Agency Weighs Developer’S Request Urban Renewal Panel Wants More Information On Northwest Boulevard Project

Coeur d’Alene’s Urban Renewal Agency wants more information before deciding whether to approve a $1.2 million request to jump-start a 73-acre development on Northwest Boulevard.

Developer John Stone asked the agency this week to pay for a portion of the Riverstone development’s infrastructure.

The $1.2 million would fund improvements to Northwest Boulevard and reroute the Centennial Trail off the busy street. It would go toward construction of a six-lane intersection at Lakewood Drive accessing the Riverstone property.

Finishing the work would help him market the parcel, Stone said in an interview Thursday.

“The purpose of tax-increment financing is to prime the pump, so you can develop faster,” he said. “If we don’t get the financing, it will really slow things down.”

“I have no doubt that the Urban Renewal Agency will help to some degree with the public improvements,” said Nancy Sue Wallace, Coeur d’Alene City Council member and URA board member.

But the URA will have to weigh Stone’s request with requests from other developers, she said.

In addition, the URA is in the midst of developing a plan for downtown’s public spaces, which also could compete for funds. In the meantime, board members have asked Stone to provide them with more detailed financial information.

The Urban Renewal Agency formed two years ago with the mission of using tax dollars to leverage private investment in downtown, midtown and the Northwest Boulevard corridor.

The agency can fund public parts of projects, such as streets and public parking lots. Its revenue source is tax increment financing. As property taxes rise within designated areas, the increase is dedicated to the URA budget.

Stone is asking the agency to issue bonds to raise the $1.2 million. The bonds would be paid off with Riverstone’s property taxes as the value of the company’s development increases.

Stone and several investors formed Riverstone L.L.C. last year to purchase a long-vacant mill site bordering Northwest Boulevard.

The 73 acres were annexed into the city last month. As part of the annexation, Stone agreed to do the improvements he’s now asking the urban renewal agency to pay for.

Infrastructure work is costly for developers, Stone said, and getting URA funds would speed up the project.

When fully developed, the property will contribute handsomely to the URA budget, Stone said.

The land is valued at about $6 million now - a figure that will increase to $175 million when it’s fully built, he said.

Master plans for the property include houses, condominiums, a boat dock, commercial buildings and office buildings.

Residential areas would be clustered along the Spokane River, with several waterfront parcels saved for prime commercial development. Upland areas would contain a mix of medical and office buildings, restaurants and other commercial facilities, according to the plan.

The property is divided by a railroad right of way. Development of the riverfront areas depends on future acquisition of the railroad land, the plan said.

“We’re pleased to see the planning that John Stone and his team of people have put together. It offers some great opportunities for the city of Coeur d’Alene,” said Charlie Nipp, URA chairman.

The board could discuss the issue again as early as its next meeting on Feb. 16, Nipp said.

Board members also want to know more about Stone’s five- to seven-year time line for fully developing the property.

“His development will provide a lot of tax increment financing,” Wallace said. But that money won’t appear until buildings go up and property taxes rise, she noted.