"Moscow likely to see stormwater regulations; EPA plans to list city under Stormwater Phase II program"

What goes around, comes around. I actually hate to see any city subjected to these silly and expensive regulations, but Queen Nancy called down the thunder....

From today's Moscow-Pullman Daily News:

The Environmental Protection Agency has again stated its intention to make Moscow face intensive stormwater regulations, but this time the City Council is unlikely to fight it.

The council's Public Works/Finance Committee agreed Monday night that Moscow should accept being listed under the EPA's Stormwater Phase II program instead of trying to appeal the decision. Public Works Director Les MacDonald has estimated it will cost the city about $300,000 a year for the first five years of the program to meet its requirements.

Moscow will be required to develop a comprehensive stormwater management program and obtain a National Pollutant Discharge Elimination System permit if it is listed as a regulated small municipal separate storm system under Phase II.

The regulations are designed to manage the quality and quantity of runoff from development and to control stormwater discharge, as well as reduce downstream pollution and contamination.

Moscow was first alerted to the EPA's plans in June 2007. The City Council decided at the time to send the EPA a letter asking for control of its own stormwater system.

The EPA spent the last year reviewing Moscow's situation. MacDonald said EPA officials spoke to him in June and said the new data they'd found confirmed their decision that Moscow should be listed. For example, tests showed that fecal coliform contamination in parts of Paradise Creek is too high.

"City staff has been working on trying to track down where some of that's coming on so we can try to stop it where we can," MacDonald said.

MacDonald said Moscow already has some programs in place that will be required by the Phase II listing, although some of those will need to be beefed up. The city does not actively process stormwater right now, but will have to. The program also requires public education programs, detection and elimination of illicit discharge, and construction run-off control.

He said Moscow will have some flexibility within the program if it chooses not to fight it. The city likely will be able to set milestones for itself and gradually meet the requirements of the program over five years.

MacDonald conducted an analysis of the program's potential effects on the city last year. Based on the analysis, MacDonald estimated the city will need to add four-and-a-half staff members to cover the needs of the program, as well as buy an additional street sweeper and inspection equipment. He estimated the cost would be $300,000 a year on average.

City Supervisor Gary Riedner said Moscow likely will consider a stormwater utility fee to help cover the cost of the program, and MacDonald agreed.

The city of Pullman also is dealing with stormwater regulations from a Washington State Department of Ecology permit issued in early 2007. The estimated cost for the city to meet requirements in the permit's first five years is $4.4 million and the Pullman City Council is contemplating a stormwater utility fee to help recover the costs. Landowners' fees would be based on the amount of impervious surface on their property, and the city is hoping to generate about $800,000 per year.

MacDonald said he's not sure why there is such a big difference between Pullman and Moscow's cost estimates, and said his estimate was "very rough."

"It will likely change," MacDonald said. "It could go up. I doubt it would go down much."

Moscow Public Works/Finance Committee member Wayne Krauss initially expressed interest in fighting the listing.

"I think it's really unfortunate that the federal government, in this case the EPA, stands there with this big hammer over our heads threatening us with a bunch of fines if we don't bow under," he said.

He asked about the city's potential to fight the listing. City Attorney Randy Fife said Moscow has not historically been successful in fighting federal regulations and that the government takes the view that cities eventually comply, one way or another.

"Kind of what you're saying is we're screwed," Krauss said.

Krauss and committee members Dan Carscallen and John Weber eventually decided to recommend to the City Council as a whole not to fight the regulation. Weber said it would be better for Moscow to accept the program than put itself "in the middle of the radar screen" of the EPA.

Quote of the Day

...they’re not going to let Moscow hold up the process any further.

- Whitman County Commissioner Jerry Finch, "Hawkins water supply: Moscow pegs water rates at 2.5 times in-town charge," Whitman County Gazette, July 24, 2008

An excerpt from the story can be found below:

Largent said the county will now assess the costs of getting water from a well instead of from Moscow.

“What we have to figure is that we’re not a captive market,” said Largent. “Now we have to gauge (the city’s offer) by how much it would cost to dig wells.”

If Moscow and Whitman County fail to come to an agreement, Hawkins would be able to drill water under the three water rights the company acquired last year.

Commissioner Jerry Finch said the company has already drilled one well, and is in the process of digging a second. Calls to Hawkins to confirm were not returned.

If Moscow provides water to the shopping center, Finch said, the company would cap its wells.

“But they’re not going to let Moscow hold up the process any further,” he commented.

If the city does provide water, Hawkins would have to relinquish its water rights.

Largent said that makes it vitally important that a water agreement is drafted to prohibit Moscow from turning off the tap.

“We want an iron clad assurance if water rights are given up, that the development’s ability to draw water from Moscow goes on in perpetuity,” said Largent.

The county and city will now negotiate to come to a price agreement.

"Water rates hearing could focus on shopping center"

Oh, joy. Another chance for Moscow's self-appointed experts in hydrology and urban planning to pontificate.

From today's Lewiston Tribune:

MOSCOW - The Hawkins Companies shopping center proposal could get another public airing Aug. 4 when a hearing will likely be conducted here on proposed interstate water rates.

Details are still being worked out.

Members of the Moscow City Council on Monday night proposed charging Whitman County 2.5 times the normal in-town rate for water. Whitman County officials, in turn, are considering offering the water to the Hawkins development.

The company has expressed a desire to buy Moscow water, but needs to work through a government entity to obtain it. In the meantime, Hawkins continues to drill its own wells just over the border in Washington.

The proposed interstate water sale appears to be unprecedented and continues to be monitored by the Idaho Department of Water Resources. The agency has authority over pumping and allocating Idaho groundwater.

The city of Moscow, at the direction of IDWR, has proposed a joint-powers agreement with Whitman County. County commissioners have asked for a cost figure before signing an agreement.

All parties expressed an interest to expedite the process by having a joint meeting of officials. But that apparently won't happen until after Moscow holds the public hearing and city councilors vote.

Hawkins has dubbed the shopping center the "Stateline Project." Plans call for 714,000 square feet of retail stores, including three possible big-box outlets. A Lowes home improvement center is projected to be one of the anchors.

Proponents have called the development the beginning of much-needed retail growth in the Moscow-Pullman corridor. Opponents countered the shopping center represents unnecessary sprawl and threatens groundwater resources.

Hawkins indicated landscaping and other construction might start as early as June 1. Company spokesman Jeff De Voe has not given a reason for the delay.

"MOSCOW: Council puts price on water; Cost to supply water to Hawkins will be more than double the in-town rate"

I can appreciate that Moscow wants to share in the tax revenue obtained from the Hawkins development. No doubt, Whitman County and Pullman would have loved to share in the tax revenue from the Palouse Mall and Wal-Mart too, considering half the customers that shop at those stores are from Washington. But I don't recall anyone making that offer.

The Whitman County Commissioners are not about to share any tax revenue from Hakwins. The citizens of Moscow elected Queen Nancy and the last City Council that passed the big-box ordinance which drove Home Depot and a Wal-Mart Supercenter out of town. They will have to content themselves with the proceeds of selling the water to Hawkins for now and vote their frustrations out on the Her Majesty next year.

From today's Moscow-Pullman Daily News:

The city of Moscow may charge Whitman County two-and-a-half times the in-town commercial rate for water for a retail development just across the state line.

Most Moscow City Council members agreed Monday night that the rate, plus a 5 percent administrative fee, was a fair charge. Moscow plans to sell the water to Whitman County through an intergovernmental agreement for use only at the Hawkins Companies' development, just across the state line from Moscow.

"I think it's a reasonable amount," City Councilman John Weber said. "I think it's a defensible amount."

The city agreed in February to provide Hawkins water at a rate that is "fair and reasonable and consistent with rates and charges set for similarly situated customers of the city." However, Moscow has no similarly situated customers.

