2010, 05-04 Study Session MinutesMINUTES
SPOKANE VALLEY CITY COUNCIL
REGULAR MEETING
STUDY SESSION FORMAT
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
May 4, 2010
6:00 p.m.
Attendance:
Councilmembers
Staff
Tom Towey, Mayor
Mike Jackson, Acting City Manager
Gary Schimmels, Deputy Mayor
Cary Driskell, Deputy City Attorney
Rose Dempsey, Councilmember
Kathy McClung, Community Development Dir.
Bill Gothmann, Councilmember
Ken Thompson, Finance Director
Dean Grafos, Councilmember
John Whitehead, Human Resources Manager
Brenda Grassel, Councilmember
Mike Stone, Parks & Recreation Director
Bob McCaslin, Councilmember
Neil Kersten, Public Works Director
Greg McCormick, Planning Manager
Scott Kuhta, Senior Planner
Lori Barlow, Associate Planner
Steve Worley, Senior Engineer
Mike Basinger, Senior Planner
Rick VanLeuven, Police Chief
Carolbelle Branch, Public Information Officer
Chris Bainbridge, City Clerk
Mayor Towey called the meeting to order at 6 p.m. and welcomed everyone to the meeting.
1. Legislative Update — Briahna Tam
Governmental Affairs Consultant Briahna Taylor, of Gordon Thomas Honeywell Governmental Affairs,
gave an update of the previous legislative session. She gave a quick overview of the last short legislative
session, which she said was the second of a two -year bi- annum; that cuts were made in 2009 and more in
2010, and said the cuts were necessary to resolve the budget deficit, along with decreased federal
appropriations and increased general taxes. She went over Council's 2010 Legislative priorities and said
those items received very little attention because the budget took up a great deal of time; and she gave a
synopsis of Council's 2010 Legislative priorities: (1) Street Utility Legislation: she explained that this has
been on for multiple years and had it passed, would have given cities authority to impose a street utility
fee; that it would not have been a mandate, but would have been yet another option for revenues and
would have operated similar to any other utility fees, and said this did not pass since there were other
upcoming taxes and the legislators did not want to add to the list. Ms. Taylor said the legislation has been
refined concerning the calculation of trips, etc., so it could come back in the future if council wished to
continue to push it forward. (2) Funding for E -911 (Enhanced 911): explained that this was for improving
the 911 system and has been on the city's legislative agenda for multiple years; that some improvements
were made but it also did not move forward. (3) Public Records Request Legislation: explained that this
was a fairly successful piece of legislation; and she explained that with this legislation, when there is a
public record request, if the requested document is on the entity's website, staff can fulfill the public
record request by providing a link to the document instead of printing out the document.
She explained that priorities for Park Road Pool Land and for the Transportation Intersection were not
successful this year since the state budget is not in good shape; but reminded everyone that this City
received $200,000 for the Greenacres Park in 2009, but said we are not likely to get funding for the
second round. She explained that the remaining priorities did not come up but would be issues to consider
Council Meeting Minutes: 05 -04 -2010 Page I of 14
Approved by Council: 05 -25 -2010
in moving forward. Ms. Taylor said she would like to receive Council's 2011 priority ideas by August;
and Council expressed appreciation to Ms. Taylor for her work, professionalism, research and knowledge.
2. Panhandling — Ian Roberts
Mr. Robertson explained that the theme for Spokane Valley Partners concerning panhandling, is "Change
for the Better;" he discussed the importance of community education in helping the disadvantaged in our
community, and said they encourage citizens to donate to local agencies which can offer real help,
stressing that this is not a place for government or tax money; that they want to educate the public and if
they want to give, their generosity is needed with the agencies which can help; and said that Spokane
Valley Partners is urging citizens to participate in a one -stop giving; and he mentioned the idea of a dollar
tree that was previously used to help the food banks which resulted in over 80,000 pounds for the needy
in just six months; he said in speaking with the homeless, many want the city to set up a homeless camp
but Mr. Robertson said that won't happen, and said his organization wants to work with those who
generally want to make a change for the better; that free meals are offered by numerous churches and
organizations, and shelters such as Hearth Homes generally has room. Mr. Robertson said there are two
things Spokane Valley Partners is asking: one is a resolution that would address pointing to a launch of a
community education campaign to encourage Spokane Valley Partners to assist the disadvantaged; and
the second thing is to have a challenge to set a donation for the "Change for the Better" campaign; he said
they are looking for ten large companies to each donate $2,000; and mentioned that "Joe the Taxi Driver"
is also willing to assist by giving free rides to the homeless to Spokane Valley Partners. Councilmember
Grassel asked about putting the names of volunteer groups on a flyer or other material, and Mr. Robertson
explained that there are over 300 organizations which can assist; that they would prefer not to suggest that
the disadvantaged move from one stop to another for food or shelter, but rather have someplace where
they could go for everything. Councilmember Grassel asked Council to consider adopting Issaquah's
panhandling ordinance and said she feels the situation here is now out of control.
3. Comcast Contract Extension — Cary Driskell
Deputy City Attorney Driskell explained the history of the Comcast contract and of the misunderstanding
of the need for them to return the signed agreement; and that this proposal is to grant an extension to June
11, 2010, to return the signed ordinance to us. Council concurred to move forward with this issue for the
May 11 agenda.
4. Collaborative Planning — Mike Basinger
Planner Basinger went through his PowerPoint presentation explaining the CTED (Community Trade and
Economic Development) Regional Collaboration Grant process, which grant was used to evaluate
differences in land use and development standards, identify fiscal restraints related to annexation, and
explore service delivery options within the metropolitan Urban Growth Areas (UGAs). Mr. Basinger
discussed the coordinated development for UGAs including private roads, connectivity, urban design and
communication, and stressed the need for communication; he said the next steps include an interlocal
agreement; and said that Spokane has agreed to contribute $20,000; Millwood, Airway Heights, Cheney
and Liberty Lake would contribute $5,000; and that we are asked to contribute $10,000; and said that
these funds are necessary in order for the Collaborative Planning committee to continue their
collaborative planning process, which began in 2006. There was discussion about how much has been
given toward this project and where the requested $10,000 would come from; and Mr. Basinger explained
that this has been a regional effort, and that funds would like come from our reserves. Mr. Jackson asked
if council wants staff to bring back a draft agreement and scope of work for council's review and future
motion consideration, and there were no council objections.
5 Six -Year 2011 -2016 Transportation Improvement Plan (TIP) — Steve Worley and Neil Kersten
Engineer Worley explained that this is the first draft of the six -year TIP, and prior to addressing the
projects in the draft TIP, he gave background and an update on how streets are funded and how street
maintenance occurs in Spokane Valley, and he explained that most grants don't fund local access streets,
Council Meeting Minutes: 05-04 -2010 Page 2 of 14
Approved by Council: 05 -25 -2010
that grant projects are for arterials only; and he recommended council determine which projects should be
on the TIP and which should not; and that staff would come back with another presentation on pavement
management program so Council can get a better idea on the needs for construction and maintenance; and
afterwards, to discuss the TIP, and said that a public hearing is set for May 25, after which a resolution
would come to council for approval consideration to actually adopt the TIP. Mr. Kersten reminded
council that this is just a plan and they are not committed to the projects, and there are obviously more
projects in each year than there is available funding; but said it is critical to have a good list so when
funding becomes available, and we have projects that score and fit well, we would like to be able to pick
and choose in order to be as successful as possible. He encouraged council to examine the entire list to
make sure there are not projects on the list they are not in favor of; and said this will come back to council
again. Councilmember Grassel asked about coordinating the city's street speed limits as part of this, and
Mr. Kersten explained that would be a separate effort; that they are starting to examine that issue and said
he is not sure if some past complaints in specific areas were the cause of the change in limits; but that
staff can start to look at those areas where people complain; and said the limits should be fairly consistent
unless there is an unusual feature of a street requiring vehicles to slow down; but generally the limits are
35 mph on arterials, and 25 on residentials. Mr. Worley went through his PowerPoint presentation
explaining the street improvement categories of operation and maintenance, pavement management, and
capital grant projects, and said there currently is no funding for pavement management.
Councilmember Grafos asked what is the criteria for choosing projects in the past and how are projects
ranked and could some projects have waited. Mr. Worley said projects are based on need and most are
needed for safety improvements, such as narrow roads, gravel, no sidewalks, and to widen the roads and
bring them up to a safer urban standard, and reiterated the first criteria is need, and the second is how well
does it fit the grant criteria; and Mr. Kersten gave the last Sprague project as an example as the condition
of pavement is important, and the worse condition, the higher it scores. Mr. Worley said in terms of need,
staff also examines where growth is occurring in the valley or in neighboring jurisdictions, such as
Greenacres or Liberty Lake; and Mr. Kersten encouraged council to review the projects. Councilmember
Grassel asked what would need to be done to stop the Broadway Safety improvement project, and could
we move ahead with just the sidewalk part of the project. Mr. Kersten said he can discuss that with the
Transportation Improvement Board but feels that type of change will dramatically change the scope of the
project, and likely the funding would be pulled back as the scoring is based on the whole project, and we
normally can't take out a piece; that likely we would lose it all and would have to re- apply; and said he
feels we likely would not have to pay back what we have already spent, but would lose the remaining
funding. Deputy Mayor Schimmels said the last thing we want to do is gave a grant back, that there is
some conversation circulating that we would be able to table it for a year, but said that doesn't solve the
problem; and reiterated that it is not a good way to do business to give back a grant. Councilmember
Gothmann said concerning the TIB, if you don't have a plan in place, but could put you on a contingency
plan, so they would take the funds and use it elsewhere; adding that the TIB has very strict funding
requirements.
Mayor Towey called for a recess at 7:30 p.m. and reconvened the meeting at 7:44 p.m.
6. Shoreline Master Program — Lori Barlow and Scott Kuhta
Associate Planner Barlow gave an overview of the Shoreline Master Program Update Process. Via her
PowerPoint presentation, Planner Barlow explained the update process; that the top element of "Conduct
Inventory and Analysis" is the most important element of the entire process as all remaining elements are
built on the information compiled in the inventory and analysis; and said this is the basis for the report
before council; and she went over the remaining tasks to do, the completed tasks, the review and staff and
consultant process, purpose and goals of shoreline inventory; and explained that upon completion of all
the listed elements, they will be packed together and run through the local adoption process, which would
be a formal process to go before Planning Commission and the Council, and included holding public
hearings and gathering public comment; and afterwards, the report moves to the State level where they
Council Meeting Minutes: 05 -04 -2010 Page 3 of 14
Approved by Council: 05 -25 -2010
review and adopt the report as well. Ms. Barlow also mentioned that at the time of the last study session,
the comments from the Department of Ecology, the Washington State Department of Fish & Wildlife, and
from the Washington State Parks Department had not been incorporated into the document; and she said
the comments were very good and had some substance to them, but the comments did not change the
analysis or the outcome of any of the conclusions within the report; but served to build a better
foundation. Ms. Barlow said the document has been available for review since about the first week of
April, and the Planning Commission conducted their first public hearing April 22, and said there was no
public testimony offered at that hearing; and the Planning Commission recommended acceptance of the
document via resolution, which will be coming to Council at the next meeting.
Ms. Barlow also mentioned that when the URS Consultants were here, they discussed the information
which was reviewed in compiling the report, and they reviewed over 50 documents and over 130 GIS
map layers; and said staff is hopeful to have conducted an exhaustive review of all available relevant
information concerning this report. Councilmember Grassel said she assumed that the Department of
Ecology will be reviewing anything Council puts forward, and said regarding the significant resources
reviewed, there are a number of agencies listed including the Department of Ecology, USGS, EPA, DNA,
etc., and said there are a number of things stated in the inventory that she would like to have more
evidence presented before she would consider this acceptable; and said for example, under the "Spokane
River Overview" under natural environment there are statements made concerning lack of diversity or
where it discusses native fishery rainbow trout in poor condition, heavy metals, PCB contamination; and
said those kind of statements, that the Department of Ecology will look at that pretty stringently, and said
she would like to know if council can get their documentation and asked if there is a biologist who can
confirm that there truly is heavy metals and PCB contamination and if so, is it at an alarming rate, and
said it doesn't state that in the overview. Mr. Kuhta replied that all the footnotes contain all the sources of
information where the data was gathered; and said it is well documented that there is PCBs and heavy
metals in the river; and said there are cleanup actions going on by the Department of Ecology cleaning up
certain beaches where there are heavy metals deposited; and said these are all issues which have been
raised in the source materials, the fifty documents, and the consultants have reviewed all data sources and
technical reports that they became aware of, to report the river's and river's environment and the
shoreline; and said if Councilmember Grassel wants those specific documents, it would be an exhaustive
list and a large amount of copying, but staff can provide that if council desires. Mr. Kuhta explained that
the reason we hire consultants to do this work, is that they have the technical expertise to go through those
documents and to assimilate the information available; and said except for the field work they have done
where they actually examine the shoreline and characterize it and document plants and animals, all the
data sources are secondary sources; which is common to use when developing such a report.
Councilmember Grassel explained that if we are paying a consultant to present evidence, it is their
responsibility to document for the Council; since they are asking us to approve that this inventory is
correct and accurate, and said she would like to see them put it in some sort of format that council can
read quickly without going through fifty documents; that they state that we have poor condition for
rainbow and trout, and she wants to know their basis for that comment; and for the heavy metals
contamination, they should be able to present evidence that states what their source is, and said she feels
that is not an unreasonable request.
Mr. Kuhta replied that that information is in the footnotes in the document; and directed Council's
attention to Appendix A; he said the slides in the PowerPoint presentation are merely a summary of what
is contained in the report; and if council looks through the details of the report, the source is cited and
Appendix A has a list of all the documents prepared and depended upon; and said everything has been
well documented. Mayor Towey said Council did not receive appendix A, but upon further discussion it
was determined Councilmembers all received the shoreline master program notebook which contains all
the appendices, including Appendix A; and Mr. Kuhta said if council has any questions on any of the
sources, the consultant will be on hand at the next council meeting. Councilmember Grassel said some of
the documentation is written in terms that only a scientist might be able to read. Mr. Kuhta confirmed
Council Meeting Minutes: 05 -04 -2010 Page 4 of 14
Approved by Council. 05 -25 -2010
that the consultant reviewed very technical documents, which is why they review the documents and then
make statements similar to "the habitat is degraded" or "the habitat is in good shape" and said the attempt
in the report is to take the technical language from the resources, and put it into language in the report
which is easily understood. Mr. Jackson said staff will attempt to identify specific questions that the
consultant can address next week.
Mr. Kuhta asked Council if staff should proceed to prepare the resolution to accompany the information
and be ready for next week; or have further discussion prior to considering a resolution. Councilmember
Grassel said if we are not in a hurry, she would prefer to have the consultant in to answer questions, so
council can understand the inventory prior to approving the document. Councilmember Grafos agreed to
bring in the consultant; and said perhaps the information that is needed is, if a certain area is degraded,
but by what percentage, and how bad is the area in question. Councilmember Gothmann said this
document was previously distributed to Councilmembers; and that a biologist and a hydrologist were
before Council to review the document; and said he doesn't have a problem in asking the questions again;
but suggested having the consultants here next week for further clarification, and have council consider a
resolution to accept the report; or at the next meeting determine that more information is needed prior to
considering a resolution. There were no objections to Councilmember Gothmann's suggestion.
Mr. Kuhta said that the Department of Ecology has gone through this inventory in detail and provided a
lot of comments; and made a comment at the Planning Commission hearing that it is the best inventory
chapter they have ever seen, with all the data information; and that a lot of the information and the words
are summarized in the maps, and said the inventory maps show where a lot of the areas are, with circles
around certain unique features, like Junipers, and it will highlight some of those areas, and show some of
those areas which will be good for restoration.
7. Website Update — Carolbelle Branch
Public Information Officer Branch went through her PowerPoint presentation explaining about our
upcoming new website, and that it is expected to launch June 14; that in 2008 we were informed by our
then software company, that they were abandoning the software, and since then, we have been operating
without maintenance or support, thereby placing our website at risk; she said we have approximately half -
a million hits annually and the website is an important tool for community contact. Ms. Branch explained
that some of the added features of the new website include calendars, access to documents via Laserfiche,
and the ability to complete employment applications and citizen action requests on -line.
8. Subarea Plan (SARP) prague /Appleway revitalization Plan Economic Analysis — Greg McCormick,
Kathy McClung
Community Development Director McClung said that tonight is the first of two pieces to present to
council, which will form a foundation for further discussions on the SARP, that council can use the
information or not; that staff are not economists and did not put the report together although they will
present the highlights of the report; she said the consultant had a short turn- around time to get the
information to staff, which had a very short turn- around time to get the information into Council's agenda
packet, and once staff started looking at the information, staff had questions and discussed those with the
consultant yesterday, and just this morning received updated information, which will be presented by Mr.
McCormick.
Planning Manager McCormick gave an overview of the economic study completed in 2006 by
ECONorthwest, which study provided some of the basis for the recommendations of the SARP. Mr.
McCormick explained that ECONorthwest is a consulting firm based in Oregon, specializing in
economics and analysis and consulting services, and the company has been in practice for over 35 years,
and they have provided economic information to hundreds of public and private clients. Mr. McCormick
said staff received clarifying information; and brought Council's attention to the packet materials in the
Request for Council Action (RCA) Form, third paragraph under the background section, staff mistakenly
Council Meeting Minutes: 05 -04 -2010 Page 5 of 14
Approved by Council: 05 -25 -2010
indicated that the Sprague Appleway Corridor had a capacity in 2006 for an additional 7.3 million square
feet of commercial space; which is an issue staff asked ECONorthwest to clarify; and tonight information
will correct that figure. Mr. McCormick said ECONorthwest's charge in 2006 was to provide the city
with an evaluation of the market conditions in the Spokane region in general, and more specifically from
that in the City of Spokane Valley and the Sprague / Appleway corridor; that key questions for the study
included how much commercial development capacity including re- development existed in the corridor;
and secondly how much new commercial development could be supported or the demand for commercial
space given the city's population and income for the area; and what type of residential development was
most likely to occur in the corridor. Earlier this year, a question was asked how would the current
regional and national economic situation impact the findings of the 2006 study; which prompted staff to
contact ECONorthwest to request a "Letter of Opinion" to address that issue, which is included in
tonight's council packet materials.
Mr. McCormick said some of the major findings of the 2006 study were that in 2006 there was an
existing 5.5 million square feet of commercial space in the corridor; the capacity for new commercial in
the corridor was approximately 1.8 million additional square feet; so the 7.3 million in the RCA form
should be 1.8, and the 365,000 square feet per for 20 years should be 90,000 square feet over a 20 year
period; and said using the assumptions in the 2006 study, in looking at the detail, that 1.8 million was
considered by ECO to be a low estimate, and if you apply higher density rates, you could achieve greater
square footage. Further, Mr. McCormick explained that the demand for new development annually was
estimated at 21,000 square feet per year for new retail and 19,000 square feet of new office for a total of
40,000 square feet per year; and said due to this abundance of supply, that had a tendency to lower land
values due to oversupply and lack of demand. Mr. McCormick said there was also information in the
study which examined vacancy rates and rents per square foot; and said the fording for commercial space
was that Spokane Valley had 40% of the commercial space in the suburban region, but had 66% of the
vacant retail space; and further that commercial rents in the city of Spokane Valley were between 50¢ to
$3.00 per square foot less than other parts of the suburban Spokane area. In reviewing the commercial
supply versus the demand, Mr. McCormick said if only the vacant land is considered with no re-
development, such as the new RiteAid on the corner of Pines and Sprague; just looking at the vacant land,
you would see a close match with the 20 -year expected demand and the 20 -year supply; that concerning
the capacity of vacant commercial land, based on the 2006 study that indicates vacancy rates from 1999
through 2006, the average commercial vacancy rate in the City of Spokane Valley was 14.75 %; and said
using that figure as a guide, and multiply that by the total square footage of commercial space within the
corridor, the 5.5 million square feet, that results in a little over 811,000 square feet of vacant commercial
space or buildings within the corridor at any one time; and said if you compare that figure to the existing
vacant commercial building capacity with the demand, you theoretically would have enough vacant
building space to accommodate the 20 -year demand.
Mr. McCormick further explained that a concern was raised regarding the validity of the 2006 findings
given the current local and national economic situation; so staff contacted ECONorthwest and requested a
review of the 2006 study in light of current economies; and requested ECONorthwest to provide a letter
of opinion regarding relative to the findings of that 2006 study; he said that letter was finalized April 27,
2010 and forwarded to the Mayor and City Council; and explained that Terry Moore of ECONorthwest
and the primary author of the study, indicates as noted in the April 27 letter, reiterated that in 2006 there
was approximately 5.5 million square feet of commercial space in the corridor; the seven year vacancy
rate for commercial space in the City of Spokane Valley was 14.75 %, resulting in again average vacant
commercial at any one time of over 811,000 square feet. Mr. McCormick said that in 2006
ECONorthwest concluded that Spokane Valley had substantially more land zoned for retail uses then the
market was likely to need in the next twenty years (see page 3 of the opinion letter), and that the
population in the region will likely grow at the historical average of 1 -2% annually (page 4 of the opinion
letter), and that per capital income and disposable income had been negatively impacted due to the
economic slowdown, and said the reason those are critical numbers is that retail demand is based on the
Council Meeting Minutes: 05 -04 -2010 Page 6 of 14
Approved by Council: 05 -25 -2010
number of people in the market area and how much disposable income they have; and said if you are
expecting a higher than normal growth rate, then you could expect higher than normal demand for retail
space; and said that is not the case presently, and said there are no indications that we should expect
anything other than our normal growth rate of 1 -2% annually.
