RE: Alturas

["B. J. Swanson" <bjswan@moscow.com>]

Bill,

It appears we have differing views on Alturas.  You are certainly entitled
to your opinion of how the area would have developed without Alturas.  Here
is my opinion.

I believe Alturas had a great deal to do with resurrecting the Moscow Mall
and the whole eastern side of Moscow.  The Moscow Mall had been in trouble
from the mid 1980's on, foreclosed several times, for sale for years and
certainly in a state of decline and disrepair when the Bennett family
finally bought it in the mid 1990's.  It was not like Bennett's bought a
golden egg; more like a white elephant that required a great deal of risk,
work and investment to succeed.  Without some kind of economic stimulation,
I strongly believe the east side of town along Highway 8 would be either a
slum or the Motor Business zoning would have attracted more fast food,
c-stores, car repair places, etc.  These Motor Businesses would be paying
taxes but probably not nearly as much or provide as many living wage jobs
like Alturas is doing now.

The Economic Development Council tried for years to entice private
landowners or developers to do an Alturas.  It was not our first choice to
use Urban Renewal or Tax Increment Financing to create an Alturas.  The EDC
would have preferred a private investor step forth to do an Alturas.  But
after months of negotiating with private landowners, it was obvious that a
private development would never occur because of the time needed to realize
a return on investment.  The private investor would not receive any of the
long term tax benefits that a public project would.  And while this
negotiating was going on, Moscow lost Advanced Hardware Architectures and
50+ jobs to Pullman who offered over $250,000 in incentives to relocate and
low cost rent in a taxpayer subsidized Port District.  The only thing we
could offer in defense to Pullman and Washington's lucrative incentives were
Urban Renewal and Tax Increment Financing.  Complicated; Yes.  Illegal; No.
Taxpayer subsidized; Not if you look at the broader picture and realize the
economic advantage of living wage jobs now and a high return on investment
to the public later when the infrastructure loans are paid.  Shady and
under-handed; No.  Four years ago there were a great number of open public
meetings, hearings and planning sessions to create the Urban Renewal Agency,
Urban Renewal District and implement Tax Increment Financing.  If you chose
not to attend, give input or become informed, it is unfair to call it shady
and under-handed now.

It is true that the taxes on Wingers and KFC are going to payoff the Alturas
bonds.  However, I can verify that Wingers and KFC would not be at Eastside
without the economic activity going on in the Urban Renewal District, ie
Alturas.  The Urban Renewal District boundaries were drawn to allow
sufficient tax payments to payoff the loans in a reasonable time frame so
that the increased taxes will go to the proper taxing districts as soon as
possible.  The URA district was drawn after much discussion and compromise
about payback times, related economic growth expected, etc.

Neither of us can know for sure how many of those 47 jobs would have stayed
in Moscow.  You must think they all would have stayed.  I don't think so.
Not with the incentives neighboring Washington can freely offer.  John
Walker would still be in Moscow but not in Downtown Moscow.  He was not
RECRUITED into Alturas.  He was looking for a place to build a new office
with room to expand and with adequate parking, ie, outside of downtown.
There were lots available in Alturas and the zoning allowed his type of
business.  The reason the zone is called Research, Technology, OFFICE is
that in all reality, research and technology based business also need
support type businesses, ie, attorneys, accountants, financial, etc.  Please
ask the other businesses in Alturas and most will tell you how much they
appreciate John Walker's presence and his help in recruiting other
businesses, contracts, tenant agreements, etc.  This is an excellent example
of how RTO zoning is supposed to work with businesses supporting each other.

Anatek was bursting at the seems in their previous location near Columbia
Tractor.  They needed room to grow.  They have another lab in Spokane and
strongly considered moving the Moscow operation there.  Without Alturas,
they would be in Spokane now with their 10+ jobs and plans for further
expansion.  You may ideally think that businesses like Anatek and Pacific
Simulation could relocate in the downtown area.  However, both will tell you
they needed room to expand, parking, sophisticated wiring for computer
systems, etc.  Please tell me there is some well-kept secret in downtown
Moscow that can offer this, complete with a cooperative landlord.  Perhaps
the URA should look at the downtown area next.

