Spokane Valley Lodging Tax Advisory Committee Special Meeting - November 20, 2025

The Spokane Valley Lodging Tax Advisory Committee (LTAC) held a special meeting on November 20, 2025, at 8:00 a.m. in City Hall Council Chambers to review and make funding recommendations on two applications related to a proposed ice sports facility on the city's Sullivan Property. The committee heard presentations from City Manager John Holman and Shelley O'Quinn of the Innovia Foundation, discussed the proposals, and unanimously approved two motions: one providing up to $600,000 annually for operations (with conditions) and another allocating $2 million for capital infrastructure.

Public Comments & Testimony

• No members of the public provided comments, either online or in person.

Discussion Items

• Overview: John Holman explained the city's economic development history, noting that a 2023 study identified a need for tourism venues like an ice rink. A benefactor through Innovia Foundation is self-funding the ice rink construction, but the city cannot sustain operations. The proposal includes commercial pads to generate revenue for ongoing operations.
• Operational Application (Innovia Foundation): Shelley O'Quinn presented the operational budget, which differs from an earlier proforma by reducing fees for classes to ensure low/no-cost youth access and adding a line item for capital replacement (target of $500,000 fund). The budget anticipates breaking even in about five years, with reliance on development of adjacent parcels for long-term sustainability.
• Capital Application (City of Spokane Valley): The city requested $2 million from Fund 104 (the 1.3% lodging tax capital fund) for design and construction of infrastructure at the Sullivan property. City Council has already authorized matching funds.
• Questions and Concerns:
  • Committee member Rustin Hall (hotel owner) expressed concern about a potential hotel on the adjacent commercial pads, noting that hotels fund the lodging tax and should not fund a competitor. Holman and O'Quinn responded that complementary uses (e.g., restaurants, skate shop) are alternatives and that a hotel is not immediate if operational support is provided.
  • Hall and Amanda Hoffert noted hotel community excitement for the ice facility but reiterated concern about a competing hotel. O'Quinn confirmed that if LTAC provides operational support, development of commercial pads can be delayed and partnerships explored.
  • Committee asked about long-term ownership: O'Quinn explained that a single-purpose nonprofit under Innovia would own and operate the facility, with a first-right-of-purchase option for the city to ensure public access and prevent acquisition by private hockey academies.
  • Holman emphasized that public ownership would secure the mission of affordable access forever.

Key Outcomes

• Motion 1 (Operational Support): Moved by committee member (likely Gibbs or Gwynn, but not specified in transcript) and seconded, the LTAC recommended funding Innovia Foundation's operational request from Fund 105 as follows:
  • Up to $600,000 annually in 2027 and 2028.
  • Up to $550,000 annually in 2029, 2030, and 2031.
  • Conditioned on Innovia's agreement that no lodging facility be developed on the 11-acre site through the term of its ground lease with the city as long as lodging tax funds are provided.
  • Conditioned on Innovia providing a review in 2031 to LTAC of operational support needs and tourism generation.
  • Vote: Unanimous (all ayes).
• Motion 2 (Capital Infrastructure): Moved and seconded, the LTAC recommended funding the city's capital request from Fund 104 for $2 million for design and construction of infrastructure at the Sullivan property.
  • Conditioned on the city executing a ground lease with Innovia for an ice sports facility substantially as identified in the application.
  • Also conditioned on meeting the conditions of the operational support motion.
  • Vote: Unanimous (all ayes).
• No further business; meeting adjourned.