The closed Lake District contained certain portions of the downtown, midtown and Northwest Boulevard sections of the City of Coeur d’Alene. The River & Atlas Districts are located between Interstate 90 and the Spokane River and run from approximately Ramsey Rd to the City of Huetter. The Health Corridor District is located south of Interstate 90 between Government Way and Northwest Boulevard and contains the Kootenai Health campus.

What does ignite cda do?

ignite cda is a catalyst for economic vitalization within the Coeur d’Alene Urban Renewal Districts. ignite cda’s primary responsibilities within the Districts include strategic and master planning, public/private partnership development, community education regarding redevelopment initiatives, and the support of quality public art and quality public open space within the redevelopment districts.
ignite cda development activities include both public and public/private partnership projects. All projects to date have been funded by tax increment financing; public funds used to leverage private sector investment funds within the Districts. Examples of project partnerships to date include the Riverstone Mix-Use Development on Northwest Boulevard, Parkside Tower, McEuen Terrace, Mill River Mix-Use Development along the Spokane River, the Kroc Community Center, the downtown Coeur d’Alene Public Library, downtown parking garage, McEuen Park, and Atlas Waterfront Park.

Where does ignite cda get its authority?

The basic authority to create urban renewal agencies and to undertake urban renewal projects is granted to all cities and counties in Idaho by the state legislature in Title 50, Chapter 20, Idaho Code. The ability to use tax increment financing for urban renewal projects is authorized under the Local Economic Development Act (Title 50, Chapter 29, Idaho Code).

How is ignite cda funded?

Beginning in the 1960s federal funds were the initial source of money for urban renewal projects in Idaho. As these funds were phased out in the 1970s, an alternative financing method was needed. In 1985, the Idaho state legislature adopted the Local Economic Development Act which authorized the use of tax increment financing. In simplest terms, under tax increment financing (or revenue allocation in Idaho), the taxes generated by increasing property values in an urban renewal District are used to pay for public improvements and other revitalization activities in that District. At the time an urban renewal District is formed, the county assessor establishes the current value for each property in that District. This value is referred to as the “base” value. Over time, as both public and private dollars are invested and development occurs in the District, property values tend to rise. The increase in value over the base is called the “incremental” value, or increment. The taxes generated by this incremental value are utilized for redevelopment work by the urban renewal agency, if the City Council or County Commissioners have created a revenue allocation area to go with the urban renewal District. In Coeur d’Alene, the City Council has created revenue allocation areas for the urban renewal Districts it has formed, and therefore the tax increment is allocated to ignite cda. These funds must be reinvested in projects either within or which provide public infrastructure to the District from which the funds originate.

What powers does ignite cda possess?

The powers specifically granted by the state legislature to urban renewal agencies in Idaho are summarized below. A complete list is found in Title 50, Chapter 20 and Chapter 29 of the Idaho Code.

1. To borrow money and to issue bonds to finance urban renewal projects.
2. To undertake urban renewal projects and related activities within the agency’s area of operation including signing necessary contracts and other documents.
3. To construct streets, utilities, parks, playgrounds, off-street parking facilities, public facilities, other buildings or public improvements and any improvements necessary or incidental to a redevelopment project.
4. To acquire real property (or personal property for its administrative purposes), together with any improvements thereon; to hold, improve, renovate, rehabilitate, clear or prepare for redevelopment any such property or buildings; and to dispose of any real property. Methods of acquisition include purchase, lease, option, gift, and grant.
5. With approval of the City Council prior to approval of any urban renewal plan, to acquire real property in an urban renewal area, demolish and remove any structures on the property, and pay all costs related to the acquisition, demolition or removal, including any administrative or relocation expenses.
6. To invest any urban renewal funds.
7. To construct foundations, platforms and other like structural forms necessary for the provision or utilization of air rights, sites for buildings and to be used for residential, commercial, industrial and other uses contemplated by the urban renewal plan and to provide utilities to the development site.

As a result of the law enacted in 1987 to provide, among other things, for financing urban renewal projects with tax increment funds, urban renewal agencies were granted the following additional powers:

1. To apply incremental tax revenues allocated to the agency for the payment of the project cost of any urban renewal project located in a revenue allocation area,
2. To borrow money, incur indebtedness and issue one or more series of bonds secured by incremental tax revenues, to finance or refinance, in whole or in part, urban renewal projects and;
3. To pledge the incremental tax revenue to the payment of the principal of and interest on monies borrowed, indebtedness incurred or bonds issued.

