City amends parking deal

SANDPOINT — City Council members once again approved a parking agreement with Kaniksu Health Services Wednesday.

The original agreement was approved by council on Oct. 19 that would allow Kaniksu to lease up to 60 spaces in the city's Third Avenue parking lot, pending the construction of the company's proposed downtown location on Main Street in 2018.

On Nov. 2, council members agreed to reconsider the agreement after it was decided more public input should be gathered before a decision was made. During a two-hour discussion at Wednesday's City Council meeting, about 10 people spoke in public forum, some for and some against allowing Kaniksu the opportunity to lease the spaces. Among those who spoke were community members, downtown business owners and Kaniksu Health staff.

Councilman Stephen Snedden made a few adjustments to the original agreement, including the addition of a section that would allow Kaniksu, or any business that might lease parking spaces in the future, to obtain half of the parking spaces it needs from the Third Street lot and the other half would be in "other downtown locations." Therefore, if Kaniksu needs 60 spaces from the city, 30 would be leased from the city's Third Avenue lot and 30 would be permit parking on the street or in another lot.

Snedden asked if the company would be willing to pay a premium for the city lot spaces because the goal is to raise revenue for a parking structure at that location. Kevin Knepper, COO and CFO of Kaniksu, said it is possible they would pay a premium, but without seeing the numbers was hesitant to answer yes or no. Kaniksu has agreed to pay half the amount, up to $10,000, for a parking study in return for the city's cooperation with the agreement. Also, the approximately 40 on-site parking spaces at the proposed facility, as well as the up to 60 leased spaces, would be available to the public during the week after office hours, on weekends and holidays.

"I think the point that keeps getting missed or overlooked ... is that Kaniksu doesn't have to come and pay anything," said Councilwoman Shannon Williamson. "They can move downtown; they can tell people to park in the city parking lot just like everybody else does, but they brought this before us because they don't want to do that and they want to be a good community partner."

Williamson said she feels Kaniksu has the potential to impact the economy in a positive way. Kaniksu would add 70 jobs and an annual payroll of $4 million to the downtown core. She also said it is unfair to expect Kaniksu to solely finance a parking structure when other businesses, "and by some reports, one large business," does not share that responsibility.

Mayor Shelby Rognstad said over the past two weeks he spoke with several business owners in the downtown area and heard some concern over the business moving in and the loss of parking spaces in the lot. About 15 to 20 percent of those he spoke with saw it as a "challenge," he said, but many expressed support in growing business in the downtown core.

"In the wake of Thorne, and their announced closure this last week, I think everybody recognized the importance of the city's role in doing everything we can to encourage economic growth, and specifically job growth, in our city," Rognstad said.

While some concern was expressed by business owners, Kochava is the only business Rognstad said he spoke with that was "outright opposed" to the parking agreement. Kochava, located at Second Avenue and Church Street across from the city lot, currently has 85 employees and expects to have around 200 by the time the parking agreement with Kaniksu would go into effect in 2018.

Councilwoman Deb Ruehle asked Rognstad if he spoke with all the businesses in the area, like the Music Conservatory, Vanderford's, Jalapeños and Century 21. He said he did not speak with those particular businesses. Ruehle voted no on the parking agreement motion, but all other council members in attendance approved.