If Charles Dickens were around today, he could probably be excused for noting that in North Idaho it is "the best of times and the worst of times." He would likely remark that the abundance of new amenities in the area is helping us as we emerge from the worst economy in eight decades.

Recently, much has been written, spoken, blogged, tweeted and, yes, even shouted out on some of those amenities. Some of it has been in support, some of it in opposition, but mostly it has been saddled by the Four Horsemen of emotion: Joy, Surprise, Anger and Fear.

So, what in the Dickens is going on? In a word, or two, it is urban renewal.

Controversy over urban renewal is not new in our state, but it is in North Idaho. With the growth in urban renewal districts has come millions of tax dollars, all of which flow to urban renewal agencies, or URAs. Questions about the process have arisen from residents and legislators alike, which has only fueled emotions on the issue.

Over the years I've had the opportunity to work with nine cities to create their URAs. This designation has special meaning to me, as I've often heard "Austin, U R A ____ " (I'll leave the reader to fill in the blank.) It is this experience with which I will volunteer my perspective on urban renewal in a series of recurring articles. It is my goal to provide a forum for a wider discussion on urban renewal issues from both sides of the spectrum, while inviting a civil discourse on each.

I'll begin with "a tale of two cities," one large and one small. Many of Coeur d'Alene's 44,000 citizens are aware of the city's URA, the Lake City Development Corporation. Fewer may know of a similar agency in the city of Dover (population 503), located two miles west of Sandpoint. LCDC is the funding partner for millions of dollars that have helped to build the new library and Kroc Center. Dover's URA has witnessed the construction or donation of more than $10 million of public infrastructure, including utilities, roads and recreational facilities for public use.

In each city, the tax dollars from new growth in their urban renewal districts, called tax increment, has flowed to their URAs. LCDC has more than $5 million in annual revenues versus about $500,000 in Dover. The districts in each city have a projected life of 24 years and utilize Owner Participation Agreements with developers. OPAs allow costs to be reimbursed if, and only if, new increment flows to URAs. What is often overlooked is the fact that those new tax dollars can only be spent within those areas that generated the new taxes, which is limited by law to less than 10 percent of the city's total assessed value. That's right: just 10 percent of the city pays for 100 percent of the improvements all residents enjoy.

The difference between the two cities is based on the needs of each community. Like many small cities in Idaho, Dover was facing a mandate from the state to upgrade its water and wastewater facilities. No new homes or businesses could be built in the city until those facilities were up to the state's standards. The city's streets were also in need of repair and there was no viable city hall. Coeur d'Alene had previously dealt with similar issues and therefore utilized their new tax dollars to attract jobs and highly improve the amenities their residents could enjoy. The objectives of both cities have been admirable, and mostly achieved. However, as we've seen in Coeur d'Alene with McEuen Field, progress has not been without controversy.

So, how were those dollars generated and where did they go? Dover Bay Development, a 600-lot project on an old mill site fronting the shores of the Pend Oreille River, offered to pay for the facility upgrades, plus a four-bay fire station. The developer, a local resident named Ralph Sletager, did this with the hope there would be enough new tax increments to pay him back. In other words, the new taxes he paid would reimburse him for public improvements he funded. DBD invested $8.2 million to fix the problems and expand the facilities to enable the city to add up to 4,000 new hookups. DBD also donated 800 feet of valuable beachfront, miles of bike trails and a riverside city hall. Too, they repaved all of the streets in the older part of Dover. Since 2005 the development has added nearly $100 million in new value, which has enabled DURA to repay a portion of DBD's investment.

Like Dover, LCDC focused early attention on an old mill site. Riverstone, on the Spokane River, has created millions of dollars in new assessed value, which the owner, John Stone, said would never have happened without urban renewal. It is the taxes on that development, generated in just a small area of the city that has provided most of the amenities enjoyed now by residents. Indeed, it is Riverstone and associated new construction along Northwest Boulevard and downtown that will help pay for the Education Corridor and McEuen Park upgrades. No money will come from the other 90 percent of the city's taxpayers, as resolved by the City Council during a raucous meeting in May.

To summarize, urban renewal has been used by many cities in North Idaho over the last 20 years, in towns large and small. In just these two examples today we can see the impact of forward-thinking City Councils, who've used the only incentive available to them to attract new businesses and the jobs and new revenues that accompany them. We've also heard from a vocal public adding their input to the process, which is an important and essential part of any governmental undertaking.

Future articles will shed light on urban renewal projects across the face of North Idaho developments that will shape the landscape of our beautiful place in the world. I look forward to sharing the stories of the people behind the scenes who are making it happen, and ensuring we will continue to enjoy the "best of times."

John Austin is a former finance director for Kootenai County and the city of Coeur d'Alene. He lives near Harrison and can be reached at john@pacni.org.