Councilmember Grassel asked if those figures are taking into consideration just the City of Spokane
Valley or the region; and Mr. McCormick said they look at market area; and there are different market
areas identified in the report for certain uses; for example regional and commercial uses at Spokane
Valley Mall is typically bigger than a commercial area for a grocery store; and said autorow is a good
example of the regional use it draws from a much larger area than some other types of retail uses.
Councilmember Grafos said when the study spoke about the existing square feet of commercial space,
didn't they put in a caveat, and he referred to page 2 where it addresses the supply of commercial space
on the corridor, and where it states "If the entire corridor redeveloped to the density of a typical suburban
strip mall" and Councilmember Grafos said that is not likely here in Spokane Valley, and said "you're
talking about a shopping center all over, from one end of the valley to the other;" and said that's their
caveat. Mr. McCormick said one of the variables they used was the intensity or the level of development;
and how they looked at that in the study, they used a term called "floor /area ratio" which means this is the
ratio between the size or square footage of the building and the square footage of the lot; and said for
example if there is a 10,000 square foot lot and 5,000 square feet of building, that would be considered a
floor /area ratio of .50; and said the number they used for the estimate, the .21 floor area ratio is actually a
pretty conservative number so you would get less square feet if you used that as a multiplier against the
vacant land; and said more typical in this time frame, you would see floor /area ratios that are higher,
perhaps .25 to .35 more typical then the .21; and again by using the .21 floor /area ratio multiplier, it was
conservative in terms of how much capacity, which means there is probably a lot more capacity then what
is actually stated in the report. Further regarding the opinion letter, Mr. McCormick said the letter
concludes that the 2006 forecast for commercial land absorption is still probably justified (page 4), so Mr.
McCormick feels they are stating that the current economy would not really change that in any significant
way; and in reading further, ECONorthwest indicates that if they were conducting that same study today,
the forecast average annual demand would most likely be lower, maybe as low as 10% (see page 5 and 6).
Community Development Director McClung said staff provided a draft letter in council's packet, which
letter needs to be mailed tomorrow for the first gateway commercial zones. Councilmember Grafos said
he has the following suggestions for that letter, and he distributed copies of his proposed letter:
He suggested instead of meeting from 8 -10 a.m. that a more practical meeting time would be 11 a.m. to 1
p.m. or 5 or 5:30 p.m. for the property owners to attend the meeting; and he had the following specific
questions to include in the letter:
1. Do you understand that this new zone affects the way you use your property?
2. Do you understand that the zone may affect the improvements to your property?
3. If you are a valid commercial use but no longer allowed by this zone, do you understand the
affects of non - conforming use classification?
a. do you understand that in the event of a property loss that exceeds 80% of assessed value, you
cannot replace it except in compliance with a use in the present zone?
b. Did you know that the intentional abandonment or non -use of the property for 24 consecutive
months causes non - conforming rights to expire and you must fully comply with the present zone and a
different use?
c. Does your lender and insurance agent know this? If so, what was their comment?
d. Based upon the above non - conforming use restrictions, would you prefer that the plan revert to
the previous zone and remove the non - conforming status?
4. Any other comments about this zone or questions about this zone and its affect upon your use of
the property?"
Councilmember Grafos said if people are unable to attend, we should have a comment card sent to the
public that they can comment or go to the City website to make comments concerning their property; and
Council Meeting Minutes: 05 -04 -2010 Page 7 of 14
Approved by Council: 05 -25 -2010
said he would like to see his letter go out. Councilmember Dempsey said she agrees about enclosing a
card to give people an opportunity to speak, but stated her concern about the combative wording, and
suggested re- wording it to it sounds less combative. Councilmember Grafos asked if it is combative or
just speaking directly to the issue of why we are having a meeting, which is to discuss the citizen's
property and its nonconforming status; and he said he doesn't think the property owners understand
what's happened to their properties through these zone changes. Councilmember Gothmann suggested not
having interrogatory type questions, but declarative sentences, such as "this zoning affects the way you
use your property" or "this zoning may affect the improvements to your property" and said items 3 and 4
assume that every property is nonconforming and he said that is not accurate; and he asked if it is possible
to include a return card. Ms. McClung said that would not pose a problem, and citizens could even use
the back of the letter. Mayor Towey said he feels the number of nonconforming properties has been not
addressed; and Ms. McClung said that will be addressed as we go through the individual zones; and she
said even if someone is nonconforming under the new plan, they still may be nonconforming under the
old plan, or they could be nonconforming under the pre - incorporation zoning; and Mayor Towey said the
point is to make sure citizens understand all that. Councilmember Dempsey agreed she prefers declarative
sentences. Councilmember Grafos said he feels there are a lot of nonconforming properties.
It was moved by Deputy Mayor Schimmels and seconded to extend the meeting to 9:30 p.m. Vote by
Acclamation: In favor: Mayor Towey, Deputy Mayor Schimmels, and Councilmembers Grassel, Grafos,
Dempsey and Gothmann. Opposed: Councilmember McCaslin. Abstentions: None. Motion carried.
Councilmember Grafos said he feels it is important that the property owners are informed when they
arrive for the meeting, and when those meetings are conducted, that we have large maps that show the
pre -2007 and interim zoning map when it was incorporated; another large map showing the city -wide
rezones; and a large map showing the SARP rezone October of 2009; and the map showing the
nonconforming property; and said staff should be prepared to talk about some of those issues. Director
McClung said staff will be prepared to discuss the nonconforming properties as that is one of the main
points of the meetings; and to discuss those nonconforming properties as they relate to the zone in
question; but said that staff will not prepare information about city -wide zoning as there isn't time to
prepare for that; and said those other mentioned maps will be ready for the meetings. Councilmember
Grafos said regarding the SARP properties, if staff has those three maps there: the interim zoning, the
2000 zone change, and a zoning matrix then the property owner can look at the map and see what was and
what changed as it relates to property and property uses. Director McClung said that information will be
available; and she said in relation to Councilmember Grafos's suggested time, the goal is to capture the
most people possible from property owners and business owners, and we usually get more business
people in the morning, and more residential owners at evening, and she expressed concern with having a
meeting across the lunch period; and said we could keep the first meeting 8 a.m. to 10 a.m. and can
always change it later based on turnout. Council concurred. After further brief comments concerning the
letter's structure and contents, Director McClung said she feels she has the essence of the suggestions,
and said since the letter will go out under her signatures, she will do her best to accommodate council's
suggestions.
9. City Manager Recruitment — John Whitehead
Human Resources Manager Whitehead said as a result of the April 20 council meeting where he spoke
about the recruitment process, Council determine they would review and edit the existing City Manager
Position Description, and that staff would bring those comments back to this meeting; and at the April 20
meeting, Council also requested salary information, which he said is included in this council packet. Mr.
Whitehead went through the proposed changes to the Position Description:
1. SUPERVISION EXERCISED: Exercises supervision over all municipal employees and City Contracts
either directly or through subordinate supervisors. — Suggestion by Councilmember Gothmann.
There was Council consensus to accept the change as proposed.
Council Meeting Minutes: 05 -04 -2010 Page 8 of 14
Approved by Council: 05 -25 -2010
2. Communicates official plans, policies and procedures to staff and the general public. Resolves
complaints from citizens and keeps Council informed of such complaints. — Suggestion by
Councilmember Gothmann.
Councilmember Gothmann asked Mr. Jackson if that statement is appropriate, and Mr. Jackson suggested
to perhaps change it to read "and keeps Council informed of complaints as appropriate."
Councilmember Gothmann said that was agreeable to him, and there were no objections from other
councilmembers.
3. "Performs or assists subordinates in performing duties; "
Councilmember Gothmann said he deleted those words as they didn't make sense; and Mr. Jackson
agreed that sentence is not well crafted. There were no objections from councilmembers.
4. Sees that all laws and ordinances are faithfully performed. Enforces all contracts the City has with
other parties. — Suggestion by Councilmember Gothmann.
Councilmember McCaslin asked for a legal opinion about the word "enforces" and City Attorney
Connelly said this is fine and simply means that he ensures the contracts are carried out, or the contract
responsibilities of the city are carried out and said he has no problem with that suggestion.
Councilmember Gothmann said he feels there are many citizens who don't understand that is inherent in
these duties. Deputy Mayor Schimmels asked about editing that to read "Enforces and negotiates" and
there were no objections from councilmembers.
5. Attends all meetings of the Council at which attendance may be required by the Council.
Prepares business plan for all departments. Works with department heads to set internal goals and
measurements for each department.
Works with Sheriff's Department, Spokane County, and other entities to solve mutual problems and
increase efficiencv and effectiveness of the Citv.
Assists Council in preparing external goals and measurements for the Citv.
Supervises the labor negotiation process for the Citv through subordinates as appropriate.
Keeps Council informed of State and National issues that could affect the City. Advocates for city
concerns in accordance with Council directives. — Suggestions by Councilmember Gothmann.
Councilmember Gothmann said he made these suggestions as there are four functions of management:
planning, organizing, leading and controlling. There were no objections from Councilmembers.
6. Education and Experience (includes suggestions from Councilmember Grafos and Gothmann as noted):
A. Graduation from an accredited four -year college or university with a degree in public administration,
political science, business management or a background of equivalent real world experience in the
management of large multifaceted organization ,
. Suggestions by Councilmember Grafos.
The following suggestions were from Councilmember Gothmann:
A. The City Manager will be chosen by the Council solely on the basis of his or her executive and
administrative qualifications with special reference to his or her actual experience in or his or her
knowledge of accepted practice in respect to the duties of his or her office.
B. Must have graduated from an accredited four -year college or university with a degree in up blic
administration, political science, business management or a closely related field.
Council Meeting Minutes: 05 -04 -2010 Page 9 of 14
Approved by Council: 05 -25 -2010
C. Must have five (5) years of experience as a senior municipal administrator in a city of at least 50
employees.
D. MPA preferred but not required. Working toward an MPA a,plus.
E. ICMA credential preferred but not required. Working toward credential a plus.
City Attorney Connelly said that the second paragraph (B) is verbatim from the statute. Councilmember
Gothmann said he feels council should examine the desired education and experience for a city manager;
and he prefers to have a professional city manager; he said the state statutes require having a special
reference to actual experience or knowledge , and said he is concerned that this person is someone who
knows the job; and suggested the job is more than merely managing; and discussed some of the courses a
typical college degree would include; and said that "since the city manager manages everybody who
reports to him has a degree plus certification, all of them, and said such a person should report to a
professional city manager, which is someone who has the professional degree." Councilmember
Dempsey said she prefers Councilmember Gothmann's A above because it allows for experience; and
Mayor Towey agreed it quotes the RCW and said he prefers that as well, and there was Council
consensus to accept Councilmember Gothmann's A above.
Concerning C above and the five years experience, Councilmember McCaslin asked if that negates A and
B, and said he feels C should be stricken; and Councilmember Grassel agreed. Councilmember McCaslin
said that five years requirement is too demanding; and feels it negates A as if you don't have five years
experience as a senior administrator, you'd be "out of the ballpark." Councilmember Gothmann
disagreed and said he felt the experience is warranted, and that it doesn't mean one must have been a city
manager for five years, but has been a member of the "senior staff." Councilmember Grafos agreed with
Councilmember McCaslin. Councilmember Dempsey said in this city of approximately 90,000, we need
someone who can handle a city that size. Councilmember McCaslin asked Mr. Whitehead if he would
supply the city council with the previous city manager's resume, experience, and Mr. Whitehead replied
he could. Councilmember McCaslin added that this Council asked the previous city manager to resign, so
he felt that negates the other city councilmembers' (Dempsey and Gothmann) comments. Mayor Towey
asked if there is a consensus to strike C; and Councilmember McCaslin said he feels C should be omitted,
and Councilmember Grafos and Grassel agreed; but Councilmember Dempsey disagreed. There were no
council comments concerning D and E above.
It was moved by Councilmember Gothmann and seconded to extend the meeting for fifteen minutes. In
Favor: Mayor Towey, Deputy Mayor Schimmels, and Councilmembers Grassel, Grafos, Dempsey and
Gothmann. Opposed.• Councilmember McCaslin. Abstentions: None. Motion carried.
7. Necessary Knowledge, Skills and Abilities:
The following suggestions were from Councilmember Gothmann:
A. Considerable knowledge of modern policies and practices of municipal public administration; working
knowledge of municipal Werating and capital bud eg ts, finance, administrative law, human resources,
public works, public safety, and community development including land use and Growth Management
requirements; knowledge _of Open Public Meetings Act requirements There was Council consensus to
accept these changes.
B. Skill in preparing and administering municipal budgets and business plans; skill in planning, directing
and administering municipal programs; skill in operating the listed tools and equipment; and There was
Council consensus to accept these changes.
The following suggestions were from Councilmember Grafos:
Council Meeting Minutes: 05 -04 -2010 Page 10 of 14
Approved by Council: 05 -25 -2010
B. Skill in preparing.,-and administering and directing the implementation of multidepartment fflunieipal
budgets; administering municipal programs; skill in operating the listed
tools and equipment; and
After brief discussion, there were no council objections to accepting Councilmember Grafos suggestions
for B above.
8. Tools and Equipment Used:
The following suggestion was from Councilmember Gothmann:
Requires frequent use of personal computer, including e-mail, electronic scheduling, word processing and
spreadsheet programs; calculator, telephone, copy machine and fax machine.
There were no council objections to the proposed changes.
Mr. Whitehead said that he also included CEO salary information; and asked about identifying the salary
of the position so that information could be included in the advertising; and suggested either a flat rate or
a salary range. Mayor Towey stated his preference for a salary range, and suggested since there is an
interim pay, to use that with a range of 10% above and below that figure. There were no council
objections to that suggestion. Mr. Whitehead said he will draft a brochure for our website, and will begin
to recruit for the position locally as per Council's previous direction, and said he will advertise in the
Spokesman Review, the Valley News Herald, Employment Security Work Source, and our city's website.
In response to a question about cost, Mr. Whitehead estimated the recruitment costs would be
approximately $1,000. Mayor Towey said the original estimate was $10,000 for a local recruitment, and
City Attorney Connelly said the difference in cost is the anticipation to pay for travel and
accommodations of applicants to be interviewed; and said even though the advertisement is local, we
could still get applicants from other parts of the county since the information will be on our website; and
council needs to determine whether the cost of transportation of applicants will be included in this
process. Deputy Mayor Schimmels asked if there is a consensus on this information to Mr. Whitehead,
and it appeared there was consensus. Deputy Mayor Schimmels recommended before advertising, that
this Council look in -house before going outside, and to consider Mr. Jackson; he said he does not want a
"rubber stamp" situation; that perhaps this council could interview Mr. Jackson and there would be
consensus to hire Mr. Jackson permanently. Councilmember Dempsey and Gothmann agreed with that
suggestion. Councilmember McCaslin said of course Mr. Jackson can submit an application, but said the
position should not be narrowed down to Mr. Jackson, but Council should have an opportunity to review
all applicants; and said any member of staff could apply as well. Councilmember Gothmann said to hire a
city manager the entire council needs to be behind that person, and unless there is fairly universal
consensus for Deputy Mayor Schimmels' suggestions, Councilmember Gothmann suggested council
proceed through the process of recruitment. Councilmember Grafos agreed Council should proceed
through the process for transparency reasons if nothing else, and said with the uproar over the last action
Council took with Mr. Mercier, Council should at least have a process to look at all candidates, and that it
should be a fair process with a decision by the council. Councilmember Dempsey said she has no
objection to moving through the process; and there was Council consensus to do so.
Mayor Towey asked if AWC (Association of Washington Cities) and NLC (National League of Cities)
would assist in advertising; and Mr. Whitehead said they would be able to assist, and said he is uncertain
if there would be a cost involved, but will research that information. Mr. Whitehead said he would like to
create the recruitment materials, and include them in an upcoming council packet as an information item,
and said he will begin to advertise the position.
It was moved by Deputy Mayor Schimmels and seconded to extend the meeting another fifteen minutes (to
10:00 p.m.) Vote by Acclamation: In Favor: Mayor Towey, Deputy Mayor Schimmels, and
Councilmembers Grassel, Grafos, Dempsey and Gothmann. Opposed.• Councilmember McCaslin.
Abstentions: None. Motion carried. Councilmember McCaslin then left the meeting.
Council Meeting Minutes: 05 -04 -2010 Page 11 of 14
Approved by Council: 05 -25 -2010
10. Pending Zoning Matters — Mike Connelly/KathyMcClung
City Attorney Connelly said that he and members of the planning department have information to respond
to some of the concerns expressed at last week's meeting regarding specific properties contained within
the SARP (Sprague /Appleway Revitalization Plan) area where the property owners were asking for
immediate relief of their particular situation; and said staff has some options for council consideration;
and said this could be done in conjunction with the larger more aggressive plan of reviewing all the SARP
areas, or could be folded into that; and said under Washington laws, we could, for those areas identified
for changes not inconsistent with the Comp plan, this body could by motion, direct the Planning
Commission to consider zone changes to allow vehicle sales in mixed use which would allow the boat
sales issue previously discussed; and could consider eliminating the requirement that restaurants or cafes
be located with access to Sprague, which would eliminate the difficulty of the one property owner voiced
last week, and could also provide the Community Development Director with some discretion to make
minor adjustments to design criteria in specific circumstances within the SARP; and that design criteria
would deal with for example, the circumstance where infill development would make it impractical, or
height requirement for small buildings didn't make sense, or where you could achieve the same or better
results through a different design not necessarily identified in SARP; or where there is a technical
problem because of existing infrastructure; and said this would simply enhance the discretion the director
has in allowing those types of uses as long as they are not in conflict with the comprehensive plan; and
said staff could fashion a motion for council in those areas, for Council to direct the Planning
Commission to immediately look at those proposed changes, as Council goes through the more detailed
comprehensive process; or council can simply continue as they are now and fold the changes into the
comprehensive process.
Mr. Connelly said the negative aspect of moving ahead with the individual changes is council would be
making those changes in a vacuum, that is, making a change for one specific part of the plan without
looking at the whole zone or the whole plan; and council could in fact after this is all done, decide that
wasn't the way council wanted to go; and if that happened, council would have simply created a new,
nonconforming use if Council changes back at a later date. Another option, Mr. Connelly explained,
would be for Council to act under the interim ordinance that Councilmembers McCaslin and Grassel were
discussing last week, and act without hearings and make those changes and send it through the Planning
Commission for their review and Council's final adoption; and said that option might be more
problematic and could be subject to challenge simply because you have to be able to express for the
record a legitimate basis for acting without public hearing; he said generally that interim ordinance is used
to preserve the status quo until you have a chance for further review, but in this case the status quo would
be changed; and said the reason the interim ordinance is a possibility in these minor instances is because it
is not in conflict with the comp plan, whereas the macro change that Council wants to examine, would be
in conflict with the comp plan. Mr. Connelly asked for Council's preference and direction.
Councilmember Grassel asked about the interim zoning, about the possibility of it causing a conflict
because it would be going back to the comp plan; and Mr. Connelly said it would not affect the comp
plan, but it would not be preserving the status quo, and usually that is the purpose of the interim
ordinance: to preserve the status quo; and said that although it could technically be used, he said he is
having a hard time identifying a basis that would not be particular to a property owner; he said it is
appropriate for council to zone things based on economic conditions or circumstances, but it is not
appropriate for a legislative body to for example, change the zoning because Bill's bank won't give him a
loan if he doesn't get it changed by next week; and he said we would have to closely examine how that
could be done appropriately, and said he feels it would be subject to challenge, and said he knows in at
least one of these circumstances, there are adverse parties; and said his first alternative to simply send this
to the Planning Commission would allow the public hearing and would eliminate those challenges.
Councilmember Grassel asked concerning allowing more permitted uses, if we were to take the boat sales
which were denied by the Hearing Examiner, would it be changed to a blanket statement to allow
Council Meeting Minutes: 05 -04 -2010 Page 12 of 14
Approved by Council: 05 -25 -2010
motorized sales in this zone; and Mr. Connelly concurred that it would allow vehicle sales in the mixed
use zone, and said it would include all mixed use zones and all vehicle sales and said by fixing a little
problem, you've "put a big band aid on it." Councilmember Grassel said then that would also
accommodate most of the car dealerships along Sprague as they are nonconforming; and Mr. Connelly
said it would depend on what zone they are in, but most are mixed use. Councilmember Grafos said that
basically, this would fix all those nonconforming uses by just changing that; and going to the old B3 zone
which allows all of those uses. Attorney Connelly said we would be maintaining the mixed use zone, but
simply allowing vehicle sales, and that can be done without a comp plan change as in looking at the
history, at one point vehicle sales were allowed in the mixed use. Councilmember Grafos said we could
still come back and further review the mixed use zone and make further changes as council goes through
the zones, and Mr. Connelly confirmed that as correct.
