"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."

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.

In the Third Year of the Palousitics Revolution

Three years ago today when I started this blog, I wanted two things: Dino Rossi in the Governor's Mansion in Olympia and a Wal-Mart Supercenter under construction in Pullman.

God willing, I'll see both of those things happen by next January.

From its humble beginning, I'd like to think Palousitics' now nearly two dozen contributors have played an important role in recent events on the Palouse, such as:

Taking the WSU College Republicans' fight to promote free speech and expose racism, intolerance, and lack of academic diversity at WSU to a local, regional, and national audience. Ed Weber,the director of WSU's Foley Institute recently apologized to conservatives for kow-towing to the "hegemony of the left-leaning liberal viewpoint" and promised more conservative speakers on campus.

Arguably the most pro-growth Pullman City Council and Whitman County Board of Commissioners in recent times.

According to PARD's latest screed in the Daily News "unfairly and personally attacking" the millions of Wal-Mart haters in Pullman and forcing them into anonymity and silence. In actuality, many of the silent majority of Wal-Mart supporters have found the courage to speak out, prompting Wal-Mart officials to comment that, other than the PARDners, they have been overwhelmed with the positive response they have received in Pullman.

Since I started Palousitics, I have been interviewed by the New York Times, been a guest on a Seattle radio talk show, co-hosted a Pullman talk radio show, met Wal-Mart CEO Lee Scott, rubbed elbows with members of the international mainstream media, seen Palousitics ranked as one of Washington's most influential political blogs, and most importantly of all, spoken at a troop support rally for our local National Guard troops deploying to Iraq. I always tell people that I never know from day-to-day what new thing blogging will bring.

But April pointed something out to me recently that made me the proudest I have been yet of this blog. It was a long, rambling, self-pitying, paranoid history of the Hawkins development in the corridor written from Queen Nancy's perspective.

In it, she blames the foiling of her efforts to stop Hawkins, in part, on:

political will and the public’s patience waned in the face of a publicity campaign that unfairly and inaccurately depicted Moscow as meddlesome, unreasonable, anti-business, greedy, and mean-spirited.

As I am not aware of any other "publicity campaign" that depicted Moscow as "meddlesome, unreasonable, anti-business, greedy, and mean-spirited" other than what we waged here at Palousitics, I'm more than happy to take credit for it.

The little blog that took on an out-of-control city government to bring millions of sales tax dollars to Whitman County.

An Army of Davids indeed.....Happy Third Blogiversary to all you Palousitics contributors and readers.

Quote of the Day

[Moscow resident David] Hall questioned the plan to manage water, and criticized the developments’ anticipated water usage.

[Pullman resident Scotty] Cornelius also noted the shopping center’s drain on area groundwater supplies, but added the development will drain Pullman’s economy.

He also criticized what he called “inadequate” infrastructure for emergency services and called for commissioners to have an independent analysis done on the mall’s potential economic ramifications.

[Whitman County Commissioner Michael] Largent said commissioners appreciated the comments, but they were not relevant to commissioners’ decision on forming the RDA.

- "Hawkins project: County closer to multi-million dollar LIFT grant," Whitman County Gazette, June 19, 2008

Touche'! Advantage, Commissioner Largent!

I have praised the Whitman County Gazette repeatedly for providing some of the best journalism on the Palouse. However, the Gazette failed to report on both the Whitman County Republican Convention and the Wal-Mart appeal decision, and now, in the story below, the negative comments about the RDA hearing were played up. Pullman business owners Russ and April Coggins support of the RDA was not mentioned at all, even though they spoke at the hearing.

From yesterday's Whitman County Gazette:

Hawkins project: County closer to multi-million dollar LIFT grant

Whitman County commissioners took one step closer Monday to securing state funding for infrastructure improvements in the neighborhood of Boise-based Hawkins Companies’ proposed 714,000 square foot strip mall in the Pullman-Moscow Corridor at the Idaho state line.

