Rexburg spends nearly $1 million on real estate to build parking garage
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REXBURG — The Rexburg Urban Renewal Agency in cooperation with the city of Rexburg has spent nearly $1 million dollars on real estate this year.
The city, through the Rexburg Urban Renewal Agency, has purchased multiple properties worth a total of $947,834.31 on the block south of Carlson Avenue and between Center Street and College Avenue. They are currently in negotiations with one final property.
Their plan, once they’ve bought up all the land on that block? A parking garage. While a parking garage may not be the most exciting of structures, Rexburg Urban Renewal Agency Chairman Richard Horner told EastIdahoNews.com it would be a huge boon to local businesses.
“We have businesses who want to be downtown and there’s not enough parking for their employees, let alone their customers,” Horner said.
The exact details on the parking garage were not available because the deal to purchase all the property on the block has not been finalized.
Horner explained that if they are not able to purchase the entire block, plan B is to build a parking lot.
What is the Rexburg Renewal Agency?
The Rexburg Urban Renewal Agency was formed in 1991 and is made up of members selected by the Mayor and City Council. It is just one of many similar agencies throughout Idaho that were created based on Idaho Code that permits cities to create agencies that focus on infrastructure and economic development within the city.
“It’s the only tool that we have for economic development,” Horner said. “We don’t have the money to hand a business a couple $100,000 or a million bucks just to come to our city and provide jobs. We don’t have the other tools that other states have.”
Horner explained that there are two main areas of focus for urban renewal agencies.
“Elimination of blight and safety problems and so forth,” he said. “The other one is economic development.”
According to the Rexburg Urban Renewal Agencies website the agency accomplishes this by developing the city’s infrastructure by enhancing or restoring public buildings, roadways, industrial areas, water and sewage systems, sidewalks, parks, new housing, and other public amenities.
The agency functions by creating a “renewal district” throughout the city. A district is created by submitting a plan to the city council who then vote whether or not to approve the district.
The block where the purchases were made is part of the “Downtown District.” The recent improvements to sidewalks along South Center Street next to Paramount 5 were part of the overall plan for the Downtown District.
The Downtown District was approved by the Rexburg City Council on January 1, 2003, and will remain in place through 2027.
Where does the agency get the money for these projects?
The agency gains funding through creating these various renewal districts through a taxing process called Tax Increment Financing.
When a district is created that property value is assessed by the county assessor. That value is called the “base value.” Taxes paid on the base value go to the county and city as normal. As property value increases so do the taxes. The increase in property tax goes to the agency. The base value taxes continue to go to the county, city and school districts as usual.
In the case of the parking garage, with the added parking, businesses will be incentivized to develop within the downtown district, raising property values. The tax revenue made off of the increased value will go to the agency to pay for the parking garage.
“The Urban Renewal Agency or District has no control on the tax rate,” Horner said.