Community Development Director McClung said another option for Council is that this could be instead
of or in addition to, to move up the mixed use review as that is now scheduled for the end of August; and
said staff could do it next after gateway commercial if that is council's desire, therefore moving that to
some time in June. City Attorney Connelly said there would be a number of different tracks moving if
council took this alternative, and would probably almost be on the same schedule of trying to move this
through the Planning Commission and back to Council. Councilmember Grassel said even the hearing
would only be a hearing and that Council would not attempt to make changes specifically to those zones
right after each hearing; and Director McClung confirmed that process, and asked if Council is interested
in moving mixed use commercial up in the schedule. Councilmember Grassel said her preference is to
move the mixed use up to June, but also to put into a motion to allow new or used vehicle sales in the
mixed use; and said the mixed use along Sprague allows for espresso stands and coffee shops, but it is not
allowed on the side streets, which is the concern of the citizen who spoke last week; and said it would
make sense to put coffee shops now in that mixed use zone, since it is allowed on Sprague but not on side
streets. Mr. Connelly said the restriction could be removed; and he asked if Council wants to do this by
motion to go to the Planning Commission, or does Council want to do something that is possibly subject
to challenge and do an interim ordinance. Mayor Towey asked if there was council objection to making a
motion; and Councilmember Grassel asked what the time frame would be for this to go before the
Planning Commission then come back to Council and whether it would be a long ordeal; and Director
McClung said she can let council know next week as she has to review the Planning Commission
schedule, and whether staff has to go through the SEPA (State Environmental Protection Act) process.
Mr. Connelly said it would have to be at least sixty days before passage as the Department of Commerce
must be notified as well. Councilmember Grafos said he would like to make a motion at the next
meeting, to change the use to allow the vehicle sales in the mixed use; and push that ahead on the agenda
since there are more nonconforming uses east of U -City then in the other zones, and said this is more
urgent as we are moving into the summer building season and there are a lot of people looking at those
properties to determine how they can be developed, and said we would lose that economic opportunity if
we wanted. Mr. Connelly asked if Council wants to keep the option of allowing the Community
Development Director discretion to make minor adjustments in SARP, and there appeared to be general
council agreement. To summarize, City Attorney Connelly said staff will bring forward a motion for
council to instruct the Planning Commission to consider (1) vehicle sales in mixed use; (2) remove the
restriction for bordering on Sprague, and (3) providing the community development director to make
minor adjustments to SARP design standards. There were no council objections.
11. Advance Aizenda — Mayor Towey
Councilmember Grassel said she would like to put on the advance agenda for next Tuesday, a motion to
have staff look at putting a stop to the Broadway Safety Project, which would change the four lanes to
three lanes, and to look at the sidewalk improvements; and regarding panhandling, she said this city has
been discussing that since 2004 and said she would appreciate moving that up to possibly adopt the City
of Issaquah's panhandling ordinance which has been in effect for about two years; and said there was
mention of meeting with Liberty Lake and said she does not see that scheduled on the advance agenda;
Council Meeting Minutes: 05 -04 -2010 Page 13 of 14
Approved by Council: 05 -25 -2010
and said she spoke with Eric Sawyer of the Sports Commission who asked if he could present to both
bodies, some possibilities for the HUB, and to perhaps even have a representative from the HUB to
accompany him to that meeting. Mr. Jackson said staff is still working with Liberty Lake to settle on a
date for a meeting that works for both councils; and he asked if it is Council's desire to have a HUB
presentation at that joint meeting, and there was no council objection and Mayor Towey said he also does
not object provided the Liberty Lake Mayor and Council likewise agree. Councilmember Gothmann said
he is aware Parks and Recreation Director Mike Stone has investigated how the HUB fits into our
program, and said it is important to hear that input. Mr. Jackson said we will re- circulate the previous
material on the Broadway Safety Project on next week's council agenda as there is no new information
but is more a discussion of how council wants to proceed.
Councilmember Grafos said he would also like to discuss the road closure at Sullivan and Sprague on the
intersection project; he said we are closing that for three weeks and it is perhaps the busiest intersection in
the city, and he would like to discuss why that is occurring as it did not occur on Evergreen Road or Pines
or Broadway, and said he feels that is very detrimental to business, that the businesses are coming out of a
recession and are going into their season, and we are planning to shut that down for three weeks and said
he does not believe we should be doing that if we are going to be a business friendly city and work with
our citizens. Mr. Jackson said we can bring that up for discussion; that we have put quite a bit of
information in a previous council packet, and said that public works has worked closely with the
businesses to get in and get the job done as quickly as possible in the best interest of everyone, and said
there were some adjustments made to the schedule, and we will bring that back so Public Works can
review that with Council, and suggested the May 18 study session; and there were no council objections.
12. Information only: Summer Construction; administration quarterly port
These were for information and not reported or discussed.
13. Council Check -in — Mayor Towey n/a
14. CitesManager Comments — Mike Jackson n/a
It was moved by Deputy Mayor Schimmels, seconded, and unanimously agreed to adjourn. The meeting
adjourned at 10:00 p.m.
A
fffomas E. Towey, Mayor
Kristine Bainbridge, City Clerk
Council Meeting Minutes: 05 -04 -2010 Page 14 of 14
Approved by Council: 05 -25 -2010
SARP ZONING MAP
INCLUDE WITH LETTER
TO
PROPERTY OWNERS
City Letterhead
Dear
RE: Invitation to a Discussion of regulations that affect land use and development
standards applicable to your property in the Gateway Commercial and Gateway Avenue
Zones This plan has been in effect since October 15, 2009. The Spokane Valley City
Council has made it a priority to review the plan and determine if changes are necessary.
Community meetings will be held to focus on each zoning district so that staff may talk
with the citizens about the regulations and receive input from property owners.
The first meeting will focus on the Gateway Commercial and Gateway Avenue Zone.
The meeting is scheduled for: May 20 at 11:00a.m. —1:00 p.m. — In the Council
Chambers at 11707 E. Sprague Ave. to discuss your concerns about this zone's
affect on your property.
If your property is within the Subarea Plan, (SARP) see enclosed map. YOUR
PROPERTY HAS BEEN REZONED.
1. Do you understand that this new zone affects the way you use your property?
2. Do you understand that the zone may affect the improvements to your property?
3. If you are a valid commercial use but no longer allowed by this zone, do ou
understand the affects of non - conforming use'classifications? ou rstt
a. Do—fau- un&an_d_th�at in the event of a property loss that exceeds 8:1 o of
assessed value, you cannot replace it except in compliance with a use in the
present zone?
b. Did--you=laimm that- -the intentional abandonment or non -use of the property
for 24 consecutive months causes non - conforming rights to expire and you
must fully comply with the present zone and a different use?
c. Duesynar lender and insurance agent know this? If so, what was their
.� comment?
d. Based upon the above non - conforming use restrictions, would you prefer that
the plan revert to the previous zone and remove the non - conforming status?
4. Any other comments about this zone or /questions about this zone and its affect
upon your use of the property?
If you are unable to attend, the ne e t ity Council would appreciate your reply
to the enclosed survey card or complete on the web at www.spokanevalley.org
(Planning, etc.). Your involvement in this discussion will be very valuable in
C the future of the Sprague and Appleway Corridors Subarea Plan, (SARP),
and I hope you will take the time to participate. For more information, please contact
Lori Barlow, Associate Planner, at 720 -5335, or by email at lbarlowgc spokanevalley.org
Sincerely,
Kathy McClung, Director Encl: Survey Card Postage Pre -paid
One -Way to Two -Way Conversions by City
(Quotes from the indicated web pages)
Alma, MI
hftp://www-ci.alma.mi.us/docs/twowaystreet.pdf
"consensus on shifting downtown Alma to two way traffic operations." ... "Towns that are switching from
one -way circulation to two -way report positive gains on overall satisfaction with returned place making,
association, people friendly downtowns and business."
Atlanta, GA
http: / /www. atiantadowntown.com /get- around /tra nsportation- improvements /luckie- street -two -way- conversion
The project will convert Luckie Street NW between Peachtree Street NW and Centennial Olympic Park
Drive NW from one -way westbound traffic to two -way traffic. The intent of the project is to improve
transportation connections,
Austin, TX
http: / /www. ci.austin -tx -us /publicworks /cesarchavez/down loads /pm_update_l 2042007. pdf
http: / /www.ei. austin. tx. us / publicworks /cesarchavez/default. htm
"Construction began November 17, 2007 on the Cesar Chavez Two -Way Conversion Project."
[Improvements] "include a major pedestrian esplanade along Town Lake Park with trees, landscaping,
and seating."
Berkeley, CA
hftp://berkeleybrt.blogspot.com/
The Southside Plan, which the TC has previously recommended to the City Council, urges the conversion
of Durant from one -way to two -way to improve traffic circulation in the Southside. The Planning
Commission also included in their resolution a recommendation that a two -way Durant be studied for the
LPA.
Birmingham, AL
http: / /www. bhamweekly.com/ 2009 /05/22/ one -way- street - conversions - wont -h urt- parking- engineer -says/
The conversion of the one -ways is recommended by the City Center Master Plan which suggests that
relatively high -speed one -way streets are less pedestrian - friendly than two -ways, are confusing for
tourists and other drivers visiting downtown, and may discourage those visitors from finding their way
back to retail establishments that they spot while whizzing by on busy arterials.
Boise, ID
http: / /www. boiseweekly. com /CityDeskla rch ives/2009/07/31 /o ne- way -two- way -yes- way -no -way
The Ada County Highway District's Terry Little recently presented a little pro /con list to the Boise City
Council about one -way vs. two -way streets. All of a sudden this year, the city and the Downtown
Business Association have been talking about converting one -way streets to two -way streets They
seem to think it would be better for business —more eyeballs and such.
Brantford, Ontario, Canada
http: / /www. brantford -ca /Projects ° /u20 %201 nitiatives°/u20%2ODowntown/ Downtown %2OMaster %20PIan %20 -
%201 mplementation %20 Update %202009. pdf
The Project has identified a preferred implementation strategy for the conversion of the downtown street
system from a mixed one - way /two -way system to a two -way system.
Burlington, WI
http://www.burlington-wi.gov/Spotlight/spotlight2OO5_01.htm
The City will be holding two focus group meetings on Tuesday, January 25, 2005 from 7 - 9 a.m. and
Thursday, February 3, 2005 from 6 - 8 p.m. These meetings will be held in the Eppers Room located at
the Racine County Service Center, 209 North Main Street. Residents and business owners will be invited
to discuss the ending of the one -way streets in Burlington.
Page 1
Cambridge, MA
http://vAvw.ti.org/vaupdate30.htmi
One -way to two -way conversions are being planned or implemented in Austin, Berkeley, Cambridge,
Chattanooga, Cincinnati, Louisville, Palo Alto, Sacramento, San Jose, Seattle, St. Petersburg, and
Tampa, among other cities.
Charleston, SC
http: / /www. postandcou rier. com/ news /2009 /aug /25 /one - way -to- two -way/
A decade after Charleston first pursued a plan to beautify Spring and Cannon streets, the project has
grown into a $559,000 contract to design the new streetscape and lay out the details of converting both
streets to two -way traffic. ... Driving the project is the idea that two -way traffic will make the
neighborhood safer and more pleasant for residents, while also benefitting businesses along those
streets.
Charlotte, NC
http: / /www. charmeck .org /Departments/Transportation/ Center +City +Transportation +Plan. htm
Conversion of 4th Street Extension from four lanes to two lanes with bike lanes ... Conversion of North
Brevard Street from one -way to two -way from 7th to 11 Street. Approval to convert Hill Street to two -way
(Church to Tryon Street and conversion of Mint Street (MILK to Trade Street) as well as Poplar Street (3
to 6 th Street) to two -way upon opening of Romare Bearden Park.
Chattanooga, TN
http: l/www.ti.org/vaupdate30.htmI
In Chattanooga, for example, McCallie and ML King avenues form a one -way couplet of four broad lanes
in each direction. The city plans to convert both to two way. ML King would have two lanes in each
direction, but McCallie would be reduced to one lane in each direction plus an intermittent left -turn lane.
The two lost lanes would be turned to on- street parking. The result would be a net loss of two lanes, and
the remaining lanes would be slower (meaning lower in capacity) than the current lanes. Planners say
these steps will make streets more pedestrian friendly and that the resulting reduction in speeds will make
up for the reduced safety of two -way streets. However, planners' real goal is to reduce roadway
capacities.
Cincinnati, OH
http://www. urbancincy.com/2010/04/qualls-to-discuss-conversion-of.htm I
[Vice Mayor] Qualls reportedly will be joined by various Walnut Hills community leaders who have long
supported the idea of converting the two heavily traveled east/west streets back to two -way traffic.
Residents and business owners in the area feel that such a conversion will help to further revitalize their
neighborhoods, and return vitality to the business district.
Columbus, OH
http:/ /www. urbanohio.com /forum2 /index. php?topic= 14074.0
The City of Columbus has wrapped a nearly $8 million project spanning six months that opens Gay Street
to two -way traffic. The city announced that the conversion to two -way traffic between Cleveland Avenue
and Front Street began shortly after morning rush hour Wednesday.
Dayton, OH
http: //www.mvrpc.org/daytonGrid/
In 2003, MVRPC, in partnership with the City of Dayton and Downtown Dayton Partnership
commissioned a feasibility study to assess the traffic - related effects of converting the existing one -way
street grid system in downtown Dayton, Ohio, to a two -way street grid system.... The next step is for the
City of Dayton to begin final design on the plans. Construction funds are currently scheduled for
SFY2009.
Page 2
Denver, CO
http://www.wwpna.org/files/WWPNA
Two previous studies have been performed by the City and County of Denver, the Central Denver North -
South Traffic Impact Mitigation Study in 1986 and the Central Denver Transportation Study in 1998. Both
studies have recommended the conversion of these roadway segments from one -way to two -way
operation to mitigate the effects of increasing traffic.
Des Moines, IA
See Seattle
Dodgeville, WI
http: / /leg istar. cityofmad ison. com /attachments /85288e80- 7627- 4bd4- b5fb- ee4da27a8177. pdf
RE: Pending legislation proposing a 120 day pilot of two -way traffic on West Gilman Street.
Durham, NC
http://www.ci.durham.nc.us/news/NewsDisplay.cfrn?vNewslD=l 878
The City's Department of Public Works is ready to present conceptual designs showing two alternatives
for converting the downtown loop into two -way traffic. This workshop is in direct response to the growing
interest to convert the streets that comprise the "downtown loop" (Roxboro Street, Morgan Street, Great
Jones Street, and Ramseur Street) from one -way to two -way traffic to improve vehicular access to the
downtown core and potentially facilitate economic redevelopment.
Elmira, NY
http:HeImirampo.org/ images /Publications /UPWP %20200910 %20FinaI.doc
Work continues on a new coordinated signal system in downtown Elmira and in conjunction with the
conversion of Church and Water Streets from one -way to two -way, access in the area has been
improved.
Eltingville, NY
http: / /www.siIive.com /southshore /index.ssf /2009 /07 /conversion of_sylvia_street_to . htmI
Much to the dismay of baffled local residents and business owners last Thursday, the DOT converted
Sylvia Street to a one -way eastbound roadway, effectively preventing vehicles from turning off of
Richmond Avenue and onto the street. After hearing multiple complaints from private citizens and elected
officials, agency administrators took a second look at the change and decided to switch it back - all in a
span of four days.
Eugene, OR
http://www.eugene -
or.gov /portal /server.pt ?open= 514 &objID = 4300& parentname= CommunityPage &parentid =0 &mode= 2 &in_hi userid =2 &cached =true
City staff will be evaluating 5 different design concepts on Alder Street .. No- Build, Contraflow
Bike Lanes, Cycletrack Facility, Two -Way Street Conversion,or Combination:
Fairbanks, AK
http: / /www.ca- city.com/ images/ news/ pdfsNote %20paves %20way %20for %20two- way %20Cushman %20Street %2002 10 09.pdf
The Vision Fairbanks downtown revitalization plan will move forward .... After three hours of public
comment, members of the City Council ... voted down the resolution that would have kept Cushman
Street one -way. ... Vision Fairbanks has promised to bring economic vitality to the downtown core area
by creating a more pedestrian and shopper friendly atmosphere.
Fargo, ND
http: / /www. cityoffargo .com /attachments/76b7ga97 -8d4a- 4471- 9f09- Obd62d467033 /Fargo %20NP %20and %201 st %20HANDOUT. pdf
The City of Fargo is conducting a study of 1st Avenue and NP Avenue North to encourage development
and multi -modal transportation on these important streets. The study, which will result in a Development
Plan, will evaluate several options — including one way pair conversion [converting from one -way to two
way —Ed.]— for feasibility and practicality, ... .
Page 3
Ft. Collins, CO
hftp://www.today.Colostate.edu/story-aspx?id=l 544
Also, as part of the Mason Corridor project, the city plans to change Mason and Howes streets to
accommodate two -way traffic.
Great Falls
http: / /greaffallsmt. net/people_ offices /planr-omdev/ planning /0neWayConversionAug07.pdf
The Great Falls Business Improvement District (BID) has requested the City and other interested parties
investigate the possibility of converting two downtown, one -way couplets back to two -way streets.
Hamilton, Ontario, Canada
http://www.hamiIton.ca/ProjeGtsInitiativesfjamesjohn2way/
The full conversion of James Street South, John Street South, Charlton Avenue and St. Joseph's Drive to
two -way traffic is now complete.
Kalamazoo, MI
http : / /www.downtownkalamazoo.org/ About - Downtown /Planning- Efforts / Future - Initiatives -(1) /Executive - Summary.aspx
Following are key recommendations for each strategic priority: ... Transportation: Implement the full one -
way to two -way street conversion plan.
Lakeland, FL
http:// www.lakelandgov.net/publicworks /files /DF726891 DDB941 ADA3063B 1 8CC F41158. pdf
Project Overview, Lime St. Two Way Conversion
Lansing, MI
See Seattle
Lexington, KY
http: / /www.kentucky.com/2009 /03/01 /710323 /downtown - success -a -2- way - street. html
Downtown success a 2 -way street ... Proposed 'Streetscape' heralds a return to driving to, not through,
Lexington ... By Tom Eblen - Herald- Leader columnist
Louisville, KY
See Seattle
Lubbock, TX
http:// www. richmondgov. com/ planninganddevelopmentreview /documents/PlansDowntown /Rich Ch5_O8O5O9 lores.pdf
The City of Lubbock, TX, underwent a one -way to two -way conversion in 1995. The City Traffic Engineer
wrote a paper for the Institute of Traffic Engineers detailing the process and the results. The author
asserts that despite expectation of traffic calamity, the conversion went smoothly. In fact, Lubbock
continued with other one -way conversions after this initial effort. The author also reported that the
change was well- received by downtown businesses.
Mankato, MN
hftp://www.mankato-mn.govtfeature.aspx?storylD=14020
At 5 a.m. on Saturday, August 15, Broad and 4th streets was converted from one -way to two -way traffic.
This conversion is part of a series of traffic changes within the City Center and Lincoln Park to provide
traffic calming within neighborhoods to enhance livability.
Menasha, WI
http: / /www. cityofinenasha-
wi.gov /COM /Public_Works /Board of_Public_Works/ 2010/ Item %20D5 %20Traffic %20Study %20600 %20BIock %20of%20Broad.pdf
The Engineering Department performed a traffic study to determine the feasibility of changing the existing
one -way (eastbound) traffic on Broad Street from Appleton Street to De Pere Street, to two -way traffic.
Page 4
Milwaukee, WI
http://www.aI]business.com/operations/facilities/4089904-1.htmI
The City of Milwaukee, WI, USA, has experienced a renaissance in the vitality and economy of its
downtown business district.... Conversion of the one -way street system to a two -way system is nearly
complete. The two -way streets have improved business accessibility, have created a less confusing
circulation system for downtown visitors and business customers and have permitted transit system
passengers to board and exit city buses at the same intersection in closer proximity to their destinations
Minneapolis, MN
http: / /www.ci. minneapolis .mn.us /hennepinfirst/
Hennepin and First avenues switch to two -way traffic.... This change is a key step in revitalizing
Hennepin and First avenues and making them even more vibrant "main streets"
Mobile, AL
http: / /www.downtownmobile.org /parking. html
The City of Mobile is in the process of redirecting the traffic flow in portions of downtown. The multi -phase
project will convert one -way streets to two -way, initially in the blocks surrounding the new RSA Tower
(Royal, St. Francis and Dauphin Streets). The conversions are designed to improve vehicular access to
and from downtown destinations, enhance the pedestrian environment and slow through- traffic.
Oklahoma City, OK
http: / /www.okc.gov /agendapub /cache /2 /rti51 kymub4jlynabgmOtx45 /77402405032010043311294.PDF
PRELIMINARY REPORT One- Way/Two -Way Conversion for Oklahoma Avenue.... The downtown
business owners have expressed concern over the current use of one -way streets in the central business
district. Many feel that modifying the street system could have a positive impact on business and future
development.
Portland
See Seattle
Palo Alto, CA
hftp://www.cityofpaloalto.org/cityagenda/publish/cmrs/3764.pdf
Discussion and action on Homer Avenue .... Alternatives for consideration .... (1) direct staff to study the
conversion of Homer Avenue.. and High street.. from one -way to two -way traffic.