Whitman County Commissioner Michael Largent e-mailed City Supervisor Gary Riedner earlier this month asking him to clarify how much the city plans to charge. Riedner replied with a letter explaining that Moscow normally charges customers who are out of the city limits twice the in-town rate, but does not have a rate for out-of-state customers. Riedner then asked the City Council for further guidance.

Councilman Wayne Krauss, who first proposed charging two-and-a-half times the in-town rate, said after the meeting that he felt it was "a good middle line."

"You don't want to get the appearance that you're price-gouging," he said.

Krauss said the city can charge what the market will bear, but "what this market will bear, I don't know."

He said the extra 50 percent charge doesn't entirely make up for the tax revenue Moscow would get if the development was in the city.

Councilman Tom Lamar did not agree to the proposed rate, saying it was irrelevant without some sort of analysis to back it up.

"I think that Moscow should try to get the highest rate that it possibly can for selling water across the state line," he said.

Lamar proposed working with Whitman County to share some of the taxes the county makes from the Hawkins development. Councilman Dan Carscallen also supported tax sharing.

Lamar, who has resisted selling water to Hawkins or Whitman County from the beginning, said he still is uncomfortable with the sale.

"I don't think that we should be encouraging this development by having cheap rates and no tax sharing," he said.

Largent said today he was pleased the council came up with a rate, though he has no basis to judge it right now.

"I think we have to look at it and look at the cost to pump our own water" and other factors, he said.

The council will finalize the rate at a public hearing, which most likely will take place Aug. 4.

"Hawkins goes ahead with well drilling; Company wants to build shopping center; disputes over water may have delayed project"

There is a mistake in the article below from today's Lewiston Tribune. It was Commissioner Greg Partch that speculated in last Friday's Moscow-Pullman Daily News that the national and regional economy may have delayed Hawkins breaking ground, not Commissioner Michael Largent. In exclusive comments made to Palousitics last Monday, Commissioner Largent stated that:

Commissioner Greg Partch's comments in Friday's Moscow Pullman Daily News suggesting the national or regional economy may be to blame is simply his speculation. My personal speculation differs from Greg's in that I believe the regional economy remains strong for this project. However, national credit markets have posed additional requirements for Hawkins requiring them to get much further along with their tenant commitments than earlier anticipated before they can have their financing package in order to begin major construction.

From today's Trib:

MOSCOW - Crews with a well-drilling rig continued to work Thursday just over the border into Whitman County on Hawkins Companies property where a 714,000-square-foot shopping center has been proposed.

No information on whether water had been found was available. Jeff De Voe,spokesman for the Boise-based company, did not return a phone call from the Lewiston Tribune.

"I just learned they were drilling about an hour ago," Walter Steed, a Moscow city councilor, said late in the afternoon. "So certainly, I don't know what they've accomplished."

The drilling continues amid negotiations for the city of Moscow to provide municipal water to the Hawkins site. Moscow Mayor Nancy Chaney said talks are ongoing with Whitman County commissioners and the matter will go before the council Monday night.

Chaney said Whitman County commissioners had some questions about a draft joint-powers agreement proposed by the city. "The question revolves around, 'How much are you going to charge us?' " Chaney said.

The joint-powers agreement is apparently necessary before the Idaho Department of Water Resources will consider approving the transfer of groundwater across the border into Washington. The transfer, officials said, must be between two governmental entities, not between a government and a private company.

In the meantime, no signs of construction are apparent on the Hawkins acreage, other than a dirt road leading to, and landscaping around, the drilling site. Only the top of the drilling rig can be seen from the Moscow-Pullman Highway corridor.

The shopping complex, proponents say, will give the region a retail boost and signal the start of further retail development in the corridor. Opponents have said the complex - to be anchored by a Lowe's home improvement center and possibly two other big-box stores - represents unnecessary sprawl and a threat to the local groundwater supply.

Speculation also remains about why construction has been delayed. De Voe, earlier this year, said Hawkins planned to start moving earth around June 1. He declined comment two weeks ago about reasons for the delay, or whether work was imminent. Whitman County Commissioner Jerry Finch has blamed two years of delays on Moscow officials who challenged Hawkins' water rights. He also said two weeks ago that despite the company drilling for water, another construction season has essentially been lost.

Commissioner Michael Largent speculated the Hawkins construction delay had more to do with a nationwide economic downturn than water problems. De Voe three months ago said the state of the economy at that time would not figure in Hawkins plans. He also said the project would go forward even if Moscow failed to provide water.

Hawkins secured its own water rights for what the company is calling the "Stateline Project," only to have Chaney appeal to Washington state authorities. The appeals were dropped after new Moscow city councilors worked behind closed doors with Hawkins to create a plan to provide city water over the border.

Steed said the company wants to secure its own water source just in case the cross-border deal fails.

He said he's also encouraging everyone involved to expedite the negotiation process. "Let's get to the table."

Indeed, this item from the Moscow City Council's agenda for Monday seems to confirm that:

8. Request for Direction for Response to Whitman County Regarding Water Rates for Stateline Project - Gary J. Riedner

At the Public Works/Finance Committee held June 23rd transmittal of the Joint Powers Agreement between City of Moscow, Idaho and Whitman County, Washington For Purposes Of Providing Limited Water Services to the Stateline Project Draft Agreement was authorized. City Attorney Randy Fife sent the draft Joint Powers agreement on Thursday June 26. On July 2, Whitman County Commissioner Michael Largent sent the City Supervisor an email requesting clarification of Section 2, subheading C) "Cost of Service" which refers to class of customers and resulting rates that could be applied to the Hawkins development. The City Supervisor responded to Commissioner Largent's inquiry and outlined the fee resolution process in "setting reasonable rates and fees for City services" noting that the "current fee resolution does not contemplate the provision of water or sewer services to customers located in the
State of Washington." The City Supervisor also noted that he anticipates that the "City Council will adopt a reasonable rate for this service."

ACTION: Provide staff with direction pertaining to the response to Commissioner Largent's inquiry including the potential range of fees and propose a meeting schedule for negotiation of the Joint Powers Agreement between City of Moscow, Idaho and Whitman County, Washington For Purposes Of Providing Limited Water Services to the Stateline Project Draft Agreement or other such action as deemed appropriate.

Paul Kimmell: Friend to Whitman County

From last Thursday's Whitman County Gazette:

Avista Foundation helps library project

Nancy Lintvedt, Colfax, holds a $10,000 check to the Friends of the Whitman County Library from the Avista Foundation for the capital improvement project to make the library more ADA compatible. Paul Kimmell, right, Avista manager for the Palouse area, represented Avista. Library Director Kristie Kirkpatrick is at left. Lintvendt, who uses a walker, has written letters in support for the new library renovations that would make it possible for handicapped residents to get to all three levels of the library.

Paul Kimmell, a former Latah County Commissioner and former executive director of the Moscow Chamber of Commerce, has proven to be a real friend to Whitman County. I'm sure he had a hand in getting this check cut from Avista.

In January, Paul was present during the public hearings held by the Whitman County Commissioners on the infrastructure bond for the Hakwins project. Through his involvement with the Greater Moscow Alliance, I'm convinced Paul played a major role in getting the Moscow City Council to drop its appeals of Hawkins water rights and subsequent offer to sell water and sewer services to Hawkins.

Recently, when Whitman County solicited public comment for a new Revenue Development Area that includes the Hawkins development, Paul wrote, "...please know I wish you much success with your efforts."

Paul Kimmell defines a good neighbor, and gives me hope for continued cross-border cooperation on the Palouse.

Whitman County Commissioner Michael Largent on the Hawkins Delay

Whitman County Commissioner Michael Largent was gracious enough to send the following response to my earlier post on what is holding up Hawkins breaking ground in the corridor. I agree with Michael's assessment below that the rumors are wrong and that delays are inevitable with any project.

