CONFIDENTIAL DRAFT For Discussion Purposes Only Subject to Change
TIF The proposed event facility site is located within the Urban Improvement District that was established for the use of TIF funds for the initial phase of Riverstone development. Therefore, the project could capture TIF funds without establishing a new district or modifying the existing district. In the past, TIF projects in Idaho were not able to capture the portion of property taxes that would have been allocated to the local school district. However, recent legislative changes removed that restriction, allowing TIF projects to capture all incremental property taxes. As noted previously, the project would be eligible to leverage 100 percent of incremental property taxes generated by development within the District. However, based on the structure of the TIF used to fund the initial phase of Riverstone development, it is assumed that 75 percent of incremental tax collections would be dedicated to the proposed facility project, with the remaining 25 percent allocated to other projects in the community. The amount of funding that could be generated by TIF depends on two factors: the current property tax rate and the potential increase in property tax valuation resulting from the project and related development. The following table summarizes the current property tax rates applicable to the Riverstone development. Property Tax Levy Rate River Stone Development Site Taxing Entity
Rate
City of Coeur D'Alene Kootenai County CDA School District #271 North Idaho College Highway District #1 Kootenai Ambulance
0.003988886 0.001963862 0.001145153 0.000509932 0.000310345 0.000097363
Total
0.008015541
Collections per $1M of assessed value
$8,016
Source: Kootenai County Treasurer
As shown, based on current tax rates applied to the Riverstone site, approximately $8,016 in incremental property taxes would be generated for every $1.0 million increase in assessed property value resulting from additional development within the Riverstone district. An analysis was conducted to determine the increase in property tax valuation that would be required to generate incremental property tax revenues with a net present value of $5.0 million over a 20-year period. The NPV calculation assumes annual property tax collections remain constant over the 20-year period. In reality, it is likely that property valuations and tax collections will increase over time as additional development takes place and the value of
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene Funding Analysis Page 116