Hawkins deal could come Monday

An amended deal for Hawkins Companies’ long-proposed shopping center in the Pullman-Moscow Corridor could be inked by Whitman County commissioners as soon as next Monday.

Jeff DeVoe, Hawkins’ project manager for the stateline shopping plaza, asked commissioners Monday to approve an amended development deal proposed by his firm April 12.

“This is probably the best that it could possibly be,” he said.

Three days of public hearings were held on the amendment, though very little of the citizen testimony centered around the actual agreement.

Most was concerning the economic viability of the project, as well as the wisdom used by commissioners Pat O’Neill and Greg Partch in silencing public comment Jan. 3 when they voted 2-to-1 to spend $15 million to build infrastructure at the shopping center. The county in 2008 pledged $9.1 million to the project.

“I can’t comprehend us bringing in the volume it’s going to take to create a viable mall,” Ron Braun of Colfax told commissioners Monday morning. “I don’t understand what is motivating you so strongly to be persistent in pursuing this.”

A group of local citizens formed the Organization to Void Illegal Conduct to challenge the January agreement in superior court.

Much of the language in the new agreement was designed to counter OVIC claims that the first deal would require the county spend public money on private infrastructure. OVIC also charges the agreement should be nullified because the Boise-based Hawkins is not a licensed contractor in the state of Washington and that commissioners O’Neill and Partch agreed upon the deal in illegal secret meetings.

Commissioners Monday sent the amendment to Prosecutor Denis Tracy for a legal review.

Partch said Tracy’s review will be only to the legality of the agreement, not its wisdom. Tracy was an outspoken critic of the increase to $15 million after commissioners did not ask him to review that deal.

Partch said commissioners may send a counter proposal to Hawkins. He said he would like to see a clause that would forbid Hawkins from suing the county if it cannot come up with the $15 million.

“We are willing to do anything that is necessary to further things along,” DeVoe said Monday, though he stressed the company would not be willing to cancel the standing contract for a new deal.

DeVoe said his company would not pay the entire cost of construction because it does not receive sales tax revenue the county will get that would pay for upkeep of the infrastructure.

O’Neill at last week’s hearing said he was closing in on a private source of funding for the project. He did not elaborate then, nor this week, on what that source is.

Lack of funding was one of the prime concerns brought up by citizens during the hearings. DeVoe Monday morning responded to that and several other worries expressed during the hearings.

He said the structure of the deal would prevent the county being obligated to pay for infrastructure if it did not have the money.

“We’re not going to put one dollar in until we know the county’s ready to go,” he said. “If we don’t build, you don’t pay for it.”

DeVoe added Hawkins’ banker would likely extend credit to the county if it approves of the project plans.

Administrative Director Gary Petrovich reported Monday to commissioners that the county will likely apply for a low-interest loan of up to $10 million from the state Public Works Trust Fund and bond the rest of the cost.

In 2008, the county was awarded local revitalization funding from the state that would reimburse the county a share of the state’s portion of new sales tax revenue from the development. That money, though, can only be used to pay off bonds.

In the event, the company cannot fill its development immediately, DeVoe cited a provision in the contract that requires Gary Hawkins, founder of Hawkins Companies, to pay gaps between sales tax revenues and bond payments during years three through seven of the development. DeVoe said he was open to changing the deal so Mr. Hawkins could not put his assets under his wife’s name.

Saying it would give competitors an advantage, though, DeVoe said the company will not release Mr. Hawkins’ financial statement.

“We have to be very sensitive about Gary’s personal financials,” he said.

He said commissioners individually reviewed Mr. Hawkins financial information prior to the deal, though they said last week they had not seen such information.

As to the economic viability of the project, DeVoe said the mall is being developed because retailers want to set up shop in the Palouse market.

“We’re here because our tenants have said ‘We want to be here,’” he said.

No companies have yet committed to occupy space in the shopping center, though DeVoe has said Lowe’s Home improvement stores is a likely tenant.