POST FALLS - Urban renewal is expected to be hotly debated again during the upcoming Legislature despite previous years' efforts to clarify laws or increase accountability.

North Idaho legislators and representatives of area urban renewal agencies discussed their concerns on Monday during a joint workshop at the Post Falls Chamber of Commerce.

Rep. Frank Henderson, R-Post Falls, believes urban renewal should be used for the specific goal of creating jobs.

"Nothing else," Henderson said. "In my mind, that's the way it should work."

Henderson believes that was the original intent of urban renewal and bringing on projects for other uses is what has led to criticism.

In most urban renewal districts, a proponent or developer will use its own funds to install public infrastructure. The incremental taxes that are paid based on the higher assessed values after development are remitted to the agency and are, in turn, paid back to the proponent/developer for cost reimbursement for such infrastructure.

Sen. Jim Hammond, R-Post Falls, said it has become more challenging to defend urban renewal as a legislator.

"When you get into projects such as parks or swimming pools - even though you can say they improve the community or attract business - it's pretty hard for me to defend those," Hammond said.

Rep. Marge Chadderdon, R-Coeur d'Alene, said she would like to see community colleges exempt from the urban renewal picture.

"I don't want to hurt urban renewal districts; I just want to help my community colleges," she said.

But Tony Berns, executive director for the Lake City Development Corp. in Coeur d'Alene, said some projects create an "offset" that benefits the districts and need to be figured into the equation.

Berns said having the urban renewal tool helps attract developers to certain areas over others and the partnerships help make communities vibrant. He cited Gozzer Ranch as an example.

"NIC taxes countywide and they love to see these developments," Berns said. "We are bringing equity to our community."

Rep. George Eskridge, R-Dover, said he supports having urban renewal as a tool, but questions how it's being used and if there's enough accountability.

"If a theater is remodeled, is that job creation or something the voters should have a say in?" he said.

Eskridge said, in some cases, the mayor and city council may not be informed enough on urban renewal matters to make such decisions affecting taxpayers.

Tom Lien, Post Falls urban renewal director, said rather than getting in a defensive mode when questioned, urban renewal agencies should tell their success stories and how they're making a difference in the community.

The Riverbend district in Post Falls, created in 1997, will close in December 2012. There have been $3.8 million in agency-funded infrastructure improvements that has resulted in several businesses and education facilities moving to the district. Nearly 1,300 jobs have been created in that area, Lien said.

Spirit Lake used urban renewal funding in the revitalization of Maine Street, while Hayden is using it for bus shelters.

Nancy Sue Wallace of Hayden's agency said that city has urban renewal funds to spark development along Government Way but there haven't been any takers.

"We have firepower to help, but we haven't gotten any interest from developers," Wallace said. "We're waiting patiently to help."