Bill Description: House Bill 436 would allow urban renewal districts (URDs) to be extended for certain manufacturing projects, create a process for cities to dissolve URDs, and change how fire and ambulance districts are affected by URDs.
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NOTE: Urban renewal districts (URDs) and the urban renewal revenue allocation areas associated with them exist to divert property tax revenue from the typical functions of government to subsidize or incentivize development. Creating a URD is always an expansion of government that increases spending and indirectly increases taxes. It is not the proper role of government to manipulate the market by subsidizing or otherwise incentivizing private development.
Does it create, expand, or enlarge any agency, board, program, function, or activity of government? Conversely, does it eliminate or curtail the size or scope of government?
House Bill 436 would amend Section 50-2903, Idaho Code, to add a new definition related to URDs. It would add that "Manufacturing project" means "a manufacturing or industrial project and ancillary uses that manufactures, processes, or fabricates tangible personal property as defined in section 63-3616, Idaho Code."
The bill would also amend Section 50-2903A, Idaho Code, related to ordinances to modify an urban renewal plan to allow a plan amendment to support the "development" of a "manufacturing" project.
The bill would also amend Section 50-2904, Idaho Code, which allows the adoption of a "revenue allocation financing provision" related to URDs. This amendment would allow such a provision to be "extended for up to twenty (20) years" in cases where a revenue allocation area supporting the growth or development of a manufacturing project "includes only parcels that are owned or controlled by the project owner and its affiliates."
It appears these changes are being made primarily to support specific manufacturing projects, including the expansion of the Chobani complex in Twin Falls.
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House Bill 436 would amend Section 50-2006, Idaho Code, to allow "a local governing body that has created an urban renewal agency" to dissolve the URD under certain circumstances. Once a "resolution of intent to dissolve the urban renewal agency" is adopted, the agency "shall no longer have any authority to initiate any new urban renewal projects or to take on any additional financial obligations other than such obligations as are necessary to wind down its affairs."
The bill would also create Section 50-2914, Idaho Code, to provide for the termination of an "urban renewal plan containing a revenue allocation financing provision."
Dissolving URDs is a good thing, but this bill only provides for a process of dissolution. It does not require any URDs to be dissolved.
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Does it violate the principle of equal protection under the law? Examples include laws that discriminate or differentiate based on age, gender, or religion or which apply laws, regulations, rules, or penalties differently based on such characteristics. Conversely, does it restore or protect the principle of equal protection under the law?
House Bill 436 would amend Section 50-2906, Idaho Code, dealing with special rules for urban renewal revenue allocation areas to say that fire protection districts and ambulance service districts will not have their financing impacted by new revenue allocation areas created or modified after July 1, 2025. These districts will also be able to opt out of existing revenue allocation areas that do not have "any outstanding bonds, contractual obligations, or other indebtedness being funded by such revenue allocation financing provision greater than the amount of the revenue allocation proceeds that was attributable to the fire protection district or ambulance service district as of December 31 of the immediate prior tax year."
URDs divert property tax revenue from the typical functions of government to subsidize or incentivize development. Creating carve-outs for fire protection districts and ambulance service districts to allow their revenue to be excluded from the URD could increase the funding imbalances caused by URDs.
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