The public is invited to comment on whether a fourth redevelopment district is a bonus or a bane for the city of Provo.

The public hearing on creating the redevelopment district will be Tuesday, Dec. 18, at 7 p.m. in the Council Chambers at Provo City Center, 351 W. Center.The proposed redevelopment area across University Avenue from East Bay is a 90-acre wedge bordered on the south by the intersection of I-15 and University Avenue. University Avenue is also the eastern border and I-15 is the border on the west. The area extends north of 1200 South.

By creating a redevelopment district at an entrance to Provo, the city hopes to encourage planned development of the area. Ron Madsen, Provo Redevelopment Agency director, told the Planning Commission that adoption of the plan could help encourage a development similar to East Bay.

The Provo School Board is expected to vote earlier Tuesday on whether or not it supports the creation of a redevelopment district. Madsen met with the school board last week to explain how a new redevelopment district may affect the schools.

A portion of an increase in property taxes due to rising values in the district are retained by the Redevelopment Agency. That means the city and the schools receive a smaller portion.

The question considered by the school board is whether the creation of a redevelopment district will help or hurt the schools. East Bay is an example of an area that increased in value without a redevelopment designation. The Provo City Schools receive the full benefit of the increased property taxes there.

If the area being considered for a redevelopment district would develop on its own, then the school board would be out a portion of the increased value for several years.

Even with the designation as a redevelopment area, there is no guarantee that the area will develop. Provo's first redevelopment district is Academy Square. It was made a redevelopment area 10 years ago.

Besides the school board, property owners and other residents of the area can also be affected by the redevelopment designation.

All property owners in the proposed redevelopment area are notified of the public hearing as one of the steps taken to create a redevelopment district. Relocation rules outline the kind of assistance available to residents who may have to be relocated.