Perth, Australia
http: / /www. perthnow.com.au/ news / western- austraIia /horseshoe- bridge -to- get -5- million /story-e6frg 13u- 1 2257 1 9947643
The two -way conversion process on William Street is a staged project - the first, between The Esplanade
and Wellington Street, was implemented in July 2008. The second stage would involve converting the
section north of Roe Street to a two -way operation."
Pittsburg, PA
http: / /eastlibertypost. com /2010 /03/03 /east - liberty -featu red -i n- the - new -york- times/
Several blocks of Penn Circle, the one -way ring road around the district, have been reconstructed for two -
way traffic, but extending the two -way street on the eastern part of the circle and improving sidewalks and
lighting will cost $7.5 million.
Raleigh, NC
hftp://www.raleigh-
nc.org/portaVserver.pt/gateway/PTARGS _0_2_411 _208_0_43 /http %3B /ptO3 /DIG_ Web _Content /news /public/News- PubAff-
Section Morgan _Street - 20100429- 16013397.html
Morgan Street from St. Mary's Street to Hillsborough Street will be converted from one -way to two -way
traffic, beginning Saturday, May 1. Motorists should be aware of this new traffic pattern
Page 5
Redmond, WA
http://www.redmond.gov/community/pdfs/DowntownVision.pdf
Redmond Way /Cleveland Street Two -Way Conversion; significant component of the vision for downtown;
helps define downtown's transportation system; designates Cleveland Street as Redmond's "Main Street"
promenade (two -way); configures Redmond Way as a two -way street.
Richmond, VA
http: / /www.richmondgov. com /planninganddevelopmentreview / documents /PlansDowntown /Rich_Ch5 080509 lores.pdf
The one -way versus two -way debate in Richmond is, at the heart, a debate over the vision for Downtown.
The studies referenced here indicate that two -way streets help businesses thrive and create places where
people want to live and work, balancing traffic movement with livability. HPE recommends two -way
streets because the community expressed a vision of a livable, walkable Downtown where pedestrians
can thrive.
Rockford, IL
http://www.rrstar.com/carousel/xl 694769495/Church-Street-traffic-study-to-cost-Rockford-1 50-000
It's the city's goal to remove the one -ways, said Capital Improvement Program Manager Patrick Zuroske.
Sacramento, CA
http: / /www.sacramentopress.com/ headline /3594/TwoWay_Conversion Project
A new traffic signal was erected this morning at 10th and H street. This is the first stage of a project that
will convert 10th street, currently one -way running north, to two -way traffic between E and I streets. 9th
street is also included in this conversion, changing from a one -way running south to two -way between E
and H streets.... The project is meant to improve neighborhood livability, relieve traffic congestion, and
increase pedestrian safety.
San Antonio, TX
http: / /www.ci.austin.tx.us/downtown/0708/downloads/26-27
Two -way traffic returned to Cesar Chavez on August 11, 2008. ... The urban design enhancements now
underway on the south side of the street are expected to be complete in the fall. They include:
pedestrian esplanade up to 32 ft. wide with concrete, pavers, and limestone retaining wall ... from S. First
to Congress esplanade will have a double row of trees, benches, railings, and public art. Planting beds to
be installed along the Cesar Chavez ... .
San Jose, CA
http: / /www. sa njoseca. gov /clerk/Agenda /20091006/20091006_0402. pdf
In 2002, the City Council approved the Downtown Access and Circulation Study that included
recommendations to modify seven one -way couplet street corridors in an effort to improve community
livability in neighborhoods surrounding Downtown San Jose.... This project will convert Julian Street and
St. James Street from one -way streets to two -way streets with one travel lane in each direction.
Seattle, WA
http: / /www.transportchicago.orgl images/ CongestionMitigation- SisiopikuChemmannur.pdf
As a measure to revitalize the downtown city centers, several movements have been staged over the
years to convert one -way street pairs of downtown network to two -way operation. Successful conversion
have been implemented in many urban settings across the United States since the early nineteen
nineties. Some of them include the cities of Austin, Berkeley, Cambridge, Chattanooga, Cincinnati,
Denver, Des Moines, Lansing, Louisville, Palo Alto, Portland, Sacramento, San Jose, Seattle, St.
Petersburg, and Tampa.
Spokane, WA
http://www.epa.gov/dced/pdf/spokane_c.pdf
6. Support conversion of one -way streets in the downtown core to two -way circulation (Main and
Spokane Falls Blvd.) as a means of improving local connectivity between the University and East End
District and improving the pedestrian environment within the University District. [Ed. Note: This was a
summary by the EPA of a meeting in Spokane during a Smart Growth Workshop.]
Page 6
St. Catherine, Ontario, Canada
http: / /www. stcatha ri nes. ca /fo rb usiness /ecodevtteco_dev_m aste r_pla n_themes_7a. asp
The primary goal of the study was to identify a preferred implementation strategy for the conversion of the
Downtown Street system from a mixed one - way /twoway system to a strictly two -way system. ...At
present, the one -way to two -way street conversion process is underway & the City expects the street
conversions to be completed by 2009.
St. Petersburg, FL
See Seattle
Sydney, Australia
http: / /bu ildingsydneymotorways. com. au /harbou r- crossings /eastern - distributor
Residents benefit from:... Improved local access with the conversion of former one way streets back to
two way streets (for example Crown Street and Bourke Street).... .
Tampa, FL
http: / /www.tampagov. net/ appl _tampa_announcementsNiewRelease .asp ?Releasel D =6912
Tampa, FL April 30, 2010 - The Polk Street conversion project, which will convert the street from one -way
to two -way traffic is set to begin on May 3, 2010. This is the fourth east/west street in downtown to be
reconfigured to change the street's traffic flow.
Toledo, OH
http: / /www. alibusiness.com/ transportation/ road - transportation - trucking /13128439 -1. html
Parts of three downtown Toledo streets near the Lucas County Arena will be converted from one -way
traffic to two -way traffic Tuesday, the city transportation division has announced.... All three street
conversions are part of a master plan to eliminate most one -way streets in downtown Toledo.
Toronto, Canada
http: // urbantoronto .ca /content.php ?71- 2 -Bloor -West- Toronto
Cumberland Street is planned to return to two way traffic as parking access to this building will be from
mid -block along Cumberland.
Vancouver, BC, Canada
http: / /www.tc.gc.ca /eng /programs/ environment - utsp - downtowntransportationplan -842. htm
Convert key one way streets to two way traffic to improve traffic flows and create a more efficient road
network
Vancouver, WA
http://www.cityofvancouver-us/streetprojects.asp?menuid=l 0465&submen uID= 10530 &itemlD =22755
Main Street has been operating with two -way traffic patterns since mid - November. ... On Main Street
itself, the project will include: changing Main Street from one -way to two -way traffic; total reconstruction of
the street and pedestrian areas; public areas and street furniture; landscaping and vegetation; new street
lighting; utility improvements; and improvements to intersecting streets east and west of Main Street for a
short distance.
Visalia, CA
http: / /www.ci.visalia.Ga.us /civica /fiilebank/blobdload .asp ?BlobID =4556
Three options for converting one -way eastbound Acequia Avenue to a two -way street from Conyer to
Bridge Streets will be presented to City Council in March.
Washington, DC
http: / /rosedalecitizen. blogspot.com/ 2010/04 /clarifying- proposed -19th- 17th - street. html
Clarifying the proposed 19th and 17th Street Two -way Conversion
Page 7
Wichita, KS
http: / /www.wichita.gov /NR /rdonlyres /80D5Fl 63- OD05 -41 A3- A731- 0022BB27075B /O /ParkPlandMarket2way. pdf
As part of the 21st. Street Revitalization Study, the steering committee has requested that staff evaluate
converting Park Place and Market Street to a two -way flow.
Winchester, VA
http://www.winchesterva.gov/enews/archives/v2i22_1 10409.php
On Saturday, November 7 (if weather allows construction to continue on schedule), the City will celebrate
the end of the Cameron and Braddock Street phase of the Downtown Utility Infrastructure Improvement
(DUII) project and dedicate the opening of two -way traffic on these two streets
Bill Gothmann
May 3, 2010
Page 8
CITY OF SPOKANE VALLEY
POSITION DESCRIPTION
Class Title: City Manager
Job Code Number: 100
Department: City Manager
Grade Number: NA
Division: NA
FLSA Status: Exempt
Date: � ���� '.�— �03April. XX 201d - ---- ---
—
Location: Cit y Hall
- - - - -- "" ' -------------
GENERAL PURPOSE
Comment [jl]: Suggested deletion by
John Whitehead
Al
Performs high level administrative, technical and professional wo in directing and supervising the
administration of city government.
SUPERVISION RECEIVED:
Works under the broad policy guidance of the City Council.
SUPERVISION EXERCISED
Exercises supervision over all municipal employees and City Contracts either{ directly or through
subordinate supervisors.
ESSENTIAL DUTIES AND RESPONSIBILITIES
Manages and supervises all departments, agencies and offices of the city to achieve goals within
available resources; plans and organizes workloads and staff assignments; trains, motivates and
evaluates assigned staff; reviews progress and directs changes as needed.
Provides leadership and direction in the development of short and long range plans; gathers,
interprets, and prepares data for studies, reports and recommendations; coordinates department
activities with other departments and agencies as needed.
Provides professional advice to the city Council and department heads; makes presentations to
councils, boards, commissions, civic groups and the general public.
Communicates official plans, policies and procedures to staff and the general public. Resolves
complaints from citizens and keeps Council informed of such complaints.
Assures that assigned areas of responsibility are performed within budget; performs cost control
activities; monitors revenues and expenditures in assigned area to assure sound fiscal control;
prepares annual budget requests; assures effective and efficient use of budgeted funds, personnel,
materials, facilities, and time.
Determines work procedures, prepares work schedules, and expedites workflow; studies and
standardizes procedures to improve efficiency and effectiveness of operations.
City Manager
Comment [CB2]: Suggested by Bill
Gothmann
Comment [CB3]: Suggested by Bill
Gothmann
Issues written and oral instructions; assigns duties and examines work for exactness, neatness, and
conformance to policies and procedures.
Maintains harmony among workers and resolves grievances.
Performs or assists subordinates in performing duties;
Prepares a variety of studies, reports and related information for decision - making purposes.
Appoints and removes all department heads, officers, and employees of the city, except members of
the council.
Sees that all laws and ordinances are faithfully performed. Enforces all contracts the City has with
other parties.
Prepares and submits a preliminary annual City budget. Administers the adopted budget of the
City.
Advises the City Council of financial conditions and current and future city needs.
Attends all meetings of the Council at which attendance may be required by the Council.
Prepares business plan for all departments. Works with department heads to set internal goals and
measurements for each department.
Works with Sheriffs Department. Spokane ty,
kane Cou, and other entities to solve mutual problems and
increase efficiency and effectiveness of the City.
Assists Council in preparing external goals and measurements for the City.
Supervises the labor negotiation process for the City through subordinates as appropriate.
Keeps Council informed of State and National issues that could affect the City. Advocates for city
concerns in accordance with Council directives.
PERIPHERAL DUTIES
Recommends for adoption by the council such measures as manager may deem necessary or
expedient.
Prepares and submits to the council such reports as may be required by that body or as manager may
deem it advisable to submit.
May serve as the head of one or more departments of city government.
DESIRED MINIMUM QUALIFICATIONS
Comment [CB4]: Suggested by Bill
Gothmann
Comment [CBS]: Suggested by Bill
Gothmann
Comment [CB6]: These suggestions
from Bill Gothmann
City Manager
Education and Experience:
(A) Graduation from an accredited four -year college or university with a degree in public
administration, political science, business management or a background of equivalent real world
experience in the management of large multifaceted organizations of a elesely related, field, end five
(A) The City Manager will be chosen by the Council solely on the basis of his or her
executive and administrative qualifications with special reference to his or her actual experience in.
or his or her knowledge of accepted practice in respect to the duties of his or her office.
L13) Must have graduated from an accredited four -year college or university with a degree in
public administration, political science, business management or a closely related field.
(C) Must have five (5) years of experience as a senior municipal administrator in a cfty of at
least 50 employees.
(_D) MPA preferred but not required Working toward an MPA a plus.
EU ICMA credential preferred but not required. Working toward credential a plus. _
Necessary Knowledge, Skills and Abilities: _
(A) Considerable knowledge of modern policies and practices of municipal public
administration; working knowledge of municipal operating and capital budgets, finance,
administrative law, human resources, public works, public safety, and community development_
including land use and Growth Management requirements; knowledge of Open Public Meetings
Act requirements
(13) Skill in preparing and administering municipal budgets and business Elan skill in
planning, directing and administering municipal programs; skill in operating the listed tools and
equipment,; and
(B) Skill in preparinj,-and administering and directing the implementation of multi -
department bud eg is .nffi ff e"4- b••a•�°'° °' " �' ^�� �^ a - ° ^' ^° °^� administering municipal
programs; skill in operating the listed tools and equipment,; —ate
(C) Ability to prepare and analyze comprehensive reports; ability to carry out assigned
projects to their completion; ability to communicate effectively verbally and in writing; ability to
establish and maintain effective working relationships with employees, city officials and the public;
ability to efficiently and effectively administer a municipal government.
(D) A key value of the City is customer service. This position requires considerable
knowledge, ability and skill in the principles and practices of excellent customer service as
Comment [j7]: Suggested additions
and deletions by Dean Grafos
Comment [CBS]: These (A - E)
- suggestions by Bill Gothmann
Comment [CB9]: These suggestions
from Bill Gothmann
C- mm fromBill
Gothmann
Comment [J11]: Suggested additions
and deletions by Dean Grafos
City Manager
practiced in both the private and public sectors. It requires the ability to effectively meet and
deal with the public; the ability to handle stressful situations; the ability to greet and respond to
customers in a friendly, pleasant and professional manner using appropriate inflection, grammar
and syntax; the ability to establish and maintain effective working relationships with employees,
supervisors, and the general public; the ability to maintain a professional, courteous, and pleasant
demeanor in difficult and stressful situations; and the ability to diplomatically deal with difficult
people. A willingness to expend extra effort to help the public find answers or information
relative to their inquiry or complaint is expected.
SPECIAL REQUIREMENTS
Must be bondable. Valid Washington Driver's license or ability to obtain one by the start of
employment.
TOOLS AND EQUIPMENT USED
Re fre use of pe rsonal computer, includin e-mail, electronic scheduling, word - Comment [CB12I: Suggestion from Bill l
� � 1� p g - --- - - - - -"
processing and spreadsheet programs; calculator, telephone, copy machine and fax machine. Gothmann
PHYSICAL DEMANDS
The physical demands described here are representative of those that must be met by an employee
to successfully perform the essential functions of this job. Reasonable accommodations may be
made to enable individuals with disabilities to perform the essential functions.
While performing the duties of this job, the employee is frequently required to sit and talk or hear.
The employee is occasionally required to walk; use hands to finger, handle, or feel objects, tools, or
controls; and reach with hands and arms.
The employee must occasionally lift and/or move up to 10 pounds. Specific vision abilities required
by this job include close vision and the ability to adjust focus.
WORK ENVIRONMENT
The work environment characteristics described here are representative of those an employee
encounters while performing the essential functions of this job. Reasonable accommodations may
be made to enable individuals with disabilities to perform the essential functions.
The noise level in the work environment is usually moderately quiet.
SELECTION GUIDELINES
Formal application, rating of education and experience; oral interview and reference check; job
related tests may be required.
The duties listed above are intended only as illustrations of the various types of work that may be
City Manager
performed. The omission of specific statements of duties does not exclude them from the position if
the work is similar, related or a logical assignment to the position.
The job description does not constitute an employment agreement between the employer and
employee and is subject to change by the employer as the needs of the employer and requirements
of the job change.
Effective Date: May 13, 2003
2003
Revision History: Established May 13,
Adopted by the City Council May 13, 2003 by Resolution No. 03 -031
Revised by the City Council April XX, 2010 by Resolution No. 10 -XXX
Comment EJ131: Suggested updates by
John Whitehead and Dean Grafos
City Manager
ECONorthwest
ECONOMICS • FINANCE • PLANNING
Phone • (541) 687 -0051 Suite 400 Other Offices
FAX • (541) 344 -0562 99 W. 10th Avenue Portland • (503) 222 -6060
info @eugene.econw.com Eugene, Oregon 97401 -3001 Seattle • (206) 622 -2403
29 September 2006
TO: Scott Kutha, City of Spokane Valley
FROM: Terry Moore
SUBJECT: SPRAGUE / APPLEWAY CORRIDOR:
EVALUATION OF MARKET OPPORTUNITIES AND CONSTRAINTS
SUMMARY
The City of Spokane Valley is working on a plan to help redevelop the Sprague / Appleway
Corridor. As part of that planning, ECONorthwest (ECO) evaluated market conditions in the
Spokane region and in the Corridor. The evaluation focuses on a key question for any
revitalization strategy for the Corridor: How much commercial development and redevelopment
can be supported in the Corridor, and what type of residential development is most likely?
Answers to that question will inform the work being done by other consultants and city staff on
land use, urban design, and transportation in the Corridor.
ECO's key findings are:
Characteristics of commercial properties. Spokane Valley is a good location for
businesses that need to spread out: auto dealers and very large big -box stores.
Businesses that prefer urban centers are less likely to locate in Spokane Valley.
Compared with commercial properties in Spokane, properties in Spokane Valley have
higher vacancies and lower rents. Competing retail developments could be an obstacle
to developing denser retail in the Corridor.
Estimated supply of commercial space. The existing supply of commercial space on
the Corridor is about 5.5 million square feet. If the entire Corridor redeveloped to the
density of a typical suburban strip mall, the supply of commercial space would increase
to 7.3 million square feet, or 365,000 square feet per year for the next 20 years. Current
zoning allows much greater densities that would add millions of available square feet to
this total.
• Estimated demand for commercial space. Estimated demand for commercial space
on the Corridor will average about 40,000 square feet per year for the next 20 years:
demand for retail space will make up about 21,000 square feet annually, and demand for
office space will make up about 19,000 square feet annually.
Comparisons of supply of and demand for commercial space. The potential supply
of commercial space greatly exceeds projected demand for commercial space on the
Corridor. Redeveloping larger sections of the Corridor would create much more
commercial space than the Corridor will be likely to absorb. The demographic
composition of Spokane Valley indicates that mid - priced retailers are most likely to
succeed.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 2
• Estimated supply of housing. Currently, the Sprague / Appleway Corridor is almost
entirely a commercial area, with residential development occupying areas immediately
north and south of the Corridor, primarily garden apartments (two- and three -story,
woodframe, surface parking, isolated developments).
Estimated demand for housing. Based on increasing house prices, declining vacancy
rates for apartments in Spokane County, and the continued desire for home ownership,
we believe that there will be a growing market for multifamily development in mixed -use
projects — especially condominiums —in Spokane County. But without attractive
amenities to draw residents and coherent master planning to site multifamily projects in
appropriate and attractive locations, the Corridor will not be able to compete with other
locations in suburban Spokane.
• Comparisons of supply of and demand for housing. If the number of desirable
amenities, including retail and recreational opportunities, were to increase on the
Corridor, various types of residential development might be possible. Given the level of
amenities such types of types of residential development typically require, the Corridor
will not see much of this type of development unless the City invests in either (1) urban
centers, or (2) a boulevard treatment of the Appleway extension.
ECO recommends creating a town center with concentrated development. A City Center
model of redevelopment could focus new commercial space into a smaller area of high -
density commercial development. A town center could create the amenities that will draw
residential development, in particular multifamily residential development, to the Corridor.
Public policy will need to provide direction about where a downtown center could be located
within the Corridor, and provide some type of incentives, public investment, and a design
framework to encourage redevelopment of that specific area.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 3
BACKGROUND
As part of the Sprague / Appleway Corridor Subarea planning process for the City of Spokane
Valley, ECONorthwest's task is to "prepare a technical memorandum, suitable as an appendix to
the final plan, describing economic, market, and financial conditions (past, existing, and likely
future), and the implications for the type and location of development in different parts of the
Corridor."' This memorandum addresses the economic and market conditions and their
implications for development in the Corridor. A separate memorandum addresses the City's
fiscal capacity to implement measures that would encourage redevelopment in the Corridor.
ECONorthwest completed an economic analysis of the Sprague / Appleway Corridor for the City
in 2004. The evaluation in this memorandum uses relevant portions of that previous analysis
plus additional and updated information to assess market conditions.
The evaluation in this memorandum focuses on a key question for any revitalization strategy for
the Sprague /Appleway Corridor: How much commercial development and redevelopment can be
supported in the Corridor, and what type of residential development is most likely?
The rest of this memorandum is organized as follows:
• Framework for the Analysis describes the events that led to this study, its purpose and
organization, and the methods we used to reach conclusions about the market for
development in the Sprague /Appleway Corridor.
• Market Conditions outlines the study area and describes the factors that influence
development in Spokane Valley.
• Land development in the Corridor looks at the market for commercial and housing
development in Spokane Valley. Based on the findings in this section, we reach
conclusions about the level and type of development and redevelopment likely in the
Corridor without public incentives.
• Appendix: Retail Sales provides detailed tables of taxable retail sales.
FRAMEWORK FOR ANALYSIS
The analysis in this memorandum focuses on the key market factors that affect potential
development in the Corridor. Factors that affect a market vary for different types of development
(retail, office, and housing), and for the specific development products being considered. Our
analysis, however, is not scoped to be that detailed. It looks broadly at conditions relevant to the
markets for residential and commercial real- estate development. Our purpose is to give
approximate but defensible answers to questions about the amount and type of commercial and
residential development and redevelopment the Corridor can support.
