Jar Arcand knows how stubborn Joe Morrier can be.

Arcand, owner of Santiago's restaurant, remembers the disputes he had with Morrier at Yakima Downtown Association meetings over whether parking should be free.

Arcand thought it should be. Morrier did not, and had no qualms about charging customers (or anchor stores) fees to park at the Yakima Mall garage.

To this day, some wonder if the demise of the mall would have been delayed or even prevented if Morrier had given a break on parking fees.

"People want to believe that it was paid parking" that lead to the closure of the mall, Arcand said.

But for Arcand, the cause of the mall's demise is a tossup. He notes that numerous downtowns also have lost their retail centers: "It could've been a parking issue, or it could've been destiny," he said.

The parking garage has recently been the center of controversy once again, following Morrier's request for the city to spend $85,500 to remove one of the ramps so he could build an upscale hotel at the former J.C. Penney store.

So when Morrier announced his decision to remove the parking ramp with his own money, it was a pleasant surprise to Arcand.

"What's $85,000? Chump change," Arcand said. "Why would you be haggling for $85,000? The old Joe Morrier would. But he came to (his) senses."

The parking ramp dispute, however, brought back a long-standing tension between citizens who believe that Morrier gets too much preferential treatment on his projects, and city officials who believe that supporting Morrier, as the dominant downtown landowner, is essential for the area's revitalization.

"He's going to create a different environment (for downtown)," said city manager Dick Zais. "He's trying to make an investment for his family and community."

Yakima resident Eric McIntosh doesn't buy it. Downtown revitalization, he said, is a guise that allows Morrier more money-making opportunities.

"It seems that he always wants a handout," McIntosh said.

Though he is the source of this tension, Morrier has managed to stay out of it. His interaction with the public and the media is limited to news releases on his projects and an occasional City Council committee meeting.

He declined to be interviewed for this story.

"It would be counter-productive to address any issues from the past," wrote Liz McGree, his daughter, in an e-mail responding to the Herald-Republic's request to interview Morrier. "We appreciate your willingness to provide an avenue of communication but feel with our current revitalization progress, a story of this nature would be unnecessary at this time."

'He gets what
he wants'

You don't have to speak to Morrier to know that he chooses to focus on his business rather than on public opinion.

Morrier, 69, is the oldest of four sons of Earl Morrier, a Moxee hop grower. Joe took over the hop ranch and eventually ventured into purchasing property downtown.

Now those downtown properties are valued at about $14.1 million, according to estimates from the Yakima County Assessor's Office.

"I don't know how to quit. Determined," he said in a 1986 Yakima Herald-Republic profile, explaining his success with the then-thriving Yakima Mall. "I don't like the word 'can't' at any time."

Although City Councilman Bill Lover posted the sole "no" vote in the council's decision to pay for the removal of the parking ramp, he isn't bothered by Morrier's approach.

"Whether we like his business practices or not, he has been very successful and I think he's very savvy," he said.

Morrier brings financial resources, knowledge and counsel that are required to get what he wants, Zais said: "He's not without an understanding and appreciation of how to work within the system."

But such persistence and aggression is seen as greed and selfishness by some local citizens who believe that Morrier's business practices contributed to the demise of the Yakima Mall in 2003.

Yakima resident Bill Cagle said he saw Morrier's practices first hand. He once worked for a firm that tried to lease space at The Tower, another building Morrier owns in downtown Yakima.

Morrier gave a verbal leasing agreement, but when it came time to sign the written agreement, the conditions changed and the company would have had to pay a lot more, Cagle said.

"His reputation in town ... is that of a greedy businessman that puts himself before the community," Cagle said.

Too much help?

Another source of irritation is the variety of tax breaks, loans and other programs Morrier has used to finance his projects.

The projects have been renovations to various buildings, including the vacant Yakima Mall, the Great Western building and The Tower building, both on Yakima Avenue.

He has received multiple tax credits through the Renewal Communities program, a federal program that provides deductions for construction projects within a designated area.

