RICHLAND Richland City Council members listened with rapt attention at a workshop Tuesday as Tim Arntzen wove a tale of the city becoming the Pacific Northwest's premiere wine destination.
But they weren't quite ready to jump into a partnership with the Port of Kennewick for a proposed wine village south of Badger Mountain without first asking one question: "Where's the money coming from?"
The wine village is expected to be one of the cornerstones of a nearly 2,000-acre development on the mountain's south side that eventually could include 5,000 homes, parks, schools and 150 acres of commercial development.
The concept presented to the city by the developer includes a mix of higher-density multi-family housing that will cost less than $200,000 per unit, single-family homes and estate homes that cost upwards of $500,000.
It also includes the wine village, which Arntzen, the port's executive director, said will include a public market, an incubator for small wineries and related businesses, and tracts of land larger wineries can produce where they can produce wine and offer tasting rooms.
Arntzen said the port wants to buy land in the development to get started, but it also would like to form a partnership with the city to create what he described as the epicenter of the wine industry north of Napa Valley.
Council members liked what they heard, but they wanted city staff to explain how they'll be able to afford to invest.
"It's a great idea," Councilman David Rose said. "Your enthusiasm alone has got me wanting to invest in it. But my question is where are we gonna get the money?"
Deputy City Manager Bill King said cost and revenue projections for the development have built in a $3 million investment by the city that would be handled as an internal loan from one of the city funds with enough extra cash -- one of the utility funds, for example -- to whichever one would pay out the money for the investment.
The money would be repaid to the original fund with interest, he said.
Arntzen said in return for its investment, the city would earn revenues from the businesses attracted as well as political capital from showing it could work with the port to create something that will benefit the public.
"I think there is a huge payoff beyond dollars and cents," Arntzen said.
No decision was made Tuesday. The city is working on a subarea plan for the development that likely will be considered by the council this summer.
* Michelle Dupler: 509-582-1543; mdupler@tricityherald.com
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