LCDC official: Project good

COEUR d'ALENE - The Lake City Development Corp. commissioners aren't surprised to see the Riverstone development facing tough times, said Executive Director Tony Berns.

As a partner on the multi-use development, LCDC is kept abreast of all financial issues from the development team, he said, including the recent foreclosure of two Village at Riverstone condominium buildings.

But Berns isn't worried.

"It's still a good project. It will come out of this is in a very solid way," he predicted, adding that the residential and commercial products are top quality. "But it's in a challenging time right now. It's caught up in a very bad financial situation with the economic downturn."

The debt obligations LCDC has after investing in aspects of the Riverstone project like roadway improvements and Centennial Trail relocation aren't in jeopardy, he added.

"Whoever owns the property and the property taxes will pay the debt," Berns said. "Somebody's going to pay, whether it's the bank, or hopefully the condo owners, but people always pay property taxes."

Dan Gookin, local author who ran for city council on a platform challenging the concept of urban renewal agencies, said he thinks Riverstone's issues were accelerated by LCDC's strategy to bolster the economy with condominium development.

"My theme during the campaign was they should use LCDC to attract employers and jobs, not build high-end condos," Gookin said. "Part of having a vision means you've got to look at every side of the equation, and that's missing right now."

He agreed, however, that Riverstone has a bright future.

"I eat at Riverstone, I go to the theater there, I think it's a great way they revitalized that old mill site," he said. "I just hope that recovery happens as soon as we all want it to."