COEUR d’ALENE —  A small chunk of triangular waterfront land known as “Area 13” could become home to a restaurant and condominium.

The City Council recently voted unanimously to approve conveying .18 acres next to Atlas Waterfront Park to ignite cda, Coeur d'Alene's urban renewal agency, and set a public hearing on the deal for Dec. 5.

“We don’t have ample waterfront opportunities to dine, to have a glass of wine, a beer with your colleagues,” said Councilwoman Amy Evans. “This adds one more opportunity to the community.”

City Administrator Troy Tymesen said the transaction had to move quickly. Ignite cda recently signed an agreement with deChase Miksis, a development company, for Area 13 and a closing date is scheduled for Dec. 8.

Preliminary plans call for an 8,000- to 10,000-square-foot House of Western restaurant and bar in phase one and a 22-unit multi-family structure in phase two. There would be underground parking.

The deal has been in the works for months.

“This needs to happen right now in order to get this deal done,” Tymesen said.

Area 13 is the last remaining developable parcel in the Lake District within the Atlas Waterfront project. The land, which is barren with rocks and brush, sits west of Atlas Waterfront Park near the Spokane River. 

“The area in question has no value to the city,” a staff report said.

Council member Dan Gookin supported the proposal. 

“I don’t want it to fall through. It would be nice if there was something there,” he said.

Tymesen said three previous deals for Area 13 fell through, as potential buyers couldn’t make it pencil out.

“This site is really, really tight,” Tymesen said.

Ignite cda would sell the property for $1.4 million, which would come back to the city.

“We have looked at this a number of different ways and believe this is the best way to move it forward,” he said.

If the deal fails to close, the land would revert back to the city.

In 2018, the city purchased nearly 47 acres of Spokane River waterfront property that was the former Atlas Mill site with the goal of creating permanent, public waterfront access and encouraging economic development initiatives, according to a city report.

The purchase of $7.8 million was funded by a loan from the city’s wastewater utility. 

The project size was increased to about 70 acres when a triangle parcel was acquired through a land exchange and vacation of unused road right-of-way along the south side of Seltice Way. 

The city later transferred the property, except for parkland, to ignite cda to oversee the development, which has homes and multi-unit buildings.

“The sale of this parcel is critical to help pay back the Wastewater Utility for the loan made to pay for acquisition of the Atlas Waterfront property,” the city report said.

Public benefits cited include a permanent easement, a public promenade, enhanced buffer between the park and the mixed-use development, and more land on the city’s tax rolls. It would not be gated.

“We see that as a public gain,” Tymesen said. 

The fire department would have access to a 30-foot strip on the eastern side of the property leading toward the waterfront.

“Conveyance of the 30-foot strip of property would make development of Area 13 more feasible and enable the pending sale to close,” the city report said. 

Tymesen said ignite cda can move the transaction through “in a very rapid fashion.”

“The city would be limited in its ability to sell property for development, and having additional parkland in Atlas Waterfront would not be beneficial to the city due to costs to improve the parkland and ongoing operation and maintenance expenses,” according to a staff report.

“Sitting on the land doesn’t do us any good,” Tymesen said. 

Council member Christie Wood said a priority from the beginning of the Atlas project was to generate revenues for the city to repay the $7.8 million loan.

“Area 13 all along was discussed as an area for a restaurant,” she said. “It makes really good sense in that regard.”

Council member Dan English said the Atlas property has been improved as envisioned, with housing, a park, riverfront access and perhaps soon, a restaurant.

“I think it’s a great balancing act,” he said. 

    A paved path runs along "Area 13" that is proposed for development by the Spokane River.