Department of Natural Resources defends proposed sale and development in Latah Valley

The Department of Natural Resources is moving forward with an exchange of property in Latah Valley. But what might happen to some of Spokane’s last undeveloped land is still up in the air.

Redmond, Washington-based Blue Fern Development would build as many as 1,000 homes on a wooded area near Thorpe Road at the western edge of city limits. The 160-acre property is owned by the state Department of Natural Resources. But as the agency tries to unload the land, it’s facing resistance from conservation activists and nearby residents who do not want to see development.

At a public meeting Thursday evening, DNR told concerned Spokanites the Thorpe Road property is not making money. The state agency manages its more than 6 million acres of land to bring in funds to different areas of the government. The Spokane property is meant to fund the construction of schools through the harvest of timber. DNR has not been able to harvest lumber from the area since 2009.

“This property is an expense to your schools. It doesn’t generate revenue. And your schools are in crisis, not just in Spokane, but throughout the state of Washington,” Washington Commissioner of Public Lands Hilary Franz said at the meeting. “It is actually costing us money to have this land in our portfolio. We are trying to remove it from our portfolio, but do it in a way that the community and the city are engaged and have a voice in it.”

Blue Fern Development’s current proposal would exchange the property for a Haggen grocery store in Bellingham. But four other options were presented to local residents – some that would keep the Thorpe land undeveloped.

• DNR exchanges the properties with Blue Fern, and the City of Spokane transfers development rights from the Thorpe property to another property not in Latah Valley. Blue Fern deeds the Thorpe property to the city for a park or other purpose.
• Same as above, but Blue Fern deeds the property to the Spokane Tribe.
• DNR directly transfers the property to the city or Spokane Tribe for full market value.
• DNR auctions off the property to the highest bidder.

According to Franz, Blue Fern is open to developing another property in Spokane, rather than the one in Latah Valley.

Many at the meeting were not encouraged by the presentation. Phil Larkin said he was “disappointed” DNR had not provided this information earlier.

“Spokane will be losing out on precious public spaces and habitats. Just to liquidate the land that isn’t making money,” Larkin said.

Larkin said he was supportive of transferring the land to the Spokane Tribe.

Kirsten Angel said conservation cannot compete when “generating revenue is the priority.”

“This land is highly valued by this community. Not as housing. We don’t refer to it as undeveloped or underperforming,” she said.

Others were concerned by the heightened traffic of developing the land. Resident Laura Ackerman called the proposal “reckless development” that would make it difficult to evacuate during fires.

During public comment, Spokane City Councilwoman Lili Navarrete said a majority of council is requesting a delay on the transfer.

Public comment remains open through Dec. 19. Comments can be emailed to DNR at exchanges@dnr.wa.gov.