The demand conditions for commercial and residential space extend over an area that is larger
than the study area used in this report. Demand for some types of retail space in the Sprague/
Appleway Corridor, for example, could just as easily be met through new development outside
'Phase II, Task 3 of the scope of work.
2 ECONorthwest, The Transpo Group, and Freedman Tung & Bottomley. October 2004. Sprague /Appleway Economic Analysis.
Prepared for the City of Spokane Valley.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 4
the study area as it could be by new development inside the study area. Consequently, the share
of future development that the study area will receive depends upon the competitive position of
the study area's supply of developable sites relative to other alternatives in the region.
The time period of the study affects the type of analysis. A typical market analysis is done for a
developer who is usually considering break - ground in a year or two. Current land prices, lease
rates, and vacancy rates are relevant to that decision and including in a market analysis. The
developer usually has a specific real- estate product in mind, so the market analysis often expands
to become a feasibility analysis, which would contain pro forma cash -flow analysis for the
product.
But when a city is doing a long -run plan for a city center, its purposes for a market analysis are
different, and the analysis differs accordingly. Cyclical variations and current rental rates are less
relevant. The emphasis shifts to long -run fundamentals: expected regional growth, location,
supporting and competitive developments, likely public investments and policy. Those and
related topics are the focus of the analysis in this memorandum.
Our analysis incorporates the most recent data available from public and private data sources,
including the following:
• Taxable retail sales data from the Washington Department of Revenue.
• Population and income data from the U.S. Census, The Office of Financial Management
of the State of Washington, and Claritas, a private company that provides demographic
data.
• Consumer expenditure data from Claritas.
• Building permit data from the City of Spokane Valley.
• Real estate data from the Real Estate Report: Regional Research on Spokane and
Kootenai Counties, a publication of the Real Estate Research Committee.
In addition to these sources we used the results of several focus groups conducted by business
owners, developers, and other Sprague/ Appleway Corridor Subarea stakeholders. We also
looked at additional sources for data on specific conditions in the market. Our assessment of
market conditions for each type of development describes the specific data sources and methods
we used in more detail. For our analysis of the fiscal capacity of the City, we reviewed the City's
budget as well as had in -depth conversations with city management to determine the City's
capacity to finance a town center or any type of improvements.
3 ECONorthwest conducted a series of meetings with various types of stakeholders for the Sprague - Appleway Corridor project
on July 19, 2006. Focus groups included property owners (such as Pring Corporation and Witherspoon Kelley), retailers (such as
Monaco Enterprises and Opportunity Shopping Center), developers (such as Elk Ridge Development Group and Thomas Dean &
Hoskins ), area organizations (such as Spokane Area Economic Development Council and Spokane Home Builders Association),
auto dealerships (such as Barton Jeep and Appleway Group), and local agencies (such as the fire and police departments and
Spokane County Water District). The purpose of the focus groups was to supplement the evaluation of the existing conditions on
the Sprague - Appleway Corridor, to better understand the Corridor's commercial and residential market, and to better understand
the assets, barriers, and opportunities for attracting redevelopment to the Corridor.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 5
MARKET CONDITIONS
This section is divided into five parts:
• Study area describes the location of the Corridor.
• Population and demographic change discusses existing and projected population in the
Spokane Valley area, and household income.
• Traffic summarizes traffic volume on the Corridor.
• Competing development describes commercial areas that development in Spokane
Valley will compete against.
• Retail sales describes the type and volume of sales in the Spokane Valley region.
STUDY AREA
Figure 1 shows the location of Spokane Valley relative to the metropolitan Spokane area and the
nearby Coeur D'Alene urban area. Figure 1 shows that Spokane Valley is located east of
downtown Spokane and south of the I -90 corridor. The Spokane Valley area developed primarily
after World War II, with commercial development lining the arterial street grid and single - family
residential development in between. The development pattern and transportation network in
Spokane Valley is now an extension of the one in the City of Spokane. Spokane Valley became a
City in 2003.
Figure 1. Location of Spokane Valley
13
4 4
Line
. 7
yy
£� Hayden
DaIcn Gardens
is9Falls --
Coen D'AJene ..
t
Figure 2 shows the location of the Sprague /Appleway Corridor in Spokane Valley.
Source: Google Maps. http: / /maps.0000le.com/
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 6
Figure 2. Location of the Sprague /Appieway Corridor
The area outlined in red in Figure 2 is the approximate study area. The exact boundaries follow
tax -lot lines; those exact boundaries are the basis for some of the land analysis shown later in this
memorandum.
POPULATION AND DEMOGRAPHIC CHANGE
Population is a key indicator of growth in nearly every sector of a community. When population
increases, demand for residential, office, and retail development can all be expected to increase
as well. Total disposable income grows both because the number of people and workers is
growing, and because the average incomes of existing households are growing. Aggregate
disposable income in an area is the best single measure of demand for retail goods (and, thus, for
retail development); disposable income is highly correlated with consumer spending.
If Spokane Valley's population and employment opportunities increase, demand for housing and
businesses in the Corridor area are likely to increase as well. Other factors that influence
population and employment growth include the demographic makeup of expected growth, type
of new employment, cost and availability of land, and the land use regulations that determine
how and where growth will occur all will affect growth patterns. This section summarizes
population, employment, and income for Spokane Valley as they relate to growth and
development in the area.
The State of Washington reports that the City of Spokane Valley had over 85,000 residents in
2005, almost 20% of the population in Spokane County. Table 1 shows population in Spokane
Valley, Spokane, Spokane County, and Washington between 1980 and 2000. Table 1 shows that
the average rate of population growth in Spokane and Spokane Valley has lagged behind that for
the State in each decade since 1980. Growth in Spokane Valley occurred at a rate near those for
Source: Spokane County Division of Planning
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 7
Spokane and Spokane County in the 1990s, but had a substantially higher rate of growth than
Spokane or the County after 2000.
Table 1. Population in Spokane Valley, Spokane, Spokane County, and
Washington, 1980 -2000
Year AAGR by Decade
Area 1980 1990 2000 20051 980s 1990s 2000s
Spokane Valley
n/a
70,696
78,577
85,010
n/a
1.1%
1.6%
Spokane
171,300
177,165
195,629
198,700
0.3%
1.0%
0.3%
Spokane County
341,835
361,333
417,939
436,300
0.6%
1.5%
0.9%
Washington
4,132,353
4,866,663
5,894,143
6,256,400
1.6%
1.9%
1.2%
Source: State of Washington, Office of Financial Management. Population for Spokane Valley
estimated by ECONorthwest using Census tracts identified in this report. Average Annual Growth Rate
(AAGR) calculated by ECONorthwest.
The apparently rapid growth, however, may be due more to anomalies in the data than actual
growth in Spokane Valley. Because Spokane Valley was not incorporated until 2003, Census
data were not available for the City of Spokane Valley in 1990 or 2000. The estimate in Table 1
was compiled from Census tracts that may not include all areas inside the current boundaries of
the City. Thus, the apparently high growth rate for Spokane Valley since 2000 may be primarily
due to the inclusion of population in the City data that were not included in our estimates for
1990 or 2000.
Between 2005 and 2025, Washington's Office of Financial Management projects 27%
population growth in Spokane County compared to 28% for the state as a whole. As Table 2
shows, the County will add about 120,000 residents, and if Spokane Valley and the City of
Spokane continue to grow at approximately the same rates as they have for the past 15 years,
they will add 15,000 and 20,000 people respectively. The average annual growth rate of 1.24%
for Spokane Valley is between the historical growth rates shown in Table 1 of 1.1% and 1.6 %.
Table 2. OFM population forecasts for Washington,
Spokane County, Spokane, and Spokane Valley,
2005 -2025.
4 Census data for the City was achieved through compiling the data of census tracts that approximate the geographic area of
Spokane Valley. It is important to note that some of these tracts include areas that are outside the city limits of Spokane Valley,
and that the data compiled may not be an exact representation of the City of Spokane Valley. The census tracts used were 2001
Spokane County tracts 114, 115, 117 through 123, 124.01, 125, 126, 127.01, 127.02, 128.01, 128.02, 129.01, 129.02, 130, and
131.
Population Projections
2005 2025
AAGR
2005 -2025
Washington
6,233,345
7,975,471
1.24%
Spokane County
441,068
561,627
1.22%
Spokane
198,700
220,000
0.77%
Spokane Valley
85,010
1 100,000
1.24%
Source: Washington OFM, Spokane Valley and Spokane Average Annual
Growth Rate (AAGR) calculated
by ECONorthwest.
4 Census data for the City was achieved through compiling the data of census tracts that approximate the geographic area of
Spokane Valley. It is important to note that some of these tracts include areas that are outside the city limits of Spokane Valley,
and that the data compiled may not be an exact representation of the City of Spokane Valley. The census tracts used were 2001
Spokane County tracts 114, 115, 117 through 123, 124.01, 125, 126, 127.01, 127.02, 128.01, 128.02, 129.01, 129.02, 130, and
131.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 8
The Spokane County Board of Commissioners adopted a population allocation for initial
planning purposes for the 20 -year planning horizon from 2006 -2026, which is shown in Table 3.
The Spokane County Board of Commissioners forecast predicts higher growth rates than the
Office of Financial Management for Spokane County, Spokane, and Spokane Valley. The
County is predicted to add about 197,639 residents, the City of Spokane will add about 70,235,
and the City of Spokane Valley will add 33,125. The average annual growth rate for Spokane
Valley is 1.58 %. We use a growth rate of 1.6% to calculate our market demand estimates in this
memorandum.
Table 3. Spokane County population forecasts for
Spokane County, Spokane, and Spokane Valley,
2006 -2026.
Population Projections
AAGR
2005
2026
2005 -2026
Spokane County 441,068
638,707
1.78%
Spokane 198,700
268,935
1.45%
Spokane Valley 85,010
118,135
1.58%
Source: Spokane County. Average Annual Growth Rate (AAGR) calculated
by ECONorthwest.
In 2000 Spokane had a larger share of the population over age 65 (14 %) than either Washington
(11 %) or Spokane County (12 %) in 2000, but a smaller share of the population age 45 -64.
Spokane has a smaller share of residents age 25 -64 than Spokane County or Washington, but the
share of population under age 25 in the three areas is very similar.
Table 4 shows the increase in housing units between 1990 and 2000 in Spokane Valley,
Spokane, and Spokane County. Comparing the growth rate of housing units to that for population
shows that housing grew faster than population in Spokane Valley and Spokane, indicating that
the average number of people per household is decreasing in these areas, which is consistent with
national trends. Between 1990 and 2000, housing units grew at an annual rate that was slightly
greater than the rate for population (1.4% vs. 1.1 %)
Table 4. Housing units in Spokane Valley, Spokane,
and Spokane County, 1990 and 2000
Source: US decennial census data, 1990 and 2000
Table 5 shows the number and distribution of households by annual income in Spokane Valley,
Spokane, and Spokane County in 2006. Table 5 also shows the distribution of households by
income in Washington for comparison. The distribution of household income in Spokane Valley
is roughly the same as the distributions for Spokane and Spokane County. Spokane Valley has a
slightly larger share of households with an income between $25,000 and $74,999 than in
Spokane or the County. But Spokane County and its jurisdictions all have a larger share of their
population with an income below $50,000 than the State as a whole, and a correspondingly lower
share of households with an income above $100,000.
Percent
1990
2000
Change
City of Spokane Valley 27,658
31,703
14.6%
City of Spokane 75,252
81,762
8.7%
Spokane County 141,859
163,826
15.5%
Source: US decennial census data, 1990 and 2000
Table 5 shows the number and distribution of households by annual income in Spokane Valley,
Spokane, and Spokane County in 2006. Table 5 also shows the distribution of households by
income in Washington for comparison. The distribution of household income in Spokane Valley
is roughly the same as the distributions for Spokane and Spokane County. Spokane Valley has a
slightly larger share of households with an income between $25,000 and $74,999 than in
Spokane or the County. But Spokane County and its jurisdictions all have a larger share of their
population with an income below $50,000 than the State as a whole, and a correspondingly lower
share of households with an income above $100,000.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 9
Table 5. Households by annual income in Spokane Valley, Spokane, Spokane
County, and Washington, 2006
Annual
Household Income
Spokane Valley
HHs %
Spokane
HHs %
Spokane County
HHs %
Washington
%
<$25,000
7,204
25%
19,282
28%
46,764
27%
21%
$25,000 to $49,999
8,845
31%
19,091
28%
51,943
30%
27%
$50,000 to $74,999
6,308
22%
12,523
18%
34,316
20%
21%
$75,000 to $99,999
3,124
11%
7,629
11%
18,317
11%
13%
$100,000 to $149,999
2,324
8%
7,056
10%
15,092
9%
12%
$150,000 to $199,999
498
2%
1,651
2%
3,208
2%
3%
$200,000+
460
2%1
1,966
3%1
3,310
2%
3%
Total
28,763
100%1
69,198
100%1
172,950
100%
100%
Source: Claritas, Inc. Data for Spokane Valley and Spokane based on aggregation of zip codes for each of these areas: Spokane
Valley (99016, 99037, 99206, and 99212) and Spokane (99025, 99027, 99201, 99202, 99203, 99204, 99208, 99218, 99223,
99224).
In summary, (1) population in Spokane and Spokane Valley has consistently grown and is
expected to grow, though at slightly lower rates, (2) the number of people per household is
decreasing, and (3) Spokane Valley households have slightly lower annual incomes than
Spokane or Spokane County. Together, these facts suggest that Spokane Valley is currently an
attractive location for residents with small households and moderate incomes, such as couples
without children, "empty nesters," or single - person households.
TRAFFIC
Traffic volumes along the Sprague / Appleway Corridor are concentrated on the main arterial
streets: east -west Sprague Avenue and Appleway Boulevard, as well as the north -south
connections to I -90, including Argonne - Mullan Roads, Dishman-Mica Road, and Pines Road.
Traffic is primarily distributed around the intersection of Argonne - Mullan and the Sprague -
Appleway couplets, and the intersection of Sprague and University, where traffic from
residential areas south of Sprague moves towards Spokane or along the Sprague - Appleway
Corridor.
According to the traffic analysis done for this study, s traffic volumes on Sprague Avenue range
from about 25,000 average daily trips (ADT) near Pines Road to about 15,000 ADT between
University and Farr Roads. Traffic volumes on Appleway Boulevard are about 18,000 ADT.
Traffic volumes on the main north -south streets range from about 30,000 ADT on Pines Road
south of I -90 to about 15,000 ADT on Mullan Road south of 1 -90.
Other work ECO and FTB have done suggests that 30,000 ADT is the threshold for major
retailers. Since Sprague and Appleway are a couplet on the west side of the Corridor, it is
appropriate to sum their respective traffic volumes. Near U -City their combined ADT is about
30,000 vehicles. Thus, the Corridor meets the threshold in the U -City area.
5 Glaning, Jackson, Kercher, Anglin, Lopez, Rinehart, Inc., "Spokane Valley Sprague Appleway Corridor: Summary of Existing
Transportation Conditions - DRAFT," 2006.
6 Based on interviews with commercial developers.
7 For comparison, traffic volume on I -90 just north of the Corridor is about 75,000 ADT.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 10
COMPETING DEVELOPMENT
A redeveloped Sprague / Appleway Corridor would have to compete with commercial areas
other parts of Spokane Valley:
• Spokane Valley Mall: The Mall is located east of Pines Road and north of I -90, and has
870,000 square feet of retail space (123 stores). Two adjacent developments include
Market Points I & II, which include a hotel and several big -box stores, and the Mirabeau
Point, which is a 70 -acre multi -use recreational, educational, and entertainment complex.
• West Sprague Corridor: To the west of the study area, near the intersection of Sprague
Avenue and Fancher Road, there is an area of big -box retail including Home Depot,
Lowe's, Costco, a large furniture store, as well as other smaller retail spaces.
Sullivan/ I -90 interchange: The interchange at Sullivan Road has a Wal -Mart and other
big -box retail.
Regionally, a redeveloped Spokane Valley Corridor would also compete with other commercial
areas in Spokane or the surrounding area that are either in the planning stages or have already
developed. Because Spokane Valley has much faster east -west traffic flows than north -south
traffic flows, the area of competition extends farther to the east and west than it does to the north
and south. Areas of potential competition include:
• Riverpark Square: Spokane's Riverpark Square is the main shopping and commercial
center in downtown Spokane, near the Convention Center. This shopping center has
370,000 square feet of commercial space, and is anchored by a 129,000 square foot
Nordstrom store, a 20- screen AMC theater, and includes 52 dining, entertainment, and
shopping establishments.
• Northtown Mall: Northern Spokane's Northtown Mall is the largest shopping mall in the
eastern Washington -Idaho region. It has over 200 stores, including Nordstrom Rack,
Regal 12 Cinemas, and Barnes & Noble, and over 1 million square feet of leasable space.
Located on 1 -90, this mall is 11 miles from the Sprague/ Appleway Corridor.
• Kendall Yards: Spokane's Kendall Yards development is new development type for the
Spokane area. The proposed development is on a 77 -acre site across the Spokane River
north of downtown. Developer Marshall Chesrown plans to include 2,600 living units and
more than 1 million square feet of commercial space in the development, and the
property will include a variety of types of housing, including apartment buildings,
condominium units, row houses, and single family homes. Mixed -use buildings will
include both residential and commercial space, and some commercial space will be
housed in stand -alone buildings as well. Public hearings for the project were conducted in
early August 2006, and the developer expects to take between 8 and 20 years to reach full
build -out. 8
• Northgate Shopping Center: Located at the "Y" intersection of Highways 2 and 395 in
northern Spokane, the Northgate Mall has a Target, Wal -Mart, Safeway, Shopko, and a
variety of other retail options.
E Parish, Lynn, "Chesrown bullish on new plan," The Journal of Business, December 22, 2005 and "Kendall Yards,"
metrospokane.typepad.com/ index /2006 /08/kendallyardsy.html, accessed August 15, 2006.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 11
Smaller Regional Centers: Moran Prairie, located at 57 and Regal Streets in Spokane;
Lincoln Heights, located at 29 and Regal Streets in Spokane; and Shadle Center, located
in northwest Spokane all are "power center" areas, offering big -box retail and other types
of smaller commercial spaces, such as dental clinics, photo processing stores, banks,
veterinary services, and pharmacies.
River District at Liberty Lake: This project, still in the development stages, will
involve 495 homes, 45 townhomes, and a large retail complex north of Interstate -90. The
development will include 900 acres of mixed use projects planned for build out within 20
to 30 years, and will be located east of the Spokane Valley - Liberty lake city boundaries.
Developers will construct over 500,000 square feet of retail space in the retail complex,
Telido Station, during the first stage of development. A home furnishing store, sporting
goods store, general merchandise retailers, and restaurants are planned for Telido Station.
• Post Falls: Located 12 miles from the Corridor study area, in Post Falls, Idaho, this
commercial center has a Wal -Mart and other types of big box retail. Anecdotal accounts
suggest that Spokane Valley consumers will drive to Idaho for shopping trips, especially
because east -west travel on I -90 is quick and easy.
Figures 3 and 4 show the five and seven -mile trade areas, respectively, around the existing and
planned shopping centers. The figures show that the Spokane Valley Corridor is already well
served by large retail centers. Multiple large retail centers serve the entire Spokane region.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 12
Figure 3. 5 -mile trade area for existing and planned shopping centers
` 9
t4ine N1r.- • f 1
Y
- 291 4ti1e 9. Pant Faft shopping Center
- - T. Nag 0 Slopping Center
.�q.ar reAjrk l�"
r � i
_ 0 a
- s S. NatMawn Will ' Ve
12. ShaMe Cenlor P -" ( 1 spekane Val Mal
6. River Dmlrict at Liiie#W Lake }
4. Rivorprrk Squares --
" 1 3.Sulkeanr1- 90hlarchangs
2. Vilest Sprague CCoaklor --
r
y . t` 11. Lincoln l+e;gm.
r~ts
$ 195 10. !loran Prane
ss
23
c
SCALE
904 _ ' 4 2 Wes
Legend N
Developed Stopping Area
Proposed Shopping area ECONorthwest
Street Map Source: ESHt
Source. ECONorthwest.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 13
Figure 4. 7 -mile trade area for existing and planned shopping centers
Legend
Q Developed Shopping Area
0 Proposed Shopping Area
Source. ECONorthwest.
N
A
ECONorthwest
Street Map Sonroe ESR1
This level of competition, and the accessibility of that competition, leads us to conclude that that
Spokane Valley's Sprague - Appleway Corridor will have trouble growing as a major shopping
destination. ECO concluded in the 2004 Sprague /Appleway Economic Analysis that retail
development in Spokane Valley is increasingly moving north to higher value land. The Corridor
should not be expected to serve a regional or super - regional role in the retail hierarchy. If it is
going to grow retail, that growth will either be (1) scattered retail at major intersections on the
Corridor, (2) concentrated retail at one (at most two) locations on the Corridor (probably of some
specialized type: e.g., civic center, or lifestyle center), or (3) both.
RETAIL SALES
ECO analyzed sales tax data to assess existing retail sales activity in the region and on the
Corridor. Appendix A shows detailed tables of retail sales tax data.
