓķ ƚƷğƌ ЊЊВ ЊЉВ ЊЌЊ ЊЊЍ ЊЉЍ ЊЊ *IBR Offense: Counterfeiting/Forgery 250 Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Theft -Spokane Valley Time Period: February 2026 300 250 200 2021 2022 150 2023 2024 100 2025 2026 50 - 202120222023202420252026 January 196 197 202 182 171 185 February 185 198 158 189 193 151 March 193 203 159 202 174 - April 185 198 175 209 142 - May 161 179 209 197 189 - June 185 219 218 208 207 - July 156 234 181 172 172 - August 176 233 146 197 214 - September 194 190 152 200 188 - October 210 221 194 207 199 - November 201 240 150 167 200 - December 200 190 183 226 188 - DƩğƓķ ƚƷğƌ ЋͲЋЍЋ ЋͲЎЉЋ ЋͲЊЋА ЋͲЌЎЏ ЋͲЋЌА ЌЌЏ * IBR Offense: Theft - Pocket-Picking 23A, Theft - Purse-Snatching 23B, Theft - Shoplifting 23C, Theft From Building 23D, Theft From Coin-Operated Machine 23E, Theft of Motor Vehicle Parts/Accessories 23G, and Theft-All Other 23H Produced: 03/11/2026 Duration (hh:mm:ss) Duration (hh:mm:ss) Μ Duration (hh:mm:ssDuration (hh:mm:ss) Duration (hh:mm:ss)Duration (hh:mm:ss) SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Call ActivityHeat Maps -Spokane Valley February 2026 Citizen Calls by Day of Week and Hour {ǒƓķğǤaƚƓķğǤǒĻƭķğǤ‘ĻķƓĻƭķğǤŷǒƩƭķğǤCƩźķğǤ{ğƷǒƩķğǤƚƷğƌ 0 12 10 8 10 10 10 9 69 1 16 10 4 8 8 9 10 65 2 17 11 6 11 3 5 11 64 3 8 6 11 4 3 8 4 44 4 1 6 5 5 3 9 5 34 5 1 7 3 5 6 6 10 38 6 3 8 10 7 4 9 7 48 7 4 16 14 15 14 13 13 89 8 14 30 30 30 11 18 10 143 9 11 26 27 21 29 23 16 153 10 17 33 29 19 23 30 25 176 11 32 31 26 22 35 29 25 200 12 24 33 24 27 17 31 24 180 13 26 20 27 33 15 26 22 169 14 28 24 27 21 22 44 29 195 15 18 30 28 35 30 39 31 211 16 22 34 24 27 29 30 20 186 17 17 18 44 24 30 23 31 187 18 25 26 24 23 22 22 27 169 19 35 18 26 25 26 20 29 179 20 16 16 22 24 12 24 25 139 21 23 18 15 19 18 19 40 152 22 15 16 12 14 8 20 23 108 23 11 5 11 13 17 15 23 95 ƚƷğƌ ЌВЏ ЍЎЋ ЍЎА ЍЍЋ ЌВЎ ЍБЋ ЍЏВ ЌͲЉВЌ Total Deputy Involved Incidents by Day of Week and Hour {ǒƓķğǤaƚƓķğǤǒĻƭķğǤ‘ĻķƓĻƭķğǤŷǒƩƭķğǤCƩźķğǤ{ğƷǒƩķğǤƚƷğƌ 0 20 8 11 10 13 15 15 92 1 19 4 7 9 16 13 16 84 2 18 11 9 18 10 7 14 87 3 9 4 11 5 5 5 7 46 4 1 7 3 7 2 5 3 28 5 6 10 8 9 11 11 12 67 6 5 7 19 21 14 15 16 97 7 14 23 22 21 34 19 10 143 8 16 25 39 46 31 25 9 191 9 14 29 52 27 44 33 22 221 10 17 32 41 28 33 35 24 210 11 22 27 28 43 42 33 27 222 12 20 17 28 42 30 32 27 196 13 22 22 41 39 26 32 26 208 14 20 21 35 29 21 34 34 194 15 14 26 33 38 24 34 25 194 16 13 30 23 23 28 22 18 157 17 18 18 23 20 28 16 26 149 18 20 20 18 18 17 23 23 139 19 24 16 22 24 31 27 33 177 20 28 24 25 26 22 22 31 178 21 27 18 18 26 22 23 57 191 22 18 18 15 21 15 20 28 135 23 7 8 13 21 20 20 28 117 ƚƷğƌ ЌВЋ ЍЋЎ ЎЍЍ ЎАЊ ЎЌВ ЎЋЊ ЎЌЊ ЌͲЎЋЌ tƩƚķǒĭĻķʹ ЉЌΉЊЊΉЋЉЋЏ SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Citizen CallFor Service (CFS) -Spokane