Cities protest Legislature’s proposed urban renewal bill

Idaho cities that have used urban renewal funding for economic development purposes are concerned about a bill working its way through the Legislature that would require a vote of the people for a wide variety of such projects.

The bill, HB 217, would require all municipal buildings, remodels and multipurpose sports stadium complexes to go to the voters in the qualified municipality for approval. In addition, the bill comes with an emergency clause, meaning it would take effect immediately, rather than on July 1, the beginning of the next fiscal year. Only 55 percent of voters would have to give their approval, in contrast to the two-thirds required for bond elections that fund buildings such as city halls and schools.

The bill is sponsored by Rep. Robert Anderst, R-Nampa, Rep. Rick D. Youngblood, R-Nampa, Rep. Mike Moyle, R-Star, and Sen. Dan Johnson, R-Lewiston. It passed the House on March 11 on a 59-11 bipartisan vote and now goes to the Senate.

Because the bill specifically adds multipurpose sports stadium complexes and remodels of municipal buildings, some people believe that the bill is targeting Boise, which is currently considering a stadium and a municipal main library, to be partially paid for by urban renewal funding.

“I have never seen a bill so specifically targeted at Boise and at specific projects (sportspark and library) from legislators from another city,” Bill Connors, president and CEO of the Boise Metro Chamber, told the IBR via email. “To claim this is not aimed at Boise and its projects is ludicrous. If that is not the case, then remove the ‘emergency’ clause from the bill.”

However, because of the way the bill is written, it could apply to many more types of projects statewide, said Nathan Murray, economic development director for Twin Falls.

“The definition they have for a ‘multipurpose sports complex’ is a little unclear,” he said.

For example, Twin Falls just built a downtown commons plaza with a fountain and art wall that includes a stage and seating. “As I read the definition, that would require a vote now,” he said. But it isn’t clear whether the vote would be required for just that part of the project, or the entire project, he said.

Similarly, Twin Falls is working on a wetlands recreation area in Rock Creek, which could add a trail and amphitheater. That might also require a vote under this bill, Murray said.

Adding such a vote would complicate the process, opponents said.

“If you wanted to build a park with a restroom structure using even $1 of tax increment financing, you’ll need a vote,” Connors said. “If you want to build a community bandshell, you’ll need a vote. If you want to remodel your convention center, you’ll need a vote. I don’t recall the state letting the public vote on the $110 million purchase of the HP campus to build out new state offices, taking one of the largest parcels of commercial real estate in Idaho off the Boise tax rolls.”

In addition, the votes would create a six- to 12-month delay, potentially jeopardizing projects altogether, Murray said.

“There’s a certain amount of timeliness for things to be financed,” he said, adding that the current process offers a number of opportunities for the public to get involved.

Requiring a vote could also politicize the development process, Murray said, especially because cities would not be able to advocate for a project, but only provide facts about proposals.

“We will become the next California with dozens of propositions on every ballot, with millions in wasted campaigning for and against every issue from a building remodel to park benches,” Connors said. “The lawyers and lobbyists will love this bill.”

Urban renewal districts generate money through tax increment financing. The tax revenue from increased property tax values is diverted to the urban renewal agency — for example, Boise’s Capital City Development Corp. — to inject into the districts by funding infrastructure, roads and sidewalks, garages as well as purchasing properties that can be sold to developers for low prices.