Commissioners go all-in on Hawkins mall

County “working on” source of $15 million

Betting on an anticipated $11 million in new revenue, Whitman County commissioners Tuesday decided to put up $15 million to help build a shopping center on the Washington side of the state line.

“This is a risk that will forever define the economic landscape of Whitman County,” said Commissioner Greg Partch.

Partch and Commissioner Pat O’Neill voted to add $5.9 million to a 2008 agreement that obliged the county to pay for $9.1 million worth of infrastructure at the 714, 000-square-foot shopping center proposed by Boise-based Hawkins Companies.

Prosecutor Denis Tracy criticized the riskiness of the venture in a 66-page memo to other county officials sent last Wednesday, Dec. 28.

“Signing this deal would be the equivalent of gambling the taxpayers’ money in Vegas,” he wrote.

Citing a lack of adequate legal review of the contract, Commissioner Michael Largent voted no.

“I’m no attorney,” said Largent. “But I feel it’s in the county’s best interest to have legal advice when you’re signing a legal document.”

Hawkins submitted to the county a new contract proposal last month. Tracy reviewed that contract and gave commissioners last week a 57-page analysis of its legal flaws.

County officials have yet to determine just how they will pay Hawkins the $15 million.

Commissioners intended to issue revenue bonds and pay them off with sales and property tax revenue that will be generated at the site. Last week, Jack MacLaughlin, the county’s bond agent with D.A. Davidson, said the timeline was too short for his firm to market the bonds.

Partch, when asked about a possible funding source, said the county is “working on it.”

“I believe the county has the financial backing to enter into this agreement,” said O’Neill.

Partch said without the increased tax revenue from the shopping center, the county would die “by 1,000 cuts,” as spending escalates beyond revenue in the $12,896,617 general fund.

He said future loss of the county parks department, university extension and fair are “factual” losses if the county does not increase its revenue base.

The contract, an amendment to the 2008 deal, commits the county to reimburse Hawkins up to $15 million of the cost to build roads and install water and sewer systems at the site. Whitman County would own those improvements.

Hawkins project manager Jeff DeVoe in November approached commissioners about the deal, saying potential tenants may be wooed to Moscow if the center does not break ground soon.

Scotty Cornelius of Pullman urged commissioners in an e-mail last week not to give into DeVoe’s “artificial scarcity” marketing “ploy.”

Cornelius was one of five people to submit comments to commissioners in opposition to the updated contract over the past week.

The new language says the county can only contribute to projects as allowed by state and federal law. The county engineer, a post currently filled by Public Works Director Mark Storey, would review projects and approve payment.

Hawkins is also forbidden from agreeing to or supporting efforts to annex the property into a town. Early discussion included the possibility of Pullman annexing the site and reaping the generated revenue.

DeVoe said the deal now allows his firm to market the property to potential tenants. Under the agreement, Hawkins must guarantee occupancy of two big box stores or 250,000 square feet of retail buildings.

DeVoe would not say which firms are considering the site.

“Typically, our tenants like to control their announcements,” he said.

Partch said before the agreement was signed it included the new guidelines using language proposed by the prosecutor.

“Mr. Partch is not being candid,” said Tracy afterward. He said he gave them no language to include in the contract.

“Whether or not doing a $20 million dollar-plus deal without consulting your attorney is a bad idea,” he said, “you don’t lie about it.”

Largent was the only commissioner who asked for a review of the new deal.

“If they knew what was in the deal before that vote, and they hadn’t had a meeting to discuss it since last week,” said Tracy, “then once again, they’re violating the open public meetings act. And that certainly looks from here like what they’ve done.”

Tracy asked to review and comment upon the revised contract during the commissioners’ meeting Tuesday before the vote. Largent also asked to have Tracy review the contract. Partch, as chair of the board, refused to let the prosecutor speak.

“He gave us his advice,” Partch said after Tuesday’s meeting. “We didn’t think we needed it.”

Partch had been re-appointed chair of the county commission for a third straight year Tuesday morning as part of their first-of-the-year agenda.

Tuesday’s vote was taken in front of a crowd of concerned citizens, most of whom were there to express their disapproval of the project.

Partch did not allow comment from the public.

“It’s our business meeting,” said Partch. “Obviously, there were some adverse opinions here today, but we could have been here all day if we opened it up for comment.”

Some of those in attendance said they were “appalled” they had no chance to speak.

“When you’re going to put up $15 million of taxpayer money, you should listen to the taxpayers,” said Norm Willson of Colfax.

“With that many people here, I was disappointed they were not allowed to speak and were only here to simply be witnesses,” said Largent.

“It’s their county,” said DeVoe.

Many of those in attendance Tuesday afternoon showed up earlier in the day to comment at a planned workshop session at 11:30 a.m.

Commissioners, who were unaware of the residents who had gathered outside their office, called off the scheduled workshop when Largent departed because of illness.

Some of the residents were involved in construction of Pullman’s Wal-Mart store.

Pullman Realtor Darl Roberts said after the vote Tuesday that Wal-Mart paid for construction of public infrastructure on its Bishop Boulevard site, building three roads without asking for funding from the city of Pullman.

Hawkins’ request for county funds, he said, made him question the viability of the shopping center.

“This should be a bankable project that you could take to a bank and get financing,” said Roberts. “If it’s not bankable, then why should the citizens of Whitman County finance it?”

Roberts noted the shopping center plans are nearly twice the size of the 400,000-square-foot Palouse Empire Mall in Moscow, adding the mall is still not at its full occupancy.

Partch earlier in the day told Administrative Director Gary Petrovich to meet with Port Director Joe Poire about putting together an application package for funding from the state’s Public Works Trust Fund.

Whitman County is pledged funding from a state tax refund program. The county will receive up to $200,000 a year from the state’s share of sales taxes collected from the site once it begins generating sales.