Valley Time Period: February 2026 6,000 5,000 4,000 2021 2022 3,000 2023 2024 2,000 2025 2026 1,000 - CallSource(Multiple Items) 202120222023202420252026 January 3,680 3,792 3,917 3,919 3,663 3,577 February 3,342 3,652 3,681 3,612 3,394 3,093 March 4,052 4,475 4,277 4,029 2,553 April 4,078 4,072 4,392 4,169 3,908 May 4,415 4,382 5,115 4,271 4,241 June 4,810 4,463 5,176 4,466 4,431 July 4,993 4,880 5,163 4,801 4,891 August 4,583 4,840 4,951 4,449 4,572 September 4,397 4,504 4,520 4,405 4,415 October 4,471 4,408 4,331 4,166 4,291 November 3,966 3,874 3,843 3,611 3,605 December 4,252 3,850 3,825 3,864 3,818 DƩğƓķ ƚƷğƌ ЎЊͲЉЌВ ЎЊͲЊВЋ ЎЌͲЊВЊ ЍВͲАЏЋ ЍАͲАБЋ ЏͲЏАЉ ΫĻǣĭƌǒķĻƭ ĭğƌƌƭ ŷğƓķƌĻķ ĬǤ /ƩźƒĻ /ŷĻĭƉ ƚƓƌǤ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Citizen CFS With DeputyResponse -Spokane Valley Time Period: February 2026 3,000 2,500 2,000 2021 2022 1,500 2023 2024 1,000 2025 2026 500 - CFS_OICFS GroupSV 202120222023202420252026 January 2,295 2,181 2,294 2,185 1,971 2,204 February 2,073 2,125 2,105 2,041 2,011 2,002 March 2,399 2,663 2,477 2,131 1,552 April 2,475 2,318 2,487 2,152 2,329 May 2,605 2,529 2,732 2,295 2,418 June 2,712 2,463 2,651 2,295 2,433 July 2,544 2,530 2,659 2,401 2,739 August 2,528 2,741 2,558 2,325 2,584 September 2,312 2,666 2,450 2,280 2,460 October 2,453 2,510 2,449 2,226 2,430 November 2,221 2,273 2,264 1,957 2,188 December 2,326 2,224 2,201 1,999 2,277 DƩğƓķ ƚƷğƌ ЋБͲВЍЌ ЋВͲЋЋЌ ЋВͲЌЋА ЋЏͲЋБА ЋАͲЌВЋ ЍͲЋЉЏ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 CitizenCFS Without Deputy Response -Spokane Valley Time Period: February 2026 3,000 2,500 2,000 2017 2018 1,500 2019 2020 1,000 2021 2022 500 - 202120222023202420252026 January 1,385 1,611 1,623 1,734 1,692 1,373 February 1,269 1,527 1,576 1,571 1,383 1,091 March 1,653 1,812 1,800 1,898 1,001 April 1,603 1,754 1,905 2,017 1,579 May 1,810 1,853 2,383 1,976 1,823 June 2,098 2,000 2,525 2,171 1,998 July 2,449 2,350 2,504 2,400 2,152 August 2,055 2,099 2,393 2,124 1,988 September 2,085 1,838 2,070 2,125 1,955 October 2,018 1,898 1,882 1,940 1,861 November 1,745 1,601 1,579 1,654 1,417 December 1,926 1,626 1,624 1,865 1,541 DƩğƓķ ƚƷğƌ ЋЋͲЉВЏ ЋЊͲВЏВ ЋЌͲБЏЍ ЋЌͲЍАЎ ЋЉͲЌВЉ ЋͲЍЏЍ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Deputy Initiated Incidents -Spokane Valley Time Period: February 2026 2,000 1,800 1,600 1,400 1,200 2021 2022 1,000 2023 800 2024 600 2025 400 2026 200 - GroupSV CFS_OIOI 202120222023202420252026 January 1,114 848 1,616 1,637 1,721 1,451 February 983 771 1,472 1,515 1,416 1,521 March 1,000 1,252 1,879 1,411 939 April 997 967 1,436 1,469 1,669 May 1,003 1,207 1,449 1,277 1,498 June 1,155 1,068 1,237 1,125 1,667 July 767 1,197 1,369 1,457 1,664 August 567 1,239 1,550 1,284 1,701 September 725 1,160 1,573 1,388 1,469 