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Sandpoint, PSB reach agreement on parking

by Conor CHRISTOFFERSON<br
| April 16, 2009 9:00 PM

SANDPOINT — A long-awaited parking agreement with Panhandle State Bank drew fierce debate before its eventual approval at Wednesday’s fiery City Council meeting.

The agreement, which ended a years-old parking dispute between the city and PSB, was settled with the bank giving the city $50,000 and five years use of office space at the Sandpoint Center for a business incubator.

The council voted 4-2 in favor of the memorandum of understanding, with Councilmembers Helen Newton and Michael Boge dissenting.

At issue was a May 2007 agreement between the city and PSB over the number of parking spaces the bank was required to build for its newly-constructed headquarters. The original agreement called for the bank to provide 218 spaces or pay an in-lieu fee of $6,500 for each space not provided, according to city records. Despite building both on- and off-site parking lots, the bank was still 108 spaces short of meeting requirements.

After three early April meetings on the subject, the two parties drafted a compromise that bank officials and the majority of council could support.

Several council members and Mayor Gretchen Hellar called the agreement a win-win for the both groups, but Boge and Newton were not satisfied with the deal.

The negotiations, which Hellar said were “collegial but hard hitting,” left the city with only a pittance of what it was owed, according to Newton.

“The city should have gone into the meeting and said, ‘We have an agreement and you will abide by it,’” she said. “You pay the in-lieu fees or you provide the parking. Period. We have an agreement and we don’t need to negotiate a new agreement.”

The debate heated up further when, after Hellar spoke out on behalf of the proposed agreement, Newton said, “You need to stop cheerleading for (PSB) and let us vote.”

“You got to read your little manifesto,” Hellar responded.

Normally reserved, Councilman Doug Hawkins Jr. said he was “all fired up” about what he saw as some council members impugning PSB’s reputation by insinuating the bank was trying to skirt its responsibility.

“That’s why Sandpoint is known for being anti-business,” Hawkins said. “We should be pro-business, and this is a great local business. They are committed to this community and we should be committed to them.”

Councilman John Reuter echoed much of Hawkins’ sentiment and said he would make a similar deal with any other Sandpoint business.

“I will make a deal with any business in this city that wants to trade parking requirements for economic development,” Reuter said. “Do I want jobs right now or do I want more parking spaces? I want jobs.”

While the $50,000 will be a welcome addition to city coffers, supporters have the highest hopes for the business incubator, which will be housed in 1,400 square feet of office space inside the Sandpoint Center.

The idea for a business incubator came from Curt Hecker, CEO of Intermountain Community Bancorp, which is PSB’s parent company.

“I was looking for ways that we could have a partnership that would be beneficial to the community from an economic standpoint,” Hecker said. “While I’m very familiar with the city’s existing incubator, it doesn’t have quite the facilities that we have here for some of the starting businesses.”

Hecker said the bank was prepared to meet the parking requirements under the original MOU — despite not needing any additional parking — but was happy to negotiate a new agreement, especially if it can help jumpstart new local businesses.