Port’s prospects hinge on public’s perception in Pocatello, ID

Supporters of the idea to create an inland port in Bannock County say such an entity could pay off in a big way, creating hundreds of jobs and jump-starting the local economy.

By Sean Ellis – Pocatello Idaho State Journal Writer

That could be true – it happened in Lewiston and Butte, Mont., where officials in those cities say their ports are responsible directly and indirectly for 1,800 and 300 jobs, respectively.

But an inland port would also mean another taxing district, with the authority to levy property taxes. Opponents are likely to use the tax issue to try to defeat the concept.

Property owners were believed responsible for the defeat of last year’s $6 million civic center project by voting on an advisory ballot and would likely be the deciding factor in whether an inland port is established here.

Creating an inland port requires a simple majority of "yes" votes during a general election.

If voters approve the idea, they’ll need to be convinced it is a worthy investment.

"It’s something that people will have to decide locally: ‘Is it going to give us the kind of return on investment that will create more jobs and increase the tax base?’" says state Sen. Bert Marley, D-Pocatello.

Marley supports a bill moving through the Legislature that would allow Idaho cities or counties to create inland ports.

If the bill passes, and Marley believes there is enough support for it in both the House and Senate, it would allow such ports to be created.

"All the law does is give the authority to create one with the vote of the people," says Bannock Development Corp. Executive Director Ray Burstedt, who testified in favor of the bill before a Senate committee.

"This is just that first little baby step that even allows it to be a possibility," Marley says. "If people are willing to tax themselves, that’s their choice. If not, that’s fine."

Marley believes the investment would be worth the payoff.

"It would be an economic tool that could be used to attract businesses," he says. "The big thing for me is that it should create more jobs."

Revenue derived from a port would be used to develop or enhance industrial infrastructure to improve transportation services and facilities for moving cargo in and out of the region.

"Taxes are always going to be a tough issue," says Pocatello Mayor Roger Chase, who supports the idea because it could bring more jobs locally.

If a port district is created, it would have authority to levy a property tax of up to .1 percent and issue revenue bonds. If the maximum .1 percent were levied, that would cost $100 a year for a home with a taxable value of $100,000.

According to the city’s chief financial officer, Dave Swindell, a Pocatellan who has a home with $100,000 of taxable value currently pays $2,379 per year in property taxes to the various taxing districts.

The three commissioners who would oversee the port’s operations could choose to take less than .1 percent.

Swindell says because the port would be a state municipality, it would mean the amount of property taxes it could levy could not increase by more than 3 percent a year.

In Lewiston, Idaho’s only port, a person with a $100,000 home pays $16 a year toward the port, which collects a total of $522,000 in property taxes.

In Butte, that amount is $6.33, for a total of $130,000.

The Port of Lewiston has a $2.4 million budget; Butte’s is $1.6 million. The rest of the money comes from revenue derived from leasing warehouse space and land, container yard operations and services the ports provide.

Port of Lewiston Manager Dave Doeringsfeld says there is a philosophical discussion over whether economic development is an appropriate role for government entities.

"I would say it definitely is," Doeringsfeld says. "If you can take public monies and leverage it so private monies will follow that investment, you can accomplish a lot."

Lewiston Mayor Pro-tem Kevin Poole says without the port there, property taxes would be higher.

"If we didn’t have the port, property taxes would be considerably higher because we wouldn’t have those paying jobs and people owning property," says Poole, who lived in Pocatello from 1975-94.

Doeringsfeld says a lot more than $522,000 goes back into the tax rolls because of the port.

"If you look at the businesses that are located in the port; if you look at the jobs that are associated with port activities, there’s a lot more money going back into the county by those businesses or by those people who have jobs," he says.

Port of Montana General Manager Bill Fogarty says more than $20 million has been invested into the port since its creation in 1988. He also says many jobs, including those associated with Union Pacific Railroad and lumber companies, might not still be there were it not for the port.

Chase says the port could rely less on property taxes as it becomes more successful, something that has happened in Lewiston.

Doeringsfeld says the port’s property tax levy has decreased 11 out of the past 12 years and has been reduced 37 percent in the last decade.

Swindell says that in the end, deciding whether paying more in taxes will pay off comes down to a bet.

"One of the things we want to do is look at other folks who have made that bet," he says. "Has it paid off? Is it working for Butte, Lewiston …?"

http://www.journalnet.com/articles/2003/03/13/news/local/news11.txt