For the Hilton Garden Inn, which opened in 2006 in the completely renovated former Mervyn's storefront, Morrier received two tax deductions totaling nearly $8.7 million through the Renewal Communities program. The hotel also was partially financed by a $3.56 million low-interest loan through the U.S. Department of Housing and Urban Development.

When The Lofts, his condo development at the former Bon Marché store on North Third Street, is finished, he won't have to pay property taxes on any improvements on the property for a decade, thanks to a new program the city of Yakima established in 2006.

And though Morrier has agreed to remove the parking ramp with his own money, city officials are still attempting to work out a development agreement that would allow the city to fulfill Morrier's other requests for the proposed hotel, such as removal of sidewalks. The hotel would be the third renovation at the Yakima Mall property.

Mary Place, who was on the Yakima City Council from 1997 to 2005, including four years as mayor, voted against sponsoring the low-interest loan that Morrier ultimately received for the Hilton Garden Inn.

She supports downtown development and likes the work being done there. But she also believes that the city should not mix up providing a business-friendly climate with investing outright in a private enterprise.

"I do feel that Mr. Morrier has taken advantage of the city from time to time," she said, noting that Morrier has had city approval for similar federal-funded loans for other projects that never materialized.

Once a savior

In 1971, Morrier was one of 47 stockholders to open the Yakima Mall. Morrier got in on the deal because he owned parcels that eventually became part of the mall. His stake at the time was a mere 6 percent.

The mall was considered a saving grace, as it prevented J.C. Penney from leaving downtown Yakima.

A year later, Morrier, at 33, was named president of the mall corporation.

In 1973, the mall, which had capital problems, filed for bankruptcy. As part of the bankruptcy reorganization plan, Morrier put up $211,000 of his own money for an immediate payment that would allow the write-off of a $2 million second mortgage from the Small Business Administration.

By the 1980s, the mall had emerged from bankruptcy and Morrier was the sole stockholder.

While Morrier's acquisition of the mall was somewhat controversial, the retail center continued to thrive, securing Morrier's place as the focal part of downtown revitalization.

"I think I can be a part of changing Yakima," he said in the 1986 Herald-Republic article. "I believe in Yakima. I've put my money where my mouth is. I'm going to have a lot to say about what happens in downtown Yakima just because of what I own."

Public influence,
public perception

Indeed, Yakima resident Josh Hodgins believes Morrier has a lot of pull with the city, maybe a little too much.

"If you mention someone like Morrier, (the city officials') first intention is to defend without hearing what we have to say," he said.

Hodgins is known to many as the developer of the "Jackson Horn" television series, which is currently broadcast on several Fox affiliates.

But in the late 1990s and early 2000s, Hodgins was just a young man trying to make his start in television with "The Josh Hodgins Show," a sketch comedy show broadcast on the local cable station.

Morrier became the subject of many sketches as Hodgins interviewed people who had concerns about his business practices.

"It was comedy gold for a while," Hodgins said.

Hodgins said he attempted to get Morrier's side of the story, but Morrier was never willing to speak to him: "There's just a lack of information and accessibility, so people make assumptions."

City officials believe the negative perception of Morrier is so strong that nothing he does or say will change it.

"When (Morrier) does come out and talks, he's usually attacked," said Councilman Micah Cawley.

As a result, Morrier steers clear of any discussion where he cannot control his message, said Councilman Neil McClure.

But some good public relations could help.

Take the recent proposal to build the upscale hotel at the former J.C. Penney store, Zais said.

Imagine, he said, if Morrier listed, line by line, the benefits of his project: the multi-million dollar investment he will make, the number of jobs the new hotel will create, the long-term impact on downtown revitalization.

"If it had been portrayed that way, it would have more receptivity from the public," Zais said.

Such benefits are hard to turn down for city officials, regardless of the public view of Morrier. City Council members say they consider the opinions of Yakima's citizens, but they also have to consider the long-term benefits that projects such as Morrier's provide for the community.