“It’s a big step, but it’s just one more step in the process,” said Commissioner Greg Partch.

Following a public hearing, commissioners unanimously approved an ordinance which created a Revenue Development Area (RDA) on approximately 300 acres of land on the very east edge of the corridor.

The RDA defines an area in which a portion of the state’s share of sales tax revenues would be refunded to the county through the state’s Local Infrastructure Funding Tool (LIFT) program.

The county is seeking $18 million from the state grant program over several years.

Both Partch and Commissioner Jerry Finch pushed for a Monday decision, as they said the clock is ticking on the LIFT application process.

Applications are due June 30, and recipients will be announced Sept. 18.

“We are taking charge of our own financial destiny in this county,” said Finch.

Finch added this brings the county one step closer to reaching the goal they set when first elected, to augment county income without raising taxes.

Location of the RDA, however, stirred up worry among some local citizens.

Darl Roberts, a Pullman real estate agent, worried that helping to fund the development would be “perpetuating what’s been a major problem in Pullman for 30 years,” by pushing retail shoppers toward Moscow.

Roberts asked why commissioners did not broaden the boundaries of the RDA towards Pullman. Such a move, he said, would allow LIFT funds to be spent on extending utilities from the Pullman east through the corridor.

Public Works Director Mark Storey told Roberts the county considered a longer RDA, but felt, after meeting with grant consultant Kara Riebold, that applying for grant funding without clearly outlined projects would dilute the application and lessen the chance to receive the grant.

Roberts added he thought commissioners were not actually adding tax revenues, but were rather pirating such revenue from Pullman by pushing retail to the corridor.

Finch replied the city had two years to apply for LIFT funds, but “they chose not to.”

“Pullman wasn’t ready to extend utilities and hop on our LIFT application,” added Partch. “There just wasn’t an ability to do a LIFT grant with them at this time.”

Johnson resident Pat O’Neill, who is challenging Finch for the District 2 county commissioner seat, commended commissioners for “doing their homework and getting this process through.”

Seven residents attended Monday’s hearing.

Four people submitted written comments. They included Moscow Mayor Nancy Chaney, David Hall of Moscow, Scotty Cornelius of Pullman and Paul Kimmell, regional manager for Avista.

Chaney urged commissioners to closely monitor how Hawkins’ wastewater could affect Moscow’s wells.

Commissioner Michael Largent said the RDA hearing was not about the developer’s plans, and wastewater management would not be weighed in the commissioners’ decision.

Chaney’s letter also thanked commissioners for inviting her to comment on the formation of the RDA.

Largent pointed out no specific invitation was directly extended to Chaney.

Legal notices of the hearing to form the RDA were printed both in the Gazette and the Moscow-Pullman Daily News.

Kimmell wished commissioners success in their efforts while Hall and Cornelius expressed their opposition to the Hawkins development.

Hall questioned the plan to manage water, and criticized the developments’ anticipated water usage.

Cornelius also noted the shopping center’s drain on area groundwater supplies, but added the development will drain Pullman’s economy.

He also criticized what he called “inadequate” infrastructure for emergency services and called for commissioners to have an independent analysis done on the mall’s potential economic ramifications.

Largent said commissioners appreciated the comments, but they were not relevant to commissioners’ decision on forming the RDA.

Created by the Legislature in 2006, the LIFT program can awards single grants up to $1 million per year to local governments to spend on infrastructure that will generated tax revenues. The Community Economic Revitalization Board can award up to $2.5 million overall each year in LIFT funding.

If the county is awarded LIFT funding, it will spend the money to pay off bonds commissioners last month decided to issue to finance construction of roads, water and sewer lines and sidewalks in Hawkins’ shopping complex.

Storey said approximately $14 million of the sought-after $18 million would be used to pay off the principle and interest on the bonds. The county seeks the $18 million award over several years.

The remaining $4 million would be used to reconstruct the eastern portion of Pullman Airport Road and to build a frontage road for businesses at Wilson Siding, on the south side of the Pullman-Moscow Highway across from the Hawkins site.

