"Water rates hearing could focus on shopping center"

Oh, joy. Another chance for Moscow's self-appointed experts in hydrology and urban planning to pontificate.

From today's Lewiston Tribune:

MOSCOW - The Hawkins Companies shopping center proposal could get another public airing Aug. 4 when a hearing will likely be conducted here on proposed interstate water rates.

Details are still being worked out.

Members of the Moscow City Council on Monday night proposed charging Whitman County 2.5 times the normal in-town rate for water. Whitman County officials, in turn, are considering offering the water to the Hawkins development.

The company has expressed a desire to buy Moscow water, but needs to work through a government entity to obtain it. In the meantime, Hawkins continues to drill its own wells just over the border in Washington.

The proposed interstate water sale appears to be unprecedented and continues to be monitored by the Idaho Department of Water Resources. The agency has authority over pumping and allocating Idaho groundwater.

The city of Moscow, at the direction of IDWR, has proposed a joint-powers agreement with Whitman County. County commissioners have asked for a cost figure before signing an agreement.

All parties expressed an interest to expedite the process by having a joint meeting of officials. But that apparently won't happen until after Moscow holds the public hearing and city councilors vote.

Hawkins has dubbed the shopping center the "Stateline Project." Plans call for 714,000 square feet of retail stores, including three possible big-box outlets. A Lowes home improvement center is projected to be one of the anchors.

Proponents have called the development the beginning of much-needed retail growth in the Moscow-Pullman corridor. Opponents countered the shopping center represents unnecessary sprawl and threatens groundwater resources.

Hawkins indicated landscaping and other construction might start as early as June 1. Company spokesman Jeff De Voe has not given a reason for the delay.

"MOSCOW: Council puts price on water; Cost to supply water to Hawkins will be more than double the in-town rate"

I can appreciate that Moscow wants to share in the tax revenue obtained from the Hawkins development. No doubt, Whitman County and Pullman would have loved to share in the tax revenue from the Palouse Mall and Wal-Mart too, considering half the customers that shop at those stores are from Washington. But I don't recall anyone making that offer.

The Whitman County Commissioners are not about to share any tax revenue from Hakwins. The citizens of Moscow elected Queen Nancy and the last City Council that passed the big-box ordinance which drove Home Depot and a Wal-Mart Supercenter out of town. They will have to content themselves with the proceeds of selling the water to Hawkins for now and vote their frustrations out on the Her Majesty next year.

From today's Moscow-Pullman Daily News:

The city of Moscow may charge Whitman County two-and-a-half times the in-town commercial rate for water for a retail development just across the state line.

Most Moscow City Council members agreed Monday night that the rate, plus a 5 percent administrative fee, was a fair charge. Moscow plans to sell the water to Whitman County through an intergovernmental agreement for use only at the Hawkins Companies' development, just across the state line from Moscow.

"I think it's a reasonable amount," City Councilman John Weber said. "I think it's a defensible amount."

The city agreed in February to provide Hawkins water at a rate that is "fair and reasonable and consistent with rates and charges set for similarly situated customers of the city." However, Moscow has no similarly situated customers.

Whitman County Commissioner Michael Largent e-mailed City Supervisor Gary Riedner earlier this month asking him to clarify how much the city plans to charge. Riedner replied with a letter explaining that Moscow normally charges customers who are out of the city limits twice the in-town rate, but does not have a rate for out-of-state customers. Riedner then asked the City Council for further guidance.

Councilman Wayne Krauss, who first proposed charging two-and-a-half times the in-town rate, said after the meeting that he felt it was "a good middle line."

"You don't want to get the appearance that you're price-gouging," he said.

Krauss said the city can charge what the market will bear, but "what this market will bear, I don't know."

He said the extra 50 percent charge doesn't entirely make up for the tax revenue Moscow would get if the development was in the city.

Councilman Tom Lamar did not agree to the proposed rate, saying it was irrelevant without some sort of analysis to back it up.

"I think that Moscow should try to get the highest rate that it possibly can for selling water across the state line," he said.

Lamar proposed working with Whitman County to share some of the taxes the county makes from the Hawkins development. Councilman Dan Carscallen also supported tax sharing.

