Post Falls Council Oks Financing Plan
The issue that spawned a petition drive and an election less than a year ago failed to bring a protester to City Hall Tuesday.
At a Post Falls City Council public hearing over tax-increment financing, the council unanimously agreed to pursue the method of funding private projects.
Acknowledging past controversy, the council agreed to hold another public hearing to make sure adequate public comment is heard. That hearing is planned for Aug. 1. A draft ordinance on the issue is expected to be available next week.
“This particular one’s kind of a hot issue and we want to make sure everyone understands it,” said council member Joe Doellefeld.
“Including us,” added Karen Streeter, also a council member.
The proposed ordinance would declare Post Falls a disadvantaged border community, making it possible to help private developers build their projects through tax-increment financing.
Tax-increment financing allows cities to back bonds sold to fund streets and sidewalks and other infrastructure. The bonds are paid off by taxes generated from the development.
With the ordinance in place, developers would go to the city’s Urban Renewal Commission to qualify for tax-increment financing. Ultimate approval would come from the City Council, city officials said Tuesday.
About the only objection raised by the council was in the name of the ordinance.
“I don’t like the term disadvantaged,” said council member Gus Johnson. “I think we have so many advantages that people tend to overlook the disadvantages. But that’s just the title.”
Post Falls is disadvantaged in terms of property and income taxes in comparison to Spokane. Post Falls also only has an “emerging” infrastructure, compared to Spokane’s well-established system of streets and other services, city administrator John Hendrickson said.
Under a new state law, sponsored by a Post Falls legislator, disadvantaged border communities can use tax-increment financing to help developers.
Doellefeld said he would like the city to have the option to use the funding method for more than just industrial projects.
“We’ll build the door and leave it open a little bit,” answered Mike Ormsby, the attorney who is drafting the law.
The Kootenai County Property Owners Association loudly opposed the use of tax-increment financing and forced a Post Falls election on the issue last winter. The voters sided with those in favor of the financing method.
, DataTimes