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Talks may resume for Colville convenience store

by Herald Staff WriterJoe Utter
| September 5, 2013 6:05 AM

MOSES LAKE - The Confederated Tribes of the Colville Reservation are looking to reopen negotiations with the City of Moses Lake on an agreement to build a convenience store.

"We encourage them to come back to the table and understand that both sides have to give because in the last negotiation, it was all us giving and they didn't give an inch," Chairman of the Colville Business Council Michael Finley said.

City Manager Joseph Gavinski said he thinks the city would be happy to hear the tribe would like to re-open negotiations before the appeal process is completed through the Bureau of Indian Affairs.

Both sides met earlier this year following a proposal from the city that the tribe pay the same taxes and have similar regulations compared to any convenience store in the city limits, Gavinski said. The tribe submitted a counter-offer, but Gavinski said the two were "far apart." Exact details on the offers were not available because of attorney-client privileges.

"Quite frankly, some of their ask and expectations were above and beyond what the average entrepreneur would have to pay," Finley said.

About two year ago, the tribe applied with the federal government to have purchased land in Moses Lake held in trust, meaning it would no longer be subject to state or local taxes or regulation, with initial plans to build a truck stop.

"With that, the city sees a parity issue," Gavinski said. "The City Council's biggest concern is that, if in fact they don't pay something at the same rate as the guy down the street pays or the same gas station, that's really going to be a significant disadvantage for the guy down the street."

He added if the trust land is granted, the business would not be subject to sales and property tax, as well as cigarette and fuel taxes that similar stores are required to pay, creating an unfair advantage.

Finley said he knows the city is concerned but said if anything, the convenience store would create more of a competitive advantage for consumers.

"If anybody benefits from it, it's the consumer more than anything else," he said. "Ultimately, it's going to benefit local citizens."

Gavinski said there are also issues in terms of city services, including utilities, police, fire and ambulance services, calling the property a "jurisdiction of confusion."

"They wouldn't necessarily be entitled to those services," he said.

The plans for a truck stop caught the attention of the city. Gavinski said a feasibility study showed the property was not designed for a truck stop in terms of location and access.

The tribe changed plans to construct a convenience store and gas station, Finley said.

Gavinski said the tribe never discussed with the city plans to construct the store on the property or the request to have the land held in trust before purchasing the seven acres of undeveloped property. It is located just south of Interstate 90 along Wanapum Drive.

Nothing has been discussed since earlier this year but both sides seem willing to talk before the appeal process is completed, likely within a year.

"They should have every incentive to come to an agreement now," Finley said. If they're not successful with the appeal and it's taken into trust anyway, then they don't get anything. If that happens, they have zero control."

The tribe paid more than $1 million dollars in 2011 for the piece of property that still remains vacant.

"Right now, every day we're not in business down there (Moses Lake), we're losing money," Finley said. "We've already lost, because of them, a year's worth of revenue."

If a deal cannot be reached, Gavinski said it's unlikely the Bureau of Indian Affairs will overturn the approval of trust land, but it's more likely the tribe will be required to take a closer look at the plans for the land to determine if trust land is the right approach.

"Probably the best case is it gets back for further review," Gavinski said.

Finley said the Business Council informed their attorney to file an order to open negotiations, but didn't know when discussions would begin. Gavinski said the city has yet to receive notification for negotiations.