9 ECONorthwest. Sprague /Appleway Economic Analysis, 2004.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 14
Spokane County is a growing retail center. From 1994 to 2005, taxable retail sales in Spokane
County grew 55% (in real dollars). Figure 5 shows that in the same period, taxable retail sales in
the entire state grew 36 %. The growth in sales is not explained by population or income growth.
Population in Spokane County grew 10% during the same period, and 17% in Washington state.
The growth in retail sales is explained by the fact that the Spokane region is a major urban area
in eastern Washington, with a market area that extends into Idaho. It is located on I -90, enabling
a wide geography to quickly travel to the region and make purchases.
Spokane County Washington
Figure 5. Percent change in taxable retail sales and population,
Spokane County and Washington state, 1994 -2005.
60%
50%
Percent Change 40%
1994 -2005
30%
20%
10%
0%
_ OTaxable Retail Sales
■Populati
Source. ECONorthwest with data from the Washington Department of Revenue and Washington
Office of Financial Management. The change in retail sales represents the real dollar change.
Most of the growth in retail sales over the last decade is outside the City of Spokane. Spokane is
still the largest commercial center in the County -60% of taxable retail sales are in the City of
Spokane. But a substantial portion of commercial activity shifted away from Spokane as the
County grew over the last decade. Taxable retail sales in Spokane grew only 2% over the last
decade (in real dollars), while sales in the whole County grew 55% over the same period. This
relatively low growth rate reflects the maturation of new development in the City of Spokane,
causing the County to have a higher growth rate for taxable sales than the City.
Spokane Valley attracts a disproportionately large share of retail. Taxable retail sales in Spokane
Valley account for 30% of such sales in Spokane County, but Spokane Valley's population
accounts for only 19% of the County's population. The discrepancy is not explained by income
differences: household incomes in Spokane Valley are not notably different from the incomes
throughout the County.
Figure 6 shows total taxable retail sales per capita. The figure shows that Spokane Valley
generates more sales tax per resident than the statewide average. This is not explained by
incomes — average household income in Spokane Valley is lower than the statewide average.
Instead, it is explained by the fact that major retail facilities are located in Spokane Valley.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 15
Figure 6. Total taxable retail sales, per capita, in 2005
$25,000
$20,000
$15,000
- -
$10,000
$5,000
$0
Spokane Valley Spokane Washington
Source. ECONorthwest with data from the Washington Department of Revenue
and Washington Office of Financial Management.
Spokane Valley attracts retail sales from population non - residents. The key sales that drive the
large per capita sales are the following:
• Car dealers. The high per capita sales in Spokane Valley is primarily explained by the
car dealers on Auto Row. Motor vehicle sales account for 21% of all taxable retail sales
in Spokane Valley, compared to 9% in Washington state.
• General merchandise. Large stores that sell a wide variety of goods, such as Walmart
and Target, account for 15% all taxable sale in Spokane Valley, compared to 7% in
Washington state.
• Building materials. Home improvement stores account for 9% of taxable sales in
Spokane Valley, compared to 4% in Washington state.
Are there sectors where Spokane Valley residents go elsewhere to make purchases? Spokane
Valley `leaks' sales tax revenue to Spokane in a few sectors, especially those that prefer urban
centers:
Taxable sales per capita in Spokane Valley are lower than the City of Spokane and the
state average for businesses in the services sector, such as professional and information
services. Many firms in these sectors occupy offices rather than retail commercial
structures.
• Food and beverage retail sales are higher per capita in Spokane than in Spokane Valley.
The per capita sales in the accommodation and food services sector is lower in Spokane
Valley than in Spokane, but higher than the statewide average. It is likely that services
associated with 1 -90 are located in both cities' boundaries.
• Furniture and electronics taxable sales per capita are lower in Spokane Valley than in
Spokane.
The data show that Spokane Valley is a good location for businesses that need to spread out: auto
dealers and very large big -box stores. Businesses that prefer urban centers are less likely to
locate in Spokane Valley.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 16
LAND DEVELOPMENT IN THE CORRIDOR
This section is divided into two parts:
• Commercial development discusses the issues that affect supply and demand for office
and retail space in the Corridor
• Housing development discusses supply and demand for residential development in the
Corridor.
COMMERCIAL DEVELOPMENT
By commercial development we mean, broadly, development that is for retail and office use.
That would exclude, primarily, development types that are aimed at industrial and warehousing
uses.
Real estate trends and existing commercial space
Tables 6 and 7 show the results of a survey of retail and office space conducted by a real estate
firm in Spokane County between 1999 and 2006. They show the characteristics of retail and
office space for the Valley subarea, which is included in the total suburban Spokane estimates.
Suburban Spokane excludes downtown Spokane, the Central Business District. While surveyed
retail and office space is not equal to total retail and office space, the survey shows some broad
trends that probably apply to all space:
• Relatively high vacancies. Table 6 shows that the Valley subarea currently has 40% of
total retail space in suburban Spokane but 66% of the vacant retail space. The Valley
subarea has consistently higher vacancy rates and lower rents compared to the average
for suburban Spokane. Data for individual subareas in suburban Spokane show that the
Periphery of CBD subarea has the lowest vacancy rates and second - highest rents in the
area —the highest rents are in the North subarea, which also has a relatively low vacancy
rate. Retail vacancy rates are a concern shared by members of the July 2006 focus group,
which found weak demand for retail rental property, especially big -box development, in
Spokane Valley, and noted that in the Corridor off - street spaces are especially difficult to
lease. However, property development is rebounding in some areas of the Corridor,
especially north -south areas. Table 7 shows that the Valley subarea currently has 35% of
total office space but 50% of vacant office space.
• Relatively low rents. Table 6 shows that retail space in the Valley subarea rents for
between $0.50 and $3.00 less than space in other areas of suburban Spokane. Table 7
shows that office space rents for between $0.75 and $2.00 less in the Valley than it does
in other areas of suburban Spokane.
Vacancies and rents are the two key indicators of the strength of a real estate market. Both
suggest a market in Spokane Valley that is weak relative to competing areas.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 17
Table 6. Survey of suburban retail space in Spokane
County, 1999 -2006
Source: Real Estate Research Committee. The Real Estate Report. Vol. 30, No. 1. Spring.
Note: Average rental rate for Suburban Spokane calculated by ECONorthwest using the
average for each subarea weighted by net usable sq. ft. in that subarea. Valley % of
Suburban Spokane calculated by ECONorthwest. The location of "Valley" is identified in the
source as "East of Hamilton." Rental rates in dollars /sq. ft. /year.
Number of
Net Usuable
Vacant
Percent
Average
Year
Buildings
Sq. Ft.
Sq. Ft.
Vacant
Rental Rate
Valley
1999
7
639,175
102,171
16.0%
$10.21
2000
18
947,929
127,095
13.4%
$10.86
2001
21
1,084,185
152,820
14.1%
$10.69
2002
45
3,489,540
454,537
13.0%
$13.28
2003
56
3,963,067
703,228
17.7%
$12.87
2004
62
4,185, 873
711,290
17.0%
$12.72
2005
68
4,439,233
556,368
12.5%
$13.25
2006
68
4,306,187
621,496
14.4%
$12.62
Suburban Spokane
Total
1999
41
4,433,816
286,657
6.5%
$11.24
2000
51
4,722,251
260,289
5.5%
$13.63
2001
63
5,160,019
415,679
8.1%
$13.75
2002
106
8,141,372
765,681
9.4%
$13.94
2003
137
9,207,336
1,023,571
11.1%
$13.57
2004
155
9,531,633
1,058,198
11.1%
$13.44
2005
166
10,039,660
861,881
8.6%
$13.81
2006
170
10,016,423
948,252
9.5%
$14.22
Valley
% of Suburban Spokane
1999
17%
14%
36%
247%
91%
2000
35%
20%
49%
243%
80%
2001
33%
21%
37%
175%
78%
2002
42%
43%
59%
139%
95%
2003
41%
43%
69%
160%
95%
2004
40%
44%
67%
153%
95%
2005
41%
44%
65%
146%
96%
2006
40%
43%
66%
152%
89%
Source: Real Estate Research Committee. The Real Estate Report. Vol. 30, No. 1. Spring.
Note: Average rental rate for Suburban Spokane calculated by ECONorthwest using the
average for each subarea weighted by net usable sq. ft. in that subarea. Valley % of
Suburban Spokane calculated by ECONorthwest. The location of "Valley" is identified in the
source as "East of Hamilton." Rental rates in dollars /sq. ft. /year.
Corridor Market Analysis, Phase 11, Task 3 ECONorthwest 29 September 2006 Page 18
Table 7. Survey of suburban office space in Spokane County,
1999 -2006
Area/ Number of Net Usuable Vacant Sq. Percent Average
Year Buildings Sq. Ft. Ft. Vacant Rental Rate
Valley
1999
44
900,119
102,750
11.4%
$11.38
2000
40
865,439
56,860
6.6%
$10.92
2001
40
871,599
68,612
7.9%
$12.75
2002
60
1,450,015
185,724
12.8%
$13.05
2003
68
1,695,031
201,433
11.9%
$12.58
2004
68
1,696,668
236,154
13.9%
$12.73
2005
71
1,792,856
362,572
20.2%
$13.66
2006
80
1,960,827
409,717
20.9%
$13.43
Total
1999
130
3,130,871
316,685
10.1%
$12.14
2000
132
3,210,168
213,104
6.6%
$12.92
2001
137
3,526,958
223,047
6.3%
$14.38
2002
175
4,489,721
419,472
9.3%
$14.47
2003
190
4,768,248
471,143
9.9%
$14.36
2004
191
4,826,321
557,983
11.6%
$14.31
2005
202
5,153, 636
675,107
13.1%
$14.79
2006
217
5,448,172
789,892
14.5%
$15.00
Valley
% of Suburban Spokane
1999
34%
29%
32%
113%
94%
2000
30%
27%
27%
99%
84%
2001
29%
25%
31%
124%
89%
2002
34%
32%
44%
137%
90%
2003
36%
36%
43%
120%
88%
2004
36%
35%
42%
120%
89%
2005
35%
35%
54%
154%
92%
2006
37%
36%
52%
144%
90%
Source: Real Estate Research Committee. The Real Estate Report. Vol. 30, No. 1. Spring.
Note: Average rental rate for Suburban Spokane calculated by ECONorthwest using the
average for each subarea weighted by net usable sq. ft. in that subarea. Valley % of
Suburban Spokane calculated by ECONorthwest. The location of "Valley" is identified in the
source as "East of Hamilton." Rental rates in dollars /sq. ft. /year.
Projected demand for commercial space in the Corridor
Commercial space in the Corridor includes two main components: (1) retail space, which for
purposes of this analysis ECONorthwest defines as places where goods and services are sold in
spaces that are similar to traditional storefronts; and (2) office space. Because we define retail
space as traditional storefront locations, we exclude motor vehicle sales from our calculations,
despite their relative importance for the economy of Spokane Valley. We focus on traditional
storefront locations because this is the type of retail that Spokane Valley will need to encourage
to locate in a potential future town center development.
Our analysis of demand for commercial space has three parts that answer three questions:
1) What is the demand for retail space in the City of Spokane Valley?
2) What is the demand for office space in the City of Spokane Valley?
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 19
3) How can we allocate demand for retail and office space in Spokane Valley to the
Corridor?
What is the demand for retail space in the City of Spokane Valley?
To determine projected demand for retail space, we began our analysis by identifying sales that
take place in storefronts. We made two adjustments to taxable retail sales to approximate the
amount of sales generated by stores in Spokane Valley: (1) we included only sales that occur in
retail developments, which are primarily sales in the Retail Trade sector, and (2) we adjusted
taxable retail sales to total sales. Because of our focus on retail that would locate in traditional
storefront locations, we excluded the sales of motor vehicles from our calculations.
Knowing what is included and not included in the number of taxable retail sales is critical to
knowing how to use it properly. Taxable retail sales includes most sales of retail goods and
services to consumers for use in Washington. Sales of food, prescription drugs, and some other
goods are exempt from the sales tax, as are some services including medical, legal, accounting,
and personal services such as barber shops and funeral homes. Sales that are exempt from the
sales tax do not appear in taxable retail sales data. But the sales data do include the value of
materials delivered to construction sites, which would have little impact on the demand for retail
square footage, the key issue in the Corridor.
We used statewide data from the Washington Department of Revenue to calculate the ratio of
taxable retail sales to gross sales by industry for industries that would locate in stores, and
determined that taxable sales represent a varying percentage of total retail sales, averaging
around 65 %. We used these percentages to determine the amount of adjustment we needed to
make to taxable retail sales to make them approximate total retail sales. Once we had an
approximation for the total retail sales that occurred in stores in Spokane Valley, we divided that
number by the population of Spokane Valley in order to obtain an average store sales per capita
for Spokane Valley, which was $16,400. That number is not an estimate of what Spokane Valley
residents are spending in either Spokane Valley or in Spokane County. It is, however, the ratio
that we want for our estimates: it gives us a way to relate growth in Spokane Valley population
to growth in Spokane Valley retail sales and square footage.
Given typical estimates of sales per square foot per year for successful retail ($220 to $270,
according to the Urban Land Institute 1 ), the estimated retail sales per capita in Spokane Valley
suggest support for between about 60 and 70 square feet of retail space per person, which is
higher than the national average of 25 square feet per person, but is reasonable considering that
io ECONorthwest used data from Washington Department of Revenue. Detailed Tax Data by Industry and Tax Classification.
http: / /dor.wa.gov/ content / statistics /line_ code _ detail /default.aspx Accessed August 3, 2006. In order to approximate the types of
industries that the Urban Land Institute uses to create their estimate of sales per square foot per year for successful retail, we used
total and taxable sales from the following industries: Furniture and Home Furnishings, Electronics and Appliance Stores,
Building Material and Garden Equipment and Supplies Dealers, Food and Beverage Stores, Health and Personal Care Stores,
Clothing and Clothing Accessories Stores, Sporting Goods, Hobby, Book and Music Stores, General Merchandise Stores,
Miscellaneous Store Retailers, and Food Services and Drinking Places.
I ' The Urban Land Institute measures sales per square foot of different types of retail centers, from super regional centers that
include large malls to convenience centers that include Laundromats and small food and beverage stores. Adjusted to 2005
dollars, these median estimates of operating results per square foot of gross leasable area range from $220 to $270, with an
outlier (regional shopping center) of $164. Urban Land Institute, Dollars and Cents of Shopping Centers: 2004, p.10 -11
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 20
Spokane Valley retail captures a share of the regional market as well as the local market. 12 If the
population of Spokane Valley continues to increase at 1.6% per year, as is predicted by Spokane
County, the population of the City will increase by about 1,300 people each year. Given this rate
of population increase, the City of Spokane Valley could absorb about 75,000- 90,000 square feet
of retail per year. Take that as a rough benchmark.
To check these calculations, we approached the question of retail square footage from a different
angle. In 2005, according to surveys published in the May 2006 Real Estate Research Report,
Spokane City had about 1.1 million square feet of retail space and suburban Spokane had about
9.1 million square feet of retail space for a total of approximately 10.2 million square feet of
surveyed retail space. Spokane Valley has about 3.8 million square feet of surveyed retail square
footage, which amounts to about 40% of Spokane County's surveyed retail space.
To get total retail space (not just surveyed space) in the County, we assumed that the surveyed
space accounted for about 70% of total space. 13 Adding 30 percent would bring the estimate to
about 13 million square feet of retail space in Spokane County, and about 5.4 million square feet
of that retail space would be located in Spokane Valley. If Spokane Valley continues to grow at
about 1.6% annually, adding 1,300 people each year, retail space will grow at approximately the
same rate, adding 1.6% of 5.4 million square feet, or 87,000 square feet per year, right in line
with our previous estimate of between 75,000 and 90,000 square feet.
Thus, the evidence we have reviewed suggests that it is reasonable to assume that Spokane
Valley will absorb on the order of 85,000 square feet of retail space per year, which would be
about 1.7 million square feet of retail over a 20 -year period. Treat this number not as a
prediction, but as a starting point for thinking about the possibilities. 14
What is the demand for office space in the City of Spokane Valley?
For office development we can use similar rules of thumb to estimate square footage demand.
There are a total of 8.1 million square feet of surveyed office space in Spokane County. 15
Surveyed office space is estimated to be about 70% of total office space, 16 so total office space is
about 11.6 million square feet in the County now. Given that total nonfarm employment in
Spokane County is expected to grow by 1.5% between 2007 and 2012 and population is expected
to grow at a similar rate of 1.6 %, we assume the need for additional office space to meet the
12 http: / /www.icsc.org/srch /rsrch/scope /current/index.php Report: UnitedStates06.pdf. 6 B sq ft of non -auto retail in shopping
centers as defined by ICSC; 75% of U.S. retail in shopping centers; yields 8 B sq ft retail. US population approximately 300 M.
Depending on the subarea of the region, some areas will have very much more (for example, Tukwila, Washington, south of
Seattle, has almost 10 times that amount). Places with more than the average are, in essence, "capturing the leakage" from other
areas.
13 Survey methods did not limit the size or type of buildings surveyed. Owner occupied buildings are included in this count;
representatives of Auble, Jolicouer and Gentry estimate that the survey covered about 70% of the total retail and office square
footage, leaving 30% unaccounted for. Personal conversation, Auble, Jolicoeer, and Gentry, August 4, 2006.
14 Data on retail space in Spokane County is from Real Estate Research Committee: "The Real Estate Report: Regional Research
on Spokane and Kootenai Counties," v. 30 n. 1, spring 2006, page 159 -174..
15 Data on office space in Spokane County is from Real Estate Research Committee: "The Real Estate Report: Regional Research
on Spokane and Kootenai Counties," v. 30 n. 1, spring 2006, page 159 -174..
16 See footnote 6 above for source
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 21
needs of these new employees will grow at about the same rate that employment or population is
expected to grow (1.5% per year). Given these assumptions Spokane County would add about
175,000 square feet of new office space per year
Of the 8.1 million square feet of surveyed office space currently in use in Spokane County,
Spokane Valley accounts for 2 million, or about 25 %. Assuming that Spokane Valley will
continue to account for about 25% of office space, this means that of the 175,000 square feet of
total office space that might develop each year in Spokane County, Spokane Valley will account
for about 44,000 square feet per year.
Of the 2 million total square feet of surveyed office space in Spokane Valley in 2005, about 0.4
million square feet, or 20% of that space, were vacant. About 10% of office square footage is
normally vacant at any one time (this is known as frictional vacancy). Because Spokane Valley
currently has a 20% vacancy rate, about half of that vacancy (0.2 million square feet of office
space) is probably oversupply. This oversupply would reduce the amount of total office space
needed to around 2.5 million square feet in 20 years, an increase of about 0.5 million square feet.
However, because of the national and regional trends away from manufacturing and towards the
services and business and professional sectors of the economy, Spokane Valley, like the rest of
the nation, is likely to see a slight increase in the demand for office space over the next 20 years
relative to other types of employment space. We assume for the purposes of this analysis that
oversupply in the market and the slightly increased demand for office space are roughly
offsetting.
To see if demand for an average of 44,000 square feet of office space per year in Spokane Valley
is a reasonable amount of office square footage for Spokane Valley, we approach the question
from a different angle. Empirical studies of square -feet per employee report a wide range of
results, from 300 to 1,500 square feet per employee, depending on sector of employment.
Ultimately assumptions regarding square feet/employee reflect a judgment about average
densities and typically reflect a desire for increased density of development. For office
employment, however, the estimates are tighter, and usually in the range of 300 to 500 square
feet per employee.
For the purposes of this market analysis, we assume 400 square feet per new employee. The best
estimate of employment growth available to us is for only a five -year period. A rough estimate of
the job growth predicted for industries that could be located in offices is about 5,000 jobs
between 2007 and 2012, although this overestimates the number of jobs because of reporting
limitations. 17 That assumption suggests the ability for Spokane County to absorb about 2 million
square feet of office space over a 5 -year planning horizon, or at that same rate of office
17 The jobs that are normally located in office space include parts of the following sectors: Finance, Insurance and Real Estate
(including insurance carriers, insurance agents, and real estate) as well as Services (including hotels and lodging, personal
services, business services, auto repair, social services, membership organizations, and engineering services). Because the
employment forecast for Spokane County from the Washington Employment Security Department ("Spokane County Annual
Average Nonagricultural Wage and Salary Employment," Washington Department of Employment Security,
http : / /www.workforceexplorer.com / article .asp ?PAGEID= 94 &SUBID= &ARTICLEID= 2409 &SEGMENTID=9, accessed August
2, 2006.) does not break down its projections into this amount of detail, we use the total of five industries, Finance and Insurance,
Professional and Business Services, Management of Companies and Enterprises, Leisure and Hospitality, and Other Services, to
approximate the categories of jobs located in offices. This is an overestimation. These industries are predicted to growth by 5,700
jobs, from 64,600 to 70,300 between 2007 and 2012, or at a growth rate of 1.7 %. We reduced the estimate from 5,700 to 5,000
for our analysis.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 22
employment growth, or about 0.4 million square feet per year. 18 Currently Spokane Valley has
about 25% of the surveyed office space in Spokane County. If it continues to maintain the
percentage, it would see growth of about 100,000 square feet office space per year.
