Urban renewal might offer $30M county facility solution
Keith Erickson Staff Writer | Hagadone News Network | UPDATED 5 years, 1 month AGO
The only identified source of funding for a proposed $30 million government facility on the Kootenai County campus downtown is urban renewal revenue that will soon shift to the county’s coffers.
Over the next two years, the county is expecting an estimated $1.23 million annually in revenue when urban renewal districts in Coeur d’Alene and Post Falls close. Those tax revenues currently go to the respective urban renewal agencies.
To pay for the new building, the county would need the entire sum. And more.
County commissioners on Monday stopped short of endorsing that course. Instead, they directed staff to re-examine the urgency for more facilities space.
Providing specifics on funding the proposed five-story facility, county treasurer Steve Matheson said it would not be enough to foot the building bill.
Based on a 20-year loan at 4% interest, Matheson estimated the county could finance about $16.3 million based the anticipated urban renewal revenue — way short of the mark.
And the $14 million shortfall was not Matheson’s only concern.
The treasurer told commissioners he was leery of “political fallout” should the county opt to take the urban renewal dollars.
“I’m asking the board, are you willing to leverage the URD cash flow?” Matheson said.
Although an in-depth facilities study involving input from county employees details the need for additional space — particularly within justice services —commissioners directed their internal consultant to take another look at the needs and report back in 60 days.
Seeing a need for additional space, the county hired Architects West of Coeur d’Alene earlier this year to draft proposals for a new building. To date, the county has paid the firm about $50,000 for two detailed facilities options, each about 120,000 square feet and rising five stories.
Both options would be on the courthouse campus, sandwiched between the old courthouse and justice building immediately north of the administration building off Government Way.
While commissioners said they believe there is a need for a new building, they emphasized the need to weigh their options, including status quo.
“If the finances aren’t there, maybe we need to look at getting ‘squishy’ and dealing with what we have,” said Commissioner Leslie Duncan.
Commissioner Chris Fillios said the need for additional space is not going away in a county that continues to experience rapid growth.
“I’m not for kicking the can down the road, but if somebody can make a compelling case, I’m willing to listen to other options,” he said.
Fillios added that finding an acceptable option to financing the building is unlikely, but the need for new space has been made clear.
“Where are we going to put these (employees)? On the roof?” he asked.
County assessor Rich Houser said there will be additional urban renewal dollars available to finance the new building, but that will be years down the road.
While recognizing the need for more space, some county officials said commissioners should consider their options on a smaller scale.
“We need more space, but how much can we optimize what we have?” said finance director Dena Darrow. “Let’s slow down and take a breath. This is a huge expense.”
Duncan seemed to agree.
“If the finances aren’t there, maybe we should look at dealing with (the facilities) we have,” she said.
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