The city of Spokane’s proposed Economic Investment Program would give the city a more active role in attracting new businesses and helping established companies grow. The program also stands to give business recruiters another sorely-needed tool they can use to attract more employers to the region. 

As the city fine-tunes the program and sets it in motion—a September vote is expected—the City Council should endeavor to fund it stoutly so that it can be employed effectively, as the need for such a mechanism is arguably past due.

As envisioned, the program would enable the city to provide money for infrastructure improvements for projects in designated neighborhoods with construction values of $5 million or more.

The city’s work group is still drawing the precise boundaries for the areas in which the incentive could be used. It would involve six parts of town: Downtown, the University District, East Sprague, West Central, Hillyard, and the West Plains. 

Each eligible project would be scored on several factors to determine the maximum amount of money that could be committed to a project’s infrastructure. 

The city gives an example of a manufacturing company that plans a $7 million project that would raise the value of—and tax revenue from—the property it’s being built on, create dozens of jobs, and meet other parameters. Put such a project through the program’s matrix, and it would be eligible for up to $100,000 in assistance for infrastructure work. 

Mayor David Condon and Council President Ben Stuckart agree that such a program would help the city avoid situations like the recent, embarrassing grapple over $300,000 to assist with pollution remediation at the site of the $135 million Davenport Grand Hotel project. The council rejected the notion of paying for the cleanup after developer Walt Worthy thought he had a deal with the city. Amid an accusation of a back-room deal and letters that suggest everything was above board, the only thing that’s clear about the situation is that the city emerged from it looking clumsy and unhelpful. 

The city started working on this program long before the issues with the Worthy request arose, but that controversy affirms the need to formalize the city’s role in economic development assistance. 

In general, the need for more incentives in attracting businesses to Spokane has become more apparent in recent months. Greater Spokane Incorporated commissioned a study earlier this year in which a consultant graded various aspects of Spokane’s competitiveness. The category of business incentives received a “D.”

Challenges in that category are due in large part to what’s allowed under the state constitution, so any efforts at the local level are helpful. 

GSI’s goal in economic development is to create more jobs. The city’s overarching goal in promoting economic development is to raise the median household income in the city, as well as property values, Condon and Stuckart say. The two sets of goals dovetail well, and ideally the new program will provide a boost on both fronts.