I am dismayed that there seems to be continual misinformation and negativism
spread about Alturas.  If you are concerned about tax collections, then be
positive and promote Alturas so that more research-technology businesses
will relocate there, payoff the bonds faster and tax revenues will flow into
the coffers quicker.  Those $45,000 a year jobs DO contribute to the
community now and support other jobs.  Businesses do not want to relocate
into controversy.  As a community, do we want to move forward, be
progressive and self-sustaining or keep bickering, stagnate and turn into a
slum with no activity and high unemployment?

Can we give this a rest now?  We've aired both sides of Alturas over and
over.  Alturas is there.  Let's not kill it or continue the bickering and
discourage other businesses from relocating there; giving our community a
bad name.  Please become involved up front in the next URA project or any
other community project so that your input and ideas can be relevant and
helpful instead of negative after the fact.

B. J. Swanson

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




-----Original Message-----
From: bill london [mailto:bill_london@hotmail.com]
Sent: Friday, April 07, 2000 4:25 PM
To: bjswan@moscow.com; escape@alt-escape.com; vision2020@moscow.com
Subject: RE: Alturas


BJ-
Sorry, but I think you are offering a pair of false dichotomies here.

1. No, I do not prefer the old 18% occupied Moscow Mall.  But I do honestly
believe that the development of Alturas has virtually nothing to do with the
resurrection of the mall.
The only impact I see is that the new businesses at the mall (Wingers, KFC,
etc) are not currently paying their full tax load to the city but are
helping pay off the Alturas bonds.

2. No, I am glad that the 47 jobs are here in Moscow.  Without Alturas, how
many of those 47 jobs would be in Moscow?  The attorney's office would have
stayed downtown.  Perhaps Anatek would have stayed at their place on Main
Street or at some other location in Moscow.  Perhaps PacSim would have moved
to some other town--or maybe like First Step, it would have gone downtown,
too.  We won't know.  But I do think it is not correct to assume that those
famous 47 jobs would not be in Moscow without Alturas.

BL
---------------

>From: "B. J. Swanson" <bjswan@moscow.com>
>Reply-To: <bjswan@moscow.com>
>To: "Bob Hoffmann" <escape@alt-escape.com>, <vision2020@moscow.com>
>Subject: RE: Alturas
>Date: Fri, 7 Apr 2000 16:11:18 -0700
>
>Bob & Bill,
>
>Would you prefer that we still have the old foreclosed Moscow Mall that was
>less than 18% occupied?  It would probably be a real slum area by now. And
>would you prefer that the community be without the 47 jobs in Alturas that
>pump $2 million annually into our economy?
>
>B. J. Swanson
>
>---------------------
>
>-----Original Message-----
>From: Bob Hoffmann [mailto:escape@alt-escape.com]
>Sent: Friday, April 07, 2000 3:39 PM
>To: vision2020@moscow.com
>Subject: Alturas
>
>
>[do not forward]
>
>Bill,
>
>One juicy detail that I forgot to mention:
>
>Shelley Bennett (formerly of the LEDC) spoke.  She said that when looking
>for a location, and the issue of the Troy Highway area came up, she was
>quite enthusiastic, because her family had just bought the mall across the
>street, and what a great selling point that would be for filling the mall
>vacancies.
>
>I was astounded that she was speaking in public about how her influence
>over a decision involving public funds could result in substantial
>financial gain for her family.  She must have felt really comfortable with
>her audience.
>
>According to the agenda, the man in charge of questions and answers was
>Rich Levengood, Latah Economic Development Council, Alturas Outsider
>Extraordinaire.  Question & Answer period did spill over about an extra 15
>minutes, although Ken Medlin took up most of that.  Aside from Ken's
>questions/comments, there was only one other written question that was
>submitted.
>
>Bob Hoffmann
>229 East C St., Suite B
>Moscow, ID  83843  USA
>Phone: (208) 883-0642
>Fax: 1-800-683-3799
>http://www.alt-escape.com
>
>

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