October 813 1,132 1,612 1,432 1,896 November 1,102 1,177 1,655 1,481 1,480 December 907 917 1,509 1,324 1,453 DƩğƓķ ƚƷğƌ ЊЊͲЊЌЌ ЊЋͲВЌЎ ЊБͲЌЎА ЊЏͲБЉЉ ЊБͲЎАЌ ЋͲВАЋ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Total Deputy Involved Incidents -Spokane Valley Time Period: February 2026 5,000 4,500 4,000 3,500 3,000 2021 2022 2,500 2023 2,000 2024 1,500 2025 1,000 2026 500 - GroupAll CFS_OIAll 202120222023202420252026 January 3,409 3,029 3,910 3,822 3,692 3,655 February 3,056 2,896 3,577 3,556 3,427 3,523 March 3,399 3,915 4,356 3,542 2,491 April 3,472 3,285 3,923 3,621 3,998 May 3,608 3,736 4,181 3,572 3,916 June 3,867 3,531 3,888 3,420 4,100 July 3,311 3,727 4,028 3,858 4,403 August 3,095 3,980 4,108 3,609 4,285 September 3,037 3,826 4,023 3,668 3,929 October 3,266 3,642 4,061 3,658 4,326 November 3,323 3,450 3,919 3,438 3,668 December 3,233 3,141 3,710 3,323 3,730 DƩğƓķ ƚƷğƌ ЍЉͲЉАЏ ЍЋͲЊЎБ ЍАͲЏБЍ ЍЌͲЉБА ЍЎͲВЏЎ АͲЊАБ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Crime Check CallFor Service (CFS) -Spokane Valley Time Period: February 2026 900 800 700 600 2021 500 2022 400 2023 2024 300 2025 200 2026 100 - 202120222023202420252026 January 622 352 580 646 651 733 February 659 458 556 715 636 724 March 760 529 656 740 432 April 739 477 656 711 688 May 767 509 685 746 745 June 736 502 655 764 755 July 723 523 664 737 744 August 728 563 647 835 827 September 656 551 568 720 818 October 603 658 537 844 735 November 500 609 521 665 670 December 480 483 556 724 661 DƩğƓķ ƚƷğƌ АͲВАЌ ЏͲЋЊЍ АͲЋБЊ БͲБЍА БͲЌЏЋ ЊͲЍЎА Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 CAD Call Type COP -Spokane Valley Time Period: February 2026 300 250 200 2023 150 2024 2025 100 2026 50 - CallTypeCOP GroupSV 2023202420252026 January 120 39 28 February 87 43 37 March 9 73 36 April 94 51 36 May 75 64 42 June 57 45 28 July 34 53 38 August 44 47 31 September 51 43 24 October 129 38 37 November 243 30 28 December 184 25 36 DƩğƓķ ƚƷğƌ ВЋЉ ЏАЏ ЍЊБ ЏЎ Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Ticket Charge Details -SpokaneValley Date Range: February 2026 ChargeCount 204.21.040: HEADLAMP VIOLATION1 46.12.550.1: OPERATE VEH W/O VAL CERT OF TITLE2 46.12.650.8: FAIL TO TRANSFER TITLE W/I 45 DAYS4 46.16A.030.2: OPER VEH W/O CRNT/PRPR REG & PLATE5 46.16A.030.4: FAIL TO INITIALLY REGISTER VEHICLE4 46.16A.030.5.L: FL RENEW EXPIRED REG <= 2 MTHS12 46.16A.030.5.O: FL RENEW EXPIRED REG >2 MTHS44 46.16A.180.1: FAIL TO SIGN/CARRY/DISPLAY VEH REG1 46.16A.180.2: OPER/POSSESS VEH W/O REGISTRATION2 46.16A.200.7A: DISPLAY PLATE NOT ISSUED BY DOL1 46.16A.200.7B: DISPLAY CHANGED/DISFIGURED PLATE1 46.16A.200.7D: VEH PLATE NOT VALID/IMPROPER ATTACH1 46.16A.320.3A: TRIP PERMIT VIOLATION-USAGE1 46.16A.320.6: TRIP PERMIT VIOLATION1 46.20.005: DRIVING WITHOUT