Urban renewal and revenue allocation financing are the most significant tools available to Idaho communities for attracting and retaining businesses, generating economic development, promoting job creation and encouraging development of deteriorating and underutilized areas.
Why are Urban Renewal & Revenue Allocation Financing Important Tools for Economic Development? The State of Idaho provides limited options for cities and counties to use in financing site preparation, infrastructure and other needed incentives necessary to attract and retain businesses. Revenue allocation financing allows communities to make a site “ready” for development, including extending water, sewer, streets and other improvements that reduce the cost to businesses of relocating or expanding.
Urban renewal and revenue allocation financing is particularly important because of the competitive nature of economic development, where Idaho communities face competition from communities in other states or countries where incentives such as tax abatements, local revenue sharing, and “war chests” for recruitment often exist. Many Idaho cities (some with more than one project area), have chosen these tools to revitalize their city. The positive impacts of urban renewal can be seen across the state of Idaho.
What are the Public Benefits of Urban Renewal & Revenue Allocation Financing?
Underutilized and deteriorated or deteriorating property is returned to productive use.
Job creation from the initial project as well as potential for “spinoff” developments.
Infrastructure upgrades enhance capacity for surrounding area and community at large.
Improvements to local transportation systems benefit the community at large.
Increasing local tax base may mean property owners enjoy lower levy rates in the future.
Successful projects generate increased sales and income taxes for the state.