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House passes bill creating dissolution process for urban renewal districts, lets fire districts opt out

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Summary

The Idaho House of Representatives on March 30, 2025 passed House Bill 4 36, which establishes a formal procedure for dissolving urban renewal districts, allows fire districts to opt out of new districts (and opt out of existing ones if there is no indebtedness), and permits a one‑time 20‑year extension of a revenue allocation area; final passage was recorded 57–13.

BOISE, Idaho — The Idaho House of Representatives on March 30, 2025 passed House Bill 4 36, a measure that lays out a process for cities to dissolve urban renewal districts, gives fire districts a limited ability to opt out of revenue captured by new urban renewal districts, and allows a one‑time 20‑year extension of an existing revenue allocation area. The measure passed on a roll call later in the day (57 ayes, 13 nays).

The bill creates a stepwise procedure for ending an urban renewal district: a city council must adopt an intent resolution, meet with the urban renewal agency to draft a termination plan, and then adopt an ordinance that sets the detailed winding‑down timeline and accounts for outstanding obligations. Representative, District 22, the bill’s floor presenter, said, “This lays out the process by which you can start that. ... If a city wants to…

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