The 2017 Economic Impact Study of Boise’s Central Urban Renewal District examined how 30 years of redevelopment transformed the city’s downtown core. Created in 1987, the 34-acre district encompassed nine full blocks and two half-blocks between Bannock Street, Capitol Boulevard, Sixth Street, Ninth Street and an area south of Front Street. The study evaluated whether tax increment financing helped prevent urban decay, support public improvements, expand the tax base and encourage private investment.
When the Capital City Development Corporation began its work, downtown Boise was experiencing deterioration following the failed effort to construct a large downtown shopping mall. The Central District was established to reposition downtown as a center for employment, services, entertainment, dining and community activity. The study concluded that CCDC’s investments and partnerships played an important role in accelerating development by reducing project costs, assembling land, constructing parking facilities and improving public spaces.
Property values provided one of the strongest measures of change. The district’s total assessed value increased from $31.1 million in 1987 to $371.1 million in 2017—an increase of $340 million, or approximately 1,094%. Although growth slowed during economic downturns, the overall increase substantially expanded Boise’s long-term property tax base. After the district’s closure, the study projected that local taxing districts would collectively receive approximately $3 million in additional annual revenue, including $1.4 million for the Boise School District and nearly $1 million for the City of Boise.
The composition of downtown also changed significantly. Office space grew from approximately 620,000 square feet in 1985 to 1.3 million square feet in 2016. Restaurant and bar space expanded from 15,000 to 122,000 square feet, while space devoted to meetings and public gatherings increased by approximately 550%. Downtown also gained hotel accommodations, nearly 200 residential units and new personal-service businesses. Traditional retail space declined as large stores moved to suburban locations, but smaller independent shops became part of a more diverse downtown economy.
Private direct investment within the district exceeded $260 million. Major projects included the Wells Fargo Center, Grove Hotel and CenturyLink Arena, One Capitol Center, Zions Bank Building and The Grove Plaza. The report found that redevelopment also encouraged investment beyond the district’s boundaries, including new hotels, housing, offices, restaurants and entertainment destinations.
Employment within the Central District increased from an estimated 2,549 jobs in 1985 to 7,325 in 2016. Office employment rose from 2,200 to 5,800 jobs, while restaurant employment increased from 100 to 800. Using an economic multiplier model, the study estimated that district activity supported another 5,849 jobs across Ada County, generating $647 million in labor income and approximately $1.8 billion in economic production.
CCDC also constructed four public parking garages containing 1,681 spaces, supporting downtown businesses, workers and visitors. Overall, the study concluded that tax increment financing successfully arrested decline, stimulated private investment, strengthened the tax base and transformed Central Downtown Boise into an attractive mixed-use center.