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Spokane Valley signals willingness to commit $1.6M in REIT funds if awarded $2M NHFP design grant for Barker I‑90 interchange
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Summary
Council authorized staff to confirm that the city could provide up to $1.6 million (from projected REIT funds) as part of a fully funded engineering/design phase for the Barker I‑90 interchange if the city receives a $2 million National Highway Freight Program award; staff said the design phase is estimated at $4 million and the NHFP funding would significantly improve the project’s competitiveness.
City staff asked the Spokane Valley City Council on April 7 to authorize the city manager designee to confirm that the city could supply up to $1.6 million toward the engineering/design phase of the Barker I‑90 interchange if the city is awarded $2 million from the National Highway Freight Program (NHFP).
City Services Administrator Gloria Mance told council the engineering phase is estimated at $4,000,000. Council previously allocated $400,000 from Fund 312 toward design; if the NHFP provided $2,000,000, a remaining $1,600,000 gap would remain. Mance and finance staff (Chelsea) said city REIT (real estate excise tax) projections for 2027–28 show sufficient funds to cover the gap if needed; staff proposed splitting the $1.6 million between two REIT funds ($800,000 from each) and emphasized these are restricted capital funds.
Council members sought clarity on timing and obligations if the city accepts an award. City Manager staff explained that award obligations are staged and that a local agency agreement would be executed; staff said obligating match funds does not prohibit pursuing additional grants. Regional board members on the call said having a fully funded phase improves competitiveness for state and federal discretionary programs.
Council discussed the project’s history, capacity constraints at the existing Barker bridge, and the regional freight importance of the corridor. Staff said design would be complex (involving FHWA and WSDOT approvals) and could take at least three years. Council gave consensus for staff to confirm the potential $1.6 million commitment so the city could pursue the NHFP award and related opportunities.
Next steps: staff will confirm with WSDOT and proceed with the NHFP application process; if awarded, the city will execute required local agreements and obligate funds per standard grant procedures.
