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Council briefed on developer-built regional wastewater pump station and proposed $8 million reimbursement plan
Summary
City staff described a developer agreement for a regional wastewater pump station in the Lower Terrace/Seven Mile area. The private developer will build the station and the city proposed reimbursing up to $8 million over about eight years using system development charge (GFC) revenue.
City staff briefed the Spokane City Council on a proposed developer agreement for a regional wastewater pump station in the Lower Terrace/Seven Mile area. Under the plan a private developer will construct the pump station and the city would reimburse the developer up to a not-to-exceed amount of $8,000,000 over approximately eight years.
According to the briefing, the pump station will serve initial developer demand for about 1,240 residential units and ultimately support an estimated total buildout of about 5,100 units in the service area. The city’s reimbursement proposal was described as representing roughly 75% of a regional cost allocation rather than a developer-only latecomer charge.
Staff explained the payment structure: an initial down payment, followed by semiannual payments of roughly $500,000, with an interest rate of 4.75%. City staff said they expect to use general facility charge (GFC) revenues for repayment and are exploring short-term borrowing to allow earlier payoff; there would be no prepayment penalty.
Council members asked procedural and fiscal questions, including the total amount and repayment schedule. Staff said a resolution and hearing will be scheduled for Oct. 6 and that the draft resolution was in preparation.
No final vote was taken in the briefing. The reimbursement proposal, the developer agreement and the draft resolution will be returned to council for formal consideration and public hearing.
