Kuna approves Kuna West downtown urban renewal district

The Kuna City Council approved establishing an urban renewal district, which is expected to add $383 million to the city’s total assessed value upon buildout.

With this approval, the urban renewal district will collect funds above the $111.6 million assessed value of the area, according to economist Alivia Metts, who presented at the Nov. 17 meeting. The value add was estimated solely on projects listed as priority A, and is estimated to increase the city’s total assessed value by 31%, if no other development occurred.

This means that the property value increase will be put into the urban renewal district fund for area improvement projects. Priority improvement projects include utility infrastructure development, such as water and sewer line extensions, water well improvements and streetscape improvements.

“One of the biggest things that has made urban renewal districts controversial, even as far as the legislature, is using those funds to build large (buildings), whether it’s libraries or I guess most recently, in Boise, they were talking about a sports stadium, and those are things that taxpayers should be given an opportunity to vote on whether they want it or not,” Kuna Mayor Joe Stear said after the meeting. “And it seemed like urban renewal was a way to sidestep that, and people were offended by that and I don’t blame them. That’s why we’re completely avoiding that.”

“Our hope is that we create an urban renewal district that becomes known as the one that did it right, because we tried to do it in a way that we were being responsible with the funds,” Lisa Holland, Kuna’s economic development director, said after the meeting. “So, I’m thrilled that we were able to get it here; it was certainly something that took a collaboration of a number of different people and two years of conversations to get here.”

No oppositional testimony was given at that meeting.

Stear added that Caldwell’s urban renewal district that helped develop downtown Caldwell, which now hosts an event hub with a seasonal ice ribbon, performance stages and more at Indian Creek Plaza, is an example of a successful urban renewal district.

The hope in Kuna’s case, through infrastructure improvements, is to attract more development to the Kuna West District — such as light industrial and commercial businesses — onto “shovel-ready sites.” Urban renewal is another tool for having development help pay for itself.

“One of the most important things for us is trying to equalize our tax base, from commercial and residential, it just seems like it’s stuck there at that 90/10 split,” Stear said, meaning approximately 90% of the city’s tax base is supported by residential properties. “And this will allow us an opportunity to at least make some (of that) better, (and) better offers for companies … they can move here and set up shop and we can provide jobs.”

Kuna also has impact fees that support the fire district, police services and parks. New development in the Kuna West District would also pay those impact fees. Ada County Highway District collects impact fees as well, and the City of Kuna is open to pursuing partnerships with ACHD for roadway developments, similar to the recent downtown restoration project.

The city clerk’s office will also continue to pursue securing grants that could assist in funding development.

If projects should be developed ahead of schedule, “then the agency may reprioritize some of those projects in levels B and C,” Metts said.

Any projects, though, are probably at least a year or two out, Holland said, as the urban renewal district fund accumulates money. Previously, the plan sought public feedback, and was adopted by the Kuna Urban Renewal Agency and the Kuna Planning and Zoning Commission.

All details of the Kuna West District, can be found at kunacity.id.gov/518/Kuna-Urban-Renewal-Agency, and information about the urban renewal district presented at the Nov. 17 city council meeting can be found at kunacity.id.gov/93/Agendas-Minutes. A live video of the meeting is also available on the city’s Facebook page.

“We are always open to hearing what the community wants to see, and we always want to hear their feedback,” Holland said. “Anybody who has questions is certainly always welcome to reach out, and our goal is really to make Kuna a self-supporting community, and our hope is to find new commercial projects, new community projects and things that will just continue making the city of Kuna a great place to live, work, and play.”