(The Center Square) – The Spokane Building Owners and Managers Association sent a letter to the city council and the mayor on Wednesday, pleading with them to pump the brakes ahead of Monday’s vote.
The Spokane City Council will consider budget amendments on Monday to close a $13 million shortfall with help from a new 12% parking tax. The latter will also come up for a vote next Monday, after only reaching the dais last week as part of Mayor Lisa Brown’s plan to close the multimillion-dollar deficit.
If the officials reject her parking tax, it could upend the budget and require another vote before 2026.
“This punitive tax could not come at a worse time for our industry. Downtown Spokane has the highest office vacancy we have witnessed in our collective careers,” three BOMA Spokane officials wrote to the mayor, council president and others on Tuesday, according to a letter obtained by The Center Square.
The Spokane Journal of Business Editorial Board published an op-ed in September, attributing the 31% office vacancy rate to a “drastic increase” in homelessness since the pandemic and open-air drug use.
BOMA, the Spokane Business Association and the Downtown Spokane Partnership have all been vocal about these issues. Representatives from each often testify at city council meetings, pleading with the council to enforce the rule of law, which they recently upheld by replacing the mayor’s camping ban.
While some have voiced satisfaction with the uptick in citations since, each has warned Brown’s 12% parking tax proposal could deter many visitors. DSP President Emilie Cameron also penned a letter to the mayor and council last week, raising concerns about the lack of prior engagement and analysis.
Councilmember Jonathan Bingle cited a desire to defer the proposal last week, ahead of a first reading on Nov. 10, to allow for more outreach; however, the mayor’s policy advisor, Adam McDaniel, said that the administration is “in the middle of stakeholder engagement,” allowing the first reading to proceed.
BOMA says it’s struggled to attract tenants, businesses and investors to the Spokane market for years.
“It’s extremely frustrating that this Ordinance was presented with ZERO stakeholder input. This lack of transparency and communication deepens mistrust and continues to demonstrate that our industry is unwelcome and unwanted by our elected officials,” according to the letter written by BOMA Spokane.
The association argued that the council and the mayor are punishing property owners for policies they imposed on the community. BOMA warned that the tax “will immediately and uniformly hurt business in Spokane and further damage a fading commercial real estate market,” according to Tuesday’s letter.
When introducing the proposal last week, McDaniel included several pages of data referencing a 2019 parking study showing that 30% of downtown is parking facilities. BOMA pointed out in the letter that the map contains properties “clearly” outside of downtown, calling the analysis “misleading at best.”
Bingle and Councilmember Michael Cathcart, the two conservatives on the dais, offered some support last week, but also raised concerns with the lack of outreach in advance. Still, the council majority put it up for a vote next week, arguing they would assess outreach then before considering any deferrals.
If approved, the new 12% parking tax would take effect in January and includes several exemptions.
“This makes Spokane less accessible, less desirable, and less economically viable. The reality is that redevelopments take years, sometimes decades, to complete. Our business community, our buildings, and our tenants cannot withstand this self-inflicted economic burden,” BOMA Spokane President Chris Haase, Legislative Chair Clayton McFarland and Executive Director Liz Van Den Berg wrote in the letter.
