Commercial development hopes to bring jobs to Rathdrum

By 2041 the Silverado Urban Renewal District projects to bring 6.32 acres of commercial development and 93 jobs to the Rathdrum community.

Approved in a three to one vote, Councilman Mike Hill dissenting, Rathdrum City Council committed to a 42-acre urban renewal district between Meyer and Boekel Road.

The property owned by Bob and Tracy Head has been slowly working through Rathdrum city agencies for the last three years. Despite a cluster of multi-family residential developments on the Silverado project's northwest side, the plot of land is mostly vacant due to difficulty drawing in prospective businesses.

Part of the barrier Head has faced is the cost of updating the plot's infrastructure, including significant improvements to Meyer and Boekel roads and electrical lining.

Urban Renewal Districts stem from Idaho Code and the Local Economic Development Act that intends to take undeveloped, taxed land and transform it to stimulate tax revenue and encourage economic growth.

"There are findings of deteriorated and deteriorating areas that impose a decrease in the tax base and result in reduced tax revenues," Tom Lien, project representative and former executive director of the Post Falls Urban Renewal Agency, said. "This limits the sound growth of municipalities and impairs the elimination of traffic hazards and improvements to traffic facilities."

Lien pointed out that the current District Plan shows the undeveloped 42 acres would produce $977,352 of tax revenue through 2041. With the Silverado URD's potential developments, Lien said that number could jump to over $6 million.

The Silverado Project includes 7.57 acres of multi-family residential homes and recreational facilities, retail stores, office buildings, gas stations, convenience stores, or restaurants that could move into the space. Total project costs for the public infrastructure is $3.6 million, paid for by the developer and reimbursed with tax increment from new construction within the district. The infrastructure budget includes improvements to Boekel and Meyer Road, two new auxiliaries — Meyer Loop and Boekel Connector, pedestrian facilities, intersection improvements, and traffic signals.

The area will also see renovations to water management and distribution systems, sewer system improvements, power and gas facilities, and stormwater management with the project. As well as updates to utilities like electrical distribution lines, irrigation systems, fiber optic and communication amenities, public parking, and other general improvements would be factored into the overall plan.

After the URD is completed, Head plans to deed the two interior roads back to the city as part of the district code agreement.

"I think it's a good deal, I like Urban Renewal Districts, and I think it offers good incentives to get businesses into the area," Councilman Darrell Rickard said. "I heard a lot of complaints that we are adding too many houses and not enough businesses. With this, we are also improving Meyer and Boekel Road, and it's not going to hurt traffic; it might even help it."

While Councilman Mike Hill expressed some concerns about the district's effect on property taxes, Leon Duce, the city administrator, noted that the new development revenue returning to Rathdrum could lower taxes across the entire city.

"One of the things you have strived for as a council is making Rathdrum a place people can live, play, shop and work," Duce said. "This would help to provide all of these things."

According to the district plan, Silverado's improvements to Rathdrum infrastructure are expected to be completed in 2025. Phase two of the project, covering the gym, gas station and other commercial businesses, is projected to finish in 2024. On the whole, Lien projects the entire development could be closed as early as 2027 or 2028.