Hayden challenges, changes outlined

By BRIAN WALKER

Staff Writer

COEUR d'ALENE — Hayden is building a new reputation when it comes to development.

"We had been hearing that Hayden was a difficult place to get projects approved," City Administrator Brett Boyer told Hayden Chamber of Commerce members on Thursday morning at the Kroc Center.

"We want to turn that reputation around."

Boyer said the city has changed more than 500 codes, including more than 200 related to building, over the past few years. Some of the changes allow for more flexibility with land uses and phasing in projects.

"Some rules needed to be changed, but some need to be held to protect the city, to keep its structure in place," he said.

Customer service has also been a priority in the reputation rebuilding process, and the city posts an online survey to solicit input, Boyer said.

"We want to be guides, not gatekeepers," he said.

The end result has been a quicker turnaround on issuing building permits.

"It used to take three to four weeks," Boyer said. "We tell them seven days now, but most of the time we're turning permits around in three to four days."

That statistic drew an ovation from the roughly 50 chamber of commerce members.

Hayden grew 2.8 percent last year — the most of any year in the past five — and is projected to grow about 1.2 percent this year. The population is estimated at 15,000, making it the 17th largest city in the state.

"I think our level of growth has been good," Boyer said.

Hayden's growth this year is comparable to most recent years, with 60 single-family home permits issued through Aug. 31 after spiking to a total of 150 last year.

Projects coming online include — but are not limited to — Hayden North along Lancaster Road, Carrington Meadows near the airport and Hayden Canyon.

Mayor Steve Griffitts said the city can't require developers to donate land for new schools or sewer lift stations, but it can, and has, worked with them on limiting the impacts of new growth.

Commercial and light industrial growth in Hayden continues. There were 46,000 square feet of new commercial space built last year and there has been 216,000 this year. Light industrial space square footage has increased from 90,000 last year to 101,000 so far this year.

Boyer said an anchor complex on the south end of Government Way and a downtown project are in the works, but he said it's too early to elaborate on them.

"They're going to be exciting," he said.

Boyer said about 40 percent of the land inside the city is available to be developed.

A project going forward will be updating the city's comprehensive plan in conjunction with the county's airport master plan, he said.

"We'll have to work out a few conflicts on uses, but for the most part it's light industrial so we're good with that and they're good with that," Boyer said.

He said the Ramsey Road extension has been delayed until the airport master plan is approved, as there may be an issue with a runway zone.

One of the challenges the city is still facing, Boyer said, is a lawsuit with the North Idaho Building Contractors Association over sewer capitalization fees on new growth.

A district court judge ruled in February that Hayden must refund builders and homeowners $729,403 due to what NIBCA refers to as an illegal tax collected from April 10, 2010, to March 4, 2016, for 335 new homes built during that time. Hayden, which has spent about $900,000 in attorney fees over the matter, is appealing the ruling to the Idaho Supreme Court.

The city recently increased its capitalization fee from $2,306 to $3,756 based on the lawsuit. The hike will be effective starting Sunday.

Another challenge the city is working on is its low tax levy rate ($1.28 per $1,000 of assessed value) that determines tax amounts to fund services.

With the current rate, the owner of a $200,000 home with a homeowners exemption would pay $163 annually ($13.59 per month) for their city taxes.

Boyer said some residents pay more for their homeowners' association than their city taxes.

“I’m a very conservative person and don't like to tax more than we need to, but we're out of balance with other cities and the future of Hayden is at risk with some infrastructure because we are so low," he said.

He said the mayor and the city council have discussed the dilemma.

"There are projects with roads and public safety that, as we continue to go forward, we don't see how we'll pay for them," he said.

The situation, in turn, can impact growth, Boyer said.

"If we can't provide services, people may go somewhere else," he said.