Executive Summary
Cheney’s industrial pipeline is currently limited, with political and regulatory focus shifting toward reclassifying existing industrial lands for residential and mixed-use to meet state housing mandates . While council members have proposed developing an industrial park to generate revenue, entitlement risk remains high due to infrastructure constraints and a strained relationship with Spokane County regarding Urban Growth Area (UGA) expansions .
Development Pipeline
Industrial Projects
| Project | Applicant | Key Stakeholders | Size | Current Stage | Key Issues |
|---|---|---|---|---|---|
| Industrial Park Development (Proposed) | City Council Initiative | Jason (Council Member) | N/A | Early Brainstorming | Proposed as a revenue strategy; needs employment growth analysis . |
| High Tower/Big Cigar Easement | High Tower Business Park LLC / Big Cigar LLC | Department of Ecology | 106.4 Acres | Approved | $425,600 conservation covenant; funds returned to sewer fund . |
| SE Industrial Reclassification | City of Cheney / Nexus Planning | Ryan Hughes (Nexus) | N/A | Policy Review | Proposed shift from industrial to multi-family in the SE wing . |
| SW Industrial Reclassification | City of Cheney / Nexus Planning | Planning Commission | N/A | Policy Review | Converting portions of SW industrial land to mixed-use for housing . |
Entitlement Risk
Approval Patterns
- Fiscal Pragmatism: Approvals are increasingly tied to long-term maintenance costs and revenue generation. Infrastructure projects like the "Purple Pipe" reuse system and substation upgrades receive consistent support when funded by grants or low-interest loans .
- Infill Preference: The council and Planning Commission favor high-density residential infill on underutilized commercial or industrial-adjacent sites to meet House Bill 1220 requirements .
Denial Patterns
- Fiscal Sustainability Rejection: The council recently denied the acceptance of a $1.1M SAFER grant due to concerns about the city’s inability to fund positions after the grant period . This signals a high risk for projects requiring significant city-funded infrastructure or service expansions.
- Data Center Skepticism: Concerns have been raised about high-intensity power users (e.g., data farms) consuming remaining grid capacity without providing proportional jobs or development benefits .
Zoning Risk
- Land Use Conversion: There is an active policy shift to convert industrial-zoned land to multi-family or mixed-use to address a 702-unit affordable housing deficit .
- UGA Stagnation: Spokane County has been "recalcitrant" regarding Cheney’s requests for Urban Growth Area expansion, claiming the city has sufficient internal capacity . This limits the availability of large (40-50 acre) parcels for new industrial development .
Political Risk
- Leadership Transition: A new Mayor (Martin) and the appointment of an interim City Administrator (Abelman) may shift development priorities during the 2026 Comprehensive Plan update .
- Anti-Grant Sentiment: A 4-3 split on the council regarding federal grant requirements (DEI and immigration policy conflicts) suggests potential friction for projects relying on federal partnerships .
Community Risk
- Traffic and Safety: Rapid-growth residential areas (Golden Hills, Sunrise Drive) have organized to demand traffic calming and speed enforcement, which will translate to high scrutiny for industrial truck routes .
- Developer Accountability: Citizens have expressed extreme frustration over drainage issues and construction-related property damage, leading to calls for stricter city oversight of developers .
Procedural Risk
- Change Order Scrutiny: Council members have begun aggressively questioning construction change orders, alleging "low-bid" strategies by contractors to secure projects before raising costs .
- Third-Party Review: The city is increasingly deferring complex planning and engineering contracts to subcommittees for deeper vetting, potentially lengthening the entitlement timeline .
Key Stakeholders
Council Voting Patterns
- Fiscal Conservatives: Paul Schmidt and Teresa consistently vote against long-term financial liabilities and federal grant dependencies .
- Pro-Growth/Safety Swing Votes: Jackie and Danielle emphasize the liability of understaffing and the need for new facilities, though they demand clear "how-to" funding plans .
Key Officials & Positions
- Mayor Martin: Newly elected; focusing on transparency and " Eagle Grad Week" partnerships with EWU .
- Todd Abelman (Interim City Administrator): Former Public Works Director with deep technical knowledge of city infrastructure and utilities .
- Dan Ferguson (Assistant Public Works Director): Lead on many current capital projects and equipment procurement .
- Terry Morning (Planning Lead): Transitioned from building inspector; currently cleaning up zoning code language and definitions .
Active Developers & Consultants
- Nexus Planning Services: Ryan Hughes is the principal consultant shaping the 2026 Comprehensive Plan and Future Land Use Map .
- William Winkler: Active in local construction and fire department infrastructure .
- Hayden Homes: Major residential developer currently active in the Parkside and potentially Golden Hills sections .
Analysis & Strategic Insights
Forward-Looking Assessment
- Industrial Momentum vs. Friction: Momentum for new industrial development is low. The city's focus is currently inward-facing, aimed at "right-sizing" current land use to meet state mandates for housing. Developers seeking industrial entitlements will face friction from a council that is skeptical of large-scale land consumption that does not provide immediate tax or utility benefits .
- Zoning Outlook: Expect regulatory tightening on industrial lands near residential "wings" of the city. The Comprehensive Plan update (Scenario 3) specifically targets industrial areas for conversion to residential/mixed-use .
- Strategic Recommendations:
- Infrastructure Tie-ins: Position projects as contributors to city-wide utility health (e.g., contributing to the Purple Pipe network) to gain favor .
- UGA Engagement: Because large parcels are scarce within city limits, developers should monitor city-county negotiations regarding the UGA. The city feels "disadvantaged" by the county's current assessment of Cheney’s capacity .
- Near-term Watch Items:
- Comprehensive Plan Drafts: Review upcoming iterations of the Future Land Use Map for finalized industrial-to-residential conversions .
- Power Rate Study: A new utility rate study is pending to address rising demand and grid capacity .
- UGA Updates: Monitor the November county-level updates regarding UGA determinations .