Urban Renewal District looks at long-term plans

The newly approved Urban Renewal District, created by members of the Urban Renewal Agency, has designated the finalization of the district map as the first of the district's many goals.

Those goals are in the process of being outlined by the district's commissioners, according to Chairman Fred Prouty.

Prouty said finalizing the boundaries of the district, which include the site of the new Marathon Cheese packaging plant at Optimist Park/Scott Industrial Park, along with the downtown area, have given the agency some much needed direction.

But he noted, "the entire process is going to take some time, as all good things do, because so many different factors are involved. There are a lot of different people with a lot of different ideas."

A plan outlining the long-term goals of the district are not due to be released until spring of next year, where it will be subject to approval by the Mountain Home City Council. "We are shooting for February, hopefully the outline will be ready by then," said Prouty.

The city council must also take action before the district's plan can be completed. According to Prouty, the agency has been given a great deal of authority and money by council members, two things that are not given lightly. "Now, we need them (city council) to tell us how much revenue we are going to have and just how we are going to generate those funds," he said.

Idaho's Tax Increment Financing Law will provide the majority of the funds for the URD through taxes levied from all city improvements and major remodeling done after January 1. That includes new businesses, such as the $27 million dollar Marathon plant. The projected amount of taxes generated from the cheese packaging plant alone will be around $330,000, according to the city's economic develop director, Ron Swearingen.

"But we won't see any of that money for awhile," Prouty said. "Right now, it is completely up in the air how we are going to get the funds we need in the near future. We can use bonds to pay for any projects up front, but we are still in the infancy stage."

He continued, "making sure Marathon Cheese, along with their 250 jobs, was set was the first order of business and now that they're comfortable, we need to look at what comes next."

The first piece of the Urban Renewal Plan to formally be presented to the city council will indeed be the Memorandum of Understanding between the city and Marathon Cheese for assistance in building city infrastructure improvements for the factory and nearby industrial park.

What comes next however, appears to be quite complicated. Ultimately, the final plan will include the projects to be completed in the next several years, and a specific Revenue Allocation Plan outlining exactly how the diverted tax money the URD receives will be spent.

Even though no formal plans have been submitted, Prouty did touch on a few of the goals the agency hoped to accomplish.

"We obviously want new businesses to come to Mountain Home. Just based on the fact we have a URD will attract them to the area. Whether they will actually choose to open in the downtown area is another question," said the former city councilman.

Many citizens have urged the URD to allocate funds for more parking and expanded sidewalks, in an effort to attract those businesses to the downtown section.

Prouty explained, "you see, most businesses downtown are rented from people who live outside of Mountain Home. Do you think those people care about improving the area? As long as they get their money, no."

A solution is possible though. "What we need is an anchor, not necessarily a big one like Wal-Mart or Safeway, but a moderate anchor that can stimulate business and help others in the surrounding area grow."

He also said the URD was all about reaction, noting, "when a business becomes interested in opening in Mountain Home, we have to ask them--what can we do for you? We aren't big enough to recruit businesses but we won't have to. Look at Marathon Cheese, they became interested and we showed them what we had to offer. We bagged them, so it is definitely possible."

"That's Ron's (Swearingen) job. He's an attractor, and he's very good at what he does. We just have to give him the tools," Prouty said.

When asked how the URD would help downtown business owners compete with major corporations like Wal-Mart, Prouty highlighted the city of Twin Falls as an example of how a successful plan can boost a town's economy. "We are looking at them, at the things they did, and hoping to follow in their footsteps," Prouty said.

"Every other small town has survived Wal-Mart. A good URD definitely helps but again, it is not something that is going to happen overnight. It may take 10 years before we really start to see the effects of the district. Twin Falls' URD was put into place in 1994. They were patient and now look at them. If you visit downtown Twin Falls, you will see a growing, vibrant community."

He urged everyone, citizens and business owners alike, who have concerns about the district to attend the URD meetings, held every second Monday at 6 pm at city hall, in a room adjacent to the one holding city council meetings.

"We are a very close-knit community and we have to act as such. We have to stick together and stay involved. That's the key, everyone staying involved. That's why we hold our meetings the same time and place as the city council. Because we have to work with them in order for this thing to function properly. That is the only way it will work."