Estimate Of Costs For Riverbend Improvements Refigured Figure Might Be Held To $3.9 Million At Area’s Current Rate Of Growth

The Post Falls Urban Renewal Commission lowered its price tag Tuesday for improvements to the Riverbend area after city officials and fire district commissioners voiced concerns over the original amount.

The commission will take out bonds for up to $3.9 million to pay for the improvements, down from the $4.95 million the commission had originally planned.

Engineers had estimated improvements would cost between $2.5 million and $3.89 million, but failed to consider inflation or fees associated with bond issues. Adding those costs put the final figure at about $4.95 million.

If the Riverbend area grows at its current rate, “we might be able to stay within $3.8 million,” said Dana Wetzel, bond attorney for the Urban Renewal Commission.

If the improvements end up costing more than $3.89 million, the Urban Renewal Commission will need to reissue bonds for the remainder, adding even more to the cost since it will have to pay twice to validate bonds.

“Most likely it will be a sizable amount if we have to go through a second judicial validation,” said Karen Streeter, city councilwoman and chairwoman of the Urban Renewal Commission.

On top of those concerns, Councilman Clay Larkin said he worries about the legality of the Riverbend plan the City Council approved Nov. 18.

One paragraph in the plan may contain inaccuracies, he said.

The paragraph in question allows developers to pay for some improvements and be reimbursed through tax-increment financing.

Larkin worries the city could wind up being forced to pay back a developer for any improvements they make. He’s also worried that since the loans must be repaid with tax increment financing money, an outstanding loan could extend the life of the urban renewal district.

Wetzel conceded the language of the paragraph in question was unclear and, if interpreted the way Larkin is worried it will be, would be inaccurate.

However, the city would have no liability to pay back a developer for any improvements made, she said. And such a reimbursement would only happen with City Council approval, she explained.

“There’s an awful lot at stake here,” Larkin said after the meeting. “I’m representing over 15,000 people in the city of Post Falls, and I’m also concerned about the direction we take. Did we do it accurately? Did we do it correctly?”

He will probably bring up the plan again to the City Council for re-examination “based on the fact that we passed an ordinance with inaccurate information,” he said.

The Riverbend area is in an urban renewal district - an area the city has determined needs improvements such as lights and sidewalks to attract businesses. Tax-increment financing involves freezing the amount of taxes collected within the renewal district. Taxes on new development are not handed over to taxing districts until bonds sold to pay for infrastructure are paid off.

Fire officials have argued that withholding that tax revenue hurts their ability to provide public safety.

The Urban Renewal Commission will hold a public hearing on the Riverbend District Plan on Dec. 30 at 7 a.m. at Oddfellows Hall.

A judge then must approve the Riverbend Urban Renewal Plan. That’s expected to happen sometime early next year, Wetzel said.

, DataTimes