A more aggressive use of annexation covenants and the creation of a port districtboth lightning rods for community debate here in the pastare two of the strategies that new Spokane Mayor Dennis Hession says hell push as he seeks to bolster city revenues and boost economic-development activity here.


Jim West was not a proponent of annexation covenants. I am, Hession says of his predecessor, adding that he believes the current City Council largely shares his views.


Annexation covenants are signed documents in which property owners outside the citys boundaries agree not to oppose annexation in return for receiving city sewer and water services. To annex an area, the city first must have signatures from owners who control 75 percent of the property value within the proposed addition, whether by petition, covenant, or other means.


Over the past several decades, some county residents have criticized the citys use of the covenants, contending theyre coercive, and that sharp opposition has stymied annexation progress. Hession staunchly defends their use, though, saying the city needs to be able to extend its boundaries into increasingly urban areas, as prescribed under the states Growth Management Act, if it is to remain vibrant. He also says he believes, though, that attitudes among urban county residents toward the city and toward annexation have softened, based on inquiries the city has been receiving from property owners whod like to be annexed.


There was a time when people had no interest. Our reputation is getting better, he says.


One of the goals the mayor cited in his State of the City address on Jan. 20 was establishing a strategic plan for expanding the citys boundaries. He said in a lengthy, wide-ranging interview last week that hed like to see that plan in place within the next three or four months.


The city will initiate sooner, though, the first annexation in what it calls the North Metro area, which refers to the entire unincorporated swath north of Francis Avenue between Division Street and Country Homes Boulevard to about the northernmost adjacent city boundary, Hession says. He cites the West Plains and land near the northeast corner of the city as being among other areas likely to be high on the citys priority list.


We have a number of annexation covenants already in place in those areas, and plan to exercise them, the mayor says. The city also will be more diligent than it has been in the recent past about requiring property owners who desire city services to sign annexation covenants first, he says.


Hession says he has a good relationship with the Spokane County commissioners, who have criticized the citys annexation desires along the heavily commercial west side of the Division corridor, and would like to reach some agreement with them on annexation. If the discussion remains adversarial, though, and ends up in the courts, he says, Were committed to doing whats necessary to move the city forward and to achieve Growth Management Act objectives.


To promote economic development, and hopefully add to the citys tax rolls further, Hession says he also wants to explore anew the formation of a port district within the county.


A port district is a governmental unit typically created to promote economic development, and can do many of the things cities can, including issuing bonds and providing services.


Spokane County is one of only six counties in the state without a port district, says the Washington Public Ports Association, and Hession says, We are clearly the largest area in the state that does not have one.


Spokane County voters rejected a proposed port district by a 4-to-1 margin in 1982, based on concerns about the potential added tax burden it would create, and efforts to generate support for a port district since then have been unsuccessful. In 1986, though, the Legislature decided a port district can encompass only a portion of a county and can be approved by a majority of the voters who reside within the districts boundaries, which made the approval process less daunting.


Is it the right tool for Spokane? I dont know, but it has worked very effectively in other communities, Hession says. While hes aware of the proposals election failure here, he says he thinks local sentiment toward that tool, too, may have changed.


The people of Spokane are ready to do things that will help our economy grow, he says.


Hession says hed also like to see the city watch for more opportunities where it can use another tool, tax-increment financing, to promote economic development, such as is occurring now at the Iron Bridge Corporate Campus along the Spokane River east of downtown.


Tax-increment financing allows a city or county to issue bonds to pay for infrastructure improvements in a defined development area, then use most of the resulting increases in property-tax revenues in that area to pay off the debt. After the debt is paid, those tax revenues flow to the normal taxing authorities in that area.


It provides us with one more way we can compete with other areas, he says.


Since being sworn in as mayor Jan. 3, Hession has made clear that building up city tax revenues partly through a strong economic-development focus will be one of his highest priorities. He said in his State of the City Address that the citys role is to facilitate and encourage business growth and development, and in the interview last week, he said hes excited about a new computerized permitting system that will be online by next Jan. 1 and should make the permitting process much more convenient.


Contact Kim Crompton at (509) 344-1263 or via e-mail at kimc@spokanejournal.com.