Magical Mystery Tour?

The City's Pulse Issue #3 March 2007 by Mary Souza
LCDC: Magical Mystery Tour? Remember the Beatles' aimless bus ride to wherever? Let's hope we're not following that roadmap with urban renewal in Coeur d'Alene. Lake City Development Corporation, LCDC, was established to help revitalize downtown. By state statute, LCDC receives all the increases in property tax and school levies for any land, buildings and houses within the boundaries of their districts. The bigger the district and the longer the life of the district, the more tax dollars go to LCDC. What started as a trickle of money back in 1997 is like a fire hose of income today. And because these important revenues are diverted away from the City, Schools and County for the entire life of the urban renewal district, the Mayor and City Council are required to approve of and supervise LCDC. The Mayor and Council are in charge of the "bus". For comparison, first look at a successful urban renewal district, the former West Seltice URD in Post Falls. It served its purpose by bringing in Harper's, now called Flexcel. It had a specific plan and clear goals. Business moved in, quality jobs and careers were created, funding was repaid and the goals were achieved. As a result, the urban renewal district closed early, in only 5 years! That allowed the full tax revenues and school levies to return back to the local municipalities. In Coeur d'Alene today we have two urban renewal districts, both controlled by LCDC. The River District reaches west to Mill River. The Lake District started with downtown, but has stretched its boundaries three times, encompassing more and more of our city. The LCDC has also pushed the duration of the Lake and River districts to the maximum allowed in the State of Idaho, which is 24 years. This means that all growth in property tax and school levies for every lot, each building and house in these super-sized districts pours into LCDC until the years 2021 and 2027 respectively! All the expansions in the urban renewal boundaries and contracts would not be as alarming if there was a clear plan but, shockingly, there is not. Their web site states that the LCDC "does not present a precise plan or establish specific projects for the redevelopment, rehabilitation, and revitalization of any area within the Amended and Restated Project Area, nor does this Amended and Restated Plan present specific proposals in an attempt to solve or alleviate the concerns and problems of the community..." With no specific plan for revitalization and no proposals to help problems in the community, why did our Mayor and Council approve these urban renewal districts and the many expansions? Is the LCDC "bus" driving aimlessly to wherever...maybe Aspen, or Jackson Hole? Development, economic incentives and urban renewal each have an important role in community growth. But the use of public tax dollars to subsidize private development should require a specific plan, clear goals and vigilant oversight. There's an urgent need for more of these in Coeur d'Alene today.

LCDC: Magical Mystery Tour?

Remember the Beatles' aimless bus ride to wherever? Let's hope we're not following that roadmap with urban renewal in Coeur d'Alene. Lake City Development Corporation, LCDC, was established to help revitalize downtown. By state statute, LCDC receives all the increases in property tax and school levies for any land, buildings and houses within the boundaries of their districts. The bigger the district and the longer the life of the district, the more tax dollars go to LCDC. What started as a trickle of money back in 1997 is like a fire hose of income today. And because these important revenues are diverted away from the City, Schools and County for the entire life of the urban renewal district, the Mayor and City Council are required to approve of and supervise LCDC. The Mayor and Council are in charge of the "bus".

For comparison, first look at a successful urban renewal district, the former West Seltice URD in Post Falls. It served its purpose by bringing in Harper's, now called Flexcel. It had a specific plan and clear goals. Business moved in, quality jobs and careers were created, funding was repaid and the goals were achieved. As a result, the urban renewal district closed early, in only 5 years! That allowed the full tax revenues and school levies to return back to the local municipalities.

In Coeur d'Alene today we have two urban renewal districts, both controlled by LCDC. The River District reaches west to Mill River. The Lake District started with downtown, but has stretched its boundaries three times, encompassing more and more of our city.

The LCDC has also pushed the duration of the Lake and River districts to the maximum allowed in the State of Idaho, which is 24 years. This means that all growth in property tax and school levies for every lot, each building and house in these super-sized districts pours into LCDC until the years 2021 and 2027 respectively!

All the expansions in the urban renewal boundaries and contracts would not be as alarming if there was a clear plan but, shockingly, there is not. Their web site states that the LCDC "does not present a precise plan or establish specific projects for the redevelopment, rehabilitation, and revitalization of any area within the Amended and Restated Project Area, nor does this Amended and Restated Plan present specific proposals in an attempt to solve or alleviate the concerns and problems of the community..."

With no specific plan for revitalization and no proposals to help problems in the community, why did our Mayor and Council approve these urban renewal districts and the many expansions? Is the LCDC "bus" driving aimlessly to wherever...maybe Aspen, or Jackson Hole?

Development, economic incentives and urban renewal each have an important role in community growth. But the use of public tax dollars to subsidize private development should require a specific plan, clear goals and vigilant oversight. There's an urgent need for more of these in Coeur d'Alene today.