Downtown Spokane's parking surplus

Look at all that space devoted to the temporary storage of vehicles. And that's not even all of it! That's just a small sampling of the surface parking lots located north of the railroad viaduct in downtown Spokane. I'm aware that I missed a few in West Downtown, but this paints a stark picture of an unfortunate reality. Surface parking diminishes urban vitality and wastes valuable space. Structured parking, while more expensive, is also more dense, and can allow for innovative first-floor retail and offices, or residences located above the parking.
In Spokane, speculative buyers have snatched up surface parking lots on prime development sites, knowing that their value will only increase in coming years. But this creates a problem: lots aren't sold because the owners want too much for them, and developers wouldn't be able to turn a profit at higher land costs. As a result, we get gridlock. Perhaps the issue could be at least partially solved by creating a public development commission or other authority with the power to buy up underutilized properties and sell them directly to the developers with the strongest and most realistic proposals for the sites. Portland has had tremendous success with this model, revitalizing neighborhood urban districts and breathing fresh life into its downtown area.
One site in particular that we'd like to see developed is the two-block surface parking lot centered at Spokane Falls Boulevard and Stevens (the lot between the Bennett Block and the Liberty Building). The Bennett Block is undergoing a major renovation, and the site seems prime for a residential mixed-use high-rise or two with abundant glass and perhaps One Lakeside-esque balconies. Who wants to make it happen?
---
What do you think? Does Spokane have too much surface parking? Could our city be better served by building out our parking lots and better economizing space? What about the idea of a public development commission? Share your thoughts in the comments, on Twitter, Facebook, and in conversation.