The frontage road would connect to the highway at the Airport road intersection light.

McGregor Fertilizer Co., Wilbur-Ellis and Busch Fuel Distributors all have plants south of the highway.

Crossroads Nursery, on the north side, is in the RDA.

"Kopf seeks project in P/M corridor"

The Pullman-Moscow corridor continues to hum with activity.

From yesterday's Whitman County Gazette:

Williams Place, LLC., was issued a mitigated determination of non-significance (M-DNS) under the State Environmental Policy Act checklist June 3 by Whitman County’s planning department to split a 20-acre site into four subdivisions in the Pullman-Moscow Corridor.

The subdivision must now acquire a conditional use permit from the county’s Board of Adjustment.

Gary Kopf, chief executive of Williams Place, said his company is clearing the way for potential businesses to set up on the land. The lots will be on the west of the Garage Mahal storage units.

Listed in the company’s application for approval are several types of businesses that would be allowed as permitted uses.

Kopf foresees mostly construction-related companies, such as contractors’ warehouses and storage yards, occupying the space.

The lots will be up for sale, he added, when and if the company is granted the conditional use permit.

Kopf is also asking the county to approve a re-zoning of 20 acres of land further west in the corridor for expansion of an industrial land fill site.

Twenty acres is already being used to store inert material, such as sand, rock and asphalt, from construction projects in the region.

The expansion would be just south of the existing landfill.

Kopf opened up the existing landfill to hold debris from the state’s project to widen State Route 270 from Pullman to Moscow.

He added the landfill is now accepting inert waste from private construction projects in the area.

Atlas Sand and Gravel is occasionally crushing rock at the landfill that can be purchased by locals in need of gravel, fill, etc.

The county planning commission will hold a public hearing on the landfill proposal next Wednesday, June 25.

Hawkins 3-Fer, Part Two

In my last post on the Revenue Development Area, Whitman County Commissioner Greg Partch mentioned tax sharing between Whitman County and Pullman in the Pullman-Moscow corridor. How is that idea coming along?

According to last Thursday's Whitman County Gazette, quite well:

Pullman, county close in on tax split zoning plan

Whitman County leaders and Pullman officials are close to an agreement that will set out the growth boundaries of the city. The agreement will include a tax sharing scheme that has never been tried anywhere in the state.

In exchange for Whitman County prohibiting residential use within the proposed zone limits, the county and city will split sales tax revenues from commercial enterprises that locate there.

County Commissioner Jerry Finch pointed to WSU and Pullman as the main drivers of Whitman County’s economy.

“They have to understand that the county has to generate revenue to be viable,” said Finch. “I mean their (Pullman’s) general budget is bigger than ours.”

By agreeing to split the taxes now, he added, the county can avoid losing revenues from developments via subsequent annexation. He pointed to such instances in North Spokane and the Spokane Valley.

“The idea was to do this to pre-empt the city from just annexing any developments in the county,” said Finch.

The city and county will also split the sales tax revenues from future developments in the Pullman-Moscow Corridor. Revenues from Hawkins Companies’ proposed strip mall and the recently relocated James Toyota, which have also gone through the permit process, would not be included in any split.

As currently mapped out, the protection zones would extend from the eastern edge of the Pullman-Moscow Airport on the east to the junction of Highways 195 and 270 at the N. Pullman bypass on the west. North-South limits would be the Pullman-Albion Road on the north to the S. bypass on the south.

Property taxes in the designated areas would be phased from the county to the city over a 10 -year period after the city eventually annexes property.

The Pullman City Council must still decide on the exact boundaries and agree to an interlocal agreement with the county to make the split work.

Still to be determined is how far into the corridor the city would extend water service. The city’s proposal now stops at Sunshine Road, while the county would like to have the possibility of providing water to near the state line.

