Planning director opposed:

Pullman Planning Commission conducted a hearing Nov. 20 on a potential zone change for Port of Whitman property south of the Pullman-Albion Road and west of Highway 27.

Prior to this meeting, Pete Dickinson, Pullman planning director, recommend rejecting the request to rezone the property, lots 15-18 and 22-25, from light industrial to multi-family residential.

The lots are being sought for purchase from Aspen Heights, a housing developer based out of Austin, Texas. Aspen is offering the port $1.258 million for the property.

Debbie Snell, Port properties and development manager, told the commission that in her time working for the port she has seen most land sales between 1999-2019. She said the property, known as Locust Grove Industrial Park, was purchased in 2007 from Steve Mader, for additional industrial park expansion.

The first industrial park in Pullman on Terre View Drive on the east side of Highway 27, was developed in the late 80s. This park is now home to Schweitzer Engineering, Digilent, Palouse Discovery Science Center and others.

"We have approximately eight acres remaining to sell in the Pullman Industrial Park, with fully developed streets, utilities; including gas, electric and fiber optics," Snell said. "That land has been on the market in Pullman, for varying prices, since 1991 when we made our first sale to Schweitzer Engineering and we still have those eight acres after 28 years."

Justin Rasmussen, managing broker with Kiemle Hagood Palouse said the absorption rate of industrial land in Pullman, over a 28 year period, is 1.77 percent.

"A healthy market is considered at about 20 percent and anything below 15 percent is considered a slow market," Rasmussen said. "An average below two percent in industrial land is extremely low."

Referencing the planning director's letter, Rasmussen mentioned that one concern the planning director has is that if the zoning is changed Pullman would be losing land or give up the opportunity to "another Schweitzer." He said that if another big organization were to come to Pullman, the eight acres in Pullman Industrial Park would supply this hypothetical company at a seven percent annual rate for approximately 10 years.

"If another Schweitzer doesn't show up, we continue at the 1.77 percent absorption rate, it could take the market another 50 years to absorb that additional eight acres," Rasmussen said.

Snell related to the lack of traction for the remaining lots in Pullman Industrial Park to Locust Grove. She said that since 2007 she has only received two calls regarding the Locust Grove property.

While lots 15-18 and 22-25 are up for zone change, the port will be retaining lots 19-21, approximately eight acres, and will keep these lots as light industrial.

Steve Mader, owner, with his brother, of lots, 5-14 spoke in favor of the zone change.

Mader said that before the port owned the land, there wasn't much interest from anyone to build. He said he then turned to the port for help to develop and sell the land.

"Joe Poire was gracious enough to add the 36 acres that we hadn't sold to Veterinary Medical Research and Development, that was not a commercial designation," Mader said. "My brother and I kept our ownership and the port took this Locust Grove Industrial Park for roughly 36 acres. In that time frame, they also have had no interest."

Mader mentioned he thought the issue of no interest was because there was no water or sewer on this property.

"Once the water and sewer came, there was still no interest," Mader said. "If this zoning request is denied I feel like this piece of property will sit there and in 10 years will look just like it does today. I don't think we as a community are wanting to stop growth like that. I would like you to consider to go against the staff recommendation."

Dickinson said that the staff recommendation is not changing, even with the information that was presented at the Wednesday meeting.

If the sale goes through, the port plans to put the $1.16 million from the sale into the retained port property to possibly develop a value-added ag center. This could be space for a possible farmers market, brewery or a way to bring other small businesses together.

All those who spoke at the two and a half-hour public hearing supported the zone change.

The planning commission didn't reach a decision at the meeting and set another public hearing Dec. 18 at 7:30 p.m.