[Vision2020] RE: Alturas Phase II

Wed, 10 Mar 2004 9:40 -0800

Duncan, Bill & others,

Early on, Duncan criticized Alturas and the URA because it was a "failure." 
 Now that it is a success, he must criticize that it is moving too fast.  
Duncan, where do you stand?  Why not just admit that you are one of the 
"no-growth, anti-business" advocates that will spin the facts however 
necessary to stop jobs and "smart-growth."

Duncan's letter did indeed contain many false and misleading "facts."   
Those of you interested in the straight facts should go to City Hall and 
read the URA minutes that Duncan voted to approve.  Or better yet, ask any 
of the other four URA commissioners about why Alturas Phase II is an 
excellent investment for the community.  The other commissioners are John 
Weber, Jim Gress, Phil Mack and John McCabe.

Basically, it comes down to choices:

1. Expand Alturas into Phase II and attract at least two high tech
businesses with about 50 high paying jobs (average $50,000 each).  People
and jobs that will help support the arts, parks, the Latah Trail, Paradise
Path, etc.

2. Don't do Alturas Phase II and let private developers build something 
like a fast-food restaurant or convenience store that the community ends up 
subsidizing because they are not paying living wage jobs.

Which would you prefer?  Which is "Smart-Growth."  Which will be the 
greatest benefit to Moscow in 
the future?

B. J. Swanson

-------------------------------------------

-----Original Message-----
From: vision2020-admin@moscow.com [mailto:vision2020-admin@moscow.com]On
Behalf Of bill london
Sent: Monday, March 08, 2004 4:09 PM
To: Vision2020
Subject: [Vision2020] Alturas Phase II

The message below was written by Duncan Palmatier, a Moscow Urban
Renewal Agency commissioner, about the plan to use tax money to expand
Alturas Technology Park.
BL

Law Office of Duncan Palmatier wrote:

> Dear Moscow City Council:
>
> I am concerned about the haste to move forward with Alturas Phase II.
> After three years as a URA commissioner, during which time there was
> very little activity, there is suddenly a rush to fund Phase II and
> start construction this coming summer. I have the feeling that "Hoover
> time" has come to Moscow.
>
> City Supervisor Gary Riedner is pushing for a fast start to Alturas
> Phase II. A short notice URA meeting is scheduled for this coming
> Friday, March 12, at 7:00 am, to vote on URA funding of the project. I
> probably cannot attend, but the meeting will proceed anyway. As far as
> I can tell, I am the only commissioner to voice reservations about the
> project. As I understand it, URA money will be used for infrastructure
> (streets, lighting, and the like). The proposal is to have the URA
> fund the full amount of the work. This contradicts Gary Riedner's
> recommendation of two years ago that the URA should only pay for a
> portion of a project, such as 10%, and let private developers pay the
> rest. Hodge & Associates has estimated the cost of the project at
> approximately $275,000. This is less than Phase I, I assume because
> Phase II involves less land and fewer parcels. By funding Phase II,
> "tax increment financing" means that a portion of tax revenues from
> the Alturas area will continue to pay off bonds rather than go into
> the general city tax revenues. If Phase II is not developed with URA
> bonds, Phase I will be paid off within a few years and these taxes
> will go to the city. The benefit of funding Phase II is that, if the
> project is a success, then new taxes generated by employees of high
> tech business, through income and sales and property taxes, will bring
> in more revenue than if the project were not undertaken. I do not know
> whether anyone has done a study to see if this was true with Phase I
> or any other similar URA project in Idaho.
>
> At the last URA meeting, the URA was asked to fund preliminary
> engineering work by Hodge & Associates. Gary Riedner estimated the
> cost would be less than $3,000.00. There was no suggestion the work
> would be put up for bid. I suggested a cap of $3,000.00, but the other
> Commissioners felt this was inappropriate, and one Commissioner argued
> that all available URA cash ($8,000.00) should be made available for
> the work. I voted against the appropriation. In light of the UI's
> Boise project, which allowed unlimited bills for preliminary work that
> turned out to wildly extravagant, I felt some URA control was advisable.
>
> I questioned why Alturas Phase II could not be privately developed; to
> wean private enterprise of government assistance by pushing it out of
> the nest and seeing if it can fly.
>
> Gary Riedner argued that Phase II will not happen without government
> assistance. Apparently, the cost of private commercial development in
> Moscow is too high.
>
> LEDC Director Barbara Richardson Crouch spoke for the project on the
> theory that, if the URA does not develop Phase II in accordance with
> the RTO restrictions of Phase I (high tech businesses only), private
> development will develop it in the more lucrative, but undesirable,
> mini-mart fashion. It was argued that such a development would lower
> property values at the existing Alturas.
>
> Everyone seems very optimistic about the project and convinced it will
> be a great success. Of course, everyone felt that way about Phase I,
> too, before it flopped and the bonds had to be refinanced. We were
> told that letters of intent had been signed by prospective tenants. My
> inquires revealed that there are no signed letters of intent; rather,
> a number of prospective tenants have expressed interest. This was, as
> I recall, the same situation before Phase I was started. It was noted
> that Schweitzer Engineering has started taking over more property at
> the Port of Whitman development in Pullman, and that, as a
> consequence, there are several tenants who must relocate and are
> willing or want to move to Moscow. Some of these companies have
> expressed interest in Alturas Phase II. However, at this time, no
> company has signed on to build on a lot in Phase II.
>
> Other than standard notices, no effort has been made to publicize the
> URA involvement in Phase II.
>
> I am concerned that this project is proceeding with too much haste and
> not enough solid support from prospective tenants or the public.
>
> Faithfully
>
> Duncan Palmatier
> Tel: (208) 892-2962
> Fax: (208) 892-3853
> Email: dpalm@dpalmlaw.com
>
> .
>

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