Lamar, who has resisted selling water to Hawkins or Whitman County from the beginning, said he still is uncomfortable with the sale.

"I don't think that we should be encouraging this development by having cheap rates and no tax sharing," he said.

Largent said today he was pleased the council came up with a rate, though he has no basis to judge it right now.

"I think we have to look at it and look at the cost to pump our own water" and other factors, he said.

The council will finalize the rate at a public hearing, which most likely will take place Aug. 4.

"Hawkins goes ahead with well drilling; Company wants to build shopping center; disputes over water may have delayed project"

There is a mistake in the article below from today's Lewiston Tribune. It was Commissioner Greg Partch that speculated in last Friday's Moscow-Pullman Daily News that the national and regional economy may have delayed Hawkins breaking ground, not Commissioner Michael Largent. In exclusive comments made to Palousitics last Monday, Commissioner Largent stated that:

Commissioner Greg Partch's comments in Friday's Moscow Pullman Daily News suggesting the national or regional economy may be to blame is simply his speculation. My personal speculation differs from Greg's in that I believe the regional economy remains strong for this project. However, national credit markets have posed additional requirements for Hawkins requiring them to get much further along with their tenant commitments than earlier anticipated before they can have their financing package in order to begin major construction.

From today's Trib:

MOSCOW - Crews with a well-drilling rig continued to work Thursday just over the border into Whitman County on Hawkins Companies property where a 714,000-square-foot shopping center has been proposed.

No information on whether water had been found was available. Jeff De Voe,spokesman for the Boise-based company, did not return a phone call from the Lewiston Tribune.

"I just learned they were drilling about an hour ago," Walter Steed, a Moscow city councilor, said late in the afternoon. "So certainly, I don't know what they've accomplished."

The drilling continues amid negotiations for the city of Moscow to provide municipal water to the Hawkins site. Moscow Mayor Nancy Chaney said talks are ongoing with Whitman County commissioners and the matter will go before the council Monday night.

Chaney said Whitman County commissioners had some questions about a draft joint-powers agreement proposed by the city. "The question revolves around, 'How much are you going to charge us?' " Chaney said.

The joint-powers agreement is apparently necessary before the Idaho Department of Water Resources will consider approving the transfer of groundwater across the border into Washington. The transfer, officials said, must be between two governmental entities, not between a government and a private company.

In the meantime, no signs of construction are apparent on the Hawkins acreage, other than a dirt road leading to, and landscaping around, the drilling site. Only the top of the drilling rig can be seen from the Moscow-Pullman Highway corridor.

The shopping complex, proponents say, will give the region a retail boost and signal the start of further retail development in the corridor. Opponents have said the complex - to be anchored by a Lowe's home improvement center and possibly two other big-box stores - represents unnecessary sprawl and a threat to the local groundwater supply.

Speculation also remains about why construction has been delayed. De Voe, earlier this year, said Hawkins planned to start moving earth around June 1. He declined comment two weeks ago about reasons for the delay, or whether work was imminent. Whitman County Commissioner Jerry Finch has blamed two years of delays on Moscow officials who challenged Hawkins' water rights. He also said two weeks ago that despite the company drilling for water, another construction season has essentially been lost.

Commissioner Michael Largent speculated the Hawkins construction delay had more to do with a nationwide economic downturn than water problems. De Voe three months ago said the state of the economy at that time would not figure in Hawkins plans. He also said the project would go forward even if Moscow failed to provide water.

Hawkins secured its own water rights for what the company is calling the "Stateline Project," only to have Chaney appeal to Washington state authorities. The appeals were dropped after new Moscow city councilors worked behind closed doors with Hawkins to create a plan to provide city water over the border.

Steed said the company wants to secure its own water source just in case the cross-border deal fails.

He said he's also encouraging everyone involved to expedite the negotiation process. "Let's get to the table."

