Post Falls councilors weigh future of urban renewal district

POST FALLS — City councilors are weighing whether Pleasant View Road Urban Renewal District should continue to exist, as the project has struggled since its creation in 2021 when the original developer failed to deliver on large-scale development plans. 

"We have an urban renewal district that really no longer has purpose," Councilor Randy Westlund said Monday in a phone interview. "If we wouldn't open it today, we shouldn't have it. We have to be really careful with how we use urban renewal." 

Urban renewal districts are designated areas where cities can invest in infrastructure improvements using tax increment financing. This financing method allows cities to borrow against future property tax increases expected from development within the district. The goal is to revitalize underdeveloped or blighted areas by providing necessary infrastructure that might otherwise be too costly for private developers to build on their own. 

City administrator Shelly Enderud said interest in turning the corridor into an urban renewal district began about 15 years ago, and in 2019, the city was approached by a project to purchase approximately 70 acres at the northeast corner of Pleasant View and Grange.

City leadership pursued grants to enhance water and sewer infrastructure by extending it to the north from Seltice Way under the southern rail line over Pleasant View, but it was unsuccessful.

Councilor Joe Malloy said when the project stalled, Project Drive postponed its company’s move to Post Falls indefinitely.   

At a workshop last week, councilors received an update and discussed potential paths forward for the troubled district. While most councilors preferred waiting for results from the Idaho Transportation Department's Planning and Environmental Linkage study, Westlund advocated for closing the district entirely. 

Projected revenues for the Pleasant View district have plummeted 61% since its creation, dropping from $38.6 million in 2021 to just $15.2 million in 2025. Westlund argued that shutting down the district would return tax money to the various taxing districts. 

The district, located on the northwest side of Post Falls less than 3 miles from the Washington border, faces substantial infrastructure costs. Current projections estimate between $6.6 million and $11 million is needed to build out necessary infrastructure, depending on the scope and pace of development. 

Other factors in Post Falls paused some of the city’s initial projections for infrastructure needs in the urban renewal corridor. 

“Enrollment in the Post Falls School District has flattened, largely due to the recent opening of multiple charter schools and an increase in homeschooling, so it now appears the new high school won't be necessary for another 10-15 years if current trends hold,” Malloy said.  

City officials have consulted with Welch Comer and Heartland to explore financial scenarios for the district. About $3.6 million remains as surplus cash flow after accounting for revised costs and revenues. 

Westlund, who wasn't on the council when the district was created, explained that the initial developer was unprepared for the site's requirements.  

"Everything fell apart and they weren't able to get funding," he said. 

One significant factor complicating the decision is ITD's ongoing study, which might include an interstate connection between I-90 and Highway 53. This could change how Post Falls approaches the Pleasant View district's future. 

Stakeholders for the district include the Post Falls Urban Renewal Agency, Crystal Creek, Project Drive and the Post Falls School District. Available funding options include borrowing through the Post Falls Urban Renewal Agency, C-PACE funding, EDA marketing plans and potential Community Development Block Grant opportunities.