CCDC

Time Running Out On CCDC Tax Gravy Train

The DAILY PAPER ran a piece recently about Anthony Lyons, the new director of CCDC (Capital City Development Corp) who was quoted as saying, “We want a city that has lots of cranes, lots of scaffolding, lots of construction signs. That’s the sign of a city that’s moving forward.”

Part of the motivation to get moving has to be the looming expiration date for the central urban renewal district which is a mere five years away. In 2017, all the increment financing–the taxes on improvements and appreciated value currently diverted to CCDC–dries up. Boise City, Ada County, ACHD and the schools will finally get money which was previously diverted for 30 years. Taxpayers have been forced to pay for the services rendered by those agencies, but not funded. There is a slight chance for a tax cut once the downtown starts paying its fair share.

To put that in perspective, the current tax base on the infamous “hole in the ground” at 8th and Main has an assessed value of only $360,000. Until 2017, only taxes on that amount will go to the city, county, etc. The new office tower is expected to cost about $76,000,000 with all the taxes on that value going to CCDC, but only for five years.

Same thing is true for Simplot’s JUMP project, and everything else that was built in the downtown district.

Things like 8th Street between Bannock and Front, which is privately owned by CCDC, as well as the fountain in the Grove and other properties, will no longer be run as part of the CCDC “shadow government.” CCDC officials will have to figure out how to handle the “transition” when the district expires.

We are told the revenue from parking garages is “distinct from increment revenue.” It is unclear to the GUARDIAN if those revenues can be used to fund projects outside the district where they are located.

Comments & Discussion

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  1. “We want a city that has lots of cranes, lots of scaffolding, lots of construction signs. That’s the sign of a city that’s moving forward.”

    Yes we all want that, but those are signs of a city with a market demanding more space. Is there anyone out there that can share the vacancy rates? And can you estimate the number of sweet deals just to fill a space? “If we build it they will come” is not a good use of my money. If there is true demand then permits will be getting pulled.

    There does seem to be some growth away from downtown where parking is free right in front of the building, but is there real market demand in the DT?

  2. URA’s were put out of business in California… all 425 of these tax depleting monsters. They are nothing but a legal way around Idaho’s Constitution and elimination of voter oversight of bonding debt.

    I say good riddance and can only hope the Idaho Legislature will do the same with URA’s in Idaho. Where I live Mayor Nancolas and the Caldwell URA has just about destroyed downtown Caldwell and have managed to spend millions on a out of state community college we didn’t vote for and is redundant to CWI.

  3. Can we have a party when they go away? It would be the best thing that is happened in Boise in 30 years.

  4. This converstation/information needs to be talked about in our community somehow.

  5. government watchdog
    Sep 10, 2012, 12:28 pm

    If anyone really understood what was going on, you would realize that they are already establishing a new tax revenue stream with the new proposed 30th Street Urban Renewal. This area will replace the revenue stream being lost from the original tax increment district. I cannot believe the city continues to allow this as the remaining taxpayers all pay more because this tax does not go to the taxing districts. Maybe the city should look at this since their tax rate is almost double that of the Meridian City. Ever wonder why business is moving west?

  6. “We want a city that has lots of cranes, lots of scaffolding, lots of construction signs. That’s the sign of a city that’s moving forward.”

    I agree 150%, but is this a place for the taxpayers to pay. Is this the place for government to be? Why is it that government has so little faith in business and the entreprenuer. I feel like oportunities are being taken from private citizens because the gov knows better.

    Teach us to fish, stop giving us fish. We are full, and our kids cant fish. Stop subsidizeing the american dream.

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