A LICENSE2 46.20.015: DRIVING MOTOR VEHICLE WITH AN EXPIRED LICENSE WITH VALID IDENTIFICATION27 46.20.017: LICENSE NOT IN POSSESSION3 46.20.342.1B: DWLS 2ND DEGREE5 46.20.500: CYCLE(OPERATE W/O ENDORSEMENT)4 46.20.740: MV IGNITION INTERLOCK DRIVE VEH WO6 46.30.020: OPERATING A MOTOR VEHICLE WITHOUT INSURANCE55 46.37.020: LAMPS, OPERATE VEH WO HEADLGHT WHEN REQ3 46.37.040: LAMPS, HEADLAMPS REQ1 46.37.050: DEFECTIVE LIGHTS5 46.37.150: LAMPS, LIGHTING VIO COLOR-LOCATION, PARK-STOP1 46.37.200: LAMPS, DEFECT TURN SIGNALS-STOP LAMPS2 46.37.230.2: FAIL DIM LIGHTS TO ONCOMING VEHICLE1 46.37.270: DRIVE WITHOUT TWO HEADLIGHTS1 46.37.390.3.1: MODIFIED EXHAUST, 1ST OFFENSE1 46.37.530.1C: OPERATE/RIDE MOTORCYCLE WITHOUT HELMET1 46.52.010.1: HIT/RUN UNATTENDED VEHICLE1 46.52.010.2.C: HIT AND RUN UNATTENDED-AID/ABET2 46.52.010.2: HIT/RUN UNATTENDED PROPERTY2 46.52.020: OLD CODE:VEH(HIT/RUN PERSON AT2 46.61.050: DISREGARD TRAFFIC SIGNAL SIGN3 46.61.055: FAIL TO OBEY TRAFFIC CONTROL LEGEND4 46.61.140: IMPROPER LANE USAGE2 46.61.145.1: FOLLOW VEHICLE TOO CLOSELY5 46.61.180.1: FAIL TO YIELD TO VEHICLE APPROACHING INTERSECTION7 46.61.185.1: FAIL YIELD LEFT TURN MOTOR VEHICLE2 46.61.190.2: FAIL STOP AT STOP SIGN/INTERSECTION11 46.61.200: FAIL TO STOP AT INTERSECTION/STOP SIGN1 46.61.290: TURN, PROHIBIT-IMPROPER2 46.61.305.2: IMPROPER LANE CHANGE (100 FT NOTICE)1 46.61.400.05: SPEED 5 MPH OVER (OVER 40)2 46.61.400.05U: SPEED 5 OVER (40 OR UNDER)72 46.61.400.08U: SPEED 8 OVER (40 OR UNDER)1 46.61.400.1: SPEEDING TOO FAST FOR CONDITIONS4 46.61.400.10: SPEED 10 OVER (OVER 40)4 46.61.400.10U: SPEED 10 OVER (40 OR UNDER)45 46.61.400.11U: SPEED 11 OVER (40 OR UNDER)3 46.61.400.12U: SPEED 12 OVER (40 OR UNDER)2 Produced: 3/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Ticket Charge Details -SpokaneValley Date Range: February 2026 ChargeCount 46.61.400.13: SPEED 13 OVER (OVER 40)1 46.61.400.13U: SPEED 13 OVER (40 OR UNDER)2 46.61.400.14U: SPEED 14 OVER (40 OR UNDER)2 46.61.400.15U: SPEED 15 OVER (40 OR UNDER)7 46.61.400.16: SPEED 16 OVER (OVER 40)1 46.61.400.16U: SPEED 16 OVER (40 OR UNDER)5 46.61.400.17U: SPEED 17 OVER (40 OR UNDER)6 46.61.400.18: SPEED 18 OVER (OVER 40)1 46.61.400.18U: SPEED 18 OVER (40 OR UNDER)2 46.61.400.19U: SPEED 19 OVER (40 OR UNDER)2 46.61.400.20: SPEED 20 OVER (OVER 40)2 46.61.400.20U: SPEED 20 OVER (40 OR UNDER)1 46.61.400.21: SPEED 21 OVER (OVER 40)1 46.61.400.22U: SPEED 22 OVER (40 OR UNDER)1 46.61.400.24U: SPEED 24 OVER (40 OR UNDER)1 46.61.400.25: SPEED 25 OVER (OVER 40)1 46.61.400.26U: SPEED 26 OVER (40 OR UNDER)2 46.61.400.40: SPEED 40 OVER (OVER 40)1 46.61.400.40U: SPEED 40 OVER (40 OR UNDER)1 46.61.400.45: SPEED 45 OVER (OVER 40)1 46.61.440.01-05: SCHOOL/PLAYGROUND CROSSWALK SPEED 1-5 MPH OVER24 