Public Presentation

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• Public Presentation
• February 10, 2009
• www.pfura.com

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An Overview of Urban Renewal in Idaho

• Urban Renewal and revenue allocation financing
  are the most significant tools available to
  cities for the development of public
  infrastructure, for attracting new employers, for
  promoting job creation, and for encouraging
  development or redevelopment of blighted and
  underutilized areas.

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Urban Renewal Law

• Idaho Legislature, 1965 (Idaho Urban Renewal Act)
  and 1988 (Idaho Economic Development Act)
• Allows Cities OR Counties to designate areas
• Aimed at eliminating or preventing slums
• Aimed at removing blight
• Aimed at developing or revitalizing underutilized
  areas
• Agency governed by commission
• Appointed by the Mayor
• Confirmed by City Council
• Charged with overseeing implementation, not
  creation, of urban renewal plans.

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Urban Renewal Commission

• Process is the same as for any other City
  Commission or Board (Parks, Library, etc.)
• Seven Commission members
• Public announcement of vacancy
• Commissioners are Appointed by Mayor with advice
  and consent of City Council
• Five-year staggered terms
• Commission members annually elect a Chairman,
  Vice Chairman and Treasurer.
• Commission has five committees comprised of 3
  commissioners and the Executive Director
• Commission meets monthly on the third Thursday at
  700am

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Urban Renewal Plan Requirements

• Urban Renewal Plans must include
• The kind, number, and allocation of all proposed
  public works or improvements within the Urban
  Renewal or revenue allocation area.
• An economic feasibility study.
• A description of methods of financing to be used,
  an estimate of project costs, the district life,
  and the time when projected costs and monetary
  obligations are expected to be discharged.

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Also . . . .

• An Urban Renewal Plan must include
• A fiscal impact statement showing the impact of
  the district on other taxing entities authorized
  to levy taxes upon property in the district.
• A description of the disposition or retention of
  any assets upon the termination date.
• City Council must adopt an ordinance following
  public notice and a public hearing, including
  notice to any affected taxing districts.

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How does Tax Increment Financing (TIF) work?

• When an urban renewal district is established,
  the County Assessor separates property tax
  revenues into two groups The Base and The
  Increment
• The Base is the property tax collected based on
  the value of properties within the boundaries of
  the urban renewal district at the time the
  district is formed.
• The Increment is any increase in tax revenues
  based on new development within the urban renewal
  district from the time the district is created
  until it is closed.
• The increment is used to reimburse a proponent
  for building and creating public infrastructure
  that is approved by the Agency and dedicated to
  the City.

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So you can see what I mean . . .
After an urban renewal district closes, the
increased revenues are returned to the underlying
taxing entities as new construction.
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Why Use Tax Increment?

• The State of Idaho provides limited options for
  cities and counties to use in financing public
  infrastructure, utility extensions, site
  preparation and other needed improvements
  necessary to attract economic development.
• Tax increment financing allows urban renewal
  agencies to make a site ready for development,
  including extending water, sewer, streets and
  other public improvements that are dedicated to
  the City upon completion. The developer is only
  repaid for the cost of these improvements if the
  increment is created.
• Such public improvements, including parks, sites
  for fire stations and schools require no direct
  capital outlay by the City. New development in
  urban renewal districts pay full impact and other
  City fees.
• Urban renewal is particularly critical because
  of the competitive nature of economic
  development, where Post Falls faces competition
  from communities in Washington.

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TIF does two significant things

• First, by partnering with private entities to
  provide critical infrastructure, Post Falls is
  able to attract industrial and retail development
  and create NEW jobs, over 3,400 reported through
  May 2008.
• Secondly, the growth we spur through urban
  renewal increases the strength of our local
  economy (housing, retail sales, etc.) and also
  creates significant revenue from sales, income,
  personal property and other State taxes.

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TAXES Impact of TIF

• How does urban renewal impact MY property taxes?
• Does that impact MY taxes if I live in the
  County?
• Does it impact MY taxes if I live in a District?
• Does it impact the Citys budget?
• If we create an urban renewal district in Post
  Falls does that impact funding for our Schools?

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What about accountability this is taxpayer
money!

• Meetings are open to citizens - televised,
  preceded by public notice and an agenda, and
  meeting minutes kept pursuant to the Idaho Open
  Meeting Law.
• Post Falls urban renewal commissioners annually
  disclose, in writing, any conflicts of interest.
  This written disclosure goes well beyond the
  provisions of the Idaho Ethics in Government Act.
• Urban renewal agency is required to comply with
  the provisions of the Local Government
  Competitive Bidding Law.
• Urban renewal agency has the same financial
  reporting and audit requirements as Idaho cities.

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Accountability

• Each fiscal years operating budget is published
  twice for public comment and considered by the
  Commission at a public hearing.
• Urban renewal agency files and orally presents an
  Annual Report and Audited Financial Statement to
  the City Council each year before March 31.
• The agency closely coordinates its activities
  with elected City officials and City staff.
• Urban Renewal Commissioners are appointed by the
  Mayor City Council.

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So what about PFURA?

• Our mission is to foster economic and community
  improvement that enhances the overall quality of
  life in Post Falls by
• Providing infrastructure to support economic
  development
• Attracting Jobs
• Enhancing citizen safety and health

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URBAN RENEWAL JOBSJOBS CREATED THROUGH
MID-2008 3,400Value Increase through MID-2008
- 152.6 Million(Studies will be conducted in
mid-2009 to update the number of new jobs and the
increase in City Value)
In Post Falls
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Our Districts
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Center Point

• Center Point District is divided into three
  subdistricts
• Proponent Greenstone Kootenai (Sysco)
• Proponent Stateline (84 Lumber, light
  industrial, commercial)
• Water Tower Project Washington Trust Loan Cost
  is shared by Greenstone and Stateline
• Proponent Foursquare (Cabelas, Future Retail,
  Office, Restaurants, etc.)
• Created in 2002, Expires in 2022

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Expo

• Proponent Watson and Associates (Retail,
  commercial, light industry)
• Created in 2001, Expires 2021

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Riverbend

• Enormously successful!
• Proponent Jacklin Land Co. - Riverbend Commerce
  Park (Buck Knives, ALK Abello, LCF Enterprises,
  Workforce Training Center, manufacturing, high
  tech, etc.)
• Created in 1995, Expires in 2012

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West Seltice

• Proponent Greenstone Corporation (Light
  industrial, mixed use)
• Costs under review
• Created in 2005, Expires in 2015

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City Center

• No Proponent
• Recently completed projects 4th Street,
  Fountains, Old Church, Centennial Trail
• Created in 1994, Expires in 2016

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East Post Falls

• East Post Falls District is divided into two
  subdistricts
• North Proponent Vision First Tullamore (mixed
  use, retail)
• South/Central Proponent City of Post Falls
  (transportation)
• Created in 2002, Expires in 2015