The city of Hailey hopes to create a new source of funding to pay for infrastructure development by establishing an urban renewal agency, or URA.
URAs are established to rehabilitate deteriorating areas in a city. By state law, creation of a URA sets a base on property taxes the year it is established. After that date, any increase in property taxes due to development or inflation is handed over to the URA instead of being split among the city, county, school district and other taxing districts.
By state law, up to 10 percent of the city's total property market value can be included in an urban renewal area.
The Hailey City Council passed a resolution Monday stating that enough deteriorating properties exist in the city to legally begin the URA process. City Administrator Heather Dawson said city staff will spend the next five months identifying deteriorating properties in the city, including streets and sidewalks, that could be included in the URA,.
"It is a big project that will include a real estate market analysis," Dawson said.
She said URA funding could be used to develop streets, sidewalks, parks and public buildings.
A URA commission to administer the agency will be established after the survey is completed. The Ketchum URA commission is comprised of the City Council members.
URA development projects can be held off for a few years in the beginning until the bank account builds, unless the URA commission wants to start with loans and debt.
Dawson said the URA could use funding in partnership with private property owners to revitalize parts of the city.
"It would make redevelopment more affordable in these times," she said.
Tony Evans: tevans@mtexpress.com