Urban renewal agencies are not permitted to levy taxes and they have no direct regulatory authority unless specifically authorized by the City Council or County Commissioners.

Do my tax dollars go to support an urban renewal project?

Only revenues derived from the increase in property values within an urban renewal District after its creation go to support activities of ignite cda, and only if a revenue allocation area has been approved. These revenues must be spent on projects that support revitalization of the District. Property owners within a District do in fact support redevelopment of that District, but their tax rate is the same as everywhere else in the city. The formation of a District does not increase property taxes; it only reallocates where the tax revenues go if property values increase.

Do my tax dollars go to support an urban renewal project?

The ignite cda Board selects projects to fund based on their ability to create a “public benefit” for the community. A few examples: One ignite cda partnership project may create public benefit by increasing the number of residential units in a key area within a redevelopment district. Another ignite cda partnership project, like the Coeur d’Alene Public Library, creates public value by becoming a great public gathering place for the community, which thus incents additional investment by the private sector (key redevelopment tenet: private investment follows public investment). Another ignite cda partnership project, like the Riverstone development, creates public benefit by reclaiming an old sawmill (brownfield) site and creates a mix-use environment providing entertainment, shopping/restaurants, new public space (park & pond) and residential amenities for the communi

Does urban renewal raise my taxes?

The Idaho State Tax Commission has shared that urban renewal is effectively neutral to the taxpayer.

How does ignite cda finance redevelopment projects?

ignite cda Project Financing Models

• Owner Participation Agreement (OPA) An OPA is a contractual agreement between ignite cda and an owner (i.e. developer) pertaining to value-adding community projects that are built and occupied, typically over several years, potentially in phases. An OPA authorizes ignite cda to reimburse the developer for ignite cda pre-approved public improvements using tax increment revenues (i.e. property taxes) generated solely from the developer’s project.

The developer pays for all of the pre-approved public improvements up front.
ignite cda reimburses the developer over time from the property tax revenue generated solely from the developer’s project.

Prior to any ignite cda reimbursement to the developer, ignite cda conducts a third-party cost validation to assure that the pre-approved public improvements were completed in a cost-effective manner and properly installed.

If the developer’s project does not generate sufficient property tax revenues to reimburse the developer for his public improvement costs by the time the ignite cda district term expires, then the developer does not get fully reimbursed.

By using this financing model, the ignite cda Board of Commissioners assures zero risk to the public since no public funds are invested up front; all of the public improvement investment risks reside with the developer. OPA project examples: Riverstone, Mill River

• Improvement Reimbursement Agreement (IRA) An IRA is a contractual agreement between ignite cda and a developer pertaining to value adding community projects that are built and occupied in a relatively short period of time. An IRA authorizes ignite cda to reimburse the developer for ignite cda pre-approved public improvements using tax increment revenues (i.e. property taxes) generated solely from the developer’s project.
The developer pays for all of the pre-approved public improvements up front.
ignite cda reimburses the developer over time from the property tax revenue generated solely from the developer’s project.

Prior to any ignite cda reimbursement to the developer, ignite cda conducts a third-party cost validation to assure that the pre-approved public improvements were completed in a cost-effective manner and properly installed.
If the developer’s project does not generate sufficient property tax revenues to reimburse the developer for his public improvement costs by the time the ignite cda district term expires, then the developer does not get fully reimbursed.

By using this financing model, the ignite cda Board of Commissioners assures zero risk to the public since no public funds are invested up front; all of the public improvement investment risks reside with the developer. IRA project examples: Parkside, Circuit @ Seltice

• Disposition and Development Agreement (DDA) The purpose of a DDA is to assist in carrying out a developer’s redevelopment project by providing for the disposition (i.e. sale) and development of certain ignite cda-owned real property located within the boundaries of an ignite cda urban renewal district. ignite cda agrees to sell ignite cda-owned property to a developer to aid in the development of a value-adding project for the community. Similar provisions of an IRA could also be included in the DDA if certain ignite cda pre-approved public improvements are included in the redevelopment project.