Once the council and county come to a final agreement on the boundaries, the tax split could be a reality in two to three months, according to Commissioner Greg Partch. He noted the venture is the first of its kind in the state.

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.

"First bid opened for stateline mall"

August 2009 opening for Lowe's and the Stateline Retail Center with Wal-Mart to follow likely in early 2010.

From today's Whitman County Gazette:

The first bid on prep work at the site of Hawkins Companies’ 714,000 square foot stripmall at the Idaho state line, just west of Moscow, was opened by Whitman County commissioners Monday afternoon.

H2O Well Service Inc., of Hayden, Idaho, submitted the lone bid for drilling wells to provide the development with water. The company quoted a price of $387,314.

Hawkins in March cut a deal with Moscow officials in which the city would provide water for use at the development.

The Idaho Department of Water Resources (IDWR) ruled in April that the city could not sell water across state lines to a private company.

County commissioners then agreed to take Moscow’s water and sell it to Hawkins. That deal is still awaiting approval from IDWR.

Hawkins’ water engineer, Alan Gay of USKH Engineering in Spokane, said he hopes to begin pumping water from multiple wells at the site by August of this year.

The company will later call for bids for installing booster stations, well controls and a 720,000-gallon reservoir this fall.

Gay said ideally infrastructure will be in place and the building for the first tenant, likely a Lowe’s Home Improvement store, is expected to be built by August, 2009.

Commissioners will open bids on all work at the site during open session, though Hawkins will be administering the projects and sending out bid calls.

“This really is just a courtesy bid opening,” said Commissioner Greg Partch. “We’re trying to facilitate the appearance of fairness.”

That process was part of the official development agreement between the county and Hawkins, signed by commissioners May 28.

The agreement finalizes a preliminary commitment to issue $9.1 million in bonds to cover construction costs, agreed to by commissioners in February.

In exchange for the public funds Hawkins will build the roads and water and sewage systems, and those improvements will later be turned over to the county.

Also included in the agreement is a guarantee by Hawkins CEO Gary J. Hawkins that he will personally cover any gap in anticipated tax revenues that will be used to pay off the bonds.

As of Tuesday night, Hawkins had not yet returned a signed copy of the agreement.

"Whitman planning commission OKs corridor zoning changes"

It's official. Whitman County is open for business.

From yesterday's Moscow-Pullman Daily News:

The Whitman County Planning Commission approved several amendments to the county's zoning ordinances that, if affirmed by county commissioners, will allow for a broader array of retail, commercial and industrial businesses in the Pullman-Moscow corridor.

One of the approved amendments will add a number of permitted retail operations to the county's list of operations allowed in the corridor with a conditional use permit.

The amendment will permit a variety of stores, including those that sell clothing and accessories, crafts, flowers, jewelry, office furniture and supplies, pets and other goods. It also will permit theaters and restaurants.

Businesses wishing to locate in the corridor must receive a conditional use permit from the county to operate in the area.

Previously, many retail uses were not on the list of permitted uses.

Those additions will clear the way for a variety of retail chains to locate in the corridor and specifically at the Hawkins development. Current company plans call for a 714,000-square-foot retail shopping center just west of the Idaho border. The company expects to break ground in June.

An additional amendment calls for an expansion to the county's code in light- and heavy-industrial districts that will add professional services associated with the construction industry such as architects, engineers, construction management, and developers and planners.

Losonoco Follow-Up

Just a follow-up to the story about biofuel firm Losonoco deciding not to build a canola oilseed crushing processing plant at the Port of Wilma in Whitman County.

According to the Associated Press, this decision was made because Palouse farmers are not going to grow canola when wheat recently traded around $20 a bushel.

Ironically, this surge in wheat prices is being cause by wheat growers in other states switching their crops over to corn to make ethanol.

"Local developers work to build towns, save schools"

Whitman County's small towns are not agonizing about "sprawl" or "architorture." They just want to survive.

