Projects on different tracks

Two large commercial projects by the same developer are on different tracks.

Hughes Investments' 56-acre project at the northeast corner of Highways 95 and 54 in Athol has been stalled by a lawsuit involving the Idaho Transportation Department.

Meanwhile, construction on the developer's 16-acre RiverView resort at the state line next to Cabela's could start late this year after a conditional-use permit from a Spokane County hearing examiner was granted.

"We'll start marketing the (RiverView) property right away, and our hope is that we'll be under construction within a year," said developer Alan Johnson. "We do have preliminary interest (from hotel chains), but we haven't been able to move further without a conditional-use permit. Our first goal is to market the hotel spaces."

Plans call for three hotels, a sit-down restaurant, a fast-food restaurant, a gas station and espresso stand.

Developer Watson and Associates own adjacent land on both sides of the state line, including a small parcel on the Idaho side.

A trail from the resort to the river and leading to Cabela's will be limited to resort guests under Spokane County's code.

Johnson said he would like for the trail to be public, but the developers have their hands tied.

"We don't have any issue with the public using the trail, but the code doesn't provide for it," he said.

A pedestrian lane on the Appleway Bridge under construction and expected to be completed this fall will give resort guests access to the Centennial Trail on the south side of the river.

Johnson said the resort is expected to employ 173 at buildout and 245 during construction.

Johnson said the effluent from the $1 million on-site sewage treatment plant will be used for flushing toilets and irrigation.

Hughes' Athol project - proposed to have a grocery store, travel center, restaurants and a hotel - is on hold, pending a lawsuit from ITD.

Johnson said ITD proposed to buy 16 acres in the middle of the site for a future interchange. Hughes declined to say what ITD offered for the property, "but it was only about 15 to 20 percent of what it's worth."

The lawsuit is under appeal and awaiting a trial date.

Barbara Babic, ITD spokeswoman, said she could not comment on the suit other than say the property goes through the right-of-way acquisition process for the interchange project.

The design work on the interchange is done, right-of-way acquisition is ongoing and construction is estimated to begin late this year, assuming the Legislature authorizes funding for the project. The interchange will take about two years to complete. The interchange is a $15 million to $20 million component of a $166.7 million improvement project in the U.S. 95 corridor from Garwood to Sagle.

Hughes' site has been zoned commercial, plans have been completed and a grocery chain had a market study completed on the site, Johnson said.

"We have not been able to move ahead because of ITD's indecision on when it will build (the interchange)," Johnson said. "We can't sit on property forever because it gets expensive and we lose credibility with tenants, so we're fighting (the suit)."

Johnson said he's optimistic the commercial market has turned for the better.

"People I've talked to in the hospitality business have seen occupancy and rental rates come up," he said. "They've even seen a little loosening with financing, and that's key for hotels."