Proposed urban renewal district debated

POST FALLS - The Idaho Veneer property is a vital part of Post Falls' future and, if it's in an urban renewal district, development should be for the good of the community and not just a private plan that benefits the company.

That was a theme at a joint workshop held by the City Council and Urban Renewal Agency on Thursday to discuss whether to create Post Falls' seventh urban renewal district that would mostly include the veneer plant.

After the council tabled the proposal last month and requested the workshop, city staff on Thursday asked the renewal agency to present the merits of the possible district and a conceptual plan for the property to the City Council on Oct. 5.

"This isn't about their private plans," said Jerry Mason, city attorney. "It's about the community's plan for this general area. It's a smaller Riverstone (a Coeur d'Alene multi-use development).

"I hope the agency will see its responsibility for presenting its best case for this."

The council is expected to decide at a meeting in October whether to declare the area "deteriorated," the first step in creating a district.

Mason and members of both boards don't dispute that the site qualifies as deteriorated under state law, but he wants to ensure the proposal has the public in mind during the process, especially if it uses urban renewal funding to construct improvements.

The property, roughly 50 acres, is considered critical from a planning standpoint because it will tie the city center in with the east end of Post Falls. City leaders hope a district, in addition to creating economic development and improving the aesthetics of the area, would spur on improvements such as extending Idaho Street to Third Avenue to improve traffic mobility and connecting parts of the Centennial Trail.

In most urban renewal districts, a proponent or developer - in this case the Malloy family that owns Idaho Veneer - will use its own funds to install public infrastructure in areas that have been "deteriorated."

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.

"It's your property, you should be able to do what you want with it and it's got to be economically viable for you," URA member Dave Holloway told two of the Malloy brothers. "But it has to conform to our purpose (of economic development and job creation)."

Idaho Veneer, a backbone employer in the area for 57 years and located just south of Interstate 90 in the central part of the city, has felt the effects of a struggling lumber market and is down to 28 employees, about 75 percent less than a few years ago.

John Malloy said he and brothers Dan and Pat believe that creating a district is the best thing for the future of the business, the city and the community.

"We've been told for a lot of years that (the plant) is not the best use for the property," John said. "We understand that."

He said if the market continues to fall, the company can re-open its facility in Samuels and move from Post Falls. While such changes aren't expected in the immediate future, the time to plan for the future is now, he said.

The Malloys have hired a consultant to develop a multi-use plan for the property.

"The Malloys should be commended for their forward thinking," URA member Jerry Baltzell said. "This is an investment for not only themselves, but for the community."

The boundaries of the proposed district have not been determined. One conceptual map showed the north boundary north of I-90 on Mullan Avenue, but multiple board members have said that area is not deteriorated and should not be included in the district.

In addition to the veneer site, the district would likely include some sites along Third Avenue, including one formerly occupied by a trailer park, and the Kootenai County Fire and Rescue station on Idaho Street.

A public hearing on the proposed district will be held by the Planning and Zoning Commission on a date to be determined and it would ultimately need to be approved by the City Council.