County public works recommends $6.06 million reimbursement to Beacon Hill developer; consent item planned

County public works staff briefed commissioners on a developer reimbursement request tied to the Beacon Hill tax-increment financing (TIF) district and recommended approval of $6,057,759.13 for public improvements installed by Beacon Hill TIF LLC.

Public works staff explained the request covers construction of a booster station (water pumps and reservoir), roadways, sidewalks, sewer, water and drainage lines, and engineering costs installed in the Vistas at Beacon Hill development. The booster station cost was split between the developer and the City of Spokane because the station supplies water to properties both inside and outside the TIF subarea.

"In this particular case, the applicant has made a request to be reimbursed for $6,057,759.13 for various public improvements within the TIF," county counsel said, recommending that commissioners place a resolution on the next Tuesday legislative consent agenda to approve the reimbursement and authorize the chair to sign required purchase-and-sale and closing documents.

Public works and legal staff told the commission the TIF reimbursement agreement calls for semiannual payments from the tax-allocation revenue fund in November and May and that the county retains a reserve of 5% to guard against nonpayment. Staff reported the current tax-allocation fund balance is roughly $50,468.16; under the reimbursement agreement the developer will be paid from annual TIF receipts as they become available through 2043.

Next steps: staff will place a consent-item resolution on next week27s legislative agenda recommending approval of the reimbursement request and authorization for the chair or majority of the board to execute closing documents. The county will reimburse the developer twice yearly from tax allocation revenues until the agreement is satisfied or the TIF terminates.