Troops rally to defeat city

The troops we speak of are not our honorable men and women in uniform but the honorable men and women of the North Idaho Building Contractors Association, the Coeur d'Alene Association of Realtors and the National Association of Realtors.

In 2007 the city of Hayden began collecting fees for future sewer expansion. Of course all fees associated with building are passed along to the end user of that building which increases its cost. The fee was $580 in 2005 then $774 in 2006 and increased again in 2007 to $2,280, nearly quadrupling in three years. In 2010 the North Idaho Building Contractors Association filed suit, claiming that the fees for future expansion of the Hayden sewer system were, in fact, an illegal tax since they were not for existing sewer facilities in service and being tapped into by the new construction.

Litigation is expensive and NIBCA was feeling the crunch so called in reinforcements; the Coeur d'Alene Association of Realtors, who in turn called in the National Association of Realtors. After much time and money was invested a District Court Judge ruled in favor of the city and that the fee was legal. Unwilling to surrender, the coalition of troops filed an appeal and earlier this month the Idaho Supreme Court agreed with them that the city had acted improperly by charging fees for future expansion under the auspices of current needs. Because there was nothing in the record showing that as of June 7, 2007, the sum of $2,280 was the actual cost of providing sewer

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service to a customer connecting to the city sewer system and there was no showing that the amount of the fee was based upon any such calculation, the fee was not authorized by Idaho Code section 63-1311(1). The Supreme Court concluded the district court erred in holding that it was.

"They were trying to get current construction to pay for some hopeful, eventual future construction," said Boise attorney Jason Risch, representing the contractors group." The Risch - Pisca law firm is also the legal firm for the Idaho Association of Realtors.

In any given year a minority of the members of Realtor associations contribute to the Realtor Political Action Committee (RPAC). It is these funds that were tapped to assist the NIBCA in their battle against unfair taxation. Why? You have read here that inventories of houses are shrinking. The fact is that the additional fees levied by the city of Hayden had stalled development there. Development that caused them to plan for expansion and assess additional fees. That development quickly ground to a halt because of those fees.

With the Supreme Court ruling comes an easing of the costs of building there and should revive some of the mothballed developments within that city's area of impact. This in turn will create more inventory for Realtors and our clients which will mean more revenue to the city and county though property taxes.

We know that many of our members are reluctant to contribute to RPAC because they do not want to be involved in politics. Rather than politics though, RPAC funds are used to champion private property rights issues and policies that affect the real estate markets; houses, buildings and land. The NIBCA suit aside, there are many issues every year, every month across this country where those rights are in jeopardy. It takes money to defend those rights and much of that money comes from Realtors.

Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.