COEUR d’ALENE — The first de-annexation of an urban renewal district in Idaho is one step closer to reality after ignite cda passed two resolutions Wednesday in favor of the move.

The city of Coeur d’Alene is pushing to de-annex several pieces of property in ignite cda’s two urban renewal districts, which would refund a total of $1.3 million to other taxing entities — with nearly $400,000 of that going directly back to taxpayers in the form of relief countywide.

Coeur d’Alene Mayor Steve Widmyer and Coeur d’Alene City Administrator Jim Hammond worked with the Idaho Legislature this year to give cities the authority to de-annex portions of their urban renewal districts before they are slated to be dissolved.

The move will leave ignite cda with plenty of tax revenue to meet its future expectations, but also refund the excess tax revenue to seven other taxing districts.

Hammond told ignite cda’s board the city was taking a “conservative approach to the process” to make sure everything is done correctly.

After the resolutions were passed by ignite, Hammond said he will take the issue before the city’s planning and zoning commission for approval and then an ordinance will be passed by the city council.

He said all of the necessary paperwork has been filed with the appropriate state agencies.

“We are making all of the efforts in terms of noticing meetings, advertising in the paper so that everything that needs to be done legally will be done in the most conservative way,” Hammond said, explaining that while the law says the city could de-annex the properties simply by adopting an ordinance, there is still some ambiguity in the law, so it wants to be on the safe side legally.

Denny Davis, ignite cda board chairman, said ignite and city staff have been working closely together to work through the process, but being the first in the state to use the de-annex process makes it a little more difficult.

“People around the state are watching us,” he said, adding there is a lot of interest from other urban renewal agencies, cities, lenders and bond attorneys. “So it’s really critical for us — whatever happens — that it is done correctly.”

The board unanimously passed two resolutions and adjourned the meeting 11 minutes after it started.

Once the city adopts the de-annexation ordinance, the state will begin disbursing the refunds to the taxing districts on July 1, which is the beginning of fiscal year 2017.

That additional revenue is considered “new growth” and can be used by each of the entities in FY 2017, according to an email from Alan Dornfest of the Idaho State Tax Commission.

When it is all said and done, Coeur d’Alene will receive $503,723. Kootenai County will receive $271,248. North Idaho College will receive $93,749. Post Falls Highway district will receive $41,871. Lakes Highway District will get $15,683 and Kootenai EMS will receive $14,654. The Coeur d’Alene School District would receive $773.

Widmyer said the citizens of Kootenai County will get $398,681 in property tax relief.