Expo zone request denied

POST FALLS - Additional homes won't be headed for the Expo at Post Falls development on Post Falls' west side.

After an emotional hearing, the Post Falls City Council voted 3-2 to deny developer Watson and Associates' request to change 117 acres of industrial property to 70 acres of commercial, 45 acres of single-family housing and 2 acres of high-density, multi-family housing.

Watson was hoping more homes in the area between Interstate 90 and Seltice Way and Pleasant View and Beck roads would spur business to finally complement Cabela's and Walmart.

But Councilman Skip Hissong, who opposed the request, didn't buy that argument.

"Residential didn't save Expo when Woodbridge (an existing subdivision) was put in," said Hissong, adding that other commercial areas such as around the Spokane Valley Mall and Spokane Industrial Park didn't need surrounding homes to make them thrive.

Woodbridge South in the Expo project would have included 186 single-family homes. However, some opponents believe Post Falls already has an overabundance of undeveloped residential areas.

Council members Alan Wolfe and Betty Ann Henderson joined Hissong in denying the request. Council members Kerri Thoreson and Linda Wilhelm supported the proposal. Councilman Joe Malloy was not present due to an illness.

"I believe the long-term benefits outweigh the disadvantages," Wilhelm said before voting. "I'm not in favor of building residential in an urban renewal district, but in this case I believe it would help the blight out there."

The public hearing was continued from December to allow city attorney John Cafferty to review urban renewal laws. During Tuesday's meeting, he said it was his interpretation that housing could legally be built in the Expo urban renewal district, which was formed as a competitively disadvantaged border area.

With URDs, incremental taxes that are paid based on the higher assessed values after development are remitted to the urban renewal agency and are, in turn, paid to the proponent for cost reimbursement for such infrastructure. The intent is to create jobs and jump-start economic activity in the district.

Attorney Chuck Lempesis, who said he wasn't speaking on behalf of Watson, supported the zone change request.

He said Watson has spent millions of dollars on Expo since 1992 and has been trying to finally create economic activity near the state line.

"Residences equal businesses," he said. "We need rooftops to create business."

More than 20 people, including several in the construction, real estate and development industries, signed a sheet in favor of the request, but did not wish to speak during the hearing. The Planning and Zoning Commission in November unanimously voted to recommend approving the request.

Len Crosby, an urban renewal commissioner, opposed the request because housing wasn't the intent of the URD when it was created in 2001.

"Urban renewal should focus on economic development and job creation and not residential development," he said. "This has been the guiding principle since this agency was created."

Post Falls resident Fred Ebel also opposed the proposal.

"I have no problem with housing subdivisions - if they're in the right place," he said, adding that the intent of the URD was to create commercial growth.

* In other business, the council unanimously agreed to raise fees for Evergreen Cemetery and create a new $40 dog adoption fee to help pay for costs associated with housing the animals and to curb abuse.

Burial lots and niches will both increase $300. The hikes raise lots to $1,100 to $1,500 depending on location. Niches will range from $950 to $1,050.

The fees are being raised to fund a cemetery expansion and to get the cemetery closer to being self-sufficient without relying on general fund tax dollars.

The fees go into effect Feb. 23.