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- Urban Renewal Districts
Urban Renewal Districts
The Local Development Act, or Urban Renewal, is intended to allocate a portion of the property taxes in an Urban Renewal Area, for a limited period of time, to assist in the financing of Urban Renewal plans, and to encourage private development in Urban Renewal Areas. The first step to understanding urban renewal is thoroughly understanding how property taxes are calculated in Idaho. Before proceeding on this page please read Determining Property Taxes. Urban renewal is a complicated subject, if after reading this information you have any additional questions, please feel free to email us
History of Urban Renewal
Laws relating to urban renewal were originally created to make it easier to remedy problem areas of the community that are described in Idaho Code 50-2002. Today, urban renewal districts are typically set up in areas that are already forecasted to significantly increase in value. This is because the urban renewal district receives property taxes only on the amount the property increases in value. The more the property value increases after the district is put in place, the greater the revenue that is generated by the urban renewal district. Areas that would be attractive to urban renewal districts would be farm ground that has been recently purchased for development.
How An Urban Renewal District is Created
A local governing body, such as a city, finds cause for an urban renewal agency per Idaho Code 50-2005. A notice of public hearing to discuss this option is published in the local newspaper for at least 30 days and delivered to the affected tax districts. Once the agency is authorized, the mayor acting on the advice and consent of the local governing body, appoints a board of commissioners. The local governing body may designate themselves as the board of commissioners at any time per sections 2 and 3 of Idaho Code 50-2006. The creation of an urban renewal district does not go to a vote to the public.