RIVER PARK SQUARE HIGHLIGHTS 2001 PROGRESS AND IMPACTS
Downtown Revitalization Project Continues to Generate Significant Economic Impact to the City of Spokane and its Citizens

SPOKANE, Wash. – River Park Square today released 2001 year-end economic impacts which demonstrate that the $115 million downtown revitalization project continues to perform well in a slowed economy and underscore that the retail center is making a significant economic impact and spurring economic vitality downtown.   

Net gain delivered
Through year-end 2001, the City of Spokane will receive an estimated $7.2 million in tax and fee revenue directly from River Park Square.  This amount is an increase from the $6.2 million previously reported through second quarter 2001.  A portion of these funds benefit Spokane citizens through City-funded human services programs and have provided $925,000 in funding for public schools, $718,000 for transit, as well as funding for other vital city services through year- end 2001.  

“River Park Square was built with a vision to help revitalize a seriously declining downtown,” said Betsy Cowles, developer of River Park Square.  “We’re proud of the tremendous progress and impact it is making through tax revenues, jobs and downtown revitalization.  It’s a net gain for the City of Spokane.”

In total, the State of Washington, Spokane County and the City of Spokane will have received approximately $24.5 million in revenue from sales taxes, property taxes and construction permit fees paid by River Park Square through 2001 

Retail sales are steady
The drawing power of River Park Square’s mix of local, regional and national specialty shops has allowed many of the center’s tenants to sustain steady sales despite a slowed regional and national economy. 

Retail spending in Spokane County the first half of the year was a bright spot in the local economy, posting a seven percent increase over the prior year, according to the Spokane Business Barometer.  Following a temporary slow down as an aftermath of the events of September 11, 2001, a strong fourth-quarter rally boosted annual retail sales at River Park Square to record levels for the redeveloped center that opened August 1999.  

Local long-time downtown retailer, Gary Anderson, co-owner of River Park Square tenant Anderson & Emami, a fine men’s clothing store, said he was pleased with his store’s business.    “Our store had a really strong fourth quarter and a great holiday season,” Anderson commented. 

Gross retail sales at River Park Square topped $64.5 million in 2001, an increase of 10 percent over 2000.   Increases were credited to the openings of the Atrium Cafes on 3, River Park Square’s food collection featuring three eateries, locally-owned Miaz Boutique, and national retailer Casual Corner and Petite Sophisticate, as well as increasing consumer acceptance of the center and a growth in downtown events that are attracting throngs of people.  

During a recent breakfast forum in Spokane, Nordstrom Executive Vice President of Full Line Stores Erik Nordstrom addressed how important Nordstrom’s Spokane store is to the company and its ongoing commitment to serving the Spokane community.  

Cowles added that River Park Square is currently 90 percent leased and occupied, and while expansion plans of many local, regional and national retailers have stalled due to the slowed economy, leasing efforts will continue in 2002 to fill remaining spaces.

Downtown revitalization in full swing
Spokane’s urban core has experienced a surge in new investment since River Park Square opened.  Over the last 28 months, more than 50 new projects were proposed, underway, or completed in the downtown core, totaling nearly $370 million.  This includes large-scale regional attractions, such as the Northwest Museum of Arts and Culture, the Davenport Hotel, and the Fox Theater, as well as new construction and rehabilitation relating to projects such as the Holley Mason Building, Courtyard Office Suites, and the Riverside Centre 25-story highrise.     

 “The River Park Square investment has generated success by drawing thousands of customers downtown on a continuing basis,” said Ron Wells, Vice Chair of the Downtown Spokane Partnership and developer of many downtown office and residential projects.  “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.”

According to Wells, downtown Spokane is also improving its position as the Inland Northwest’s hub for arts, cultural and community events and activities.  Millions of people gathered in the downtown area during 2001 to take part in a host of events and activities. 

Thousands of Spokane area residents poured into downtown Spokane to ring in the New Year at the Inland Northwest’s first annual First Night Celebration.  According to First Night organizer Kay Lester, the event drew over 15,000 people downtown.   

“We wanted the heart of First Night Spokane to be in the heart of Spokane, which is why we chose downtown Spokane, and the heart of downtown is River Park Square,” said Lester.  “Many of the First Night activities took place at the shopping center and it provided convenient parking for thousands of First Night attendees.”      

The momentum downtown will continue in the New Year when River Park Square hosts a community-wide Martin Luther King Jr. Celebration on January 21, 2002 and when the Olympic torch is carried through downtown on January 24, 2002.    The Downtown Spokane Partnership has created an extensive calendar of special events for future months as well.

Parking garage achieves record-levels 
In another part of the downtown shopping, dining and entertainment center, the River Park Square parking garage experienced exceptional growth in 2001 over the previous year.  The garage took in $2.1 million in gross revenues in 2001, surpassing revenues of $1.85 million in 2000 by more than 13 percent.  The number of cars parking in the garage this past year increased by nearly 10 percent over 2000, from 771,300 to just over 848,000 cars.

According to recent garage reports, not only did the garage park more cars in 2001, people parked for longer periods of time, generating on average $2.46 per car, up three percent per car over 2000. 

Each of the first eight months of 2001 saw significant increases in overall business performance compared with the same period in the year prior.  

“Despite a pause in business this fall because of September 11th and the national recession, business in the garage ended on a high note last year,” according to Cowles.

The month of December generated record-high gross revenues for the parking facility, taking in over $252,000.  December also recorded the highest revenues and car count for a single day, when 4,983 cars used the garage accounting for $13,600 in gross revenues on December 22, 2001.
    
“The month of December is a good example that the challenge with the parking garage is a revenue problem that can be fixed with sound business solutions,” added Cowles.  “We should be focusing on ways to solve the problem rather than to unravel the project.”

Cowles noted that the developer has not been reimbursed for the $3.18 million in operational and lease costs of the garage because the City of Spokane has not fulfilled its obligations and that legal action continues.      

Notable mentions
In other news, the International Council of Shopping Centers awarded River Park Square with its Certificate of Merit for Innovative Design and Construction of a New Center in 2001 and River Park Square was also was the recipient of the Masonry Industry Promotion Group’s Masonry Excellence Award by a panel of Inland Northwest architects.

Additionally, River Park Square gained recognition for its role in sparking downtown revitalization in regional publications such as Sunset Magazine and Washington CEO Magazine.

 “The year 2001 was one of great impact and progress,” Cowles said.  “We look forward to building on this tremendous impact and progress in the New Year.”   

River Park Square and surrounding downtown businesses serve a regional market of more than 1.7 million people.  The award-winning retail center has generated more than $7.2 million in tax and fee revenues for the City of Spokane and services located in the City, has created and retained more than 1100 jobs, and has served as a catalyst for downtown revitalization.  Since River Park Square opened, nearly $370 million in new downtown construction projects have been announced or moved forward.