Proposed Post Falls district gets mixed reviews
BRIAN WALKER/Press file photo Post Falls is exploring whether to form a new urban renewal district in the center of the city to spur on economic development.
The pink area shows the boundaries of a proposed urban renewal district in the city center area of Post Falls. (Map courtesy of City of Post Falls)
By BRIAN WALKER
Staff Writer
POST FALLS — Post Falls has resumed discussions of opening its sixth urban renewal district.
The idea of creating a new district in its city center was generally well-received, but the proposed size and extending the district to residential areas drew concerns during a workshop between the urban renewal agency and city council on Tuesday.
Multiple members from both boards said they see merit in enticing future economic development that would create jobs in the Idaho Veneer and Post Falls Landing sites that are expected to become multi-use projects.
However, some officials who testified were less receptive to include older residential neighborhoods in the city center in the district boundary.
"This district would be somewhat of a departure of what we have done historically (with other districts)," said Collin Coles, an urban renewal agency member. "In this case, there would be significant civic improvements and redevelopment projects rather than (improvements on vacant ground)."
Len Crosby, another urban renewal member, shared the concern.
"One of the reasons we haven't gotten into trouble with the Legislature on urban renewal is that we've focused on economic development and job creation (rather than dealing with residential areas)," Crosby said.
However, Bob Seale, Post Falls' community development director, said urban renewal roots started with improving deteriorated areas in urban cores.
Seale said some of the residential areas could be destined to become future commercial, transportation or multi-family corridors and that the area should be looked at holistically.
"This area is zoned mixed-use," he said, adding that there can be a combination of residential and commercial uses. "There is a likelihood that more single-family homes may eventually turn into higher destiny residential or mixed use."
The proposed district includes, but is not limited to, the Spokane Street corridor on both sides of the freeway, the Seltice Way-Mullan Avenue corridor, the Post Falls Landing site along the Spokane River, the Idaho Veneer property and the undeveloped portion of the Red Lion Templin's Hotel site.
The area includes 540 acres and 520 taxable parcels.
City staff presented highlights of a draft URD eligibility report that states 151 of the 674 structures in the district showed signs of deterioration.
"These structures need beyond run-of-the-mill maintenance," said Warren Wilson, city attorney.
The number was based on a city staff drive-by survey in February. One of the criteria of forming a URD is that the area should be deemed "deteriorated."
Wilson said the proposed district also lacks adequate curbing, gutters, sidewalks and bicycle facilities. There are also incomplete road networks in portions of the area.
While the Post Falls Landing site received some urban renewal improvements several years ago, more can be made, said Shelly Enderud, city administrator.
Larry Carstensen, an urban renewal member, called the lack of progress in Post Falls Landing despite the improvements "very disappointing." He said he understands the need to prime the economic development pump in the two mill sites, but is hesitant to extend boundaries into residential areas.
Both boards will review the final eligibility report on the proposed district later this spring. A feasibility study and public hearings would also be required before a new district is approved. City officials said the tentative goal is to form the new district by the end of the year.
Urban renewal districts are an economic development tool to create jobs and spur activity with infrastructure improvements. It allows the city to be competitive with other regions to attract business, and the burden is on the developers for the district to be successful.
Urban renewal districts created by the city and administered by the urban renewal agency have a base tax rate when the district is created. That base tax rate continues to be collected by the county and remitted to taxing entities over the life of the district.
As a district is improved, has new construction and increases in value due to improvements, the incremental tax created by those improvements in excess of the base tax is allocated to the URA to pay for the public improvements that have been made within the district.
In most cases, the tax increment received by the agency is used to reimburse proponents who have completed and paid for the improvements and dedicated them to the city prior to reimbursement.
The city began discussing a new district in the city center in September of 2017, but the proposal was tabled last year when the 831-acre Post Falls Technology district in the Highway 41 corridor was created.
That district was Post Falls' first created since East Post Falls and West Seltice II were formed in 2005. It became Post Falls' fifth open district.
Post Falls has led the way statewide with closing districts as three have been closed, including the 231-acre City Center District that was closed last August. With that early closure, excess increment totaling $448,435.64 was rebated to the taxing districts.