Post Falls eyes new renewal district

POST FALLS - Initial steps have been taken to create a new Post Falls urban renewal district that includes Idaho Veneer and the surrounding area.

The Post Falls Urban Renewal Agency has agreed to the concept and declared the area "deteriorated," the first step in creating a district.

The City Council will consider the proposal, most likely on Aug. 17, and a public hearing would be held on the proposal later.

"The concept site includes the existing Idaho Veneer site, plus additional surrounding land that may be subject to transportation-related improvements," said Tom Lien, the agency's executive director.

The proposed district's boundaries haven't been set but the general area includes roughly 225 acres, Lien said. He said the acreage will likely go down after the overall district plan is complete.

If approved, the district gives Post Falls seven to be open. West Seltice was the first district in the state to close.

In most urban renewal districts, a proponent or developer will use its own funds to install public infrastructure. The incremental taxes that are paid based on the higher assessed values after development are remitted to the URA and are, in turn, paid back to the proponent/developer for cost reimbursement for such infrastructure.

Lien said Idaho Veneer, a landmark business in the heart of the city south of Interstate 90, was involved with talks of creating a plan to develop some of its property in the near term to address the mill site property for its highest and best use, while maintaining operations in the interim.

"The company has additional manufacturing locations available and could move production facilities should future market conditions warrant," Lien said.

However, a district plan would take several months to prepare.

Idaho Veneer co-owner John Malloy said his company supports the concept, but it doesn't mean much to the business in the near term.

"Long term it provides a means to convert the property to another use and be competitive within the market for that other use, whatever it might be," Malloy said.

Like many wood products firms, Idaho Veneer has downsized due to economic conditions in recent years. It has also discontinued lumber production to focus on veneer only.

"This means there is a lot of land being used for absolutely nothing, while the west end is still manufacturing," Malloy said. "In these economic conditions, nothing is going to change very quickly, and we can envision converting certain parts of the property over time without affecting current operations.

"This unused land is an asset which is not contributing to the bottom line. The URD process is part of long-term plan to remedy that."

Malloy said the sale of some land or retaining ownership and building to suit various tenants have not been ruled out.

"We've had offers over the years to buy different parts of the property, but we've declined for lack of a cohesive plan," he said. "We don't want to piecemeal it out in a haphazard manner.

"Our goal is to work closely with the city to evolve in a manner beneficial to the people of Post Falls who have been so good to us over all these 57 years, at the same time respecting those with whom we've worked for decades."

But, without a plan, Malloy said employees shouldn't fret over possible change anytime soon.

"Nothing is going to change at Idaho Veneer very quickly," he said. "We have customers to serve and we are going to serve them. Our employees can worry about the complete and total collapse of the world's economic system as we know it, but they shouldn't worry about a declaration that the locale is deteriorated."

City Administrator Eric Keck said the district proposal would usher in a new era for the east end of the City Center that's evolving, but is also bittersweet knowing there could be changes down the road for a backbone employer.

"This is a fantastic property that carries a lot of importance in helping to link the community together," Keck said. "We will work cooperatively ... with the appropriate time and dignity to make the best decision possible for everyone involved."