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In Our View: Good Buy, City

Vancouver’s purchase of 12 acres of Town Plaza property a smart decision

The Columbian
Published: June 13, 2017, 6:03am

While it carries some risks, a recent decision by the Vancouver City Council represents a wise and necessary investment in the central portion of the city. Officials have announced plans to purchase 12 acres of the Town Plaza property along Mill Plain Boulevard, hoping to spur development that increases the tax base, invigorates a depressed area and eventually turns a profit for taxpayers.

The risks are evident in the underperforming history of the site. Built in 1971 as Tower Mall, Vancouver’s first enclosed shopping center, the area was quickly rendered obsolete by the opening of what is now Vancouver Mall and by changes in consumer shopping habits.

That has led to numerous efforts to make Town Plaza relevant again. In a 2002 article in The Columbian, for example, developers boasted about a yearlong $6 million renovation to rebrand the area as a professional business center. Despite the optimism of the time, Town Plaza has continued to languish, with empty parking spots typically outnumbering the occupied ones in an expansive lot that dominates the property. In other words, many private entities have sunk a lot of money into the triangle-shaped area at Mill Plain, Devine Road and MacArthur Boulevard — with little to show for it.

Despite those words of warning, Vancouver’s efforts to bolster the area are built upon sound thinking that will benefit taxpayers. The city will spend $5 million of undesignated general funds to buy the property, using money from a fortuitous uptick in tax revenue created by a bustling economy. While it is tempting for critics to suggest that excess funds should be used for, say, law enforcement or road repair, it is important to note that the city already has taken financial steps to address those needs. It also is notable that the purchase of Town Plaza uses one-time funds, while increasing services requires ongoing and reliable revenue streams.

According to city officials, the property was purchased in 2005 for $12.4 million and resold last year for $8.5 million. Buying the site for $5 million could be viewed in one of two ways — it is a bargain, or it amounts to sinking cash into a money pit that has little value.

The key to making that investment pay off will be the nature of the development. A 78-unit housing project has been proposed; whether this is approved or whether another project arises, some sort of housing should be included. A mix of residential, retail, and commercial is necessary for the vitality of any urban development, and Vancouver has served as a case study that supports this assertion. The city’s role in developing the downtown area surrounding Esther Short Park has been a success story that has helped to bolster surrounding blocks. As City Manager Eric Holmes said: “We didn’t buy all of downtown. We developed the vision, did the planning necessary, and invested in the public infrastructure to support that vision.”

That represents city government at its best — using taxpayer money as a gentle push that creates an environment enticing to private investors. Town Plaza, a long-neglected spot near heavily traveled roads and surrounded by neighborhoods of single-family homes, is an ideal opportunity to put that philosophy into action. Mayor Tim Leavitt said, “It positions us to play a leadership role in redeveloping an aging area in decline into a vibrant urban village.”

In short, the risks of purchasing Town Plaza are outweighed by the wisdom of the move for the city of Vancouver.

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