The urban redevelopment project that has sparked a downtown renaissance in this Inland Northwest city bucked the nation’s retail recession and outperformed industry sales averages during the holiday season and for the year.  

River Park Square, a 373,000-square-foot shopping, dining and entertainment center, opened in August 1999 as part of a public-private collaboration with the City of Spokane, and is a vital economic development tool for the city.  

“River Park Square is emerging as the centerpiece for the new downtown and regional shopping,” said Betsy Cowles, president of River Park Square LLC, the company that developed the $115 million project.  “Shoppers and visitors are embracing the fun and unique experience River Park Square offers, and the numbers demonstrate they are supporting the center and the new offerings downtown.” 
 

Retail Sales Exceed Industry Average

River Park Square same store sales for the 2002 holiday season outpaced 2001 by five percent, despite a late Thanksgiving which shortened the traditional holiday shopping season by six days. 

“River Park Square performed better than the national average during both the holiday season and the year,” according to Laurie Breidenbach, retail analyst for Ragen MacKenzie, a division of Wells Fargo Investments, LLC in Seattle.  “Despite the nationwide economic downturn that has negatively impacted much of the retail industry, River Park Square sales showed strength.” 

Annual gross retail sales at River Park Square topped $67 million in 2002, up four percent over 2001, and up 15 percent over 2000.  (See Chart A)  Nationwide, retailers experienced slower sales growth in 2002 with an average year-over-year increase of three percent, added Breidenbach.

A U.S. regional sales report published by the National Retail Federation stated that 2002 retail sales growth nationwide were the weakest in a decade, with the Western region performing the poorest, rising just 2.7 percent. 

Eddie Bauer’s downtown Spokane store was a stand-out for the Northwest-based clothing and active gear retailer.  

“We had a great holiday season,” said Nancy Britton, store manager for Eddie Bauer at River Park Square.  “There were a lot of people shopping our store including a lot of visitors to Spokane who see River Park Square as a destination shopping center.”

Accordingly, business in the 1,300-stall covered parking garage kept pace with retail sales at River Park Square in 2002.  Gross revenues and car counts reached an all-time high in December 2002, at $255,000 and 101,600 respectively. (See Charts B/C)   Garage revenues for the year ran four percent ahead of 2001, and 18 percent ahead of 2000. 

River Park Square Delivers Significant Economic Impacts

The momentum of the downtown revitalization project has generated significant economic impacts throughout the region.  Through December 2002, the downtown retail center has generated more than $20 million in tax and fee revenues paid to the State of Washington, $1.3 million to Spokane County, and $9 million to the City and city services including $1.2 million to Spokane School District 81, $902,000 to the Spokane Transit Authority, and $306,000 to the Public Facilities District. (See Charts D/E)  

“At a time when the City of Spokane and the State of Washington are facing serious budget constraints from the slowed economy and reporting flat or negative sales tax revenues, the success of this project and all of the benefits that it is delivering are a bright spot,” Cowles said. 

Approximately 1,200 people are employed at River Park Square, which also serves as an important tool to attract companies, employees, conventions and tourists to the region.  According to the Spokane Regional Convention and 
Visitor’s Bureau (CVB), River Park Square is a strong card to play in showcasing the region as a tourist destination.  

“The Spokane region has proven itself recently as an extremely desirable destination for visitors,” said John Brewer, president of the CVB.  “Thanks to downtown revitalization…our community is undertaking a new direction.”

The CVB reported nearly $500 million in travel and tourism spending in 2002.  It credits River Park Square and the overall changes in the marketplace as helping its success. 

River Park Square is succeeding in fulfilling its vision 
to spark downtown revitalization.  

Over the past four years, an estimated $1 billion in new investment has been made in and around the urban core, investment that has generated a renaissance and includes more than 400 projects - commercial, arts & cultural, dining, hotel, office, and more.

According to statistics recently released by the Washington State Historic Preservation Office, developers in Spokane invested nearly the amount on historic rehabilitation projects as the rest of the state combined.  Spokane developers spent over $27 million in historic rehabilitation in 2002; all the other cities in Washington combined spent about $30 million. 

“The diversity and quantity of recent downtown investment has created an exciting and vibrant urban center that is full of activity,” said Mike Edwards, president of the Downtown Spokane Partnership. “The progress downtown has taken place in incremental steps which will help sustain long-term success.”