THE IDAHO LEGISLATURE S URBAN RENEWAL INTERIM COMMITTEE, 2015 Presentation by Ryan Armbruster AIC Legislative Committee December 4, 2015

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1 THE IDAHO LEGISLATURE S URBAN RENEWAL INTERIM COMMITTEE, 2015 Presentation by Ryan Armbruster AIC Legislative Committee December 4,

2 2010 Legislative Session Proposed reform and modernization bill. HB 567 Proposed reform and modernization bill as revised by Rep. Lake. HB 672 Reform bill proposed by House Revenue and Taxation Subcommittee, chaired by Rep. Smith of Twin Falls (no modernization). Partly due to volume and complexity HB 672 did not pass out of committee. 2

3 2011 Legislative Session (partly in response to 2010 efforts) HB 95 requires approval at a city-wide election by a simple majority of voters prior to the formation of new urban renewal agencies after 7/1/2011. Agencies already in existence as of 7/1/2011 will not have to comply with the vote requirement. The bill provides for removal of urban renewal commissioners for inefficiency, neglect of duty, or misconduct in office by majority vote of the urban renewal board or the city council after notice to the commissioner and an opportunity to be heard. The bill also permits the board to fill vacancies by majority vote (upon term expiration, appointment authority rests with mayor and council). The chairman, co-chairman, or vice chairman must be selected by the board of commissioners to serve for one year. The urban renewal agency must hold a public hearing to present its annual report of activities and finances for the preceding calendar year and take comments from the public. The bill extends the period for the planning and zoning commission to submit its written recommendations on a proposed urban renewal plan to the city council from 30 to 60 days. 3

4 2011, HB 95 Continued Forest land is excluded from the definition of deteriorated and deteriorating areas unless consent is obtained from the property owner, with the exception of forest lands not used for three consecutive years. The bill restricts extension of revenue allocation area boundaries to a single extension comprising not more than 10% of the existing revenue allocation area and the area to be added must be contiguous without shoe stringing (must be contiguous; no use of right-of- way connections). [Significant Impact] An increase in value caused by the removal of the agricultural property tax exemption from undeveloped ag land in a revenue allocation area will be added to the base assessment roll. The lifespan of newly-created urban renewal districts and revenue allocation areas, and term of bonds will be shortened from 24 to 20 years (with the exception of districts already created or where bonds have already been issued). [Significant Impact] The revenue allocation plan must include a statement describing the total assessed value of the base assessment roll of the revenue allocation area and the total assessed value of all taxable property within the city. 4

5 Legislative Sessions No significant legislation impacting urban renewal or revenue allocation passed during 2012 session. In 2013, the legislature eliminated the authority of an urban renewal agency to enter onto private property without the consent of the property owner for the purpose of conduction inspections, tests, surveys, etc. The major legislation passed in 2013 impacting urban renewal agencies involves the personal property tax exemption for all items under $3,000 in value and a $100,000 per taxpayer exemption for all reported personal property. The overall amount generated from the $100,000 personal property exemption will be back filled by the state of Idaho from state funds. However, the amount remains static and will not increase over time. No back fill is available for new personal property value after January 1, In 2014, there was much wrangling. However, except for the enactment of the bill creating the Idaho State Local Governing Entities Central Registry, no other bills were passed that impacted urban renewal agencies. The various bills introduced in 2014 were a preview of the 2015 legislative session. 5

6 2015 Legislative Session Fall 2014: Group of legislators, lobbyists, and representatives of Idaho urban renewal agencies travelled to Utah to learn about Utah s economic development incentives, including urban renewal. Trip and work-up prompted by concerns over introduction of legislation that would severely limit urban renewal authority. January 2015: At direction of House Speaker Bedke, creation of a working group to generate comprehensive urban renewal legislation. Working group included legislators (House and Senate), lobbyists, representatives of urban renewal agencies, representatives from the banking industry, and urban renewal critics. Rep. Youngblood (Nampa) was the ad hoc working group chairman. Working group met weekly. Goal was to have a bill drafted by the first week of March. Overall, working group discussion focused more on reform than modernization. Several bills were drafted and presented. None passed. Instead, legislature adopted House Concurrent Resolution 17 authorizing the appointment of an interim committee on urban renewal. 6

7 Urban Renewal Interim Committee The 2015 legislature adopted House Concurrent Resolution 17 (HCR 17) authorizing the Legislative Council to appoint a committee to study urban renewal and urban renewal agencies. The committee gathered plans from the Urban Renewal agencies and has held four meetings with a final meeting scheduled for December 14, 2015, before convening the 2016 legislative session. Coeur d Alene committee members have held at least one Urban Renewal Forum in Coeur d Alene. The committee is comprised of the following Senators and Representatives: Senators Representatives Dan Johnson (Co-chair, Lewiston) Jeff Siddoway (Terreton) Chuck Winder (Boise) Mary Souza (Coeur d Alene) Maryanne Jordan (Boise) Rick Youngblood (Co-Chair, Nampa) Kathy Sims (Coeur d Alene) Robert Anderst (Nampa) Lance Clow (Twin Falls) Hy Kloc (Boise) 7

