Recently, Coeur d'Alene City Councilman Dan Gookin shared some urban renewal comments during a public meeting that deserve clarification. Urban renewal issues can be complex and we appreciate the opportunity to clear up misconceptions. This is particularly important when inaccurate statements are made by public officials.

Mr. Gookin stated that termination of the Lake City Development Corp. (LCDC - the city's urban renewal agency) by a new City Council in 2014 would result in $3 million of new revenue to the city of Coeur d'Alene annually in about three years after LCDC's existing partnership debt obligations are retired as quickly as possible.

In fact, this is not correct. There would not be an additional $3 million in revenue per year to the city of Coeur d'Alene starting in three years by closing the LCDC's Lake and River districts in 2014. Here is why:

Assuming in 2014 a new City Council wants to stop all new urban renewal economic development activity and retire debt early in the LCDC's Lake District, it would take 4 to 5 years (i.e. 2018 or 2019) to retire existing LCDC debt in this district. At that time, the city could add into its budgeting process an estimated new construction assessed value of $200 million (this figure represents the new construction valuation created in the LCDC's Lake District since its creation in 1997).

If this were to occur, using the current city levy rate for this example, the $200 million in new valuation would equate to an estimated budget infusion of $1.3 million in 2018 or 2019. This only occurs IF city leaders choose to do so. It is important to note that this possible tax revenue increase assumes that the City Council would opt to add this LCDC related value in building its budget. In fact, this new assessed value could be used to lower the city's levy rate, thereby providing tax relief to property taxpayers, rather than additional revenue to the city. The City Council could also choose to adopt some combination of enhanced revenue or tax relief.

The same financial rationale applies to the LCDC's River District, however the figures and time frames differ. Assuming an early termination of the River District in 2014, the city could realize an infusion of $139 million in additional assessed valuation into their budgeting process in 2019 or 2020, resulting in new revenue of approximately $941,000. The same property tax relief choice exists here as well. Until formal termination of the Lake and River districts occurs in the years to come, the LCDC retains the tax revenues generated within the Lake and River districts to service existing debt obligations.

Since its formation by the City Council in 1997, LCDC is proud to have been a partner in numerous community initiatives providing the catalyst to stimulate our local economy. Should the LCDC districts be terminated prematurely by a new City Council in 2014 as Mr. Gookin suggests, several LCDC partnership projects in the works and on the horizon would not occur. These include:

Lake District

* No funding as currently planned for a downtown parking facility on the former Federal Building block at Fourth Street and Lakeside Avenue;

* No potential LCDC partnership funding to help the community revitalize the 4-Corner area around Memorial Field;

* No development of a Midtown mix-use workforce housing/retail building;

* No potential LCDC partnership funding to help North Idaho College, University of Idaho and Lewis Clark State College realize the creation of a joint use building on the Higher Education Campus.

River District

* No potential funding for an NIC/community sports complex facility;

* No potential funding to help revitalize the Seltice Way street infrastructure;

* No potential funding to assist in redeveloping remaining deteriorated property parcels in the River District;

* No potential funding to assist in acquisition of abandoned BNSF railroad right of way for public space;

* No potential funding to assist in the development of a Kootenai Metropolitan Planning Organization (KMPO) transit center.

Finally, Councilman Gookin shared his opinion that LCDC urban renewal funding is being "abused in the city" through its use in providing financial support to redevelopment of McEuen Park. The council and community need to know that LCDC is not abusing urban renewal in any fashion. The LCDC operates under the Idaho state statutes that govern urban renewal. The LCDC work being performed within its two redevelopment districts in no way abuses the state statutes.

Information on our partnership initiatives and actions taken by our volunteer board are available to the public on an informative and easy to navigate website. I invite you to visit www.lcdc.org. Here, you will find recorded videos of our monthly public board meetings (which are also broadcast live), board minutes, an overview of our community development projects, an archive of our monthly newsletters, archived annual financial reports, and much more. It's all available to the public and I invite you visit the website and learn more.

Tony Berns is executive director of Lake City Development Corp. Inquiries can be directed to Berns at 292-1630 or to LCDC communications representative Keith Erickson at 819-0907.