POST FALLS - Communication, just like spouses confess, can take some work.

The Post Falls City Council and Urban Renewal Agency also have been reminded of that.

During a joint workshop on Tuesday, both boards agreed to meet quarterly so urban renewal projects such as the Spencer Street extension from Second Avenue to Seltice Way don't get sidelined in the future.

"Having both groups get together and communicate about projects is very helpful so that everyone is informed and on the same page with projects, philosophies and direction," said Eric Keck, city administrator.

The boards formerly held occasional "three-on-three" meetings consisting of a few members of each, but Keck said having the full boards present has become critical as seen with the Spencer Street project.

"The concern was for ensuring the highest degree of transparency with the public as well as with ensuring that the other members of the agency and council could also share in the explanation of what is going on with tax-increment finance projects in Post Falls," Keck said.

While the agency develops urban renewal plans, the City Council holds a public hearing before deciding if the plan should be implemented.

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 URA and are, in turn, paid back to the proponent/developer for cost reimbursement for such infrastructure.

The council and agency both agree punching Spencer Street through to improve traffic circulation and emergency response time in the Ponderosa Elementary neighborhood remains a viable use of urban renewal funds, but disagree on which entity should be responsible for the right-of-way acquisition.

"We all feel that this is a good project and are working through the technical aspects of who exactly would acquire the right of way and how to best determine the cost," said Tom Lien, Post Falls Urban Renewal Agency director.

When the plan was pulled from the shelf during the workshop, there were still differing opinions on the plan's language, so attorneys from both sides agreed to hash the matter out and give a report to the council on March 7 so the project can proceed.

Both sides say they are frustrated that the project has dragged on, especially since the East Post Falls Urban Renewal District plan, which Spencer Street is part of, was approved in 2002 and there's nearly $6 million in the account that could be returned to taxing agencies if it's not spent on urban renewal projects.

Construction on the Spencer project, not including right-of-way acquisition, is estimated at $1.6 million.

The district expires in 2015, leaving enough time to finish Spencer Street, but officials would prefer to close out the district early in 2013 to benefit taxpayers and since there are few projects left in the district.

Lien started right-of-way negotiations more than a year ago, but stopped when the agency determined that wasn't his role. The city resumed the talks, but recently stopped.

"We have suspended any further discussion on right-of-way acquisition until such time the agency will commit to covering the right-of-way costs for the project," Keck said.

The council last year decided to not extend the life of the East Post Falls district, which sidelined the Greensferry overpass proposal.

The agency has six open districts - Riverbend, Expo, City Center, West Seltice II, East Post Falls and Center Point. Riverbend expires at the end of the year, marking the second Post Falls district to close.