Tom -

You are indeed correct in your recent posting that nature abhors a vacuum. The fact that Hawkins hasn't brought in the earth movers in June as earlier hoped and has not said when they would begin major earth moving has fostered speculation as to as to the viability of the project. However, if we don't know why they didn't start in June we should just say we don't know.

Commissioner Greg Partch's comments in Friday's Moscow Pullman Daily News suggesting the national or regional economy may be to blame is simply his speculation. My personal speculation differs from Greg's in that I believe the regional economy remains strong for this project. However, national credit markets have posed additional requirements for Hawkins requiring them to get much further along with their tenant commitments than earlier anticipated before they can have their financing package in order to begin major construction.

The fact remains that we will know the reasons for the delay for sure when Hawkins either begins major construction or tells us something different. In the meanwhile, Whitman County isn't out any money on infrastructure until Hawkins shows us the anchor tenant lease and construction benchmarks are met. The County is protected from the inflationary effects of a time delay by the capping of the County's total infrastructure investment.

What is clear is that the City of Moscow is not behind any of the delay. The one issue we have pending with Moscow on this project is the question of the delivery of water to the project. The timing of the resolution of this issue is not related to whether Hawkins can begin construction or not. The City of Moscow has been nothing straightforward with us since the election of the new council and a pleasure to work with. We may not always agree but it is now a respectful working relationship.

If in fact the project itself is in danger I would like someone to explain to me why there are construction rigs at the site right now preparing to drill a well at considerable expense. While construction delays are frustrating, this project is going to happen.

Michael Largent
Whitman County Commissioner

"Economy stalls work at Hawkins site; Commissioner says water issues with city not to blame for lack of progress"

Okay, I'll admit it. I'm confused.

Last Tuesday, Whitman County Commissioner Jerry Finch blamed Moscow in the Lewiston Tribune for the delay in breaking ground at the Hawkins site in the corridor.

The next day in the Trib, Commissioner Michael Largent said everything was fine.

Now, Commissioner Greg Partch tells the Daily News that it's the economy that's causing the slowdown.

Only Hawkins knows for sure, and they're not talking.

I have been around the retail development process enough over the last few years to learn a few things. I know that the legal and real estate departments often advise playing things close to the vest. I realize, as Commissioner Partch stated, Hawkins will run this project on their own timeline. But sometimes, this strategy creates a bit of a PR mess.

Nature abhors a vacuum. In the absence of fact, speculation rushes in to fill the void. Rumors are flying now that Lowe's is pulling out, Hawkins is scrapping their development plans, etc.

Some straight answers would be nice right about now. I'm working hard to find out what's going on.

From Friday's Moscow-Pullman Daily News:

Whitman County Commissioner Greg Partch said struggling national and regional economies likely are to blame for work not having started at the site of Hawkins Companies' retail development, rather than ongoing water negotiations between Moscow and the county.

Hawkins officials had planned to break ground by June 1 at the future home of its 714,000-square-foot shopping center located just west of the Idaho border. Hawkins representative Jeff DeVoe did not return calls seeking comment.

"Obviously, the economy has really slowed down and projects like this slow down too," Partch said. "I still expect things to go forward.

"They have to work at the speed that is suited to their needs," he added. "They are very much committed to this ... I am not concerned."

In February, Moscow and Hawkins agreed on a deal for the city to provide water services to the development in exchange for Hawkins retiring two water rights it had secured for its development.

Whitman County became involved in the process when the Idaho Department of Water Resources asked Moscow to reach an intergovernmental agreement with the county for the water sale rather than deal directly with a private entity across state lines.

Partch said county staff are reviewing the draft agreement with Moscow. He has several concerns with the draft, which he describes as much more complicated than needed.

One issue is that the draft calls for a joint board to administer the agreement, something Partch sees as unnecessary.

Partch also has concerns over a provision that deals with future water concerns and states that Idaho water law would dictate solutions should issues arise.

Water rates also are a concern for Partch. The draft states that Moscow will dictate the rates, and he would like to see a baseline rate and an assurance that future rates wouldn't be "picked out of the air" and become unaffordable.

"It's way overwritten as to what this is," Partch said. "I think they are making it much more complicated than it needs to be.

"I think it has some flaws that I am not happy with, but at least it's a place to start. We intend to work with the city of Moscow and work out some sort of agreement."

Moscow City Councilman Walter Steed said the agreement was written by city staff and presented to the council several weeks ago. The council also noticed some issues with the agreement, but elected to forward it to the Whitman County Commissioners to avoid slowing the process.

"It's a first draft," Steed said. "We could have held it up for two to four weeks. We didn't want to slow the process down any more than we had to."

Steed said Partch's concerns are legitimate and he hopes to sit down with Whitman County commissioners soon to iron out a solution.

"I think they are good questions and good concerns and I just want to get around a table and talk about them," Steed said.

He also questioned the need for an agreement altogether and hopes to have IDWR attend to clarify the situation.

"We are encouraging everybody to have a meeting and all sit down," Steed said.

The lack of an agreement has not hindered progress at the Hawkins site, Partch said. The company can begin drilling wells at any time according to an agreement the company reached with Moscow.

"It hasn't slowed Hawkins, they are going to drill their wells and move forward," Partch said, adding that he expects drilling to begin soon.

Partch also anticipates that ground work will begin this year and that actual construction will start next spring. Hawkins' officials have said the center's anchor store - Lowe's - is expected to open for business in September 2009.

"Hawkins never indicated there would be any construction (this year), but there's a huge amount of land-leveling to do," Partch said. "This is a Hawkins project and we are here to help them. They will do things on their time line."

"Moscow officials plan to push water deal for Hawkins"

This is good news, and expected. From what I know about the pro-growth Moscow City Council members, they believe in free enterprise and are stand-up guys. Some of them even read Palousitics regularly.

Here's hoping the Hawkins water issue gets resolved quickly.

From today's Lewiston Tribune:

MOSCOW - A majority of city councilors here want to keep a proposed interstate water deal with Hawkins Company on a fast track, two councilors said Tuesday.

"We're operating under good-faith here," Councilor Dan Carscallen said. "By gosh, if we're going to do it, let's do it."

Councilor Walter Steed agreed. "Ever since we took office in January, when the Hawkins project was put on our plate on day one, we have been pushing to try and provide water to the Hawkins state line project."

Hawkins wants to build a 714,000-square-foot shopping center just over the border into Washington's Whitman County. Hawkins spokesman Jeff De Voe has said his company will either drill for its own water, or tap into Moscow's waterline that butts up against the 204-acre development site.

Carscallen and Steed responded to criticism Monday by Whitman County Commissioner Jerry Finch, who said Moscow city government caused at least a two-year delay in construction by raising questions about and filing appeals over groundwater concerns.

"The previous council is the reason for that," Carscallen said. "The people had to unelect that bunch and get a new one in to make something happen."

In addition to Carscallen and Steed, Councilors Bill Lambert, John Weber and Wayne Krauss have endorsed providing water to the Hawkins development. Only Mayor Nancy Chaney and Councilor Tom Lamar have voiced opposition.

Despite the support, no deal appears imminent - unless Carscallen and Steed get their way. They said they favor meeting immediately with Finch and fellow Whitman County commissioners Greg Partch and Michael Largent to reach an agreement.

Steed questioned whether the current delay has anything to do with water. "I don't see how water, at this point, could be a hold-up. Because they've got both us working on selling them water, and I understand they have bid contracts to drill wells, which is their backup source."

Finch said De Voe told him last week well-drilling equipment would be on-site this week and drilling could start within the next two weeks.

The shopping center, with a Lowe's home improvement center as one of its anchors, has been touted by Whitman County officials as a boon to the local economy and the beginning of much needed retail development in the Moscow-Pullman corridor. Critics say, in addition to possibly draining the groundwater supply, the development represents the beginning of unnecessary retail sprawl.

"This council has not tried to second-guess developers," Steed said, especially across the border in Washington.

