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Rexburg studies west-side urban renewal district to fund intersection, trail and sewer work
Summary
City staff presented a draft map for a proposed urban renewal district on the west side of Highway 20/33, highlighting projected projects including the Twelfth West/Main intersection, sewer extensions, trail connections and potential bridge work; staff said formal steps could take until 2026.
City officials presented a draft map and preliminary project list on June 25 for a proposed urban renewal district on Rexburg’s west side that would focus on road improvements, sewer connections and pedestrian trail links.
Staff described the core need as improving the Twelfth West/Main (Highway 33) intersection and extending sewer and roadway infrastructure to support commercial and residential development on the west side of the highway. The map includes acreage near the fall river medical development, parcels behind existing commercial corners, the area around the new Summerfield-related parcels and a proposed path up Twelfth West connecting to Pine Brook and Hibbard School.
Matt (staff presenter) warned that establishing an urban renewal district is a long process. The city’s urban renewal attorney told staff the district could not be formed this year and that 2026 was a more realistic timeline given the eligibility study and intergovernmental steps required.
Staff said the district would typically capture increment on the tax rolls (the value above the base value taken at formation) and use that increment to finance infrastructure needed to support new development. The city emphasized that school levies are held harmless by state law and that changes to ambulance and fire participation became possible under a new law this year.
Council members asked technical questions about contiguity and revenue generation; staff said the largest potential revenue generators are undeveloped parcels near Main Street and the area by the water tank recently purchased by a local developer. Staff said the city declined to include the airport property on the east side of Highway 20 in the proposed district now because the airport move and redevelopment horizon is long and would shorten the effective borrowing window.
Staff also noted some projects could be costly: moving utilities and a major bridge widening along the Teton River or canal were flagged as high-cost projects. Staff will take council feedback to the urban renewal agency, which is scheduled to consider the map at its next meeting; the project will require an eligibility study and county review.
