Frequently Asked Questions
- What is the Lake City Development Corporation?
- Where is the LCDC?
- What does the LCDC do?
- Where does LCDC get its authority?
- How is LCDC funded?
- What powers does LCDC possess?
- Do my tax dollars go to support an urban renewal project?
What is the Lake City Development Corporation?
The Lake City Development Corporation (LCDC) is the urban redevelopment agency serving the City of Coeur d'Alene, Idaho. The LCDC was established by City Council and can be dissolved once district redevelopment activities are completed and any debt issued to finance the district redevelopment is retired.
Where is the LCDC?
The 729 acre LCDC Lake District contains certain portions of the downtown, midtown and Northwest Boulevard sections of the City of Coeur d'Alene. The LCDC River District is located between Seltice Way and the Spokane River, and runs from approximately Ramsey Rd to Huetter.
What does the LCDC do?
The LCDC is responsible for spearheading the economic vitalization within the Coeur d'Alene Urban Renewal Districts. LCDC's primary responsibilities within the Districts include strategic and master planning, public / private partnership development and community education regarding urban vitalization.
LCDC development activities include both public and private projects. All projects to date have been funded primarily by tax increment financing, which is used to leverage private development money within the Districts. Examples of project partnerships to date include the Riverstone Mix-Use Development on Northwest Boulevard, McEuen Terrace Tower, and the acquisition of the future downtown Coeur d'Alene Public Library site.
Where does LCDC get its authority?
The basic authority to create urban renewal agencies and to undertake urban renewal projects is granted to all cities and counties in Idaho by the state legislature in Title 50, Chapter 20, Idaho Code. The ability to use tax increment financing for urban renewal projects is authorized under the Local Economic Development Act (Title 50, Chapter 29, Idaho Code).
How is LCDC funded?
Beginning in the 1960s federal funds were the initial source of money for urban renewal projects in Idaho. As these funds were phased out in the 1970s, an alternative financing method was needed. In 1985, the Idaho state legislature adopted the Local Economic Development Act which authorized the use of tax increment financing. In simplest terms, under tax increment financing (or revenue allocation in Idaho), the taxes generated by increasing property values in an urban renewal District are used to pay for public improvements and other revitalization activities in that District. At the time an urban renewal District is formed, the county assessor establishes the current value for each property in that District. This value is referred to as the "base" value. Over time, as both public and private dollars are invested and development occurs in the District, property values tend to rise. The increase in value over the base is called the "incremental" value, or increment. The taxes generated by this incremental value are shared by the school district and the urban renewal agency, if the City Council or County Commissioners have created a revenue allocation area to go with the urban renewal District. In Coeur d'Alene, the City Council has created a revenue allocation area for the urban renewal District it has formed, and therefore a portion of the tax increment is allocated to LCDC. These funds must be reinvested in projects in the District from which they originate.
What powers does LCDC possess?
The powers specifically granted by the state legislature to urban renewal agencies in Idaho are summarized below. A complete list is found in Title 50, Chapter 20 and Chapter 29 of the Idaho Code.
- To borrow money and to issue bonds to finance urban renewal projects.
- To undertake urban renewal projects and related activities within the agency's area of operation including signing necessary contracts and other documents.
- To construct streets, utilities, parks, playgrounds, off-street parking facilities, public facilities, other buildings or public improvements and any improvements necessary or incidental to a redevelopment project.
- To acquire real property (or personal property for its administrative purposes), together with any improvements thereon; to hold, improve, renovate, rehabilitate, clear or prepare for redevelopment any such property or buildings; and to dispose of any real property. (Methods of acquisition include purchase, lease, option, gift, grant and eminent domain.)
- With approval of the City Council prior to approval of any urban renewal plan, to acquire real property in an urban renewal area, demolish and remove any structures on the property, and pay all costs related to the acquisition, demolition or removal, including any administrative or relocation expenses.
- To invest any urban renewal funds.
- To construct foundations, platforms and other like structural forms necessary for the provision or utilization of air rights, sites for buildings and to be used for residential, commercial, industrial and other uses contemplated by the urban renewal plan and to provide utilities to the development site.
As a result of the law enacted in 1987 to provide, among other things, for financing urban renewal projects with tax increment funds, urban renewal agencies were granted the following additional powers:
- To apply incremental tax revenues allocated to the agency for the payment of the project cost of any urban renewal project located in a revenue allocation area,
- To borrow money, incur indebtedness and issue one or more series of bonds secured by incremental tax revenues, to finance or refinance, in whole or in part, urban renewal projects and;
- To pledge the incremental tax revenue to the payment of the principal of and interest on moneys borrowed, indebtedness incurred or bonds issued.
Urban renewal agencies are not permitted to levy taxes and they have no direct regulatory authority unless specifically authorized by the City Council or County Commissioners.
Do my tax dollars go to support an urban renewal project?
Only revenues derived from the increase in property values within an urban renewal District after its creation go to support activities of the LCDC, and only if a revenue allocation area has been approved. These revenues must be spent on revitalization projects in that District. Property owners within a District do in fact support redevelopment of that District, but their tax rate is the same as everywhere else in the city. Formation of a District does not increase property taxes; it only reallocates where the tax revenues go if property values increase.