At this point, it appears officials at the Idaho Department of Water Resources are demanding Moscow and Whitman County establish a joint-powers agreement for water to be supplied across the state line to Hawkins.

A draft of the proposed joint-powers agreement has been forwarded to the Whitman
County commissioners and Finch said it's being reviewed.

Is the Cold War Between Moscow and Whitman County Back On?

It appears that the short period of Détente enjoyed between Moscow and Whitman County since January is (temporarily?) over.

If you read Queen Nancy's rambling and paranoid missive concerning Hawkins, it's not surprising really.

Now, to quote April, Hawkins needs to drill here, drill now, and worry less about Moscow.

From today's Lewiston Tribune:

Progress stalls on shopping center

Disputes over water have set project back two years, Whitman County commissioner says

MOSCOW - Development of the Hawkins Companies shopping center just across the border into Washington has been delayed again, a Whitman County commissioner confirmed Monday.

"They've lost a construction season, that's what it boils down to," Commissioner Jerry Finch said. "They're going to get some work done this fall, but they're not going to have any construction until next year."

Jeff De Voe, spokesman for Hawkins on what's being called the "state line project," declined comment about when construction might begin.

"He's speaking of his own opinion, not mine," De Voe said of Finch. "A lot of things are happening. I don't have anything for you quite now. As of today, it's just quiet."

In April, De Voe estimated earth-moving equipment would start work at the site around June 1, weather permitting.

But Finch, one of the principal proponents of the development, said he talked with De Voe last week and received an update on delays. The proposal calls for a 714,000-square-foot shopping complex with a Lowe's home improvement center as its anchor.

Finch blamed the latest and previous construction delays mostly on Moscow elected officials who've stymied progress by questioning the development's impact on regional groundwater supplies.

"I think this is a stalling technique to kill the project," Finch said, referring to an initial Moscow appeal of Hawkins water rights transfers by Mayor Nancy Chaney, and subsequent slow progress toward reaching a possible agreement for Moscow to provide water services over the state line.

"That, quite frankly, has set this project back about two years," Finch said of the water issues.

His words come two weeks after members of the Moscow Public Works Committee agreed to forward a draft joint powers agreement to Finch and the other Whitman County commissioners. The agreement is necessary before officials at the Idaho Department of Water Resources will consider interstate transfer of a municipal groundwater supply.

"We've been reviewing it," Finch said of the eight-page draft, adding his cursory assessment has left him thinking more negotiation might be needed. He said the county's legal counsel must review the document before anything is sent back to Moscow. The agreement is necessary because IDWR, which has authority over groundwater, wants the water transfer agreement to be between two governmental entities, not between a city government and a private company.

In the meantime, Finch said, De Voe assured him Hawkins will move ahead with or without Moscow's participation. "I was assured by Mr. De Voe last week that drillers would be on site," Finch said of the company's intentions to drill for its own groundwater. "They're going to drill regardless. Hawkins is doing this on their own. They are not willing to gamble with Moscow."

Finch, who has worked closely with Hawkins on promotion of the shopping center, said the company would "cap" any wells it drills and retire its water rights if an agreement is eventually reached with Moscow. He said drilling could start in two weeks.

But the 204-acre construction site appeared to remain untouched Monday. This despite De Voe saying in April that a ribbon-cutting ceremony would likely be conducted to publicly announce the start of construction. A sign promising arrival of the shopping center remained standing Monday.

Finch and fellow commissioners Michael Largent and Greg Partch have heralded the Hawkins shopping center as the beginning of retail development in the Moscow-Pullman corridor. Likewise, Pullman officials have endorsed the project as a much-needed economic catalyst.

Critics, mostly in Moscow, have said it's the beginning of unnecessary retail sprawl. Pro-development candidates who were elected last November to the Moscow city council have couched their support in terms of the development being "inevitable" and Moscow needing to tap into profits by supplying water.

Hawkins completed its $5.45 million purchase of the development site in April. In addition to Lowe's, plans show room for at least two additional big box stores as well as a number of other retail outlets.

"Hawkins water supply details move forward; Joint powers agreement is in the works"

Just a brief note to the article below that appeared in today's Lewiston Tribune. Jeff DeVoe of the Hawkins Companies did indeed say that they hoped to break ground on the Stateline Retail Center in June if the the land had dried out. If you have been on the Palouse lately, you know our weather has been anything but "dry" this year, with 1.5 inches of snowfall covering the ground just two weeks ago. I wouldn't read too much into the fact that ground hasn't been broken yet.

MOSCOW - While construction on the controversial Hawkins Companies shopping center has yet to begin, officials took an important step here Monday toward sealing a deal to supply water to the development.

Members of the Moscow Public Works Committee agreed to forward to Whitman County officials a draft joint powers agreement. Such an agreement is apparently necessary before the Idaho Department of Water Resources will consider allowing Moscow to provide water services over the state line to Hawkins.

Committee members Walter Steed, John Weber and Wayne Krauss questioned the need for the agreement, but decided to let the Whitman County commissioners review the draft before forwarding it to the full Moscow City Council for consideration.

"Undoubtedly Whitman County is going to have some items that they want to address," Krauss said.

Among other things, the eight-page draft proposes formation of a three-member governing board to oversee allocation of Moscow's water into the state of Washington. Two board members would be from Moscow's city council and one from the Whitman commission, according to the draft.

Jeff De Voe, spokesman for Hawkins, could not be reached for comment. He said more than two months ago the shopping center would be built regardless of whether a water deal could be reached with Moscow. The company already has water rights in Whitman County.

But De Voe also said at the time construction would likely begin in June and a ribbon-cutting might be conducted to announce start of the 714,000-square-foot complex. As of Monday, only a Hawkins sign reading "Coming Soon Major Shopping Center" indicated anything imminent at the site.

The shopping center, reportedly to be anchored by a Lowe's home improvement center, is designed to accommodate three so-called big box stores and eight smaller retailers. Whitman County officials have touted the project as the beginning of retail development in the Moscow-Pullman corridor. The site is located immediately across the border from Moscow and butts up to city water lines.

Moscow Mayor Nancy Chaney appealed Hawkins' attempts to transfer water rights in Washington to supply the shopping center. The mayor reasoned the complex threatened the aquifer that supplies the Palouse. But an agreement was eventually reached for Moscow to supply Hawkins' water needs.

Chaney and Councilor Tom Lamar have gone on record against the supply agreement, while all other city councilors voted in favor. The agreement was reached in February and most participants said they thought the deal would be completed before the construction season started. But the IDWR determined any kind of supply agreement must be between two governmental entities, not between a government and a private business.

Hawkins 3-Fer, Part Three

As the Hawkins Stateline Retail Center gets closer to reality and a Revenue Development Area is created on the Washington side of the border, Moscow is not sitting idly by.

Brushing aside Queen Nancy's "Peace Through Sustainability" policy, the new Moscow City Council has now approved the Thompson rezone that was the point of such controversy two years ago when Wal-Mart wanted to build there.

Expect an announcement soon that Wal-Mart or another big-box store will be locating on the 41 acre property.

Instead of socialist meddling, now we have good old fashioned capitalist competition, the way it was meant to be. All we ever wanted was a level playing field

From today's Moscow-Pullman Daily News:

Council OKs rezone of Thompson property; Land made controversial during 2006 rezone request now available for motor business use

A large chunk of farmland in southeast Moscow is now ready for business after a rezone request was approved by the City Council on Monday.

The Thompson Family Limited Partnership owns the 41.4-acre plot just south of the Troy Highway across from Sunset Memorial Gardens Cemetery previously zoned for agriculture/forestry uses. The land is now zoned for motor business, meaning it will be available for retail, professional and medical businesses, as well as bars, restaurants and other businesses.

The Thompsons attempted to have a larger parcel of the property rezoned in 2006. The controversial request stemmed from Wal-Mart's plans to build a super center on the 77-acre parcel and met resistance from the Moscow No Super Wal-Mart group.

