LCDC leads to jobs
In response to Jim Jackson’s letter concerning LCDC last week, I have to correct his many misconceptions. First, LCDC is not a taxing entity. It is an independent redevelopment agency serving the city of Cd’A. It has been deemed by an independent agency (Idaho State Tax Commission) as being tax neutral, meaning it doesn’t raise anyone’s tax bill. It simply facilitates redevelopment of deteriorated properties in partnership with private development. LCDC does not use any tax money that the city would receive from a particular property but only the tax from the increased value of the property after the improvements are made, e.g. Riverstone development.
LCDC initially paid nothing for the entire infrastructure required to develop the eyesore of the old abandoned mill site at Riverstone. The developer paid for it all up front and was reimbursed by LCDC only after the development was done using only property taxes paid by the Riverstone property owners.
In 2003 the tax base for the site was $3,052,000. One business was there, 5 employees and zero residents. Today, after LCDC and Riverstone worked together on this improvement, the additional tax base approaches $95,000,000, with 63 new businesses, 757 new jobs and 459 residents. $250,000,000 of private capital was invested in Riverstone. Not one dollar of public money was spent on the private property within the Riverstone development.
This is only one of many public/private projects that have made huge improvements in our city. Mr. Jackson also says that LCDC has to borrow $16.7 million from the bank for the McEuen redo. LCDC has established a “Line of Credit” with the bank to fund projects within the Lake District. As of this time, with the modifications made to the McEuen plan in response to public input at more than 50 meetings with various groups, LCDC is committed to just over $11 million for McEuen. No money will be borrowed from the bank for McEuen until the project is under construction.
Mr. Jackson says LCDC collected a cool $5.7 million last year. As explained earlier, projects like Riverstone pay for all the public infrastructure up front with their own funds and are then reimbursed from this increased tax base (part of the $5.7 million) from the finished project. This revenue to the LCDC from the new projects also pays for improvements in parks and trails and other beneficial city improvements. This is all explained very clearly on the LCDC website (www.lcdc.org). It shows where every dollar goes and what it is for.
To say that these astute and honorable men and women of the City Council and LCDC are irresponsible or “corrupt” is just plain ignorance of the facts. Go to the website and investigate for yourself before you make up your mind.
Do you like the Kroc Center, the outstanding Public Library, the Prairie Trail, the Education Corridor, the community park at Riverstone and many other public improvements? These were all at least partially funded by the tax increment financing from Riverstone.
LCDC is helping develop a very substantial tax revenue for our city that simply was not there before these projects. Do you remember what the abandoned and probably toxic mill sites at Riverstone, Mill River and North Idaho College looked like? Take a look at these sites today and tell me you would rather have it back like that.
More than 44 states use this tax increment financing to stimulate growth, promote jobs and help develop blighted areas of cities all across the U.S. Give some deep thought about these wonderful things that are going on in our city before you try to recall Mayor Bloem and City Council members who were instrumental in making these beautiful and job-creating improvements possible.
Gary D. Johnson is a Coeur d’Alene resident.