46.61.440.06-10: SCHOOL/PLAYGROUND CROSSWALK SPEED 6-10 MPH OVER1 46.61.500: RECKLESS DRIVING3 46.61.502: OLD CODE:VEH(DWUIL/DRUG)NEW21 46.61.503: DRIVER <21 YO CONSUME ALCOHOL/MARIJU1 46.61.504: OLD CODE:VEH(PHY/UNIL/DRUG)NEW2 46.61.605.1: UNSAFE OR IMPROPER BACKING2 46.61.672.1: PER ELECTRONIC DEVICE WHILE DRIVING15 46.61.688: FAIL TO WEAR SAFETY BELT9 66.44.270.3A: MINOR POSS AND/OR CONSUMPTION LIQUOR1 69.50.4013.1A: POSSESSION OF CONTROLLED SUBSTANCE18 69.50.412.1: USE OF DRUG PARAPHERNALIA1 7.105.450.1: PROTECTION ORDER VIOLATION13 70A.15.5010: OUTDOOR BURN PROHIBITED SUBSTANCES2 9.41.050.2A: PISTOL-LOADED IN VEHICLE W/O PERMIT1 9.41.230: WEAPONS VIO, AIM-DISCHARGE FIREARM-DANGEROUS WEAPON1 9.41.250: WEAPONS VIO, POSS DANGEROUS WEAPON \[POSSESS\]1 9A.36.041.2: ASSAULT 4TH DEGREE26 9A.46.020.1: HARASSMENT1 9A.48.090.1A: MALICIOUS MISCHIEF-3D1 9A.48.090: MALICIOUS MISCHIEF-37 9A.52.070: TRESPASS 17 9A.52.080.1: CRIMINAL TRESPASS SECOND DEGREE1 9A.56.050: OLD CODE: THEFT-3D14 9A.76.020: OBSTRUCT LE OFF5 9A.76.080.2A: CRIMINAL ASSISTANCE-21 9A.76.175: OBSTRUCT GOVT-MAKING FALSE OR MISLEADING STATEMENT TO PUBLIC SERVANT2 9A.84.030: DISORDERLY CONDUCT1 SV7.50.020: UNLAWFUL CAMPING1 Grand Total600 Produced: 3/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Criminal Ticket Counts -Spokane Valley Time Period: February 2026 250 200 150 2021 2022 2023 100 2024 2025 502026 - MapGroupsAll TicketType(Multiple Items) 202120222023202420252026 January 124 127 163 140 105 146 February 128 109 142 126 124 127 March 117 155 143 141 141 April 123 136 130 134 127 May 126 123 166 144 113 June 125 132 136 136 117 July 107 153 137 134 133 August 88 177 140 139 122 September 110 129 160 125 158 October 112 140 146 112 198 November 115 139 158 130 153 December 117 114 178 126 159 DƩğƓķ ƚƷğƌ ЊͲЌВЋ ЊͲЏЌЍ ЊͲАВВ ЊͲЎБА ЊͲЏЎЉ ЋАЌ *Ticket type of Criminal Non Traffic & Criminal Traffic Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 Non -Criminal Ticket Counts -Spokane Valley Time Period: February 2026 800 700 600 500 2021 2022 400 2023 300 2024 2025 200 2026 100 - MapGroupsAll TicketType(Multiple Items) 202120222023202420252026 January 195 193 543 516 526 320 February 172 156 464 460 476 364 March 166 253 539 390 383 April 198 201 320 398 386 May 212 408 450 318 406 June 353 224 363 222 686 July 284 187 416 310 503 August 132 211 605 273 404 September 178 250 499 375 349 October 216 236 491 397 587 November 295 364 504 374 292 December 157 202 382 414 263 DƩğƓķ ƚƷğƌ ЋͲЎЎБ ЋͲББЎ ЎͲЎАЏ ЍͲЍЍА ЎͲЋЏЊ ЏБЍ *Ticket Type of Infraction Non Traffic & Infraction Traffic Produced: 03/11/2026 SPOKANE COUNTY SHERIFF'SOFFICE Regional Intelligence Group9 All Ticket Counts -Spokane Valley Time Period: February 2026 900 800 700 600 2021 500 2022 400 