The City Council at the time decided to reject the rezone.

Monday's approval came with two conditions: any future developer must provide a traffic impact study and make any needed traffic improvements or changes to accommodate drivers, and developers must preserve the natural area between the property and nearby Paradise Path.

No businesses are set to build on the property yet, but Susan Wilson, an attorney representing the Thompson family, said it is an attractive piece of land for retail and motor businesses.

"It seemed pertinent to give businesses some incentive to move in," Wilson said of the approval.

She said the plot is adjacent to two major arterials and near many other retail businesses, making it conducive to commercial use.

All but one City Council member voted in favor of the rezoning. Tom Lamar voted against it after expressing concerns about the city spreading its interests in too many places at once. The city's lack of direction could stunt further commercial growth, he said.

"I think we're all interested in seeing growth and development in Moscow," Lamar said. "We need to concentrate on one area."

Lamar also raised questions about public buildings like schools possibly constructing on the Thompson site. The new zoning makes it more difficult for schools to build on the property than businesses, he said.

Lamar said the timing isn't right for the city.

"This may be a great area to build on in the future," he said, adding there already are many scattered motor business zones in town that have remained vacant for years.

Other council members ultimately decided the family can do what it wants with the land. Councilman John Weber said the Thompsons are responsible developers in Moscow.

Wilson agreed, saying the family has contributed to the community over the years.

"The Thompson family is doing this because they truly believe the community needs to have something to offer," she said.

Hawkins 3-Fer, Part One

It seems the Whitman County Commissioners approved the formation of a Revenue Development Area in the Pullman-Moscow corridor over the objections of King Solomon's heir to the Aquinut throne, Prince Cornelius.

Cornelius is as factually-challenged about the Hawkins development as he is the Palouse Ridge Golf Club. Maybe he should spend more time Googling and less time putting.

Scotty seems to believe that Hawkins shouldn't be built because "the closest District 12 station is in west Pullman, more than 7 miles away." Apparently, Prince Cornelius didn't catch Item #7 in the draft Letter of Intent between Hawkins and the county:

On the Development site, Hawkins will build a rural fire station and donate the land and building to Fire District 12.

Oops. No wonder that whole golf course appeal thing isn't working out too well.

You can read Cornelius' RDA comments here, (is that a WSU fax number that he used?) as well as those from fellow Aquinut David Hall of Moscow, who quoted the New York Times (the case cracker!) to the commissioners, and Queen Nancy's pruned response.

UPDATE: Despite Chaney's downplaying of the matter, Dale Courtney at Right Mind is pursuing the blatant lie the Queen has been caught in. Seems she claimed at a council meeting that Whitman County sent a letter to Moscow soliciting input on the LIFT proposal. There was no such letter. Dale also has a copy of the original draft of Her Honor's LIFT comments, as well as the draft RDA proposal. Check them out here.

From today's Moscow-Pullman Daily News:

Board moves forward with LIFT plans;
Approval of Revenue Development Area was necessary for grant request

Whitman County commissioners unanimously approved the formation of a Revenue Development Area in the corridor that runs between Pullman and Moscow at a public hearing in Colfax on Monday.

The formation of the RDA clears another hurdle for the county in its effort to secure $18.1 million in grants through Washington's Local Infrastructure Financing Tool program. The RDA - which encompasses about 300 acres, including the site of Hawkins Companies' retail development and surrounding properties - is a geographic area in which public infrastructure improvements may be financed with state-collected sales taxes.

The program awards $2.5 million annually to city and county governments across the state in an effort to create local jobs and increase economic growth. Counties and cities can apply for up to $1 million a year for the next 25 years under the program.

LIFT money is awarded from the state's portion of the county's 7.8 percent sales tax. The state will recoup its money and benefit from additional tax revenue from the developed land that might otherwise be left vacant.

The county hopes to use a significant portion of the grant money to cover the costs of bonds that will pay for the construction of public infrastructure at the site of the Hawkins development on the Pullman-Moscow Highway.

In February, the county approved a preliminary development agreement to enter into a public-private partnership with Boise-based Hawkins. According to the agreement, the county will finance the construction of public infrastructure at the site through the sale of $9.1 million in bonds.

However, Public Works Director Mark Storey said money still will be available for additional improvements within the RDA.

During the hearing, Pullman resident Darl Roberts questioned the location and the size of the RDA and its proximity to Moscow rather than Pullman. He said it would likely only perpetuate the problem of businesses choosing to locate in Moscow rather than Pullman.

Commissioner Michael Largent addressed Roberts' concerns by explaining that the grant money also would free up county money and expand the county's capacity to invest in other areas.

"This doesn't preclude us from spending county dollars outside of the RDA," Largent said.

Storey said extending the size of the RDA to encompass more area along the Pullman-Moscow Highway or Airport Road actually would decrease the county's chances of beating out other entities competing for LIFT money.

Commissioner Greg Partch said Pullman still stands to benefit from the RDA if the county and city can come to terms on a sales-tax sharing plan for the corridor. Both the county and city would receive equal portions of the sales tax generated in the corridor.

"It's good for both of us and we have become partners rather than competitors," he said.

Partch added that the RDA and LIFT grant would move Whitman County closer to controlling its financial destiny.

"We can't depend on the federal government and the state government," Partch said.

The state also stands to benefit in the coming years from growth in the RDA.

"A million dollars would be a very small percentage of what is generated in that area," Storey said.

Partch estimated that the state will generate $250 million in sales tax over 20 years. He said that was a conservative figure.

"It's a great investment for the state," he said.

Partch said Whitman County should have a strong chance against other entities vying for the money.

"I think we are going to be right on the top of the pile," Partch said. "We think we are going to be very competitive in this."

The county has until June 30 to submit its completed application to the state.

"We are in that time frame and everything is moving along," Partch said. "This is just one more step - and a big step - in the process."

LIFT money is awarded by the Community Economic Revitalization Board, which is expected to announce its decision Sept. 18.

The Queen is Dead! Long Live the Council!

One marvels at the sheer gall of Queen Nancy. She wanted to impose Moscow's business-killing big-box ordinance on Whitman County. But the Moscow City Council nixed that quicker than Sir Thomas More refused to endorse King Henry VIII's plan to divorce Katherine of Aragón (and Nancy can't even have them beheaded.) I told you those guys deserve our full support here in Whitman County.

Can you spell L-A-M-E D-U-C-K?

From today's Moscow-Pullman Daily News:

Mayor, councilmen spar over LIFT letter; Public works/finance members take exception to Chaney's suggestions to Whitman County

Moscow Mayor Nancy Chaney wanted to send a strong message to Whitman County commissioners.

Members of the City Council's Public Works/Finance Committee thought she overstepped her bounds.

Committee members met Monday and shot down all but one of Chaney's suggestions to Whitman County regarding a grant application to pay for infrastructure at the site of the Hawkins Companies' controversial development just across the state line from Moscow.

Whitman County is applying for up to $1 million a year for 25 years through the Washington state Local Infrastructure Financing Tool program. The money would help pay for $18.1 million of public infrastructure in a "Revenue Development Area" that includes the Hawkins Companies' retail development, as well as property south of Hawkins.

Chaney edited and approved a letter written by city Public Works Director Les MacDonald that included seven points of comment about the county's LIFT application.

"If we were applying for anything to that effect, I don't know that I would want Whitman County telling me, or telling us, what we should do about it or how we should approach it," Councilman Dan Carscallen said.

The lone point Public Works/Finance Committee members decided to let Chaney send asks Whitman County to use caution if it builds a wastewater treatment facility near Moscow drinking-water wells.

The original letter included information Chaney said needs to be pointed out to the state officials who review LIFT grant applications. For example, the original letter stated that water quality treatment and sanitary sewer booster stations will likely be needed to serve the development area, though they are not on the application's list of infrastructure improvements.

Chaney said Whitman County may have chosen not to include those items, but if they were forgotten it is "a serious oversight."