Indeed, this item from the Moscow City Council's agenda for Monday seems to confirm that:

8. Request for Direction for Response to Whitman County Regarding Water Rates for Stateline Project - Gary J. Riedner

At the Public Works/Finance Committee held June 23rd transmittal of the Joint Powers Agreement between City of Moscow, Idaho and Whitman County, Washington For Purposes Of Providing Limited Water Services to the Stateline Project Draft Agreement was authorized. City Attorney Randy Fife sent the draft Joint Powers agreement on Thursday June 26. On July 2, Whitman County Commissioner Michael Largent sent the City Supervisor an email requesting clarification of Section 2, subheading C) "Cost of Service" which refers to class of customers and resulting rates that could be applied to the Hawkins development. The City Supervisor responded to Commissioner Largent's inquiry and outlined the fee resolution process in "setting reasonable rates and fees for City services" noting that the "current fee resolution does not contemplate the provision of water or sewer services to customers located in the
State of Washington." The City Supervisor also noted that he anticipates that the "City Council will adopt a reasonable rate for this service."

ACTION: Provide staff with direction pertaining to the response to Commissioner Largent's inquiry including the potential range of fees and propose a meeting schedule for negotiation of the Joint Powers Agreement between City of Moscow, Idaho and Whitman County, Washington For Purposes Of Providing Limited Water Services to the Stateline Project Draft Agreement or other such action as deemed appropriate.

Paul Kimmell: Friend to Whitman County

From last Thursday's Whitman County Gazette:

Avista Foundation helps library project

Nancy Lintvedt, Colfax, holds a $10,000 check to the Friends of the Whitman County Library from the Avista Foundation for the capital improvement project to make the library more ADA compatible. Paul Kimmell, right, Avista manager for the Palouse area, represented Avista. Library Director Kristie Kirkpatrick is at left. Lintvendt, who uses a walker, has written letters in support for the new library renovations that would make it possible for handicapped residents to get to all three levels of the library.

Paul Kimmell, a former Latah County Commissioner and former executive director of the Moscow Chamber of Commerce, has proven to be a real friend to Whitman County. I'm sure he had a hand in getting this check cut from Avista.

In January, Paul was present during the public hearings held by the Whitman County Commissioners on the infrastructure bond for the Hakwins project. Through his involvement with the Greater Moscow Alliance, I'm convinced Paul played a major role in getting the Moscow City Council to drop its appeals of Hawkins water rights and subsequent offer to sell water and sewer services to Hawkins.

Recently, when Whitman County solicited public comment for a new Revenue Development Area that includes the Hawkins development, Paul wrote, "...please know I wish you much success with your efforts."

Paul Kimmell defines a good neighbor, and gives me hope for continued cross-border cooperation on the Palouse.

"Moscow officials plan to push water deal for Hawkins"

This is good news, and expected. From what I know about the pro-growth Moscow City Council members, they believe in free enterprise and are stand-up guys. Some of them even read Palousitics regularly.

Here's hoping the Hawkins water issue gets resolved quickly.

From today's Lewiston Tribune:

MOSCOW - A majority of city councilors here want to keep a proposed interstate water deal with Hawkins Company on a fast track, two councilors said Tuesday.

"We're operating under good-faith here," Councilor Dan Carscallen said. "By gosh, if we're going to do it, let's do it."

Councilor Walter Steed agreed. "Ever since we took office in January, when the Hawkins project was put on our plate on day one, we have been pushing to try and provide water to the Hawkins state line project."

Hawkins wants to build a 714,000-square-foot shopping center just over the border into Washington's Whitman County. Hawkins spokesman Jeff De Voe has said his company will either drill for its own water, or tap into Moscow's waterline that butts up against the 204-acre development site.

Carscallen and Steed responded to criticism Monday by Whitman County Commissioner Jerry Finch, who said Moscow city government caused at least a two-year delay in construction by raising questions about and filing appeals over groundwater concerns.

"The previous council is the reason for that," Carscallen said. "The people had to unelect that bunch and get a new one in to make something happen."

In addition to Carscallen and Steed, Councilors Bill Lambert, John Weber and Wayne Krauss have endorsed providing water to the Hawkins development. Only Mayor Nancy Chaney and Councilor Tom Lamar have voiced opposition.

Despite the support, no deal appears imminent - unless Carscallen and Steed get their way. They said they favor meeting immediately with Finch and fellow Whitman County commissioners Greg Partch and Michael Largent to reach an agreement.