2023 2024 300 2025 200 2026 100 - MapGroupsAll TicketTypeAll 202120222023202420252026 January 319 320 706 656 631 466 February 300 265 606 586 600 491 March 283 408 682 531 524 April 321 337 450 532 513 May 338 531 616 462 519 June 478 356 499 358 803 July 391 340 553 444 636 August 220 388 745 412 526 September 288 379 659 500 507 October 328 376 637 509 785 November 410 503 662 504 445 December 274 316 560 540 422 DƩğƓķ ƚƷğƌ ЌͲВЎЉ ЍͲЎЊВ АͲЌАЎ ЏͲЉЌЍ ЏͲВЊЊ ВЎА *All ticket types except parking Produced: 03/11/2026 DRAFT ADVANCE AGENDA as of April 23, 2026; 9:00 a.m. Please note this is a work in progress; items are tentative To: Council & Staff From: City Clerk, by direction of City Manager Re: Draft Schedule for Upcoming Council Meetings May 5, 2026 Formal B Meeting, 6:00 p.m. \[due Tue April 28\] 1. Second Read: Ordinance 26-005 Virtual Currency Kiosks Caitlin Prunty (10 minutes) 2. Second Read: Ordinance 26-006 Opportunity Fund CTA Kelly Konkright, Mike Basinger (10 minutes) 3. Admin Report: Recap of the 2026 State Legislative Session Virginia Clough, Briahna Murray (20 minutes) 4. Admin Report: School Zone Speed Limit Modifications & CV School Speed Zone Jerremy Clark (10 minutes) 5. Admin Report: Parks & Rec. Summer Season Preview Presentation Kendall May (15 minutes) 6. Admin Report: 2026 Budget Amendment Chelsie Walls (10 minutes) \[*estimated meeting: 75 mins\] May 12, 2026 Formal A Meeting, 6:00 p.m. \[due Tue May 5\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Public Hearing: 2026 Budget Amendment Chelsie Walls (10 minutes) 3. First Read: Ordinance 26-XXX: 2026 Budget Amendment Chelsie Walls (5 minutes) 4. Resolution 26-XXX: Opportunity Zone Authorization Teri Stripes (10 minutes) 5. Motion Consideration: Opportunity Zone Application Teri Stripes (10 minutes) 6. Admin Report: Affordable Housing Sales Tax RFP Discussion Gloria Mantz, Sarah Farr (15 minutes) 7. Admin Report: Draft Parks & Recreation Master Plan 2026 Update John Bottelli (20 minutes) 8. Advance Agenda Mayor Padden (5 minutes) \[*estimated meeting: 80 mins\] May 19, 2026 SPECIAL MEETING: Community Conversations, 5:00 p.m. May 19, 2026 Formal B Meeting, 6:00 p.m. \[due Tue May 12\] 1. Resolution 26-XXX: School Zone Speed Limit Modifications & CV School Speed Zone J. Clark (10 minutes) 2. Admin Report: Conservation District, 2027 Rates & Charges Update Vicki Carter, Kohl LeRoy (15 minutes) 3. Admin Report: 2027 Council Budget Priorities - John Hohman, Jill Smith (20 minutes) \[*estimated meeting: 45 mins\] May 26, 2026 Formal A Meeting, 6:00 p.m. \[due Tue May19\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Second Read: Ordinance 26-XXX: 2026 Budget Amendment Chelsie Walls (10 minutes) 3. Motion Consideration: Affordable Housing