SURA Board Mission:
The SURA Board mission is to leverage and promote public/private partnerships and investment within the renewal districts to provide:

• Strategic economic vitalization of our downtown, industrial and commercial areas
• Enhancement of public art

Benefits of the Northern Urban Renewal Area (URA):

• No alternative sources of revenue are available for the reconstruction of Great Northern and Woodland Drives which was identified as a priority for City
• Promotes job creation
• Investment in infrastructure will yield stronger tax base
• West side arterial route will improve ease of transit for citizens of City and County

Potential Benefits of Downtown URA:

• Provides an additional source of revenue to implement the remaining phases of the downtown revitalization project as described in the downtown revitalization plan prepared by Tom Hudson. This project has been identified as a priority for the City
• Better prepares downtown for potential changes
• Promotes downtown commerce
• Improved quality of life for citizens of City and County
• Enhanced public parking

Available Tools
In 1985, the Idaho state legislature adopted the Local Economic Development Act which authorized the use of tax increment financing. Under tax increment financing, the increased taxes generated by increased property values in the URA are used to pay for public improvements and other revitalization activities in a portion of that area known as the Revenue Allocation Area (RAA). At the time an urban renewal district is formed, the county assessor establishes the current value for each property in that RAA. This value is referred to as the “base” value. Over time, as both public and private dollars are invested and development occurs in the area, property values 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. This tool is being used by 39 other urban renewal agencies throughout the State to fund urban renewal.

Frequently Asked Questions

What is the Sandpoint Urban Renewal Agency?
The Sandpoint Urban Renewal Agency (SURA) is an independent public redevelopment agency serving the city of Sandpoint , Idaho . The SURA was established by City Council in 2005 and currently has two redevelopment districts: the Downtown (established in 2005); and the Northern (established in 2005). Both districts have a 24 year term, with each scheduled to close by 2029. Districts can be closed once district redevelopment activities are completed and any debt issued to finance the district’s redevelopment is retired. The SURA is led by a volunteer Board of Commissioners comprised of community leaders appointed by the Mayor and approved by the City Council.

Where is the SURA?
The 380 acre Downtown district contains certain portions of downtown, City Beach , 5th Avenue corridor, and The Seasons. The 250 acre Northern district is located primarily between Larch and Woodland Drive , and runs approximately from the west right of way line of the Spokane International Railroad to Great Northern Road .

What does the SURA do?
SURA is a catalyst for economic vitalization within the Sandpoint Urban Renewal Districts. Authorized by State and local law, the SURA partners with public and private entities to help improve economic vitality, create jobs and encourage investment. SURA also participates in public improvements like parks, trails, streets, and sidewalks.

SURA development activities include both public and public/private partnership projects. All projects to date have been funded by tax increment financing; public funds used to leverage private sector investment within the Districts. Examples of completed projects to date include the 3rd Ave street revitalization between Main and Cedar. The following is a list of representative projects for which SURA provided financial assistance sidewalks at Farmin Stidwell School sidewalks, pilings at City Beach , and public art on Bridge Street .

Where does SURA 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 SURA 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 used 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” values, or increment. The taxes generated by this incremental value are utilized for redevelopment work by 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 Sandpoint, the City Council has created revenue allocation areas for the urban renewal Districts it has formed, and therefore the tax increment is allocated to SURA. These funds are to be reinvested in projects either within or which provide public infrastructure to the District from which the funds originate.

What powers does SURA 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.

1. To borrower money and to issue bonds to finance urban renewal projects.
    
2. To undertake urban renewal projects and related activities within the agency’s area of operation including signing necessary contracts and other documents.
    
3. 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.
    
4. 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).
    
5. 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.
    
6. To invest any urban renewal funds.
    
7. 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 used 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:

1. 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,
    
2. 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;
    
3. 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 SURA, and only if a revenue allocation area has been approved. These revenues must be spent on projects that support revitalization of the 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.

How does SURA select projects to fund?
The SURA Board selects projects to fund based on their ability to create a “public benefit” for the community. A key redevelopment tenet: private investment follows public investment.

Does urban renewal raise my taxes?
Question to Alan Dornfest, Idaho State Tax Commission, on November 19, 2008:

“Given the recent modifications to the urban renewal code resulting from bills generated in the past few legislative sessions, I would appreciate your current thoughts as to the impact of urban renewal districts on the local property taxpayer.”

Answer: “I would suggest that most of the changes in recent years and especially the changes resulting from HB 470 in 2008 and the legislation in 2007 that eliminated new construction within URDs from the budget capacity calculations until the dissolution of the revenue allocation areas add to the effective neutrality of urban renewal.” Alan Dornfest

What mechanisms are in place to ensure transparency and accountability of urban renewal agencies? Idaho law provides numerous requirements designed to ensure transparency and accountability for urban renewal agencies, including:

1. Making records available to citizens upon request pursuant to the Idaho Public Records Laws.
    
2. Meetings are open to citizens, preceded by public notice and an agenda, and meeting minutes are kept pursuant to the Idaho Open Meeting Law.
    
3. Urban renewal commissioners are required to disclose conflicts of interest pursuant to the provisions of the Idaho Ethics in Government Act and the Idaho Urban Renewal Law.
    
4. Urban renewal agencies are required to comply with the provisions of the Local Government
    
5. Competitive Bidding Law.
    
6. Urban renewal agencies have the same financial audit requirements as municipalities.
    
7. Urban renewal agencies are required to prepare and file with the city an annual report of activities for the preceding calendar year by March 31 and publish notice of the report’s availability upon request by citizens. The report must include a complete financial statement setting forth assets, liabilities, income and operating expenses.

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