"I personally can't be governed by what people think of Joe Morrier," Mayor Dave Edler said. "As a city councilman of Yakima, I can't sit around and see my downtown vacant."

Bashing Morrier

City Councilwoman Kathy Coffey said Morrier is an easy target because he is a local developer. She's seen outside developers make similar demands for their projects without much chatter.

For example, the city recently qualified for state tax funds that would allow for street improvements, the installation of utilities, and other site work necessary to redevelop the former Boise Cascade Mill site. To receive funding from the Local Infrastructure Financing Tool program, there must be a dollar-to-dollar match from local revenue sources.

City and county officials have been working with the Oregon-based property owners to redevelop the 224-acre site off I-82 for nearly two years.

"The business of bashing Joe is unfair," Coffey said. "He has not been given money."

Anyone who participates in a federal program has to go through a very extensive application process and is held to stringent guidelines.

"He's put his own money into the downtown and he's taken huge risk," she said. "I don't think people truly understand that he has to pay all that (loan) back."

Councilman Norm Johnson said other businesses have taken advantage of some of the same programs as Morrier. Gary Lukehart, another local developer and landowner in Yakima, took out a loan from the U.S. Department of Housing and Urban Development for the now-defunct Trail Wagons/Chinook RV.

That Trail Wagons loan, however, was originally a loan for Morrier to develop the Great Western Building into a hotel. When that project did not materialize, city officials requested that HUD officials allow them to distribute the money for other projects. That resulted in the money going to Trail Wagons and several other downtown businesses.

Other businesses have also benefited from the tax incentives of the Renewal Communities program, including the Yakima Herald-Republic, which received a tax deduction in 2002 for construction of its press building.

"The perception is out there that Joe takes all of it, but that's not a true statement," Johnson said.

Johnson and Coffey have received contributions for Morrier for their respective campaigns -- Coffey when she ran for City Council in 2007 and Johnson for his current 14th District state representative race.

A new legacy

Morrier's supporters believe the success of his projects will help improve his image more than anything he could say.

"I think the Hilton Garden (Inn) has been a terrific addition to downtown," said Joe Mann, another downtown property owner.

Though he does not own anywhere near the amount that Morrier does, Mann is a major property owner, with the value of all his properties totaling about $2.4 million, according to the Yakima County Assessor's Office.

Mann's properties include a building he owns on Third Street that houses Essencia and Ron's Coin and Book; the vacant Liquidation World building (subleased by Rite-Aid); the Pacific Hotel building on First Street; and the Thai Orchid restaurant building on North Second Street.

Mann said Morrier is not as inaccessible as some people think. He's received advice from Morrier on some possibilities for redeveloping the properties he owns.

"One to one, he's very helpful, he's very open," he said.

Morrier's execution of such big projects does provide encouragement to developers such as Mann.

"To me, he's leading by example and he's showing what he can do. He's showing us by example that he can change downtown."

City officials are betting that Morrier will be successful and the community will reap the benefits.

"He's pretty resilient and he comes back with another way to get his projects done," Zais said.

But some local citizens are skeptical, and are frustrated that the representatives they elected aren't. They question whether hotels or condos will provide the revitalization they really want.

Cagle, for example, still yearns for the retail stores the mall once provided. He says he can take his 14-year-old daughter to the Valley Mall, but he believes there is a place for large-scale retail in a downtown area. And he's not convinced that hotel rooms will help transform a downtown area, especially during hard economic times.

Hodgins wants more focus on businesses that will provide good-paying jobs. He said he likes the presence of companies such as Whirlpool and Adaptis, both located in remodeled space in the Yakima Mall building. He believes that will pay off more than adding of a slew of hotels and condos.

"There's going to be some wealthy owners who are going to buy a condo and it's going to look aesthetically pleasing," Hodgins said. "But how is that going to help around here?"

It's a debate, like Morrier's development projects, that will take time to settle.

* Mai Hoang can be reached at 577-7685 or mhoang@yakimaherald.com.