Chaney also questioned how Whitman County intends to provide water to the development areas outside the Hawkins project. Moscow has agreed to provide water to the county for Hawkins' development only.

The original letter further suggested that elements of Moscow's large scale retail ordinance, known as the big-box ordinance, could be used for projects within the development area.

Chaney said she doesn't demand that Whitman County adopt the whole ordinance. The point is meant to say, "Gee, Whitman County, take it or leave it, but you may not have to reinvent the wheel here."

Other points in the original letter praised parts of Whitman County's application, such as including a frontage road and improvements for bicycle/pedestrian trails.

Carscallen and Councilmen Walter Steed and John Weber said they felt the letter amounted to Moscow getting too involved with Whitman County's project.

Councilman Bill Lambert sent an e-mail to the Public Works/Finance Committee in agreement.

"I also feel strongly that we should not get our staff involved with doing research, writing letters and spending numerous hours on something that quite frankly isn't our business," Lambert wrote. "Our staff as well as our Mayor and Council needs to focus on what's happening here in Moscow."

Carscallen said Moscow shouldn't be offering up the big-box ordinance when "we haven't even gotten to try it yet to see how it's going to work."

Weber said parts of the letter seemed to be offering Whitman County free engineering advice.

MacDonald said it's normal for Palouse counties and cities to share such information. He declined to comment further on why he thinks the points the committee cut should be sent to Whitman County.

"Where I stand is immaterial," he said.

Chaney said Moscow is not stepping on Whitman County's toes because the city was invited to comment.

Whitman County Clerk of the Board Maribeth Becker said the county didn't not specifically solicit comment from Moscow, but sent out a notice of public hearing to many local communities, landowners and businesses asking for comments. The public hearing is scheduled for 10:30 a.m. Monday at the Whitman County Courthouse.

Chaney said she thinks the council members are being "gun shy" because the LIFT grant is related to the Hawkins project.

"I thought it was more about ideology and digging in the heels than it was the words on the page," she said.

"Eye utility district: Moscow cannot supply water directly to Hawkins"

Looks like Whitman County is getting into the water business. Good. Now everyone can't scream that Moscow is selling water directly to Hawkins as part of some under the table sweetheart deal.

In any case, Hawkins is wisely going to dig a well just in case things with Moscow or IDWR don't work out down the road.

From yesterday's Whitman County Gazette:

Whitman County will have to enter into a formal agreement with Moscow if the city is indeed going to provide water service to Hawkins’ companies’ stateline strip mall.

Commissioners Monday agreed to do just that after receiving a letter from Moscow’s City Supervisor Gary Riedner stating the Idaho Department of Water Resources would not allow the city to sell its water to an out-of-state private business.

Commissioners signed a letter stating they intend to work with Moscow to act as the public entity that would accept the city’s water as an intermediary for Hawkins.

Commissioner Michael Largent said he was still uncertain if the county would simply receive a water bill and pass that cost on to Hawkins or if a utility district would need to be formed.

If the county and city can reach an agreement that suits the Idaho water authority, Moscow will provide up to 45 acre-feet of water for use inside the stores in Hawkins’ 714,000 square-foot development.

Cross-border cooperation is a new approach for commissioners, who were previously angered by Moscow’s appeals of the shopping center.

Moscow’s council filed appeals at several stages of the development’s permit process, and those appeals angered commissioners to the point that Commissioner Jerry Finch told the Gazette last year that “hell will freeze over” before he cooperates with the city on future projects.

Finch’s tune has changed since then.

Moscow voters last fall elected a slate of pro-business candidates to replace the council that had filed appeals over Hawkins’ use of water and pollution controls.

Finch Monday said he does not foresee any tension in these negotiations, crediting Moscow voters for “changing the tenor” of the city council.

“We do have to work all our issues out,” said Finch.

“But the new council is certainly amiable enough. And you know that I’m an easy-going teddy bear,” he said with a wink.

Largent was appreciative of the new council’s decision to drop those appeals and to sell the city’s water to Hawkins.

“I want to note that we very much appreciate the compromise from the new council across the border,” said Largent.

Earlier this year, Moscow decided to drop its appeal of Hawkins’ quest for four water rights. That appeal was dropped as the two parties reached a settlement in which Moscow would pipe water to the site if the company dropped its applications for the water rights.

The agreement was reached during a mediation with the state Department of Ecology.

Regardless of the outcome of the negotiations to purchase water from Moscow, Hawkins is planning to drill a well at the site this summer.

Public Works Director Mark Storey put out a call for bids on drilling the well today.

Under the agreement, the company retains a right to pull water from the ground until water service from Moscow begins.

The accord also ensured the town of Colton would have the right to draw 100 acre-feet of water from Union Flat Creek.

Finch added the well will provide insurance for the company in the event that Moscow decides to turn the spigot off in the future.

The company may also need the water while preparing the site for construction.

Hawkins spokesman Jeff DeVoe told the Gazette last month that excavation of the 700,000 square foot site will begin as soon as the soil dries out enough.

To administer the water swap, the county may have to form a utility district, said Finch. In a meeting with Port of Whitman commissioners Monday afternoon, he said the port would be the most appropriate agency to oversee such a district.

"P&Z commission worried about water"

Nice to see Moscow is finally looking at its own water usage issues instead of meddling in Whitman County. I've always said, once Moscow stops allowing new houses to be built, THEN we'll have a water crisis.

From today's Moscow-Pullman Daily News:

The Moscow Planning and Zoning Commission will ask the City Council whether it can consider water issues when making land-use decisions.

Chairman Art Bettge said water concerns should be factored into the discussion for new subdivisions, rezones and the like.

"Every development that is approved and is built increases the overall use and depletion of the aquifer," Bettge said after Wednesday's commission meeting.

However, he said the commission risks infringing on private property rights if it bases decisions on water use without the go-ahead from the council.

Commissioners said they would at least like to draw developers' attention to how their proposed projects will use water resources.

"The water issue kind of slips through unrecognized at times," Commissioner Donald Crawford said.

For example, Commissioner Nils Peterson requested a study of how the Legacy Crossing Urban Renewal District would use and conserve water after a presentation on the proposed district during Wednesday's meeting.

"I don't see any concern on the part of this proposal for aligning itself with the extensive mentions of water consumption that are in the current comprehensive plan," Peterson said.

The other commissioners agreed, and voted unanimously for City Supervisor Gary Riedner to include language about water sustainability in the Legacy Crossing plan.

The discussion of making water a formal part of land-use decisions arose after the city's water conservation specialist, Nichole Baker, gave a presentation on city water-use trends.

Baker's data showed that Moscow met its Palouse Basin Aquifer Committee overall water-use goals in 2006 and 2007 and that per capita water usage is lower now than it was in the 1990s. The city has increased its water conservation efforts in recent years by offering free tools like water-saving shower heads. The city also has encouraged water conservation by imposing a tiered rate system that charges a higher rate for those who use large amounts of water.

Bettge said the data shows Moscow is doing something right.

"That says that despite development, a good many more subdivisions and things like that, we're using less than we were," he said.

He said the city must continue to manage its water use as it grows. He suggested further adjusting the tiered water rates to curb the few households using substantial amounts of water.

The commission also briefly discussed a city water budget. The City Council made developing a budget one of its goals for this year.

Crawford said the council needs to give the planning and zoning commission information about what actually will be done to develop that budget.

"We hear the city's going to develop a water budget and we hear that and we hear that and we hear that, and the issue's not going away," he said.

Bettge said he would prefer not to have a water budget until the city has more solid data on how quickly the Palouse's major aquifer, the Grand Ronde, is being depleted. A state study slated for 2011 could help provide that information.

"Unless you know how much is in the aquifer, you could establish a tight water budget and it still wouldn't mean anything," he said.

The council could approve a resolution allowing the commission to factor water use into its decisions in the meantime. Bettge said some form of direction is vital.

