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SPOKANE, Wash. – Investment pouring into downtown Spokane is transforming the city that serves as the hub for the Inland Northwest. 

Hundreds of new and proposed public and private construction projects have delivered a one-of-a-kind retail center, restored grand hotel, and a plethora of businesses, restaurants, stores, cultural and entertainment venues in the past four years.  These projects are valued at over $1.1 billion and include commercial, office, retail, hospitality, mixed use, residential, commercial, educational, and government real estate developments.

This new investment is bringing new vitality and vigor to downtown, serving as an economic catalyst, and infusing revenue into the local economy through taxes and fees, jobs, business attraction and retention, tourism, and more. 

Major Projects Spark Revitalization
Spokane’s renaissance began just over four years ago.  Like many cities across the country, Spokane saw an exodus of retailers from downtown to suburban areas in the 1990’s.  A plan to reverse this trend was spearheaded in the late 1990’s by the developer of an existing downtown shopping center called River Park Square, originally built two decades earlier. 

“Our vision was to redevelop River Park Square into a world-class urban shopping destination, featuring a new Nordstrom store, state-of-the-art theatre, and nationally recognized one-of-a-kind tenants,” said Betsy Cowles, president of River Park Square, LLC.  “The result would be an invigorated downtown bustling with life, activity, and commerce.” 

Through a public-private collaboration with the City of Spokane, the $115 million River Park Square re-opened in the summer of 1999. 

The following year, downtown Spokane got another major boost when local developers Walt and Karen Worthy purchased the turn-of-the-century Davenport Hotel and embarked on a restoration of the historic hotel.  The Davenport had sat empty for 15 years.  It re-opened in July 2002 as a four-star hotel and centerpiece for the region’s social and business activities. 

Susan Carmody, owner of Jigsaw, a women’s boutique, moved to Spokane while the Davenport was under renovation and the renaissance was just taking hold.  “The attitudes downtown were so contagious,” she says.  “I saw bright, sophisticated, well-educated people who were firmly invested in making a transition to a totally new downtown. And guess what? It’s happened!”

Arts and Culture Scene Emerges
Amidst its changing landscape, downtown Spokane has evolved as a regional hub for diverse arts, culture and entertainment.  At the western end of downtown, the Northwest Museum of Arts and Culture’s (MAC) $28 million expansion provides a new venue for world-class art exhibits, lectures, and more.  At the east end, the Spokane Convention Center and Opera House plays center stage to Broadway shows, concerts, and other live performances.  A $70 million, voter-approved facility expansion of the Convention Center is currently underway. 

The Davenport Arts District, a ten-block area of downtown, features a number of new and proposed art galleries, restaurants, and performance venues.  The Fox Theatre is undergoing a $28 million restoration into a live music hall for the Spokane Symphony and others.  The Big Easy, a new $7 million concert hall and restaurant, opened in early 2004 and is staging live entertainment for capacity crowds.  Heroes and Legends, a nearby high-tech sports bar opened in 2003 and plans call for Spokane’s first upscale jazz club.

Doug Smith is the project director of RailSide Center, an eight-building creative incubator in the District.  “We’re seeing tremendous interest from investors in the Seattle area,” he said.  “They believe Spokane is on the verge of a substantial growth spurt in comparison to other areas.” 

Community-wide arts and cultural events, such as the First Night New Year’s Eve arts celebration and the Martin Luther King, Jr. Day community rally and march are drawing tens of thousands of singles and families into downtown and gaining in popularity. 

Downtown Housing Added to Mix
Market rate housing is being introduced into the urban renaissance.  A number of historic buildings were recently redeveloped into residential units including the Blue Chips Lofts and Kempis Condo’s, among others. 

National housing consultant Laurie Volk estimates the demand for market rate residential units in downtown Spokane will support about 300 new housing units per year over the next five years.  Volk, a partner with Zimmerman/Volk Associates, Inc. based in New Jersey, believes lofts are the first step. 

Eleven lofts in a century-old downtown warehouse recently pre-sold in a matter of weeks, according to Blue Chips Lofts real estate agent Suzy Luby.   And developer Rob Brewster announced a one-of-a-kind $16 million residential-commercial development, Havermale Park, in spring 2003 that will include 150 apartments, plus retail shops, restaurants and pubs in downtown.  Construction is underway.

Economic Development Enhanced
The revitalized downtown has provided a significant economic boost for both the urban core and the surrounding area.  Millions in taxes and fees have been generated for the City of Spokane through the new and expanded downtown businesses.  River Park Square alone has paid over $11.2 million in taxes and fees to the City and city services.  More than 1,100 area residents work at River Park Square. 

Spokane’s vibrant downtown is also helping local economic development organizations attract companies to the region.

“The ability of a community the size of Spokane to attract new industry, be it office or manufacturing is enhanced by a strong downtown core,” according to Don Schjeldahl, consultant with Cleveland, Ohio-based The Austin Company.  “Your growing downtown makes Spokane more attractive to a wider range of investment.”

Local developer Ron Wells emphasizes the power of the renaissance to generate continued investment:  “The River Park Square investment has generated success by drawing thousands of customers downtown on a continuing basis.  The investment community has shown a renewed financial commitment to downtown and these efforts will continue to make downtown Spokane ever more vibrant, exciting and entertaining.”

At the statewide Governor’s Economic Development Summit in the fall of 2002, national downtown revitalization expert Donovan Rypkema praised downtown Spokane’s progression.  Rypkema is principal of Place Economics, a Washington D.C. based consulting firm.

“Downtown Spokane is a good example of things that have gotten steadily better,” said Rypkema.  “The right things are happening for long term success.”