Post Falls mayoral candidate Scot Haug's claims that there is a lack of transparency on how urban renewal has been operating in recent years are drawing criticism.

The former police chief has said, in social media posts and campaign materials, that although there have been some successes such as Buck Knives and Cabela’s when it comes to urban renewal, he believes districts should be limited to “blighted areas.”

"I am not anti-urban renewal, but “when we bring in residential into the urban renewal districts, what happens is those tax dollars that should be going into the general fund budget are diverted away from the general fund and they go into urban renewal,” he said in a meeting Monday at The Press.

Haug's comments have drawn fire.

Urban Renewal Chair Jamé Davis called the claims about diverted money “completely erroneous.” She said Haug is misrepresenting how the agency works and how tax increment financing works.  

“When a district’s closed, the money goes back to the taxing entities,” Davis said.  

Commissioner Len Crosby pointed out Buck Knives and the Beck Road interchange came about through urban renewal projects.  

Each of the seven previously closed urban renewal districts were closed before the 20-year maturity deadline.  

The estimated return from the combined seven former urban renewal districts is $1 billion of increment value to the tax districts, according to Post Falls Urban Renewal records. 

There are currently three open districts, with city councilors considering whether Pleasant View Road Urban Renewal District should continue or be closed. 

One of Haug’s focuses has become the Millworx businesses and residential developments created there since the closure of the Idaho Veneer factory in 2021. 

Haug stated in a July 26 Facebook post on the "Scot for Post Falls page, “What most residents don’t realize is that Millworx sits in an Urban Renewal District, meaning a lot of the property tax revenue goes to the Post Falls Urban Renewal District rather than to essential city services like police, fire, and streets. As the area develops, it uses more city services, but the tax dollars to pay for them aren’t there, so taxpayers end up covering the cost.”

Haug said “there are benefits to urban renewal when it’s used properly,” but generally, he believes apartments take more city resources such as police and fire and can put a burden on city services when it comes to apartment complexes created in urban renewal districts. 

“I’m not opposed to apartments, but I don’t think the government should be subsidizing by building apartments. Let free enterprise do that,” Haug said.  

Davis, Crosby, Urban Renewal Agency Executive Director Joe Johns and Mayor Ron Jacobson met with The Press on Monday to address these claims. 

Johns said he agrees with Haug that urban renewal is an effective tool to address “blighted areas,” but pointed out that the definition is not one-size-fits-all. 

The mission of the Post Falls Urban Renewal Agency is “to foster sound economic and community improvement that enhances the overall quality of life in Post Falls, Idaho, by providing and improving infrastructure, attracting jobs and enhancing citizen safety and health.”

“Since coming into this job, I’ve come to realize that blight, just like beauty, is in the eye of the beholder,” Johns said. “The communities of North Idaho have experienced decades of trying to move on from former mill sites and I’m thankful the Millworx project is transforming the area, providing business opportunities, growing jobs and enhancing the local economy.” 

In a later response to the Millworx Facebook post, Haug said, “I do believe the site was blighted, but that condition resulted from how the property owner used the land over the years, and now taxpayers are left footing the bill for the remediation.” 

Crosby said the urban renewal legislation by the Legislature requires Post Falls to be “very specific in detailing what public improvements we will be making, what the projected cost of those are and how we will stay focused on the Comprehensive Plan, the Parking Plan and other improvement plans adopted by the city of Post Falls.” 

Once an urban renewal district is completed, it must be reviewed and approved by both the city planning commission and City Council at two public meetings. 

Mayor Ron Jacobson expressed frustration that the reputation of urban renewal in Post Falls has been called into question when he has experienced positive feedback across the state.

“It’s very easy to get people in a lather when misinformation is presented,” Jacobson said. 

City Councilor Randy Westlund is also running for mayor of Post Falls. He said he doesn’t want urban renewal to be used to “build more apartments or as a handout to developers.”  

“Unlike other areas, Post Falls has a history of using it well. There are legitimate reasons to criticize urban renewal, but elected officials committed to good stewardship can use it as one of many imperfect tools to leave a better city for our children,” Westlund said. 

One of the challenges noted by Johns is that infrastructure improvements such as sewer lines, lift stations, water lines or traffic upgrades as part of urban renewal projects can often get lost in the shuffle because of their lack of visibility. 

“The implementation of urban renewal around the state reflects the values they want to reflect,” Johns said. “What’s an apple in Post Falls could be a peach somewhere else in the state.” 

    Joe Johns, Len Crosby and Jame Davis pose for a photo in the Post Falls Chamber of Commerce Monday morning.

  

    Jacobson
  

    Westlund