"We could get into an endless discussion of water in public hearings and other than having a nice discussion about water, we can't go any further than that," he said.

Moscow developer Rick Beebe said water should be part of land-use discussions.

"Water issues are something we consider in virtually everything we do right now," he said, adding that developers also should consider issues such as how their development addresses transportation and energy use.

"IDWR: Intergovermental agreement needed for city to sell water to Hawkins"

Queen Nancy thinks "it'll be time-consuming." Of course she does.

From today's Moscow-Pullman Daily News:

Moscow and Whitman County will have to enter into an intergovernmental agreement if the city wants to provide water to the Hawkins Companies development.

Moscow City Supervisor Gary Riedner said Idaho Department of Water Resources officials told Moscow leaders last week that such an agreement will be required for the city to move forward with its application to modify Moscow's water service area to serve the Hawkins retail development just across the state line.

The city agreed to make "prompt application" to IDWR in a settlement with Hawkins, reached during closed-door mediation in February.

The process to create the intergovernmental agreement is just beginning, Riedner said. Moscow and Whitman County leaders have not been able to find a suitable date for an initial meeting.

Whitman County Public Works Director Mark Storey said he expects a meeting to occur within the next few weeks. It will then take a month or two for Moscow City Attorney Randy Fife, Whitman County Prosecutor Denis Tracy and other city and county officials to work out the agreement.

"I think the basic agreement's kind of simple," Storey said. "They agree to sell us water and we agree to pay for it, then we pass it on to Hawkins."

Riedner said intergovernmental agreements are fairly commonplace. The city and county already have mutual aid agreements for police and fire services in emergencies, for example.

IDWR Public Information Officer Bob McLaughlin said a 2005 letter to Fife from Deputy Idaho Attorney General Steve Strack explains the need for the intergovernmental agreement.

Strack wrote Idaho cities are authorized to enter joint service agreements "where it is more practical to construct and maintain a unified water or sewage system than for each city to provide separately such services to their respective residents." The municipalities' water rights would be amended to include the joint service area.

Strack wrote that similar agreements across state lines are potentially available under a section of Idaho Code that authorizes Idaho public agencies to "enter into cooperative agreements" with out-of-state public entities. Any agreement to extend services across state lines "would have to be carefully crafted to address issues such as authority to levy and collect taxes and fees."

The letter includes other rules and regulations regarding out-of-state water use and delivering water across state lines.

McLaughlin said he could not comment on the Hawkins situation aside from referring to the Strack letter, which was written in response to a separate inquiry from Fife.

Riedner said at Monday's City Council meeting that the city will see if it can send a letter to IDWR stating the city and county are pursuing the agreement, and move forward with the application while the agreement is being finalized.

The Moscow City Council and Whitman County commissioners will discuss and vote on any agreement publicly. Riedner said Hawkins officials also will review the agreement.

Moscow Mayor Nancy Chaney said the city will make an effort to move expediently on the agreement, as stated in the settlement with Hawkins, but it may not be easy.

"I think it'll be time-consuming," she said.

"Legal arguments linger over Hawkins water sale; Lamar questions whether IDWR will approve extension"

I'm glad someone on the Moscow City Council realizes the hypocrisy that was involved with Moscow obtaining a water right to drill a new well while opposing the Hawkins Companies attempting to do the same thing.

From yesterday's Moscow-Pullman Daily News:

Moscow City Councilman Tom Lamar suspects the Idaho Department of Water Resources may deny the city's application to extend its water service area into Whitman County.

Lamar was the lone council member to vote against accepting Public Works Director Les MacDonald's report about the application at Monday's City Council meeting. The city seeks to provide water for the Hawkins Companies' proposed retail development on the Pullman-Moscow Highway, just across the state line.

"I guess I still haven't acquired any additional comfort in doing that, so I just wanted to state my continued concern for this process," Lamar said.

The city agreed to make "prompt application" to IDWR in a settlement with Hawkins, reached during closed-door mediation in February. MacDonald will send a copy of the application to Hawkins for review before it is sent to IDWR.

City Supervisor Gary Riedner said the city will notify the public when the application is sent to IDWR.

The application requests a modification of the city's service area, which usually is the same as the city's corporate limits. The application states the water will be supplied to Whitman County for use by "a commercial development located immediately adjacent to but outside of the city's corporate limits."

MacDonald said the application would not modify Moscow's water rights in any way other than extending services. It does not ask for additional water rights, surrender any rights or make other changes to current services.

Lamar said after the meeting he has doubts there is room in Idaho law for selling water across state lines. He does not know of any example where it was allowed.

He also is concerned that the request could be seen as water mining, which is illegal in Idaho.

"We're taking water out faster than it's being recharged, and now we're going to sell it as a commodity," he said.

City Attorney Randy Fife said he sees no legal problem with Moscow's request "because the Idaho state code provides a mechanism to deliver water outside of the state, and because IDWR agrees that that is an appropriate mechanism."

Fife said IDWR officials want the city to enter a joint powers agreement with a Washington political entity, likely Whitman County, to extend the water service area.

He said he would prefer the city and county reach an agreement before the application is sent to IDWR.

Mayor Nancy Chaney, who does not support selling water to Hawkins, said there should be more communication between the parties involved in the settlement agreement "to ascertain whether being fast or being thorough is preferable" before the application is submitted.

Councilman Walter Steed reminded the council that Hawkins still would have access to 45 acre-feet of water rights should the application be denied.

"Once this is approved and we are able to physically supply water then they are to abandon those water rights and they will be given back to the state of Washington and not be used," he said.

In other business:

MacDonald reported on the city's preparations for Well No. 10, which is scheduled to be drilled on the west end of A Street in 2009.

The city will apply to IDWR to utilize Well No. 9's existing water right for the new well. The amount of water the city can pump will not be increased, but it will be able to pump from either Well No. 9 or Well No. 10. Riedner said the purpose of Well No. 10 is to provide backup in case Well No. 9 temporarily shuts down.

MacDonald said at an earlier meeting he would prefer to apply for a new water right. Councilman John Weber agreed, and voted against accepting the report on the application.

Weber said after the meeting it seems like a waste of time and money to drill a new well but not obtain a new water right.

Steed and Councilman Wayne Krauss said Moscow should not apply for a new right just after asking Hawkins Companies to relinquish its water rights in exchange for the water sale.

'Councilman says litigation could have proven costly for city; Krauss: Hawkins deal had to be made"

It's so refreshing to finally have a breath of sanity on the Moscow City Council and wathcing all the no-growth liberals squirm because there is not a damn thing they can do to stop this project now. Congrats to the Hawkins Companies for their resolve for putting an end to this nitwittery. I only wish Wal-Mart would act as aggressively.

And no, Gerard, water is not an issue for Whitman County, just the selfish efforts by you and other Moscow business people to hold Pullman and Whitman County back all these years.

Moscow City Councilman Wayne Krauss said a February mediation session in Spokane was the last chance to get Hawkins Companies at the negotiation table.

Krauss said at a forum Tuesday that the actions of company representatives during mediation led him to accept a controversial settlement agreement. The agreement includes a deal to sell water and possibly sewer services to the proposed retail development just west of Moscow in Whitman County.

"I was under the very strong impression that Hawkins was not going to talk about it any longer," he said.

Krauss spoke at the forum along with Tom Lamar, the sole council member to vote against the agreement, and local business owners Dennis Baird and Gerard Connelly. The forum was sponsored by the Moscow Civic Association, the Moscow Chamber of Commerce and the Palouse Water Conservation Network.

Krauss, who attended the mediation with Councilman Walter Steed and Mayor Nancy Chaney, said Hawkins representative Jeff DeVoe started packing his briefcase toward the end of the 22-hour meeting, indicating he was ready to make a deal or leave.

"When you see Jeff DeVoe and his attorney sit back in their chairs and cross their arms and they say (a section of the settlement) stays like it is, that's it, you pretty much understand where they're at," Krauss said.

