Land-use battle exposes loophole

By BRIAN WALKER

Staff Writer

POST FALLS — Call it approval with a bad taste.

While most Post Falls City Council members didn't like the idea of a 68-unit apartment complex in a commercial area off Highway 41, they said they legally had their hands tied while unanimously overturning the planning commission's decision on the special-use permit request Tuesday night.

In other business, on a 5-1 vote, the council approved city staff's request to buy the 5,500-square-foot Post Falls Senior Center Thrift Store for indoor recreation programs for $275,000. The thrift store closed last week because it wasn't sustainable.

On the land-use battle, Councilor Joe Malloy asked city staff to update the city code so such projects can be better vetted during the approval process in the future.

"It's a flaw in our zoning codes," he said, adding that the developer and its representatives found a loophole. "We have no legal standing to uphold the Planning and Zoning Commission's rejection of the application.

"I'd like to implore (city planning staff and attorney Warren Wilson) to update the zoning code to address this."

The planning commission in February denied Rundeen Development's special-use permit application to allow the Plaza 41 complex on 3.8 acres in a commercial zone on Primrose Lane behind Wendy's off Highway 41.

The commission ruled that, due to the proximity of an industrial use to the west, the criteria for the permit could not be met as it would compromise an existing business. It also noted the high-density project would lead to traffic issues.

However, Peter Smith, an attorney representing the developer and an engineering firm, said the city's own engineer said the project would have minimal impact on traffic and there was a lack of concrete evidence in the record as to why the request should be denied.

"The property owner has vested interest to do as they see fit," Smith said. "It's been sitting there for years in grass."

After Smith and Ray Kimball, an engineer representing the developer who is also a planning commission member, testified during the appeal hearing, Jon Manley, the city's planning manager, said he had no rebuttal to provide.

Resident Bob Flowers said the city has a serious land-use quagmire that needs to be fixed in a hurry.

"The council and city employees need to do everything in their power to close the loophole … or we're going to have a whole load of apartments (in commercial zones)," he said, adding that more multi-family complexes are being proposed. "Let's try to close this up before we don't have any (commercial) areas left anymore. The developers are picking up on this."

Councilor Alan Wolfe, who formerly sat on the planning commission, said he has a lot of respect for the planning commission volunteers, but rules also need to complied with.

"My heart says I don't want apartments on that property; my head says I have no other choice," he said, adding that a lack of evidence showing nearby businesses would be negatively impacted by the project forced him to support the appeal.

On the thrift store purchase, Parks and Recreation Director said it will be a win-win because the city can have more room for recreation programs that is lacking at the Tree House (former chamber of commerce) and secure property that is surrounded by city land. The senior center, in turn, can climb out of a $200,000 debt with the funds.

The city will pay the closing costs, which could be as high as $13,750, and will spend an estimated amount as high as $175,000 to update the facility and make it compliant with the Americans with Disabilities Act. The purchase and updates will be funded with impact fees.

Council members in support of the sale said the city is getting a good deal with the purchase that will generate income. Councilor Kerri Thoreson casted the lone vote to deny staff's request. She said the city already has multiple dance studios, but Dave Fair, the city’s Parks and Recreation director, said the city acts as a feeder program for those businesses.