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No foolin': Urban renewal is not that complicated

John Austin | Hagadone News Network | UPDATED 12 years, 9 months AGO
by John Austin
| April 1, 2012 9:00 PM

I'm asked all the time why urban renewal is so hard to understand. Some claim their taxes are higher because of it while others say not so much. Critics say the money going to urban renewal agencies (URAs) would be better used for something else. And, of course, issues about McEuen Field top the list.

So, let's sort out a few things. For example, did you know?

• Taxes that flow to URAs are paid by fewer than 10 percent of all taxpayers, from new development that happens in small districts within each city.

• Urban renewal is best used to attract new businesses. Thousands of new jobs have come to North Idaho because of the incentives available from cities.

• The new tax money can only be used for a public purpose; i.e. those things we can all utilize. Typically provided for infrastructure like roads and utilities, the taxes are sometimes pledged for parks and public safety facilities.

• Developers usually provide the new infrastructure and are reimbursed from the taxes they have to pay anyway. However, if their developments do not pan out they are not reimbursed. In Coeur d'Alene alone, millions of dollars in new infrastructure provided by developers have yet to be reimbursed.

• As with everything about taxes, the budget decisions of local government officials determine how high our tax bill is. For example, when an urban renewal district closes, all the new taxes are released to local governments. The taxes can be added to the city's budget (and the budgets of Kootenai County, North Idaho College and others) or they can be used for tax relief.

• A few years back, the Post Falls URA closed a district that brought Harpers and some 600 jobs to town. The city's share of the new taxes went to build a police station, which was nice because the city got new jobs and a facility they greatly needed.

• One of the Lake City Development Corporation's districts, which funded part of the library, Kroc Center and Education Corridor, brought in around $4 million last year. Those funds will be released in about eight years when the district closes. That will again be a big windfall for local governments.

• Lastly, LCDC has pledged over $11 million for McEuen Field. Those are not new taxes but money already being paid by property owners in a small part of town. That's correct: only a few taxpayers are providing the majority of the money for McEuen yet people from all over will be able to enjoy the new park.

When it comes to urban renewal it's easy for issues to be misunderstood. Luckily, it is just as easy to get answers to any questions one may have. Just contact your local URA or drop me an email. No foolin', it really is that simple!

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

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ARTICLES BY JOHN AUSTIN

October 6, 2013 9 p.m.

McEuen: How we got here

With the initial unveiling of the new McEuen Park on Saturday, I thought I'd reflect on the remarkable, if not so easy process that got the city to this point.

May 19, 2013 9 p.m.

Urban renewal and outside influence

My Turn

A funny thing happened to Silver Valley residents on their way to a decision on whether or not they want an Urban Renewal Agency (URA) in their county. They've heard from their neighbors to the west, including two elected officials angry over Coeur d'Alene's agency and its investment in McEuen Field.

April 1, 2012 9 p.m.

No foolin': Urban renewal is not that complicated

I'm asked all the time why urban renewal is so hard to understand. Some claim their taxes are higher because of it while others say not so much. Critics say the money going to urban renewal agencies (URAs) would be better used for something else. And, of course, issues about McEuen Field top the list.