POST FALLS - Amid the ongoing debates of urban renewal reform, here's something for the taxing districts and taxpayers of Post Falls to celebrate.

In November the Riverbend Urban Renewal District will be the second Post Falls URD to close in the 20-year history of the city's Urban Renewal Agency and one of the few in the state to terminate.

While some URDs and improvement projects within them draw controversy, especially when taxpayer dollars are being used to fund them, the 330-acre Riverbend URD created in 1997 has seemed to avoid such battles. It is used by local officials as a shining example of how the urban renewal process is supposed to work.

"It's a perfect example from an economic development standpoint," said Tom Lien, executive director of the Post Falls URA.

In most urban renewal districts, a proponent or developer, in Riverbend's case the Jacklin Land Co., 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 intent is to create jobs and jumpstart economic activity in the district, and the Riverbend URD has done just that.

The property on the west side of Post Falls, which includes the 213-acre Riverbend Commerce Park and the Greyhound Park and Event Center, started with an assessed value of $3.8 million. But, as a result of the agency funding $3.8 million in infrastructure, companies, including Buck Knives, LCF Enterprises and others, were enticed by having infrastructure in place.

"The success of this district is evidenced by comparing the initial base assessed value to the (most recent) assessed value of $52.7 million," Lien said.

More than 1,200 jobs were created within the district with an average payroll of $19.98 per hour, according to the URA.

It's a two-way street, said Bruce Cyr, land manager for Jacklin Land Co., which oversees Riverbend Commerce Park.

"We would have a much tougher economic hill to climb without the urban renewal district," Cyr said. "We're pleased that it was allowed and that it paid itself back to us and to the taxpayers. It is truly a partnership."

Taxing agencies and taxpayers stand to benefit from the district's closure.

"The city and other taxing agencies will receive some new growth funds as well as the taxpayers may see a slight decrease in the levy rate with the closure," said Eric Keck, Post Falls city administrator.

Keck said it's too early to say how much the closure will benefit agencies and citizens.

"This will all hinge on property values within the district itself," Keck said, adding that agencies are currently analyzing the fiscal impact of the closure.

"Given the assessor's recent devaluation of real estate, we need to examine the effect of this on the properties in Riverbend," Keck said. "Ideally, the closure of the district will have the effect of lowering the city's levy rate as this district will not allow for all of the assessed value to be included as new growth."

It is expected there will also be more than $200,000 in surplus increment funds when the district closes, which will be distributed to taxing agencies.

Riverbend is one of six Post Falls URDs that are open. Post Falls will become the first agency to close two districts. West Seltice, which included the area where Kimball Office is, closed in 2001. Coeur d'Alene has not had a district close.

The next Post Falls district to close will be East Post Falls in 2015.

"(Riverbend) performed as intended and we are pleased to see it close on a positive note," Keck said. "The Jacklin Land Co. and Riverbend have been successful and, as a result, have helped the community succeed."