RIVER PARK SQUARE AND CITY RESOLVE LEGAL DISPUTE

An agreement to end the long-standing complex and costly legal dispute between the River Park Square developer and City of Spokane involving a public-private project that has revitalized downtown was approved by the City Council today. 

“We’re pleased to have reached a solution that will put this dispute behind us and allow us to move on as a community,” said Steve Rector, chief financial officer for River Park Square.  “We’ve worked very hard to find a resolution.  The issues and the solution have been painful and difficult for everyone.”

The agreement resolves all of the complex issues, with concessions made by each party.   One main element of the agreement requires the developer to repay and guarantee the Section 108 HUD loan guarantee, a federal loan used for the center’s construction. 

“We have been very concerned about the loan and its relationship to community- based programs all along.  By making a commitment to pay the HUD loan, the developer will ensure funding for needed programs funded by community block grants,” Rector said.      

Rector credits the City for working to reach agreement and for its genuine interest in reaching a resolution.   

“This agreement is a result of strong leadership and commitment by the parties involved.  This approval signals progress for Spokane,” he added.  

River Park Square was redeveloped as a regional shopping, dining and entertainment center in 1999 with the purpose of revitalizing a seriously declining urban core.  Litigation began in 2000 when parking garage revenues did not meet projections.  Numerous efforts to resolve issues with previous City staff and elected leadership were unsuccessful.     

Despite the issues, the center has created jobs and boosted the economic vitality of downtown.  Since 1999, an estimated $1.2 billion in new investment has been made in downtown, including a range of office, commercial, retail and public projects.  Additionally, it has generated nearly $12 million in tax and fee revenue for the City of Spokane.

With these issues resolved, Rector said the developer is committed to economic development initiatives, and will continue to seek out opportunities to create jobs and support a bright economic future for Spokane.