He also said Peter Scott, an attorney hired by the city of Moscow who specializes in water issues, recommended taking the settlement to avoid costly litigation over the appeals that Moscow likely would have lost.

"We paid a lot of money for his recommendation, and I thought it was probably a good idea to do it," Krauss said.

In addition to the water and sewer sale, the settlement required Moscow to drop its appeals of two water rights approved for Hawkins by the Washington State Department of Ecology, and required Hawkins to drop an appeal of a right denied by the Department of Ecology. Hawkins will retire the water rights approved by Ecology as soon as it hooks up to Moscow's system.

Tri-State owner Connelly, who said the settlement deal is probably the best for Moscow in face of inevitable development, said the council could have tabled the settlement to allow public comment without returning to mediation.

He said it's good to get the best advice possible from lawyers, but the city can't let them dictate what to do.

In response to a question about why the decision to sell water seemed so rushed - the council voted to approve it at its first meeting after mediation - Krauss said he felt the next step would otherwise be costly litigation with Hawkins over the appeals.

Lamar disagreed.

"I thought we had all the time in the world," he said.

Lamar said the council was obligated to move quickly once it accepted the settlement, but it could have decided to spend more time thinking about it before voting.

Lamar said the decision to sell water was more significant than concerns about the appeals.

"It just seemed to me to be too big of a gift to switch," he said.

Tina Baldwin, a Viola resident who said she came to the forum because the development will draw from the same aquifer she does, said she was interested to learn that the City Council "was intimidated by lawyers."

"I guess the only one that voted with conscience and in the best interest for the business community and citizens was Tom Lamar," Baldwin said.

Moscow resident Jo Bohna said the forum increased her questions and concerns about the Hawkins deal.

Council members "were intimidated by big-city attorneys, panicked, and gave away our retail dollars to the state of Washington, along with 1 percent of our sewage processing capacity," Bohna said. [Have you noticed how contradictory all these moonbat's arguments are? If the Hawkins development will ultimately fail, as they predict, why all the "strong arm tactics" by Hawkins to push the deal through? Obviously, Hawkins sees a gold mine of untapped retail needs here, worth enough to but up with all this BS. - tf]

Palouse Water Conservation Network President Bill French said he still had questions after learning about the mediation process and influence of attorneys.

"If this is such a good deal for Moscow, why did all the high-powered attorneys from Hawkins let us get away with it?" he said. "They wouldn't have agreed to go with anything that would benefit them less than it benefits us."

The forum also included discussion of the possible effects the Hawkins development could have on Moscow business.

Baird, who owns the Wine Company of Moscow, said he is "deeply afraid" that Hawkins will cause some Moscow businesses to close. He also is not confident there is enough retail demand to support the Hawkins development.

He said he's concerned "that mall will survive just long enough to sink a whole lot of ships in Moscow and probably Pullman for that matter and then fail."

Lamar said he's worried that Hawkins will approach Moscow businesses and convince them to relocate to the development.

Connelly emphasized that retail shopping centers like the one proposed by Hawkins create economic displacement, not economic development.

"When Lowe's opens up, do you think people in Moscow are going to buy more lumber and more hardware?" Connelly asked. "They're not. [How about people from all over the region that curently go to Lewiston or Spokane to Home Depot? Connelly is too successful to be this dumb about business. It's got to be a put-on - tf]

"Having said all of that, I think that the council probably didn't have any good choices, because apparently water is not an issue for Whitman County."

Connelly said he preferred having Hawkins build right next to Moscow than in Pullman.

He said his father always told him "it's always best to be right next door to your competition."

Krauss asked audience members to raise their hands if they were concerned about the downtown business district "suffering tremendously" because of Hawkins.

Almost everyone raised their hands, and Krauss admonished them to stop being pessimistic. He said people have been worrying about downtown for decades, and downtown has survived.

He said that downtown businesses fill specialized niches. They might lose some price-shopping customers, but will keep others.

"Dennis, there's absolutely no way that anybody can put you out of business because of what you offer," he told Baird. "Yeah, they can beat your prices, but they can't beat you."

Editor's note: Wayne Krauss was referencing a conversation with another person who said small business owners should quit if they can't stand up to big business. The comment, included in Wednesday's edition of the Daily News and an earlier version of this story, was incorrectly attributed to Krauss due to a Daily News error.

"Forum on Hawkins deal brings questions, answers"

Let me sum up last night's Moscow Com, er, Civic Association forum on the Hawkins development.

Moscow will receive $170,000 a year for selling Hawkins the same water Hawkins could have been pumping themselves, versus nothing.

Leftists still view national chain retail as some sort of capitalistic murder-suicide plot versus an investment.

And Gerard Connelly is still against any retail development in Pullman.

Now, can everyone please shut up? It's a done deal.

From today's Lewiston Tribune:

MOSCOW - Secrecy in government and a hurried business deal became fodder here Tuesday night for a bevy of questions and answers, some lengthy explanations and at least one concession.

"Has the council learned a lesson? Absolutely," Councilor Wayne Krauss said during a public forum about the city's recent closed-door deal with Hawkins Companies developers. "Should there be more public process? Absolutely. I agree with that."

The city council voted 5-1 last month to provide water and sewer service across the state line to Hawkins' proposed 714,000-square-foot shopping center. The action came after 22 hours of secret mediation and no public input.

"We got bad results from a process that was dubious at best," said Dennis Baird, owner of the Wine Company of Moscow.

Krauss and Baird were joined on a panel by Councilor Tom Lamar and Tri-State business owner Gerard Connelly. The forum, attended by about 100 people at the 1912 Center, was co-sponsored by the Moscow Civic Association, the Moscow Chamber of Commerce, and the Palouse Water Conservation Network.

Lamar, the only council member who voted against the agreement, said while the city council was on firm legal ground, "morally I feel like we should have done a lot of things differently."

Connelly defended the intentions of all elected officials. "I believe that every single person on the old council and the new council, and the mayor, acted honorably. And don't question anybody's motives."

But he said retail development is not economic development. "Retail follows economic development," Connelly said, adding he couldn't think of a more important vote taken by a Moscow City Council than the rushed decision with Hawkins. And yet there was "woefully inadequate public comment."

Krauss pointed out the lack of public involvement and secrecy started when Mayor Nancy Chaney and members of the old city council went into executive session last year and apparently came to a consensus to appeal Hawkins Companies attempts to secure water rights for the development. Then the city, without public input, decided to enter into mediation, Krauss said.

"We suddenly found out, guess what, we're going to mediation next week," Krauss said of how the process was sprung on new council members. He, Chaney and Councilor Walter Steed attended the mediation session with Hawkins in Spokane. All had to sign a confidentiality agreement.

"We felt that the Hawkins development, it was coming no matter what Moscow did," Krauss said. If the city didn't supply sewer and water, Hawkins would drill its own well and sewer system. "So the next best thing was hammer out the best deal we can."

Krauss estimated Hawkins will pay the city upward of $170,000 annually for water and sewer service on top of thousands more for hookup fees.

Most of the written questions at the forum focused on details of the water and sewer deal, rather than the secrecy of the decision making.

Baird expressed his doubts about the development, saying local businesses will lose out. "And then the place will close ..., and the whole community will be stuck with less business and less tax revenue than we have right now. That's the scenario that I'm really afraid of, that the mall will succeed just long enough to sink a whole lot of ships in Moscow and Pullman ... and then fail."

Connelly predicted the shopping center would amount to the latest exercise in "economic displacement," not growth. Nonetheless, if the development is inevitable, he'd rather have it right next to Moscow than farther away. "The closer you can be to your competition, the better."

Concerns about the development using too much water, Krauss said, should be less under the proposed agreement because Moscow will be able to regulate the amount. He also said people who fear excessive water use by Hawkins need to be more concerned about residential developments that go in with little or no discussion about their drain on groundwater supply.