8 Urban Renewal Interim Committee Agendas 1 & 2 AUGUST 10, 2015 SEPTEMBER 21, 2015 UR Workgroup findings leading to HCR 17 Review of Idaho UR statutes Review of UR legislation Idaho and Utah Public Finance options Alternatives to UR Assessor concerns on Idaho UR statutes Idaho Law Review Article on Tax Increment Financing What s the Tiff about TIF? URA Best Practices Coeur d Alene setting fact from fiction What the Caldwell URA is up to Association of Idaho Cities Ada County Courthouse/ Idaho Water Center Discussion What URA s do correctly Accountability 8

9 Urban Renewal Interim Committee Agendas 3 & 4 OCTOBER 19, 2015 NOVEMBER 16, 2015 Public testimony from mayors, county commissioners, developers, and individuals GBAD v Frazier, Ida.Sup. Ct. decision Attorney General oversight of UR Depository for UR Plans Cost and Timing of Election for UR Transparency and Accountability Public Buildings, Grants and Agreements Discussion of HB 567 (2010) does it fit and possible addition of Utah-like community development piece Possible legislation Board makeup. Issue of public buildings What can URA funds be used for? Consolidate blight and community development Accountability Finance Central repository Enforcement AG? Private action? County prosecutor? Modification of plans 9

10 Issue Board Elected and/or Appointed (Accountability) Election of URA Board Members Provide an option, by local ordinance, for the local sponsoring government to establish elections: Elections - same election cycle as the sponsoring local gov t Board members must live within the sponsoring local gov t If a city council member, Mayor or county commissioner wishes to serve on the URA Board they should be allowed to be on the ballot for either the city or county, as well as the URA ballot Number of Terms The local governing body shall have the option to establish a limit on the number of consecutive terms any commissioner may serve and the length of such terms. 10

11 Issue Base Values of RAA (Provide Funds to Taxing Entities) Land value increases to be allocated to base assessment roll. Require allocation of increases in assessed values dependent on land use. 11

12 Issue Public Buildings Funded by URA s Public Buildings Funded by URA Limitation Relationship to area benefited from public building An authorized municipality shall not be authorized or empowered to adopt at any time, a revenue allocation financing provision for the construction or reconstruction of municipal buildings. Notwithstanding these limitations, an authorized municipality may be authorized or empowered to adopt a revenue allocation financing provision for the construction or reconstruction of municipal buildings with an explanation of how the building serves or benefits the UR area and: Limitation Amount or Percentage Direct benefits to the revenue allocation area exceed 50% of the total benefits to the UR area Providing less than 50% of project costs Limitation--Election Project costs have been voted upon in an election. 12

13 Issue Plan Specifics The Plan shall include an annual progress report on the statement of projects Additional reporting, input, comments through life of the Plan 13

14 Issue Modification of UR Plan Re-set the base assessment roll (interpretation of current statutory provisions) The definition of major plan amendments is a major means of exerting policy direction over the implementation of UR plan. The UR plan shall describe which types of changes to the plan are to be considered major amendments and reporting requirements. The UR plan shall describe which types of changes to the plan are to be considered minor amendments and reporting requirements. When plans are amended they shall be subject to revenue sharing provisions. 14

15 Issue Transparency Naming protocol. Separate website or link within City website. Repository of agency records Secretary of State or Tax Commission Lobbying only through City 15

16 Issue Other Modernizations Oversight Penalties 16

17 Likely Focus Issues to Resolve Do No Harm Next Steps Public building limitations Central repository for information Penalties/enforcement for failing to comply with statutory requirements Clarify amendment process and impact on base assessment roll 17

18 Redevelopment Association of Idaho Ideas for Improvement (September 2015) URBAN RENEWAL MODERNIZATION Separate the traditional deteriorated and deteriorating UR plan areas from economic development plan areas (both plans supported by tax increment) Agency reporting requirements Board composition Transparency Scope of project Need TIF program that is consistent and easy to administer PROGRAMS THAT SHOULD BE INCORPORATED INTO ANY LEGISLATION Allow agencies to enter into long-term debt without a vote Allow agencies the authority to exercise eminent domain Allow a blended board of appointed lay persons as well as less than a majority of elected officials Protect existing UR plans with a grandfather clause 18

19 Next Urban Renewal Interim Committee Meeting on December 14, 2015, at 9 a.m. State Capitol, Room WW17, Boise, Idaho 19