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Council declines to fund $96,000 feasibility review for proposed performing arts center; group urged to present formal proposal
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Summary
City Manager requested $96,000 for consultants and asked the city to float $28 million in bonds to close a funding gap for the proposed Performing Arts Center; council declined to authorize the consultant engagement and directed the group to make a formal presentation instead.
City Manager John Homan told the Spokane Valley City Council on March 17 that the Idaho Central Spokane Valley Performing Arts Center group asked the city to float up to $28 million in bonds to fill a financing gap. Homan said his office obtained an independent cost estimate for two consultants—bond counsel and a financial feasibility reviewer—totaling about $96,000 to vet legal and financial risks if the city were to consider backing bonds for the private‑led project.
Homan said the group’s feasibility study contained optimistic assumptions about revenue and costs and that the consultants would verify assumptions, review ownership and security structures, and determine whether the city would need to own the building if it issued bonds. He recommended using bond counsel (Pacifica Law Group) and an independent financial reviewer to examine contractor and prevailing wage implications and whether the city’s credit would be pledged for the bonds.
Several council members expressed strong reservations about using city credit to underwrite private‑led construction. Deputy Mayor Hatenberg, Councilmember Kelly and others said they support arts but not at the risk of exposing city taxpayers to a private project with a tenuous financing record. Councilmember Wick and others said the performing arts organizers should be allowed to make a formal presentation and that the city should not unilaterally front the feasibility cost.
The council voted by consensus not to proceed with the $96,000 consultant engagement; the city manager said staff will advise the performing arts group on next steps and that the group can seek a formal agenda item for a council presentation. Manager Homan urged caution and said that if the city were to pursue bonding it would need clear revenue pledges or other security to prevent taxpayer exposure.
The council did not authorize any city debt or bonding at the meeting; instead members signaled they want the group to present a fuller proposal and seek private financing or alternative risk‑mitigation before the council would consider city‑backed bonds.