Steed questioned whether the current delay has anything to do with water. "I don't see how water, at this point, could be a hold-up. Because they've got both us working on selling them water, and I understand they have bid contracts to drill wells, which is their backup source."

Finch said De Voe told him last week well-drilling equipment would be on-site this week and drilling could start within the next two weeks.

The shopping center, with a Lowe's home improvement center as one of its anchors, has been touted by Whitman County officials as a boon to the local economy and the beginning of much needed retail development in the Moscow-Pullman corridor. Critics say, in addition to possibly draining the groundwater supply, the development represents the beginning of unnecessary retail sprawl.

"This council has not tried to second-guess developers," Steed said, especially across the border in Washington.

At this point, it appears officials at the Idaho Department of Water Resources are demanding Moscow and Whitman County establish a joint-powers agreement for water to be supplied across the state line to Hawkins.

A draft of the proposed joint-powers agreement has been forwarded to the Whitman
County commissioners and Finch said it's being reviewed.

"Eye utility district: Moscow cannot supply water directly to Hawkins"

Looks like Whitman County is getting into the water business. Good. Now everyone can't scream that Moscow is selling water directly to Hawkins as part of some under the table sweetheart deal.

In any case, Hawkins is wisely going to dig a well just in case things with Moscow or IDWR don't work out down the road.

From yesterday's Whitman County Gazette:

Whitman County will have to enter into a formal agreement with Moscow if the city is indeed going to provide water service to Hawkins’ companies’ stateline strip mall.

Commissioners Monday agreed to do just that after receiving a letter from Moscow’s City Supervisor Gary Riedner stating the Idaho Department of Water Resources would not allow the city to sell its water to an out-of-state private business.

Commissioners signed a letter stating they intend to work with Moscow to act as the public entity that would accept the city’s water as an intermediary for Hawkins.

Commissioner Michael Largent said he was still uncertain if the county would simply receive a water bill and pass that cost on to Hawkins or if a utility district would need to be formed.

If the county and city can reach an agreement that suits the Idaho water authority, Moscow will provide up to 45 acre-feet of water for use inside the stores in Hawkins’ 714,000 square-foot development.

Cross-border cooperation is a new approach for commissioners, who were previously angered by Moscow’s appeals of the shopping center.

Moscow’s council filed appeals at several stages of the development’s permit process, and those appeals angered commissioners to the point that Commissioner Jerry Finch told the Gazette last year that “hell will freeze over” before he cooperates with the city on future projects.

Finch’s tune has changed since then.

Moscow voters last fall elected a slate of pro-business candidates to replace the council that had filed appeals over Hawkins’ use of water and pollution controls.

Finch Monday said he does not foresee any tension in these negotiations, crediting Moscow voters for “changing the tenor” of the city council.

“We do have to work all our issues out,” said Finch.

“But the new council is certainly amiable enough. And you know that I’m an easy-going teddy bear,” he said with a wink.

Largent was appreciative of the new council’s decision to drop those appeals and to sell the city’s water to Hawkins.

“I want to note that we very much appreciate the compromise from the new council across the border,” said Largent.

Earlier this year, Moscow decided to drop its appeal of Hawkins’ quest for four water rights. That appeal was dropped as the two parties reached a settlement in which Moscow would pipe water to the site if the company dropped its applications for the water rights.

The agreement was reached during a mediation with the state Department of Ecology.

Regardless of the outcome of the negotiations to purchase water from Moscow, Hawkins is planning to drill a well at the site this summer.

Public Works Director Mark Storey put out a call for bids on drilling the well today.

Under the agreement, the company retains a right to pull water from the ground until water service from Moscow begins.

The accord also ensured the town of Colton would have the right to draw 100 acre-feet of water from Union Flat Creek.

Finch added the well will provide insurance for the company in the event that Moscow decides to turn the spigot off in the future.

The company may also need the water while preparing the site for construction.

Hawkins spokesman Jeff DeVoe told the Gazette last month that excavation of the 700,000 square foot site will begin as soon as the soil dries out enough.

To administer the water swap, the county may have to form a utility district, said Finch. In a meeting with Port of Whitman commissioners Monday afternoon, he said the port would be the most appropriate agency to oversee such a district.