From yesterday's Whitman County Gazette:

While many eyes in the county are focused on the Hawkins’ development and the income it is expected to generate, other developments are popping up on the edges of many small towns in the county. Local residents have been taking on the role of developers to keep their schools viable and strengthen and build their communities.

“We just think we’ve got good options for people here,” said Art Schultheis, co-developer of Southview in Colton.

As a former member of the planning commission, Dale Miller, Uniontown, came to realize the town needed to increase its population. The commission encouraged people to develop and one family started to, but backed away due to costs.

“It’s not cheap to develop land,” he said. Miller noted that since small towns don’t attract developers, locals have to shoulder the load. He is a managing partner of the Rolling Hills development which is located on the land that started to be developed. He said that locals becoming developers in their small towns was an investment in the community.

Miller and Schultheis both noted the need for more houses to keep the school district viable. Schultheis pointed out that the school has the same number of families as when he graduated 25 years ago, but with fewer children per family the enrollment numbers have dropped. The solution is to bring more families into the district which would require more houses.

Paul Hendrickson, Garfield, also realized the need for more housing. As a member of the school board he has seen the number of students dwindle as farms become bigger and the families operating them become smaller. He said that the problem was not that the community was drying up within city limits, but the school district was losing rural families. Rural bus routes that once produced a load of children are no longer taken because there are no children to pick up.

Hendrickson is developing Sunrise Ridge Estates with lots two to six acres each on the 80 acre development. The land was once farm ground, part of which was already within city limits, and was annexed into the city for development. Hendrickson chose to go with the larger lots and have them zoned for large animals.

“We needed alternatives in our housing,” he said. He noted it was difficult to buy only five acres in the county and wanted to increase housing options for people.

“We’re trying to add some growth,” he said. To attract attention, Hendrickson felt smaller communities need a niche to attract new families.

Schultheis also found that to be true. His said the next development plans will include smaller lots for retired people or new homeowners who can’t afford larger homes and/or don’t want to maintain a large yard.

Schultheis has also developed what was once farm land that was already within city limits. In 2003 Schultheis and brother Greg broke ground on the cropland and started putting in lots for a subdivision. Since then 28 lots have been added. At first they sold only lots, but when contacted by buyers who wanted to move into a home, the brothers started to build houses on some of the properties. They are currently building the third house.

Miller noted Uniontown can attract families that commute to different metro areas. He feels the town’s location halfway between the Moscow-Pullman and Lewiston-Clarkston areas makes it a good place for families to split their commute.

The small town appeal for those looking to get out of urban area also works in the small towns’ favors. Miller noted the development could also draw people looking to get into a rural setting, but not have the problems and hassles of living in the country.

“We know we have a really nice little town,” he said.

Despite all the developments, small towns are not about to be inundated with empty lots and houses. The Rolling Hills development has a total of 40 lots on 25 acres, but Miller noted only 15 lots are currently being development with paving and water system installed and other lots will be developed as they sell. He felt the ideal population for Uniontown would be 400 to 600; a number which would support the town and attract business.

Schultheis aims for sales of three or four houses a year, hoping to sell at least one a quarter.

With the increase of families and people, an increase in business is anticipated.

“More people will always influence the community,” said Hendrickson.

Miller also pointed out that more citizens means more people who can volunteer to help out in the community. Each lot that sells also increases the city’s tax revenue with connection fees and property taxes.

“But you’ve got to have people first,” Schultheis said.

EC Hay & Sons is building a development in Tekoa, but could not be reached for comment before press time.

"Hawkins development: County will seek $18.1 million in state funding to develop sites"

Another myth debunked. The infrastructure being built for Hawkins will not just be for Hawkins. That whole area of the corridor will become a revenue development area.

Joe Smillie provides a nice breakdown of what everything is going to cost in the article below.

From yesterday's Whitman County Gazette:

County commissioners Monday set a price tag and scope of work on infrastructure improvements at Boise-based Hawkins Companies’ proposed stateline strip mall.

A public hearing has been set for June 16 on the formation of a revenue development area where such projects will be built.

