Developer Asks Agency For Expenses Group Says Improvements For Condominiums Will Be Of Benefit To Entire Neighborhood

Developers of a luxury condominium project asked the Urban Renewal Agency on Wednesday for $256,000 to defray expenses.

The money would reimburse the developers for utility work that will benefit more than residents of McEuen Terrance, said Shawn McMahon, one of the partners.

Construction of the 15-story condo requires new water and sewer lines and new sidewalks. The entire neighborhood benefits from those kinds of upgrades, McMahon said.

Two tall cranes marked the condo’s construction site at 701 E. Front Ave. this week. The developers will spend about $14 million during the yearlong construction of McEuen Terrace, McMahon said.

Through property taxes, the project will contribute about $150,000 annually to the Urban Renewal Agency budget when it is completed, he noted.

“The URA allows us to recapture some of the money we spend,” McMahon said.

URA members made no decision on the request Wednesday.

Paul Anderson, an agency member, asked McMahon if he would consider allowing public parking in the condominium lot. That would beef up tangible public benefits from the project, Anderson said.

“For the citizens of Coeur d’Alene, we need to make sure we create value. After-hours parking was value,” Anderson said.

The partners have considered the idea, McMahon said. However, they don’t know yet whether there will be enough spaces to accommodate public parking, he said.

The city of Coeur d’Alene formed the URA to encourage redevelopment in the city’s older core.

The agency is funded by tax-increment financing. New construction projects such as McEuen Terrace help fund the agency.

As property values within the URA boundaries increase, more taxes are collected. A portion of the additional tax revenue flows into the URA budget.

The agency can use the money to encourage new development. However, the money can only be spent on items that have a direct public benefit.

McEuen Terrace will contain 15,000 square feet of office space, as well as 22 condo units. The condominium is a project of South Park Development LLC, whose partners include McMahon, Richard Stauffer and Monte Miller.

In other action Wednesday, the agency finalized an agreement with developer John Stone. The agency will reimburse Stone up to $1.5 million for public improvements at the 74-acre Riverstone development along Northwest Boulevard. The money will pay for a new stoplight, utility work and rerouting the Centennial Trail. Street work that’s caused a detour on Northwest Boulevard should be completed in three weeks.

This sidebar appeared with the story: NEW BUILDING Construction

The 15-story McEuen Terrace will contain 15,000 square feet of office space, as well as 22 condo units.