RENEWAL: Here's who foots the bill
Coeur d'Alene Press | UPDATED 13 years, 8 months AGO
John Austin had an interesting article about Urban Renewal in the Press for Sunday, April 1. The article is actually “opinion” though not labeled as such. Much of the article is true as it stands, but leaves the reader with the impression that most of us are not paying for urban renewal projects. Let us take a closer look.
First, an urban renewal district is drawn. When that is done the taxes for every property within the district are fixed at their present level. The local taxing agencies continue to get the same taxes from that point until the close of the urban renewal district. Any increase in value of those projects and any increase in taxes goes to the urban renewal district. Thus “tax increment financing.” (Think of the value to the urban renewal district if the district just happens to include some very expensive properties.)
So what effect does this have on the rest of us? We have to make up the difference in taxes that would have gone to the local entities (county, cities, fire, highway district, etc.). So, although our taxes are not going to the urban renewal district the effect is that we are paying more taxes to make up the difference.
Urban renewal was designed to improve blighted areas, but in our county it has gone to build very upscale projects. Thus monies are taken from the poor and given to the more well-to-do. Actually there are few blighted areas in Idaho.
Idaho law needs to be changed so that the district can only include those particular projects in which urban renewal has or is in the process of investing money. Then if they get the benefit of the improvements they have made that would be fairer.
Over time urban renewal has become a way for cities to get things done that would otherwise have to go to the voters for approval. Think what this would have meant if an urban renewal district had included the jail.
Maybe it is just time to repeal urban renewal law and let the voters decide on what they want to spend their money.
JIM HOLLINGSWORTH
Coeur d’Alene