Commissioners last week defined the boundaries of the development area, a requirement in applying for a grant from the state’s Local Infrastructure Financing Tool (LIFT) program.

The county will ask the state for a total of $18.1 million. That money will be spent on projects within the boundaries of the development area.

In February, commissioners committed to funding up to $9.1 million for infrastructure at the Hawkins site.

Commissioner Michael Largent told the Gazette Tuesday that the development area is meant to encompass more than just the shopping center.

“The economic opportunity is not limited to Hawkins,” said Largent. “There are existing businesses there that we would dearly like to retain and make sure they thrive.”

For that reason, he said, the development area spans from the Idaho state line to the Airport Road on the west, and from Hawkins’ northern boundary to just south of the industrial complexes of Wilbur Ellis, McGregor Fertilizer Co. and Busch Fuel’s plant south of the Moscow-Pullman Highway.

Biggest ticket item on the list is the $5 million in interest that will accrue when the county issues bonds to fund the improvements.

Commissioners hope the state will grant enough funding to cover the cost of those bonds.

The LIFT program can grant any single entity up to $1 million a year for the next 25 years. Total funds available statewide each year is $2.5 million.

Construction of “Marketplace Boulevard,” the street running through the shopping center, and the extension of A street from the Idaho state line to Airport Road is expected to cost $3.47 million.

Improvements to ease access to State Route 270 are expected to cost $3.6 million.

Those projects include the construction of a frontage road on the south side of Paradise Creek for trucks from McGregor and Busch distributors, bridges over Paradise Creek and the Bill Chipman trail to link the frontage road to the highway and installation of traffic lights at the shopping center entrance.

Largent said ensuring trucks from those companies have safe access to the highway is high on the county’s list of priorities.

“The highway has created some problems for those companies,” he said. “There’s a lot of big trucks coming in and out of there.”

The frontage road may also help attract new companies to the area south of the highway, he added.

Drilling two wells, installing water lines, fire hydrants and a water tank is expected to cost $3.22 million.

Though Hawkins has made a deal with the city of Moscow for water, that deal is still pending approval from the Idaho Department of Water Resources.

A $2.5 million sewer treatment facility is also on the list. Hawkins’ deal with Moscow for water did not include treatment of sewage by the city.

Construction of sidewalks, street lights and a connection from the development to the Chipman trail added $250,000 to the estimated costs.

"Family requests rezone in east Moscow; Thompsons were denied request in 2006; hope to have 38 acres rezoned for motor business"

Whitman County really doesn't need an economic development advocate thanks to Mark Solomon and his fellow Wal-Mart Derangement Syndrome sufferers who see the "Bentonville Bully" behind every bush. I'm sure the No Super WalMart group feels that Wal-Mart is back in play in Moscow after last November's election. They could be right....

From Tuesday's Moscow-Pullman Daily News:

The Thompson Family LP will ask the Moscow Planning and Zoning Commission on Wednesday to rezone a large chunk of its property along Mountain View Road from agriculture/forestry to motor business.

Thompson Family attorney Susan Wilson said no businesses "are knocking at the door" to locate on the 38-acre piece of land between the Troy Highway and Palouse River Drive. The family plans to continue farming the land until a suitable development opportunity comes up.

The Thompson Family attempted to have a larger parcel encompassing the land 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. Then-City Councilmen Bob Stout, Aaron Ament and John Dickinson said the parcel was too large.

Wilson said the smaller size of this request is in response to the council's concerns.

Councilmen John Weber and Bill Lambert, who still are on the council, voted in favor of the 2006 rezone request.

No Super Wal-Mart member Mark Solomon said community members are not pleased with the new rezone request.

"I know there are people who are as concerned now as before as to whether or not that's an appropriate site for motor business," he said.

He said any motor business development on that side of town will affect traffic flows and downtown Moscow businesses, and also could block the expansion of adjacent Alturas Research and Technology Park.