So, we are getting estimates of roughly 40,000 to 100,000 square feet of new office space per
year in the City of Spokane Valley. We use 75,000 square feet for the rest of our calculations.
How can we allocate expected demand for retail and office space in Spokane
Valley to the Corridor?
Given these estimates for the City of Spokane Valley, our next step is to allocate the estimated
growth in retail and office space to the Sprague/ Appleway Corridor. Using estimates of ground -
floor use, we calculated that there is currently about 5.5 million square feet of commercial space
in the Sprague/ Appleway Corridor. To compare that to the estimates from the Real Estate
Research Report, which suggest that there is about 6.4 million square feet of commercial space
in Spokane Valley, we need to inflate those estimates to account for the unsurveyed portion of
Spokane Valley, which amounts to about 30 %. Of the resulting 8.3 million total square feet of
commercial space in Spokane Valley, the Sprague/ Appleway Corridor accounts for about 66 %.
The main areas of commercial growth in Spokane Valley, however, have been and will continue
to be north of I -90, so this historical average overstates the likely future distribution. We believe
that an optimistic estimate is that in 20 years, the Sprague/ Appleway Corridor will account for
50% of Spokane Valley's commercial space, but it is more likely to account for something on the
order of 10% to 30% given current building trends.
If we assume (1) that the Sprague/ Appleway Corridor will account for 25% of Spokane Valley's
growth in commercial space, both retail and office, over the next 20 years, and (2) that Spokane
Valley will absorb an estimated 85,000 square feet of retail space per year, then the Corridor will
account for about 21,000 square feet of retail space annually. Of Spokane Valley's demand for
an estimated 75,000 square feet of office space per year, the Corridor will account for about
19,000 square feet annually.
In summary, we expect the demand for commercial space in the Corridor to average about
40,000 square feet of space per year for the next 20 years if market conditions and public
investment policy do not change substantially. That estimate is based on selecting mid -range
values for a lot of assumptions. The broader range might be an average of 30,0000 to 60,000
square feet of commercial (retail plus office) new development per year on the Corridor.
Capacity of Sprague / Appleway Corridor for commercial development
We estimated the demand for commercial development in the Corridor in the previous section.
Now we turn to the question: how much capacity does the Corridor have to support commercial
development? The amount of land on the Corridor is fmite, and zoning restrictions limit the
amount and type of development that can occur. To determine capacity for commercial built
space, ECO estimated the amount of land in the Corridor using tax lots (Table 8) and applied
18 ECONorthwest calculated this figure by using the job growth predicted by the Washington Employment Security Department
(5,000 jobs over 5 years) to obtain a predicted job growth of 1,000 jobs per year in Spokane County. We multiplied that by the
400 square feet of office space needed per job to get 400,000 square feet of office space needed in Spokane County per year, or 2
million square feet in 5 years.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 23
floor area ratios (FARs) to the land in tax lots to calculate different levels of capacity for
commercial built space on the Corridor. This data help to answer two questions:
• How much space on the Corridor would be available for development or redevelopment?
• What is the best density at which new development should occur?
Table 8 shows a breakdown of the tax lots on the Sprague /Appleway Corridor by zoning code.
About one half of the tax lots on the Corridor are zoned commercial (52 %), about one third are
zoned residential (33 %), and about one sixth are zoned industrial (15 %). Of the commercially
zoned tax lots, 12% are vacant tax lots (the sum of all vacant lots, open space, and parking lots).
Table 8. Square footage of built and buildable land on the Sprague /Appleway
Corridor, 2006
Source: Calculated by ECO from GIs data provided by the City of Spokane Valley (2006), Spokane County assessors data provided
by the City of Spokane Valley from Metroscan (2006), vacancy data provided by Studio Cascade (2006), and use data provided by
Freedman, Tung, & Bottomley Urban Design (2006).
Notes: The numbers presented in this table are the sum of the built and buildable land in the seven sub areas of the Corridor.
FARs are a ratio of the amount of built space to the amount of space on the lot on which the
building sits. For example, if there are 10,000 square feet of building space (the total for all
floors, if multistory) on a 20,000 square -foot lot, the FAR is 0.5. Table 9 shows various FARs
that help to give context to ECONorthwest's analysis of the supply of commercial space on the
Corridor.
Table 9 shows that (1) the maximum allowable density for any structure on the Corridor has a
FAR of 1.8 but that (2) averaging the FARs zoned on the Corridor means that the average
19 Because of the incomplete nature of the data, 1% of the tax lots on the Corridor had no zoning code assigned to them.
20 Spokane Valley's zoning code allows for an FAR of 1.25, 1.38, and 1.8 on tax lots zoned `B -1 ", `B -2 ", and `B -3"
respectively. Reaching an FAR of 1.8 is unrealistic because this level of build out leaves no space to fulfill parking requirements.
Vacant tax lots with no buildings
Developed
%
(tax lots with
Vacant Lot
Open Space
Parking Lot
Study area
of study
Zoning
buildings)
(VL)
(OS)
(PL)
total
area total
Commercial
25,805,515
2,651,700
50,495
825,284
29,332,994
` 52%
B -1
1,453,778
161,495
50,495
0
1,665,767
3%
B -2
2,757,848
127,692
0
19,647
2,905,187
5%
B -3
21,593,889
2,362,514
0
805,637
24,762,040
44%
Industrial
7,824,503
214,318
0
181,230
8,220,050
15%
1 -1
0
0
0
0
0
0%
1 -2
4,552,350
55,179
0
137,049
4,744,578
8%
1 -3
3,272,153
159,139
0
44,180
3,475,472
6%
Residential
16,424,657
1,535,920
419,681
88,998
18,469,256
33%
UR -3.5
5,964,859
1,103,573
307,614
41,592
7,417,637
13%
UR -7
1,126,613
74,544
0
0
1,201,157
2%
UR -12
285,680
0
0
0
285,680
1%
UR -22
9,047,504
357,803
112,067
47,407
9,564,781
17%
No zone code
30,024
17,056
597,231
0
644,310
1%
Sq.Ft. Sum
50,084,698
4,418,993
1,067,406
1,095,512
56,666,610
100%
% Sum
88%
8%
2%
2%
100%
Source: Calculated by ECO from GIs data provided by the City of Spokane Valley (2006), Spokane County assessors data provided
by the City of Spokane Valley from Metroscan (2006), vacancy data provided by Studio Cascade (2006), and use data provided by
Freedman, Tung, & Bottomley Urban Design (2006).
Notes: The numbers presented in this table are the sum of the built and buildable land in the seven sub areas of the Corridor.
FARs are a ratio of the amount of built space to the amount of space on the lot on which the
building sits. For example, if there are 10,000 square feet of building space (the total for all
floors, if multistory) on a 20,000 square -foot lot, the FAR is 0.5. Table 9 shows various FARs
that help to give context to ECONorthwest's analysis of the supply of commercial space on the
Corridor.
Table 9 shows that (1) the maximum allowable density for any structure on the Corridor has a
FAR of 1.8 but that (2) averaging the FARs zoned on the Corridor means that the average
19 Because of the incomplete nature of the data, 1% of the tax lots on the Corridor had no zoning code assigned to them.
20 Spokane Valley's zoning code allows for an FAR of 1.25, 1.38, and 1.8 on tax lots zoned `B -1 ", `B -2 ", and `B -3"
respectively. Reaching an FAR of 1.8 is unrealistic because this level of build out leaves no space to fulfill parking requirements.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 24
commercial built space generally has a lower maximum density of 1.7 FAR. 21 These densities
are relatively high; Table 9 shows that (3) without structured parking the maximum density
would only be about 0.75 FAR and that (4) typical suburban shopping areas generally have
densities that are even lower, around 0.25 FAR. Finally, Table 9 also shows that average
densities on the Corridor are very low —lower than even the density of typical suburban
shopping areas, at 0.21 FAR.
Table 9. Estimated and reference FARs
for the Sprague /Appleway Corridor, 2006
Use
Commercial FAR
Max FAR allowed by commercial
zoning on the Corridor
1.8
Weighted average of the
commercial zones on the Corridor
1.7
Likely max FAR without structured
parking
0.75
Typical FAR for suburban
shopping centers
0.25
Existing FAR for commercial tax
lots on the Corridor
0.21
Source: FARs calculated or reported by ECO based on: the City of Spokane
Valley's zoning code, GIS data provided by the City of Spokane Valley (2006),
Spokane County assessors data provided by the City of Spokane Valley from
Metroscan (2006), vacancy data provided by Studio Cascade (2006), and use
data provided by Freedman, Tung, & Bottomley Urban Design (2006).
Redevelopment of the Corridor could occur in two different types of locations: new development
on commercially zoned vacant land, or redeveloping commercially zoned land that currently has
structures located on it. Table 10 shows the space available under both of these scenarios: the
space available if only the commercially zoned vacant lots (including vacant lots and parking
lots) on the Corridor were developed, and the space available if all of the commercially zoned
lots (excluding open space) were redeveloped.
Table 10 shows the different square footage that would be created if this land were developed at
different FARs. The current average density of buildings on the corridor is 0.21 FAR. This table
shows what would happen if land were developed to 0.20 FAR uniformly across the Corridor,
what would happen if land were developed to 0.25 FAR uniformly across the Corridor (the
typical density of a suburban shopping center) and what would happen if land were developed to
Z' The weighted FAR for the Corridor was calculated by multiplying the FAR allowed by zoning code for each commercial
zoning code (B -1, B -2, B -3) by the percentage of the total square footage of commercial tax lots on the Corridor found in each
zoning code and summing the resulting numbers. Again, this number is unrealistic because it does not consider parking
requirements or market conditions.
22 ECO's previous work demonstrates that for a large area (dozens of acres, like a downtown) that has modest commercial
parking requirements (3 spaces per 1000 feet of gross leasable area (GLA)), the highest FAR achievable without structured
parking is about 0.75. With structured parking the calculations get ambiguous because one first has to decide whether the
structured parking counts as part of the floor area. If it does not, then average FARs of about 1.5 to 2.0 might be achievable in
areas where the GLA is supported by structured parking (assumes an average of three or four stories for buildings and parking
structures).
23 This existing FAR was calculated by dividing the square footage of built space on commercially zoned tax lots on the Corridor
by the total lot square footage of commercially zoned tax lots on the Corridor containing built space.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 25
0.50 FAR across the Corridor (the typical density of a smaller downtown, with one- or two -story
buildings and on -site parking).
Table 10. Potential square footage
available on commercial tax lots, in
square feet of built space, Sprague/
Appleway Corridor, 2006
Vacant commercial All commercial
tax lots built out to tax lots built out
FAR to FAR
FAR (sq ft) (sq ft)
0.20 695,000 5,856,000
0.25 869,000 7,321,000
0.50 1,738,000 14, 666, 000
Source: Calculated by ECO from GIS data provided by the City
of Spokane Valley (2006), Spokane County assessor's data
provided by the City of Spokane Valley from Metroscan (2006),
vacancy data provided by Studio Cascade(2006), and use data
provided by Freedman, Tung, & Bottomley Urban Design (2006).
Notes: Numbers rounded to nearest thousand. Vacant lots
include vacant and parking lots; all commercial tax lots exclude
open space, which is not assumed to be developable.
Table 10 shows that building out vacant commercial tax lots to 0.25 FAR —a density common
for suburban strip malls —would increase commercial built space by nearly 0.9 million square
feet. The Corridor currently has about 5.5 million square feet of commercial built space, so
development vacant and parking lots at suburban strip mall densities would increase commercial
space by approximately 16 %, to 6.4 million square feet. 24
In addition, this table shows that building out all commercial tax lots (except for open space) to
0.25 FAR would create 7.3 million square feet of commercial built space, increasing the amount
of commercial built space by 30 %.
Currently, commercial zoning on the Corridor allows densities much higher than 0.25 FAR:
densities of commercial zones B -1, B -2 and B -3 range from 1.25 to 1.8 FAR. Developing the
entire Corridor to the lowest of these maximum allowable densities would create 37 million
square feet of built space, almost 700% of current built space on the Corridor.
Those are big numbers, and they apply to the entire Corridor. What would it look like to raise the
FAR in only a section of the Corridor —that is, make one section of the Corridor more dense than
other sections? In particular, what kind of density might one expect to see in a new City Center?
We applied a generic, flexible density factor to illustrate what kinds of space could be available
in a new City Center. This generic factor could be applied to the acres or square footages of
commercial zoned tax lots present in a given area to compare how different City Center sites
could support higher density commercial spaces. Table 11 presents generic calculations of built
space per acre of commercial tax lot at different FARs.
24 5.5 million square feet of built space on the Corridor calculated by ECONorthwest from data provided by Studio
Cascade(2006) and use data provided by Freedman, Tung, & Bottomley Urban Design (2006).
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 26
Table 11. Generic examples of square
feet of commercial built space per acre
at different FARs
Source: Calculated by ECO.
Notes: Numbers rounded to nearest hundred
As an example of how the estimates in Table 11 can be used, consider that, based on our
experience, (1) a reasonable size for a small town center with mostly commercial uses is 300,000
to 500,000 square feet of built space, and (2) an average FAR at build out for small town centers
is between .30 to .50 (we use .35 for the sample calculation). Those assumptions yield an
estimate of 0.9 to 1.5 million square feet of land in tax lots in a downtown center with this
amount of built space. This translates into a 20 -30 acre downtown center excluding roads.
Adding a 20% allowance for the area in roads, the approximate total size of the downtown center
would be 25 -40 acres. If a downtown center in this size range were placed on the Corridor it
would represent 3 % -6% of the commercial zoned tax lots on the Corridor.
Implications for commercial development on the Corridor
ECO's analysis of the supply of and demand for commercial space on the Corridor leads to the
following conclusions:
• Estimated demand for commercial space on the Corridor will average about 40,000
square feet per year for the next 20 years: demand for retail space will make up about
21,000 square feet annually, and demand for office space will make up about 19,000
square feet annually.
The existing supply of commercial space on the Corridor is about 5.5 million square feet.
If the entire Corridor redeveloped to the density of a typical suburban strip mall, the
supply of commercial space would increase to 7.3 million square feet. Redevelopment of
the Corridor at this density would mean generating 365,000 square feet per year to the
supply of commercial built space for the next 20 years. Current zoning allows much
greater densities that would add millions of available square feet to this total.
Figure 7 shows a comparison of the demand for retail and commercial space on the Corridor and
the supply of commercial space under various development scenarios over a twenty -year period.
Figure 7 shows (1) the projected demand for retail space on the Corridor, (2) the projected
demand for all commercial space on the Corridor (including retail space), (3) the existing supply
of commercial built space on the Corridor, (4) the amount of commercial built space available on
the Corridor if all vacant lots and parking lots were redeveloped at 0.25 FAR —the typical
density for a suburban strip mall —added to the existing commercial built space, (5) the amount
25 This calculation takes the 20 to 40 acres in the downtown center and divides this number by the approximately 673 acres in
commercial zoned tax lots on the Sprague /Appleway Corridor.
commercial square feet
per acre of commercial
FAR
tax lots
Built to .20 FAR
8,700
Built to .25 FAR
10,900
Built to .35 FAR
15,200
Built to .5 FAR
21,800
Source: Calculated by ECO.
Notes: Numbers rounded to nearest hundred
As an example of how the estimates in Table 11 can be used, consider that, based on our
experience, (1) a reasonable size for a small town center with mostly commercial uses is 300,000
to 500,000 square feet of built space, and (2) an average FAR at build out for small town centers
is between .30 to .50 (we use .35 for the sample calculation). Those assumptions yield an
estimate of 0.9 to 1.5 million square feet of land in tax lots in a downtown center with this
amount of built space. This translates into a 20 -30 acre downtown center excluding roads.
Adding a 20% allowance for the area in roads, the approximate total size of the downtown center
would be 25 -40 acres. If a downtown center in this size range were placed on the Corridor it
would represent 3 % -6% of the commercial zoned tax lots on the Corridor.
Implications for commercial development on the Corridor
ECO's analysis of the supply of and demand for commercial space on the Corridor leads to the
following conclusions:
• Estimated demand for commercial space on the Corridor will average about 40,000
square feet per year for the next 20 years: demand for retail space will make up about
21,000 square feet annually, and demand for office space will make up about 19,000
square feet annually.
The existing supply of commercial space on the Corridor is about 5.5 million square feet.
If the entire Corridor redeveloped to the density of a typical suburban strip mall, the
supply of commercial space would increase to 7.3 million square feet. Redevelopment of
the Corridor at this density would mean generating 365,000 square feet per year to the
supply of commercial built space for the next 20 years. Current zoning allows much
greater densities that would add millions of available square feet to this total.
Figure 7 shows a comparison of the demand for retail and commercial space on the Corridor and
the supply of commercial space under various development scenarios over a twenty -year period.
Figure 7 shows (1) the projected demand for retail space on the Corridor, (2) the projected
demand for all commercial space on the Corridor (including retail space), (3) the existing supply
of commercial built space on the Corridor, (4) the amount of commercial built space available on
the Corridor if all vacant lots and parking lots were redeveloped at 0.25 FAR —the typical
density for a suburban strip mall —added to the existing commercial built space, (5) the amount
25 This calculation takes the 20 to 40 acres in the downtown center and divides this number by the approximately 673 acres in
commercial zoned tax lots on the Sprague /Appleway Corridor.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 27
of commercial built space available on the Corridor if all vacant lots, parking lots, and occupied
lots were redeveloped at 0.25 FAR, and (6) the amount of commercial built space available on
the Corridor if all vacant lots, parking lots, and occupied lots were redeveloped at 1.25 FAR, the
lowest maximum allowable density in the existing commercial zones on the Corridor. Figure 7
shows that potential supply of commercial space greatly exceeds projected demand for
commercial space on the Corridor. Redeveloping larger sections of the Corridor, or existing as
well as vacant properties, would create much more commercial space than the Corridor will be
likely to absorb.
Figure 7. Supply of and demand for commercial space, Sprague/ Appleway Corridor,
2006 -2026.
All lots redeveloped at 1.25 FAR
All lots redeveloped at 0.25 FAR
Existing supply + vacant lots and
parking lots at 0.25 FAR
Existing supply
Projected demand for all
commercial space
Projected demand for retail space
Source: Calculated by ECONorthwest.
Million square feet of space
As ECONorthwest concluded in the Sprague /Appleway Economic Analysis in 2004, maintaininf
the entire Corridor as a viable retail area is probably not feasible from an economic perspective. 6
Two types of public policy could encourage redevelopment of parts of the Corridor into
commercially viable areas:
• Concentrate development. A City Center model of redevelopment could focus the new
commercial space into a smaller area of higher density commercial development.
Because there is so much low - density space available for redevelopment, public policy
will need to provide direction about where a downtown center could be located within the
Corridor, and provide some type of incentives or public investment to encourage
redevelopment of that specific area. Reducing retail entitlements on the Corridor could
create places where other uses could have value.
• Lower maximum densities. A reasonable range of average density for planning
purposes should be greater than the current density (0.21 FAR) and less than the
maximum that could be achieved without structured parking (0.75 FAR). It should
26 ECONorthwest, Sprague /Appleway Economic Analysis, 2004, 1
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 28
probably be greater than what is typical in suburban shopping centers (0.25 FAR). Thus,
we think a reasonable target for an average commercially zoned tax lot for the downtown
is in the range of 0.3 to 0.5 FAR, with the likely achievement at the lower end of this
range. Note that this is an average: some individual developments might have higher
FARs, especially if the City helps with structured parking.
HOUSING DEVELOPMENT
The type of housing units demanded is driven by price, income and wealth, and demographic
characteristics (including population, household size, age distribution of household, marital
status, and whether or not children are in the household).
This section considers the demographic characteristics in Spokane Valley and local and national
trends in housing to forecast demand for housing types in downtown Spokane Valley. Our
objective with this analysis is not to develop a firm estimate for the amount of demand for
housing in the Corridor, but rather to illustrate some of the larger trends that are influencing the
market for housing in the Spokane area. Our analysis of commercial development concluded that
there is no shortage of supply of commercial land. Thus, re- zoning some commercial properties
to residential is a possibility. What we focus on in this section is answering this question: is there
a demand for housing in the Corridor, and if so, for what type of housing?
Both nationally and locally, changes in demographics and markets suggest increased demand for
smaller housing units and greater convenience to access work, shopping, and recreational
activities. The key trends include:
• There is a long trend (50 years) in the U.S. and the Northwest of decreasing household
size and increasing home size. There are good reasons to believe that those trends are
going to change.
• An aging population will create more "empty nest' and single- person households,
increasing relative demand for smaller housing units and multi - family housing that do not
require tenants to perform yard and building maintenance.
• A larger share of non - traditional families— singles, single parents, and couples without
children —will reduce relative demand for traditional single- family housing. Table 2
above shows that the number of people per household is decreasing for both Spokane
Valley and Spokane, which is consistent with national trends.
• Increased income inequality will increase relative demand at the high and low end of the
market, increasing relative demand for large single - family housing and affordable multi-
family units. Focus groups in Spokane Valley report a desire for more centrally located
affordable housing, including multi - family housing.
• Increasing real housing cost will force buyers to economize on land and built space, and
increase demand for more affordable housing.
