Post Falls Urban Renewal Agency raises concerns over new legislation

Post Falls Urban Renewal Agency Commissioner Len Crosby flagged recent legislation as a potential issue for the agency during a recent meeting. 

House Bill 436 creates a framework for a city to dissolve a URD.  

Fire or ambulance service districts within a URD can now opt out of an existing URD allocation area if there are no existing financial obligations.  

“This could potentially reduce our potential tax increment in an existing district by 18-20%,” Crosby said.

An urban renewal district is a designated area within a city targeted for redevelopment and revitalization, typically to address urban decay, improve infrastructure and stimulate economic growth. These districts are often established to attract investment, enhance public spaces and support housing or commercial development through incentives.  

Crosby said the agency is keeping an eye on how the bill might impact Post Falls.  

Urban Renewal District Executive Director Joseph Johns said Tuesday that although he understands the intent of the bill was to aid fire and ambulance districts, the Post Falls Urban Renewal Agency has earned a reputation for managing funds effectively. 

Johns said that the district’s primary issue with the bill is it allows a city council to close a district without taking into account financial obligations that an urban renewal district may have. 

If urban renewal has infrastructure being constructed with payment yet to be received and a council decides to shut a district down, it could pose a major problem.  

“With it coming out very, very late in the legislative session, I don’t think it had the opportunity to be spoken to,” Johns said, adding that the bill “may be improved upon” in different scenarios if councils attempt to close urban renewal districts across the state.