Spokane Valley will fund capital and entertainment projects with lodging tax funds

click to enlarge Spokane Valley will fund capital and entertainment projects with lodging tax funds
Rendering courtesy of Spokane Valley
Spokane Valley leaders hope a new cross country course will draw guests to the city.

The city of Spokane Valley continues to promote city-centric tourism projects through grant opportunities funded in collaboration with hoteliers in the city. On Jan. 7, Spokane Valley City Council unanimously approved the most recent allocation of nearly $3 million from lodging taxes to fund various tourism-related projects.

The City Council received recommendations for which projects to fund from the Lodging Tax Allocation Committee, or LTAC. The five-person committee is led by City Council member Rod Higgins, with two hotelier representatives and two representatives who were recipients of grants funded by the tax.

The committee makes recommendations on money collected from a 3.3% lodging tax on overnight stays at hotels within Spokane Valley. The lodging tax is typically split, with 2% designated for projects such as yearly events and 1.3% going toward capital projects.

Priority for the money goes to tourism marketing, operating costs for events and festivals, and tourism-focused facilities operated by nonprofit organizations.

Higgins says the goal is to fund projects with impact, and replenish the lodging tax funding purse by supporting projects that draw people to the region to stay at local hotels.

"The revenue that's received comes from those heads in beds and is recycled, so to speak," Higgins says. "As tourism grows, that gives us more money to spend, and right now, tourism has been on an upswing, but it's starting to level off."

During a Nov. 4 meeting, the Lodging Tax Allocation Committee reviewed presentations from 21 applicants who requested funding for various events and projects within Spokane Valley. At the meeting, the committee prioritized 11 projects, through a ranked voting system, to recommend for funding, Higgins says. The results were presented to the City Council and approved last week.

This year, thanks in part to savings in previous years and a transfer of $500,000 from the non-capital projects fund, there was $2.5 million available for capital projects. This left $393,000 available for non-capital projects, with requests to that fund surpassing $733,000.

Projects not funded this year included Spokane County's $1.5 million capital expenditure request for Plante's Ferry Sports Complex renovations, and non-capital applications from the Spokane Valley Farmers Market, Spokane Pride, and the Diwali Celebration of Lights festival.

Among the capital projects that were funded is a $2.5 million request for a new cross country course for running competitions and training in Spokane Valley; it could also host cyclocross events. It is expected to cost $7 million to complete phase 1 of the Spokane Valley Cross Course, including the construction of permanent trails. Phase 2's price tag is not yet known, but will see the construction of facilities like a clubhouse.

The roughly 62 acres of land designated for the new course is owned by Spokane Valley and Washington State Parks, which owns 16 acres. The cross country course is expected to be ready for use this fall, after phase 1 is completed, and is scheduled to host the NCAA 2027 Division I Men's and Women's Cross Country Regional.

The course is also expected to accommodate local school districts' cross country competitions, sports clinics, and training.

Higgins says funding the cross country course was the most reasonable project, even with the steep price, because it will be one of the region's only dedicated cross country courses and require people to lodge in the city for events.

"Cross country is probably the best thing for bringing people to the area that are going to be staying for more than the afternoon," Higgins says. "They're going to be here for at least one night, but usually more than one day."

Among other notable applications that were funded, the Spokane Valley Summer Theatre received the entire $35,000 it requested for marketing the organization's 10th anniversary. The summer theatre's future home, the Idaho Central Spokane Valley Performing Arts Center, is still under construction and is expected to be completed in 2026.

"Spokane Valley Summer Theatre is most grateful to receive Spokane Valley LTAC funds this year," says theater representative Susanna Baylon.

The theater group has used University High School and Central Valley High School to host programming for past productions.

Other events that were funded include the 21st USA West Square Dance Convention, the annual Washington State Quilters show, the Spokane Corvette Club show, and events at the HUB Sports Center. The HUB held 54 sporting events in 2024 and is expected to host more events that drive tourism to the region.

Higgins says supporting sports and cultural events helps Spokane Valley stand out.

"We'd like to have our own identity, as opposed to downtown Spokane, Coeur d'Alene, or Post Falls," Higgins says. "As we gain exposure and experience, we'll do better, and we will grow." ♦