POST FALLS - The Post Falls City Council on Tuesday night voted 3-2 to not extend the life of the East Post Falls Urban Renewal District, which was pegged to fund an Interstate 90 overpass or interchange at Greensferry Road.

Council members Kerri Thoreson, Skip Hissong and Scott Grant voted against extending the life to the full 24-year term to 2026.

Council members Betty Ann Henderson and Linda Wilhelm voted for the request.

Council member Ron Jacobson wasn't at the meeting and couldn't vote due to a conflict of interest anyway.

Opponents of the request said the city has more pressing needs and this isn't the time to ice some income for the city and other taxing districts by extending the district to generate more tax-increment funding.

Others believed the city shouldn't try to fund the Greensferry project alone. The project was listed as a reason for forming the district in 2002, but state and federal revenue streams haven't come through as originally hoped for.

Those in favor said a Greensferry overpass or interchange - intended to enhance economic development, improve vehicular and pedestrian mobility and improve public safety response - said the project has been needed for years and believe the funding mechanism is justified.

The Legislature passed a law effective Friday that sets a 20-year limit on districts, so the council held the special meeting before the deadline to consider extending the district.

The Environmental Impact Statement and Interchange Justification Report on the Greensferry project - both required for construction - are expected to be completed in late July or August. Those pieces to the project will proceed.

An interchange would cost an estimated $31 million; an overpass $20 million. Roughly $11 million would be saved for the project under the district's current life, leaving funding about $9 million short.

The Urban Renewal Agency on June 10 decided to ask the council to consider extending the district's life. The request was also made to complete commercial pads in the Tullamore project west of Highway 41.

The district is set to expire in 2015. In 2005 it was expanded three years from its original 10-year timeline.

Other projects in the East Post Falls URD include extending Spencer Street from Second to Seltice Way and creating a pedestrian/bike trail along Highway 41 from the Ross Point interchange to Sonic.

Both projects will be covered by tax increment under district's existing life.