Urban renewal, one of the most misunderstood entities in city government, will be a leading topic of discussion at the 2008 Legislature with the introduction of four bills that would change how the agencies operate.

The proposals appear to illustrate the challenges communites face in combating inner-city blight.

Among the proposals: a change in the way urban renewal boards are formed, how they set operational boundaries, and how long the public can contest agency decisions. The reforms are sponsored by Rep. Jim Clark, R-Hayden Lake. Clark's North Idaho region has been at the forefront of the urban renewal debate.

URAs in cities such as Coeur d'Alene are watching their bank accounts grow because of rising property assessments. Meanwhile, agencies in places such as Twin Falls are struggling to revitalize with limited budgets.

Because urban renewal agencies generate funds through property assessments within areas known as Revenue Allocation Areas, they can earn big money when property values in allocation areas rise. But when the allocation areas have below-average property values - as do most blighted areas - urban renewal generates little.

Two proposals up for consideration could change the limit on a URA's ability to expand or change Revenue Allocation Areas, as well as the type of property that can be considered for urban renewal - a restriction that will reign in a URAs' taxing authority, Clark said.

Although lawmakers representing south-central Idaho said they're not opposed to having some control over URAs, some said that the proposals could hinder their ability to spur economic development.

Rep. Leon Smith, R-Twin Falls, a member of the House Revenue and Taxation Committee, said URA's are more effective when directed by business-savvy members, not elected community members. He said the current system provides adequate checks-and-balances to prevent the URAs from abusing their authority - including a mayor's ability to discontinue any URA decisions.

Joshua Palmer may be reached at (208) 735-3231 or at jpalmer@magicvalley.com.