Sales Tax RFP Gloria Mantz, Sarah Farr (10 minutes) 4. Admin Report: Six Year TIP & 2026 TIP Amendment Adam Jackson (10 minutes) 5. Admin Report: Surface Treatment Pilot Program Adam Jackson (10 minutes) 6. Advance Agenda Mayor Padden (5 minutes) 7. Info Only: Department Monthly Reports; Fire Dept Monthly Report \[*estimated meeting: 50 mins\] June 2, 2026 SPECIAL MEETING, 5:00 p.m. 1. Admin Report: Comprehensive Plan Update Steve Roberge, Mike Basinger & Guest June 9, 2026 SPECIAL MEETING -BUDGET WORKSHOP, 8:30 a.m. \[due Tue June 2 \] June 16, 2026 SPECIAL MEETING: Community Conversations, 5:00 p.m. June 16, 2026 Formal B Meeting, 6:00 p.m. \[due Tue June 9\] 1. Public Hearing: Six Year Transportation Improvement Program (TIP) Adam Jackson (10 minutes) 2. Motion Consideration: Six Year TIP Adam Jackson (10 minutes) Draft Advance Agenda 4/24/2026 8:46:32 AM Page 1 of 2 3. Public Hearing: 2026 Transportation Improvement Program (TIP) Amendment Adam Jackson (10 minutes) 4. Motion Consideration: 2026 TIP Amendment Adam Jackson (10 minutes) 6. Motion Consideration: Parks & Recreation Master Plan 2026 John Bottelli (10 minutes) 7. Admin Report: Draft Active Transportation Plan Adam Jackson (10 minutes) 8. Admin Report: Citywide No Parking Schedule Jerremy Clark (10 minutes) June 23, 2026 Formal A Meeting, 6:00 p.m. \[due Tue June 16\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Motion Consideration: Citywide No Parking Schedule Jerremy Clark (10 minutes) 3. Advance Agenda Mayor Padden (5 minutes) 4. Info Only: Department Monthly Reports; Fire Dept Monthly Report June 30, 2026 Formal B Meeting, 6:00 p.m. \[due Tue June 23\] 1. Motion Consideration: Active Transportation Plan Adam Jackson (10 minutes) July 7, 2026 Formal B Meeting, 6:00 p.m. \[due Tue June 30\] July 14, 2026 Formal A Meeting, 6:00 p.m. \[due Tue July 7\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 2. Advance Agenda Mayor Padden (5 minutes) July 21, 2026 SPECIAL MEETING: Community Conversations, 5:00 p.m. July 21, 2026 Formal B Meeting, 6:00 p.m. \[due Tue July 14\] July 28, 2026 Formal A Meeting, 6:00 p.m. \[due Tue July 21\] 1. Consent Agenda (claims, payroll, minutes) (5 minutes) 3. Advance Agenda Mayor Padden (5 minutes) 4. Info Only: Department Monthly Reports; Fire Dept Monthly Report *time for public or council comments not included OTHER PENDING AND/OR UPCOMING ISSUES/MEETINGS: Autonomous Vehicle Regulations Compression Brake Discussion Energy Code Fairchild Air Force Base Update Fireworks Code Granicus Discussion HUD Entitlement Fund Urban Consortium Oversize & Overweight Vehicle Permit Paddy Wagon Services Peer Court Police Contract Review Protection of Utility Infrastructures Draft Advance Agenda 4/24/2026 8:46:32 AM Page 2 of 2