27 If a city has a requirement for three on -site parking spaces per 1000 sq. ft. of GLA, then those spaces have to be provided
somewhere unless the city changes the requirements. So, yes, if a developer puts a 3 -story building with a 10,000 sq. ft footprint
on a single tax lot of 10,000 sq. ft., the FAR might be almost 3.0 (less, because of set -back requirements). But the parking
requirements mean that the developer must also provide 90 on -site parking spaces somewhere; for surface parking that will
require about 30,000 square feet. Thus, the average FAR of that development is 30,000 (built space) / 40,000 (land area) = 0.75.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 29
• If the population grows as forecasted and the residential land supply continues to
decrease, the price of land will increase, reducing lot sizes for single- family development
and increasing densities for all residential structure types.
• Households must trade off the housing characteristics they want with the price they have
to pay to get them. Higher - density housing will be more successful if it incorporates
characteristics households look for in standard single - family homes, such as privacy,
security, and storage.
These are broad forces. They do not imply that all, or even most, members of the aging
population will be moving from single - family to multifamily homes. Rather, they are reasons to
expect the modest shifts from the historical rates of single - family housing development to
slightly lower rates.
ECONorthwest has reviewed of the literature that describe the demographic makeup of `smart
growth' development. The dominant theme throughout the national smart - growth literature is
that the primary market for denser, pedestrian- friendly housing is baby boomers, followed by
young professionals without children. The literature focuses on analysis of demographic trends
coupled with survey data to suggest that homebuyers aged 45 or older that prefer denser,
pedestrian- friendly housing will make up almost one -third of total homeowner growth during the
2000 -10 period.
Many of the articles report the importance of denser, pedestrian- friendly environments to those
aged 45 and older. Few, however, identified the relative importance to residents of whether they
were located in the downtown area of a large urban area, a smaller urban area, or a suburb that
has been developed within smart- growth parameters. Focus groups in Spokane Valley reported a
desire for more housing that meets the "live- work" concept, demonstrating the importance they
place on denser, pedestrian- friendly environments.
Nationwide, researchers have found that neo- traditional developments maintain their value better
than do conventional developments. The New Urban News conducted a non - scientific survey of
housing prices, and found that the best new urban communities achieve greater value as they
mature in a way that conventional developments do not. One new - urbanist advocate has argued
that, "if what you're selling in a development is privacy and exclusivity, then every new house is
a degradation of the amenity. However, if what you sell is community, then every new house is
an enhancement of the asset. "
The housing market in Spokane County is just beginning to show some characteristics outlined
above. Single - family housing prices are increasing, but the public still wants to own "a piece of
the American dream." Together, these factors suggest to one analyst that Spokane County is
beginning to "embrace the condo lifestyle. " Additional trends for Spokane County, particularly
Spokane Valley:
28 Katz, Peter. 2002. "Individual Investors Can Profit from New Urbanism" in New Urban News. Volume 7, number 6.
September.
29 Barcus, Randy. "Spokane Area Residential Construction Trends Multi- Family Rental Market and Condominiums," Avista
Corp., May 2006.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 30
• Residential construction continues to increase in Spokane County. According to
Spokane County residential building permit data, the growth in residential building
permits has been an annual average of 4% since 1980.
• Multifamily residential construction outpaces single - family construction. Since 1990,
multifamily residential construction of structures with more than 3 units has grown faster
(at a 7% average annual growth rate) than growth in residential building overall (5 %).
Residential building permits grew at over 15% average annually since 2000, and duplex
construction increased by 29 %.
• Prices for single - family homes in Spokane are increasing. The price of housing in the
Spokane metropolitan area has increased rapidly: since 1990, the median selling price of
a single - family home increased 170% from $55,500 to $150,000 in 2005. Nearly half of
that increase occurred between 2000 and 2005.
• Apartments vacancy rates in Spokane County are declining. The overall apartment
vacancy rate for Spokane County declined from 8.3% to 5.3% between 1998 and 2005.
The apartment vacancy rate for Spokane Valley also has declined from 9.1% in 1998 to
6.4% in 2005.
These trends are consistent with predictions based on long -run demographic shifts: that
multifamily (or attached single - family) homes, with ownership, be increasingly attractive to
some Spokane County residents. Residential building permits for Spokane Valley for 2005
support this conclusion. In 2005 the City of Spokane Valley issued 396 permits for 1- and 2 -unit
dwellings, but issued 711 permits for structures with more than 3 units.
We are not predicting a quick or radical shift in composition of housing demand. What we are
saying is that demographics and housing cost are both moving in the direction of increased
demand for slightly denser housing in urban setting. It does not take much of a shift to create a
market. There were about 3 800 housing units built in 2005 in Spokane County, and about 30%
of these were multifamily. 3d If multifamily demand increases from 30% of total housing units to
40% of total housing units (adding an additional 400 multifamily dwelling units per year to the
housing stock), and if just 10% of the total multifamily housing demand is for urban-type
products, that is a demand for about 150 units per year. That is not a big number for all of
Spokane County, but it is all urban demand, and would be going primarily to Spokane and
secondarily to Spokane Valley.
Outlook for housing in the Corridor
Currently, the Sprague - Appleway Corridor is almost entirely a commercial area, with residential
development occupying areas immediately north and south of the Corridor. Is there a demand for
multifamily residential units in the Corridor itself?
The market for urban-style residential products (e.g., townhouses and mid -rise stacked flats) is
driven by demand for urban amenity and lifestyle. Urban housing opportunities are almost
always connected to amenities such as retail, entertainment, or recreation opportunities. While
the City of Spokane is beginning to offer such urban amenities, such as the retail areas and
so Real Estate Research Committee, Residential Building Permits, Spokane County, The Real Estate Report: Regional Research
on Spokane and Kootenai Counties, volume 30, number. 1, 2006.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 31
Centennial Trial connecting areas of Kendall Yards, the Corridor does not offer any similar
attractions.
Based on the increasing house prices, declining vacancy rates for apartments in Spokane County,
and the continued desire for home ownership, we believe that there will be a growing market for
multifamily development in mixed -use projects, especially condominiums, in Spokane County.
Whether that type of residential development could occur in the Corridor depends on how the
Corridor transforms itself. As it exists now, the Corridor offers no urban amenity. If it stays that
way, we would expect housing on the Corridor to be garden apartments (two- and three- story,
woodframe, surface parking, isolated developments). If the number of desirable amenities,
including retail and recreational opportunities, were to increase, other residential products might
be possible.
Stakeholders believed that creating neighborhood amenities would be critical to developing a
market for mixed -use or condominium housing in the Corridor. Such amenities would include
streetscape and traffic - calming improvements, parks, and restaurants. Stakeholders believed that
a City Center would be more attractive than other locations on the Corridor, but a City Hall and
Library were not attractive enough, by themselves, to draw residential projects. More amenities
would be necessary. If various types of amenities developed in the Corridor, nearby lower -
density residential neighborhoods could help to provide the density needed to support these
projects. This expanded market could help to justify the costs of increased residential density in
the Corridor.
ECONorthwest interviewed realtors in Spokane about the value of retail and housing
entitlements near the Corridor. 31 One -third of the lots in the Corridor study area is currently
zoned residential. Generally residentially zoned land on the Corridor is not on busy streets or at
signaled intersections. Realtors noted that the land values for primary parcels (those directly on
busy streets or at signaled intersections) are between $8 and $25 per square foot (for both vacant
and occupied sites). When looking at the Corridor as a whole, the lower bound of parcel values
dropped to $6 per square foot. The range of prices per square foot on the Corridor is low relative
to the price of commercial property elsewhere in Spokane Valley. The price range for single -
family residential lots ranges from $5 to $7 dollars per square foot. Thus, lower price
commercial land and buildings has the same approximate value as residential land.
Multifamily residential redevelopment could be feasible on the lower -priced secondary parcels
(sites on arterial streets and non - signaled intersections). Realtors noted that developers are
willing to pay about $2.50 to $3.00 per square foot for land for multifamily development—less
than the lower bound for commercial parcels on the Corridor. But realtors noted that there is
opportunity for multifamily development if a seller is found who is willing to take the offer of
$3.00 per square foot today versus an uncertain $6.00 per square foot at some point in the future.
Secondary parcels on the Corridor are more likely to sell for the $2.50 to $3 per square foot
range needed to make multifamily residential development projects pencil.
In addition to price, realtors listed several important conditions for multifamily residential
redevelopment to happen on the Corridor. Multifamily residential projects must be integrated
31 ECONorthwest interview with Scot Auble, Auble, 7olicouer & Gentry, September 28, 2006 and Grant Person, Tomlinson
Black Commercial Inc. September 29, 2006.
Corridor Market Analysis, Phase II, Task 3 ECONorthwest 29 September 2006 Page 32
into the urban design of the area, which generally requires creating a master planned
development. To create the opportunity for successful multifamily residential redevelopment on
the Corridor the City needs to include provisions in its master planning for the area to ensure
appropriate setbacks for multifamily development and congruent uses adjacent to the multifamily
development creating a buffer for the development.
Multifamily redevelopment is more feasible on the arterial streets near University Road between
Sprague and Appleway and south of Appleway. Realtors noted that placing apartments in the
middle of the block along arterials with commercial uses acting as "bookends" on Sprague
and/or Appleway would be a potentially successful design for siting multifamily residential
redevelopment on the Corridor. Siting a town center on the Corridor provides an opportunity to
create both amenities that will draw multifamily residents and a master plan that will integrate
these residents into a denser commercial center.
Spokane County is likely to move slowly toward some higher -end, higher - density urban
residential products, but they will be most attractive in either existing and denser urban areas
(like in and around downtown Spokane) or on greenfield sites where developers have enough
land to control and create a total lifestyle environment. Spokane Valley will certainly see
multifamily development, but it is likely to be primarily of the garden - apartment variety. Getting
any substantial concentration of urban-type housing products on the Corridor is not likely to
happen unless the Corridor transforms itself from its strip - commercial development pattern. And
that transformation is not likely to happen without public participation in the creation of urban
amenity, and concentrated, rather than disperse, investment. All that points to the importance of
creating a City Center as a catalyst for mixed -use, urban development that would include some
housing if there is to be much chance of getting new housing products along the Corridor.
The other significant housing opportunity in the Corridor is along the now vacant Appleway
right -of -way. If this right -of -way were developed as a boulevard (trees, open space, pedestrian
amenity, traffic calming) if would create opportunities for controlled, large -scale development
that is now only possible at the urban fringe.
APPENDIX: RETAIL SALES
This Appendix provides detailed tables for taxable retail sales in the study area.
Table A -1 shows the growth in the level of taxable retail sales in Spokane, Spokane County, and
Washington between 1994 and 2005 (all dollars have been converted to 2005 dollars). Taxable
retail sales grew by 55% in Spokane County over this period, compared to only 36% in
Washington. For context, population grew by 10% in Spokane County and 17% in Washington
over this same period. So, not only did taxable retail sales grow more rapidly in Spokane County
than in Washington between 1994 and 2005, it did so while having a lower population growth
rate than the State.
Table A -1 also shows that total taxable sales in the City of Spokane grew by only 2% during this
same period. This relatively low growth rate reflects the maturation of new development in
Spokane as the city has built out -new retail development is increasingly locating outside of the
City of Spokane, causing the County to have a higher growth rate for taxable sales than the City.
As a result, the City's share of total taxable retail sales in the County fell from 90% in 1994 to
60% in 2005. This declining share applied to all sectors, even the retail and service sectors in
which Spokane has a relatively large concentration of businesses and sales. While Spokane is
still the largest city and commercial center in the County, a substantial portion of commercial
activity shifted away from Spokane as the County grew over the last decade.
Table A -1. Taxable retail sales in Spokane, Spokane County, and Washington,
19942005 (millions of 2005 dollars)
Sector
1994
City of Spokane
2005 Growth
%
1994
Spokane County
2005 Growth
%
Washington
Growth %
Agriculture, Forestry, & Hunting
$0.7
$0.6
-$0.2
-21%
$1.6
$2.4
$0.8
48%
$21.2
23%
Mining
$0.4
$0.2
-$0.2
A2%
$0.6
$0.8
$0.1
18%
$43.7
85%
Utilities
$1.1
$0.9
-$0.2
-14%
$1.1
$1.1
$0.0
-3%
-$80.3
-51%
Construction
$389.0
$418.9
$30.0
8%
$520.0
$786.2
$266.2
51%
$7,284.8
65%
Manufacturing
$82.4
$68.0
-$14.4
-18%
$93.3
$169.6
$76.3
82%
$32.3
1%
Wholesale Trade
$417.4
$337.8
-$79.6
-19%
$447.3
$482.8
$35.6
8%
$600.6
8%
Retail Trade
$1,690.7
$1,690.2
-$0.5
0%
$1,799.6
$2,992.8
$1,193.2
66%
$12,614.6
38%
Transportation & Warehousing
$4.2
$6.4
$2.2
52%
$6.0
$9.0
$3.1
52%
$101.7
33%
Information
$141.0
$166.7
$25.7
18%
$163.7
$222.8
$59.2
36%
$1,145.5
33%
Finance & Insurance
$30.4
$48.5
$18.1
60%
$31.8
$62.0
$30.2
95%
$297.3
43%
Real Estate, Rental & Leasing
$62.3
$97.0
$34.7
56%
$67.8
$133.3
$65.5
97%
- $111.9
-4%
Professional & Technical Services
$55.8
$55.1
-$0.7
-1%
$60.2
$79.4
$19.2
32%
$531.0
43%
Management of Companies
$0.0
$0.0
$0.0
n/a
$0.0
$0.0
$0.0
n/a
$13.3
212%
Admin Support & Waste Management
$59.8
$62.8
$3.0
5%
$66.4
$92.7
$26.3
40%
$671.8
54%
Educational Services
$4.8
$7.0
$2.2
47%
$10.1
$13.9
$3.8
37%
$31.0
23%
Health Care & Social Assistance
$12.9
$14.3
$1.4
11%
$13.4
$17.6
$4.3
32%
$43.7
19%
Arts, Entertainment, & Recreation
$16.6
$18.3
$1.7
10%
$18.2
$30.9
$12.7
70%
$242.2
36%
Accommodation & Food Services
$307.5
$361.4
$53.9
18%
$328.5
$545.0
$216.4
66%
$2,803.5
42%
Other Services
$114.9
$119.5
$4.6
4%
$126.6
$190.4
$63.8
50%
$568.4
22%
Public Administration
$7.7
$5.1
-$2.6
-33%
$9.8
$5.7
$4.0
-41%
$18.3
64%
Total
$3,399.6
$3.478.8
$79.2
2%
53.766.0
$5.838.5
52.072.5
55%
526.872.7
36%
Source: Washington Department of Revenue http: / /dor.wa.aov /content/statistics / . 1994 dollars converted to 2005 dollars by
ECONorthwest using the chain -type price index for the Personal Consumption Expenditures component of Gross Domestic Product,
as reported by the Bureau of Economic Analysis. Data summarized by sector and growth rates calculated by ECONorthwest.
Table A -2 shows the level of taxable retail sales in Spokane Valley in 2005, with sales in
Spokane County and Washington for context. Data for taxable retail sales over the 1994 -2002
period is not readily available for Spokane Valley because it was not incorporated as a city
before 2003. Taxable retail sales in Spokane Valley accounted for 30% of total taxable retail
sales in Spokane County in 2005, while Spokane Valley accounts for only 19% of the County's
population. In addition, incomes are comparable in Spokane to the rest of the County. These
Appendix: Economic development examples ECONorthwest 29 September 2006 Page 2
facts indicate that Spokane Valley attracts retail sales from population not living in Spokane
Valley.
The Retail Trade sector has the largest share of total taxable retail sales in Washington, Spokane
County, and Spokane Valley. Table A -2 shows that Spokane Valley has a higher share of its
sales from Retail Trade than Spokane County or Washington, 62% compared to 51 % in Spokane
County and 45% in Washington.
Table A -2. Taxable retail sales in Spokane Valley, Spokane County, and
Washington, 2005 (millions of dollars)
Sector
Spokane Valley
2005 %
Spokane County
2005 %
Washington
2005 %
Spokane Valley
% of Count
Agriculture, Forestry, & Hunting
$0.9
0%
$2.4
0%
$114.9
0%
40%
Mining
$0.2
0%
$0.8
0%
$95.0
0%
27%
Utilities
$0.1
0%
$1.1
0%
$77.1
0%
13%
Construction
$169.9
10%
$786.2
13%
$18,515.4
18%
22%
Manufacturing
$80.3
5%
$169.6
3%
$2,492.0
2%
47%
Wholesale Trade
$97.6
6%
$482.8
8%
$8,239.8
8%
20%
Retail Trade
$1,081.0
62%
$2,992.8
51%
$46,187.5
45%
36%
Transportation & Warehousing
$2.3
0%
$9.0
0%
$409.5
0%
25%
Information
$31.7
2%
$222.8
4%
$4,627.8
5%
14%
Finance & Insurance
$9.1
1%
$62.0
1%
$989.0
1%
15%
Real Estate, Rental & Leasing
$22.5
1%
$133.3
2%
$2,653.6
3%
17%
Professional & Technical Services
$17.1
1%
$79.4
1%
$1,757.6
2%
22%
Management of Companies
$0.0
0%
$0.0
0%
$19.6
0%
0%
Admin Support & Waste Management
$15.8
1%
$92.7
2%
$1,917.8
2%
17%
Educational Services
$0.3
0%
$13.9
0%
$164.0
0%
2%
Health Care & Social Assistance
$2.6
0%
$17.6
0%
$277.1
0%
15%
Arts, Entertainment, & Recreation
$8.4
0%
$30.9
1%
$914.8
1%
27%
Accommodation & Food Services
$139.4
8%
$545.0
9%
$9,520.3
9%
26%
Other Services
$52.0
3%
$190.4
3%
$3,124.3
3%
27%
Public Administration
$0.1
0%
$5.7
0%
$46.8
0%
1%
Total
$1,731.5
100%1
$5,838.5
100%
$102
100%
30%
Source: Washington Department of Revenue htto:// dor.wa.Qov /content/statistics / .
To reach conclusions about the level of retail activity in Spokane Valley relative to other urban
areas, we examined taxable retail sales per capita in Spokane Valley. Per capita taxable retail
sales is higher in Spokane Valley than in Spokane, Spokane County, and Washington state, but
incomes are not. Average income in Spokane Valley is lower than in Washington state, but per
capita retail sales are significantly greater.
Table A -3 shows that the level of taxable retail sales in Retail Trade is roughly 50% higher in
Spokane Valley than in Spokane or Washington. This indicates that Spokane Valley attracts a
disproportionate share of retail expenditures for its population. Examination of taxable retail
sales data by industry shows that about half of the increased sales per capita in Spokane Valley is
from the sales of Motor Vehicles and Parts - primarily the dealers on Auto Row. Spokane Valley
also has relatively high level of sales per capita in Building Materials and General Merchandise.
Outside of Retail Trade, taxable sales per capita in Spokane Valley are lower than the state
average for the Information, Real Estate, Professional & Technical Services, and Administrative
Support & Waste Management sectors. Comparable levels in Spokane are higher than or at the
state average. This suggests that Spokane Valley is getting less than it's share of businesses in
Appendix: Economic development examples ECONorthwest 29 September 2006 Page 3
the services sector. Many firms in these sectors occupy offices rather than retail commercial
structures.
Spokane Valley does have a higher level of taxable retail sales per capita than Washington in the
Accommodations & Food Services sector, but not as high as the level in Spokane. Here again
this suggests that Spokane Valley is getting less than its share of this business activity.
The relative level of taxable retail sales per capita indicates how businesses see the relative
advantages and disadvantages for business activity in Spokane Valley. In short, Spokane Valley
appears well suited for businesses in automobile sales, building materials, general merchandise,
and related industries, and less well suited for commercial offices, hotels, and restaurants.
Table A -3. Taxable retail sales per capita in Spokane Valley, Spokane, and
Washington, 2005
Sector/ Industry
Taxable Retail Sales per Capita
Spokane
Valley Spokane Washington
Relative to State
Spokane
Valley Spokane
Retail Trade
$12,720
$8,510
$7,380
$5,340
$1,130
Motor Vehicle and Parts Dealers
$4,180
$1,590
$1,930
$2,250
-$340
Furniture and Home Furnishings
$300
$500
$330
-$30
$170
Electronics and Appliances
$290
$630
$420
-$130
$210
Building Materials
$1,900
$740
$790
$1,110
-$50
Food and Beverages
$350
$610
$470
-$120
$140
Health and Personal Care
$320
$300
$190
$130
$110
Gasoline Stations
$280
$170
$200
$80
-$30
Clothing and Clothing Accessories
$710
$800
$500
$210
$300
Sporting Goods, Hobby, Book, and Music
$630
$490
$290
$340
$200
General Merchandise
$2,960
$1,680
$1,420
$1,540
$260
Miscellaneous Retailers
$660
$760
$620
$40
$140
Nonstore Retailers
$130
$230
$220
-$90
$10
Information
$370
$840
$740
-$370
$100
Real Estate
$260
$490
$420
-$160
$70
Professional & Technical Services
$200
$280
$280
-$80
$0
Admin Support & Waste Management
$190
$320
$310
-$120
$10
Accommodation & Food Services
$1,640
$1,820
$1,520
$120
$300
Other Services
$610
$600
$500
$110
$100
Source: Taxable retail sales from the Washington Department of Revenue. Taxable retail sales per capita calculated by
ECONorthwest.