The Thompson Family wrote in its new application for rezone that the motor business designation would fit with the city's comprehensive plan. The plan designates the area for "extensive commercial" uses.

The application also states that the rezone would meet the plan's goal of economic development. Wilson said the family wants to open up a motor business area to compete with the proposed 714,000-square-foot Hawkins Companies development, just across the state line in Whitman County.

She said Moscow needs an area to attract large businesses from within and entice businesses to come to Moscow "rather than just having Hawkins take the commercial development away from the state of Idaho and Moscow."

The Thompson Family's application packet includes the minutes of a meeting with the property's neighbors. Sue and Ken Chamberlin and Karen and David Douglas were "very supportive" of the rezone, according to the minutes.

The neighbors asked whether any businesses were lined up to use the property and said they would rather see commercial development than multi-family housing. The Chamberlins and Douglases did not return calls seeking further comment.

"Largent: County may want to tweak water-sale agreement"

One of Ronald Reagan's signature phrases was the old Russian proverb "doveriai, no proveriai", meaning "trust, but verify."

Hawkins and Whitman County are taking the correct approach with regards to Moscow's involvement in the Stateline Retail Center.

At least for the next two years, we can count on Moscow's full support of the project. But all it takes is one election to turn back the clock to the Cold War we had just a few months ago. So it is wise that Hawkins and Whitman County pursue a separate sewer system and look at ways at keeping the water rights Hawkins originally requested in case a future Moscow City Council decides to turn off the spigot.

From yesterday's Moscow-Pullman Daily News:

Whitman County Commissioner Michael Largent said some changes might be in store for a negotiated water sale between the city of Moscow and Hawkins Companies.

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

Moscow City Supervisor Gary Riedner updated the City Council's Administrative Committee on Monday about the city's water-sale application to the IDWR. The city has finalized a letter signed by Mayor Nancy Chaney and Largent informing IDWR that the city and county are negotiating an intergovernmental agreement for the water sale.

The water will serve Hawkins Companies' 714,000-square-foot shopping center, which will be located in the Pullman-Moscow corridor, just west of the Idaho border. The Boise-based company finalized its purchase of the land April 9. The city agreed in February to provide water services to the development in exchange for Hawkins retiring two water rights it had secured.

Largent said he thinks the city is doing the best it can to move the application forward. However, because Whitman County was not involved in the negotiation process, it may bring some new issues to the table.

"We'll have to look and talk about some issues that may not have been of import to (Moscow and Hawkins) but are important to Whitman County," he said.

The main issue that concerns Largent is the water rights Hawkins agreed to relinquish in the settlement agreement.

"My question, personally ... is I'm wondering whether those water rights wouldn't be better held in trust by another entity and not used," Largent said. "It's difficult to construct an agreement in perpetuity that is iron-clad."

Largent said the rights could be kept "in active reserve." They would not be used unless something happened that caused Moscow to stop providing water across the border.

Largent said the city and county haven't entered into negotiations about the intergovernmental agreement, but he thinks the process will go smoothly.

"Working with the city of Moscow recently has been a joy. I think they're well-meaning. I think they're bargaining in good faith," he said. "I anticipate it will be a fair and good-working relationship."

The city also gave Hawkins the option of purchasing sewer services. Hawkins spokesman Jeff DeVoe wrote a letter to the city May 5 declining sewer services. The letter did not specify why the company declined the services, and DeVoe could not immediately be reached for comment.

Riedner said he faxed the Moscow/Whitman County letter and IDWR application to Hawkins Companies for review today. The City Council will review any changes Hawkins requests at its Monday meeting, if Hawkins responds in time.

"I would imagine it's up to them how long it takes them to review it, but I would assume we're going to get it back fairly quickly," Riedner said.

The city will then send the application and letter to IDWR. Riedner said the city is committed to getting the application in as quickly as possible.

Whitman County also has been looking for ways to pay for the infrastructure that will connect Hawkins to the Moscow water system.

"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.