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Lawyers began looking into the legality of Whitman County’s agreement with Hawkins Companies this week, while one of the county’s most prominent businessmen said he was “shocked” by the deal.
County commissioners voted 2 to 1 two weeks ago to add $5.9 million to a 2008 agreement that obliged the county to pay for $9.1 million worth of public infrastructure at the 714-000-square-foot shopping center proposed by Boise-based Hawkins Companies.
Pullman attorney Timothy Esser last Thursday submitted a public records request to commissioners for all communication between county officials and Hawkins.
Esser said in a phone interview Tuesday he is trying to determine, on behalf of several Whitman County taxpayers, if the county’s plans violate state law.
His request focused on $5,330,600 worth of earthwork included in the budget for the project. Esser asked if that expense is for excavation of the entire 198-acre site, or just for portions that will be used for public roads and utilities.
“If you acknowledge that taxpayer funds are to be used to bring the entire site to sub-grade, it suggests an unconstitutional gift of public funds,” Esser wrote to county commissioners.
General estimates of road construction, he said, are $1 million a mile for grading and paving.
Commissioner Greg Partch said Tuesday the exact engineering of the portions of earthwork that will be done for public infrastructure will be done next week by Public Works Director Mark Storey and Jeff DeVoe, project manager for Hawkins.
“Esser’s thing: it can’t be answered at this moment,” said Partch. “Mark and JD are going to figure that out next week.”
Partch asserted the project is being done for the public good of Whitman County.
“It’s just like building a bridge,” said Partch. “And this is our bridge to economic development.”
Ed Schweitzer, meanwhile, added his name this week to the list of county residents who have expressed their objection to the project to commissioners.
Schweitzer, founder of Schweitzer Engineering Laboratories, the county’s largest private employer, urged commissioners in an email Monday to work with the developer and the public to explore ways to advance the project without committing public funds.
Several citizens have expressed to commissioners their objection to the county’s commitment to the project. Partch said that was because commissioners have not done enough to inform the public of its benefits.
County officials expect to net an additional $11 to $18 million in sales and property tax revenue from the shopping center over the next 20 years.
“These numbers pencil out really, really well,” said Partch. “It’s just having the money up front that we have to work on.”
Commissioners made the decision in front of a crowd of nearly 40 citizens who wanted to speak on the project. Partch, as chairman of the county commission, did not allow them to speak.
“It wasn’t that I didn’t want public input,” said Partch. “It was just, there was a decision that needed to be made. Time was the essence of making that decision.”
Commissioners said Tuesday they have not heard support for their decision.
“I’ve not heard any support personally, no,” said Largent, who cast the dissenting vote. “Other than Jeff DeVoe.”
Commissioner Pat O’Neill said the same.
“I’ve talked to some individuals, and most of them have been critical,” said O’Neill. “But when I explain it to them, they understand.”
O’Neill has received two envelopes filled with toilet paper. In December, he equated Tracy’s 57-page opinion on the contract to toilet paper.
Schweitzer’s letter, which also went to area newspapers and other area officials, listed 12 drawbacks to the commissioners’ 2-1 vote to commit the money for the Hawkins project.
“I fear that if the County does not move quickly to act on the above, then prospective investors and developers will see Whitman County as an entity that practices unpredictable special-interest politics, is ‘mortgaged to the hilt,’ and is therefore a much-less-than-desirable place to invest, live, work, raise a family and retire,” he wrote.
He pointed out new businesses which have developed without an assist from public funds are now paying tax revenue to the county.
Schweitzer Engineering presently pays about $816,000 to the county and anticipates $146,000 in additional taxes will be paid when the company’s new Solution Delivery Center is finished this month, he said.
(The full text of Schweitzer’s letter is printed on page 9.)
County officials plan next week to travel to Olympia in search of state funding for the project.
Commissioners hope the county can get a low-interest loan from the Public Works Trust Fund instead of issuing revenue bonds for the county’s portion of the project cost.
Jack McLaughlin, bond agent with D.A. Davidson, told commissioners in December his firm would not market the $15 million in bonds in the quick time frame commissioners were envisioning.
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