Council approves nonbinding term sheet for $15 million parking structure amid financing disputes

The Blaine City Council voted March 2 to approve a nonbinding term sheet that would guide consideration of a roughly $15 million parking structure to serve the West portion of the Hundred and 5th redevelopment district.

Manager Thorvig told the council the proposed facility has a budget of about $15,000,000 and is expected to provide roughly 620 stalls. The term sheet is nonbinding, he said, and is intended to let the development team and city staff continue negotiating before formal actions are considered at the April 6 meeting.

Council Member Newland voiced strong opposition to funding the full amount through an EDA levy that would affect property taxes. "I can't do that," Newland said, arguing the city has already committed funds to the overall project and that another large levy would be unfair to taxpayers. He proposed an amendment to limit the city's commitment to $7,000,000 and to fund that amount through alternative revenue streams such as proceeds from a municipal marijuana operation or franchise fees.

Others on the council acknowledged concerns about taxpayer impact but emphasized the term sheet is nonbinding and that additional vetting and written agreements will follow. Council Member Robertson said the project represents substantial private investment and potential job gains and urged careful consideration of financing mechanisms to avoid burdening general taxpayers.

After discussion and an opportunity for further review at an upcoming workshop (March 16) and formal consideration on April 6, the council voted to approve the term sheet. The motion passed by voice vote; two council members registered opposition during the vote.

Next steps: staff and the development team will continue negotiations and bring formal documents and financing options back to the council for consideration on April 6.