RATHDRUM — Rathdrum is moving ahead with forming an urban renewal agency that would fund infrastructure to spark industrial and commercial development.

"We've got the ability to create our own workforce," said Leon Duce, city administrator, referring to why an agency is being formed. "There are a lot of benefits to having one in Rathdrum, including creating good jobs so that people can work and live here."

Duce said one obvious site that could be served by an urban renewal district is the vacant industrial area on the south side of town between Highway 41 and Meyer Road, and Boekel Road and Nagel Lane.

"It's a prime spot for light industrial that could provide jobs," Duce said.

Such a project, Duce said, would complement the two technical schools in Rathdrum operated by the area's three largest school districts and North Idaho College.

"We're missing the boat if we don't make use of the graduates we've got from our programs," Rathdrum Mayor Vic Holmes told The Press earlier.

Rathdrum has about 1,600 acres zoned as industrial.

The city hopes to choose residents for the five-member volunteer urban renewal board in February or March with tentative plans for the first meeting in April.

"We’re taking things slowly and not rushing into it," Duce said.

Urban renewal districts created by the city or other proponent and administered by the urban renewal agency have a base tax rate when the district is created. That base tax rate continues to be collected by the county and remitted to taxing entities over the life of the district.

As a district is improved, has new construction and increases in value due to improvements, the incremental tax created by those improvements in excess of the base tax goes to the URA to pay for the public improvements that have been made within the district.

In most cases, the tax increment received by the agency is used to reimburse proponents who have completed and paid for the improvements and dedicated them to the city prior to reimbursement.

Area cities including Coeur d'Alene, Post Falls, Hayden and Spirit Lake have urban renewal agencies.

Duce said he'll likely lead the Rathdrum agency until it's determined if an executive director should be hired. He said the first meeting would be an introduction to urban renewal law and a lesson on urban renewal requirements and limitations.

Duce said he wouldn't expect an urban renewal district to be formed and approved by the city council before mid-summer. The city would hire a consultant to write a URD plan to be considered.

Those interested in serving on the urban renewal board should pick up an application at City Hall and submit it by Jan. 31. They can also contact Duce at 687-0261, ext. 116, or leon@rathdrum.org to have an application sent.

Board members must live in Kootenai County and be a registered voter.