Frequently Asked Questions

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.
• To borrow money and to issue bonds to finance urban renewal projects.

• To undertake urban renewal projects and related activities within the agency’s area of operation including signing necessary contracts and other documents.

• 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.

• 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 of any such property or buildings; and to dispose of any real property.  (Methods of acquisition include purchase, lease, option, gift, and grant).
• To invest any urban renewal funds.

• 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.

• 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,

• 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

• To pledge the incremental tax revenue to the payment of the principal of and interest on moneys borrowed, indebtedness incurred, or bonds issued.

Urban renewal agencies receive most of their funding from revenue allocation, otherwise known as “Tax Increment Revenue,” and, in some cases, bonds or other long-term debt secured by the Tax Increment Revenue. In simplest terms, under tax increment financing the taxes generated by increasing property values within an urban renewal district are used to pay for public improvements and other revitalization activities within that district.

When an urban renewal district is formed, the Ada County Assessor establishes the current value for each property in that district. This value is referred to as the “base” value.  All property taxes on the “base value” continue to flow to the taxing districts within the urban renewal district, such as the county, the city, the highway district, etc.  Over time, the assessed value of the properties within the urban renewal district will generally increase. This increase in value is referred to as “incremental value.”  The property taxes generated by the incremental value above the base value go to the urban renewal agency to be reinvested in the specific urban renewal district, for the life of the district, ≤ 20 years.

Only revenues derived from the increase in property values within an urban renewal district after its creation go to support activities of the GCURA. Property owners within a district will support redevelopment of that district, but their tax rate is the same as everywhere else in the city.  Formation of a district does not increase property taxes; it only reallocates where the tax revenues go for a finite amount of time, and only if property values increase.

Idaho Code 50-2903(15) provides that area base values of all districts “shall not exceed at any time 10% of the current assessed valuation of all taxable property within the municipality”.

• Idaho Urban Renewal Law in Title 50, Chapter 20, Idaho Code
• Local Economic Development Act, Title 50, Chapter 29, Idaho Code
• Open Meeting Law, Title 74, Chapter 2, Idaho Code
• Idaho Public Records Law, Title 74, Chapter 1, Idaho Code
• Ethics in Government Law, Title 74, Chapter 4, Idaho Code
• Competitive Bidding, Title 67, Chapter 28, Idaho Code

Idaho law provides numerous requirements designed to ensure transparency and accountability for urban renewal agencies, including:

1. Making records available to citizens upon request pursuant to the Idaho Public Records Laws.
2. Meetings are open to citizens, preceded by public notice and an agenda, and meeting minutes are kept pursuant to the Idaho Open Meeting Law.
3. Urban renewal commissioners are required to disclose conflicts of interest pursuant to the provisions of the Idaho Ethics in Government Act and the Idaho Urban Renewal Law.
4. Urban renewal agencies are required to comply with the provisions of the Local Government Competitive Bidding Law.
5. Urban renewal agencies have the same financial audit requirements as municipalities.
6. Urban renewal agencies must hold public hearings prior to approval of their annual budget and approved budgets must be submitted to the city prior to September 1 of each year.
7. Urban renewal agencies with annual expenditures between $100,000 and $250,000 must have a bi-annual independent financial audit and above $250,000 an annual audit. Those agencies with expenditures under $100,000 are exempt from this obligation but must prepare the annual report described below.
8. Urban renewal agencies are required to prepare and file with the city an annual report of activities for the preceding calendar year by March 31 and publish notice of the report’s availability upon request by citizens. The report must include a complete financial statement setting forth assets, liabilities, income and operating expenses. Prior to submittal of the annual report to the city, agencies must seek public comment on the report draft either in written or public comments.