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.
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