Souza, Sims talk urban renewal

COEUR d'ALENE - Everyone agreed that Idaho's Urban Renewal Agencies should be held accountable and act more transparent, but they don't all agree on how to accomplish that.

That appeared to be the consensus of more than 120 people who attended a town hall meeting held by Idaho State Sen. Mary Souza and Rep. Kathy Sims, both Republicans representing Coeur d'Alene's 4th Legislative District.

Both Sims and Souza were appointed to an Interim Legislative Committee created this spring to study urban renewal efforts in Idaho and offer suggestions on how to improve the laws that guide them. That was the main purpose of the town hall meeting at the Coeur d'Alene Public Library Thursday evening.

Souza explained at the beginning of the meeting that they were not interested in who supported urban renewal and who opposed it, but rather what the community would like to see changed in the urban renewal laws.

"I want to assure you that we are not trying to shut urban renewal down," Souza told the crowd at the beginning of the meeting, adding she would simply like to see more accountability and transparency.

Sims said she started questioning urban renewal practices in Coeur d'Alene in 2006, and has since then studied the laws governing it. She sees a need to reform the state laws that were created in the 1960s.

Sims said urban renewal agencies are funded 100 percent by property taxes, and after an Idaho Supreme Court ruling in 2009 established URAs as independent agencies "with no controls or oversight," she saw a need to reform them to add more voter accountability.

Souza said she was interested in hearing constructive ideas for improving the URAs.

Coeur d'Alene City Councilman Dan Gookin was the first to speak. Gookin has been a critic of urban renewal in Coeur d'Alene for several years, and ran for city council on a platform to reform the process.

He said some Idaho cities are using urban renewal in a responsible way and he would like to see that continue, but he also sees a need for constructive reforms.

"Don't throw it out, but fix it," he said. "Whatever you do, don't wreck what they have - but we should have accountability and transparency."

John Austin, former financial director for the city of Coeur d'Alene, said he has set up nine URAs in Idaho, many of which were for smaller cities.

He said if the legislators are going to change the law, he wanted to encourage them "not to throw the baby out with the bathwater."

"Smaller cities depend on this tool for economic development," he said.

When Souza asked him what he would change, Austin said there could be improvements in transparency.

Other residents such as Amy Lyons encouraged the legislator and the others in attendance to deal with the issue with more civility.

"I would ask you all to bring more civility to this discourse," Lyons said. "People can disagree with civility."

She also agreed with Gookin saying more transparency is needed.

Art Macomber, a land use attorney from Coeur d'Alene, said he supports Coeur d'Alene's urban renewal district, which was recently renamed "ignite cda," but he would like to see the district be more selective on the projects it chooses to fund. He would also like to see more accountability.

"Public money needs to be strictly controlled by people you can vote out if you don't like what they are doing," he said.

Under Idaho law, the municipality that creates an urban renewal agency appoints the agency's board, which can make spending decisions autonomously.

Others were concerned about ignite cda purchasing property and stockpiling, which essentially takes it off the tax rolls. Some were concerned that ignite cda rents those properties out, competing with the private sector that is paying taxes, and trying to make income.

Residents like Jerry Peterson would like to see responsibility, accountability and prioritized spending. He said there is something wrong when police departments are understaffed and teachers are having to spend their own money on school supplies for their students.

David Lyons questioned ignite cda's spending priorities as well. He took aim at the agency's spending on lobbyists in Boise and public advertising campaigns locally.

Mike Gridley, Coeur d'Alene city attorney, asked the legislators to preserve flexibility for the agency in any reforms they make. He said cities cannot move quickly when economic opportunities arise, but URAs can and that is important for economic development.

"We need to act quickly to meet the demand and opportunities presented to us," he said, adding it is important to maintain local control over the agencies as well.

Steve Wilson, CEO of the Coeur d'Alene Chamber of Commerce, told the lawmakers that the state Legislature formed a similar committee several years ago which published a study of URAs in Idaho and offered suggestions on how to change them.

"That study is still sitting on some shelf somewhere in Boise gathering dust," he said, encouraging Sims and Souza to take a look at the document.

He also said the legislators should be more accountable by clearly communicating what they want from the URAs, and letting them move forward with economic development.

Riverstone developer John Stone also testified, explaining how his development is an economic development success because of Idaho's urban renewal laws. He said downtown Spokane is blighted because Washington does not offer any effective urban renewal assistance.

Souza also asked Stone if he would like to offer some constructive ideas for changing urban renewal.

"Support what we have intact," Stone said. "I am suggesting that you two need to support (ignite cda)."