Post Falls Rejects Tax Plan Settlement Fight Over Tax-Increment Financing Will Remain On Feb. 7 Ballot
The city of Post Falls late Friday rejected a settlement with the Kootenai County Property Owners Association in a dispute over tax-increment financing.
The deal would have scuttled a Feb. 7 election. But that election now will go forward. Voters will decide whether they should approve offers of tax assistance to developers.
Post Falls wants to use tax-increment financing to lure Micron Technology Inc. and speed up development of International Expo, a retail development.
Such financing allows the city urban renewal agency to back bonds, which would be sold to pay for roads, sewer hook-ups and other infrastructure needed by a business. The bonds would be paid back with tax revenue from land improvements.
The property owners association successfully placed on the ballot an initiative requiring a vote on every tax-increment offer. Post Falls has fought such a vote, saying it detracts from business recruitment.
Ron Rankin, president of the association, unveiled terms of the failed compromise on Friday at the Kootenai County Democratic Club luncheon. He was debating Post Falls city administrator John Hendrickson about tax-increment financing.
“We agreed to make it (only) an advisory vote and they (Post Falls City Council) thumbed their noses at us,” Rankin said.
Under the proposal’s terms, the city would have been required to hold an advisory vote on whether the city should woo Micron.
Also on Feb. 7, Rathdrum will hold an advisory vote on whether that city should go after Micron.
Post Falls now is gearing up for a massive campaign to convince voters to reject Rankin’s ballot measure. Legal efforts to halt the election were rejected by a judge earlier this month.
The City Council met behind closed doors Friday afternoon, then publicly announced its decision to reject the settlement. Citing the judge’s ruling, Hammond said it would be appropriate to go ahead with the election.
“The person who brought this issue before us purported to want an election,” Hammond said, referring to Rankin. “We will have an election.”