SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving Intergovernmental Agreements for Tax Increment Revenue Sharing Between the Town of Erie Urban Renewal Authority and Various Taxing Jurisdictions
Body
DEPARTMENT: Economic Development/TOEURA
Department
PRESENTER(S): Julian Jacquin, Economic Development Director
Malcolm Fleming, Town Manager, TOEURA Executive Director
First Name Last Name, Title
TIME ESTIMATE: 15 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
POLICY ISSUES:
The policy issue is whether to accept the terms for tax increment revenue sharing adopted by the governing boards for seven of the nine impacted taxing jurisdictions in the proposed Phase 1 Plan Area boundary, to allow TOEURA to capture property tax and sales tax increment (TIF) generated by future development in this area to remediate blighting conditions and extend necessary infrastructure to facilitate the development of this key focus area in the I-25 Erie Gateway development corridor. Approval will allow TOEURA to fully execute the Intergovernmental Agreements, so the Town Council can then hold public hearing(s) and consider adoption of the new Plan Area.
STAFF RECOMMENDATION:
Recommendation
Approve the Intergovernmental Agreements for tax increment revenue sharing with the various taxing jurisdictions.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On Feb. 26, Town staff provided mailed notice to the impacted taxing entities within the proposed Phase 1 Urban Renewal Plan Area (URA) boundary, including the Town, Weld County, St. Vrain Valley School District, Mountain View Fire Protection District, Frederick-Firestone Fire District, High Plains Library District, Northern Colorado Water, the Summerfield Metropolitan Districts, and the North Station Metropolitan Districts. Per Colorado Urban Renewal Law, this mailed notice initiated a 120-day negotiation period for the Town of Erie Urban Renewal Authority (TOEURA) to agree upon tax increment revenue sharing with each entity, prior to holding public hearings and requesting the Town Council to adopt the new Plan Area.
Town staff then presented three draft planning documents for the Phase 1 Plan Area to the TOEURA Board of Commissioners on March 12, including a Conditions Survey, Plan Document and Financial Impact Report. TOEURA supported staff’s recommended boundary and strategy and began negotiating with each taxing entity thereafter.
The proposed Phase 1 Plan Area encompasses 1,100 acres and 536 parcels within the Town of Erie, generally located south of Highway 52, north of WCR-10, west of I-25, and east of WCR-5. Included within the boundary is the new proposed Summerfield development (2,200 residential units and 28 acres of commercial uses, by CDG and Toll Brothers), the westernmost portion of the new proposed North Station development (by CDG), and remaining parcels north of WCR-12 generally referred to as the “Rieder” properties. In total, the Phase 1 Plan Document assumes that development of this area will include 3,003 new residential units and 682,439 sq. ft. of new commercial space, to be absorbed over 25 years. Staff has strategically drawn the Plan Area boundary to include parcels that need, or will attract, new investment, reinvestment, or development, along with public rights-of-way that may benefit from urban renewal treatment. If approved, Phase 1 will allow TOEURA to use tax increment financing (TIF) to remediate blighting conditions, and extend necessary infrastructure, to facilitate in the development of this key focus area along the I-25 Erie Gateway development corridor.
All taxing entities have been responsive and open to negotiation for certain revenue sharing to support the Phase 1 Plan Area. To date, seven of the nine impacted taxing entities have adopted tax increment revenue sharing agreements with TOEURA, pledging a certain amount of their property tax mill levy to support this area. Negotiations are ongoing with the remaining two entities, and staff will bring those two agreements back to TOEURA at its next meeting on July 23 for consideration.
The intergovernmental agreements each include three primary components:
• Agreement to share a portion of each taxing entity’s property tax mill levy (and sales tax rate for the Town of Erie) with TOEURA for the Phase 1 Plan Area.
• Consent for inclusion of agricultural land within the Phase 1 Plan, required by state statute.
• Agreement that any property tax increment to be generated by new oil and gas well sites developed within the Phase 1 Plan Area boundary after the adoption of the Plan will not be captured as TIF increment and will instead be remitted back to the taxing districts.
Included below is a summary of the terms approved by each taxing entity to date:
|
Taxing Entity |
Estimated Tax Increment |
Retained by TOEURA |
|
|
|
|
|
Town of Erie General Fund (Property Tax) |
$23,000,000 |
$23,000,000 |
|
Town of Erie Municipal Sales Tax |
$67,000,000 |
$19,000,000 |
|
Weld County |
$47,000,000 |
$23,500,000 |
|
St. Vrain Valley Schools General Fund |
$84,000,000 |
$84,000,000 |
|
High Plains Library District |
$10,000,000 |
$5,000,000 |
|
Northern Colorado Water Consv. (NWC) |
$3,000,000 |
$0 |
|
Summerfield Metro Districts, No. 1-3 |
$0 |
$0 |
|
North Station Metro District No. 2 |
$0 |
$0 |
|
|
|
|
|
Not yet approved: |
|
|
|
Mountain View Fire Protection District |
$39,000,000 |
TBD |
|
Frederick-Firestone Fire District |
$7,000,000 |
TBD |
|
|
|
|
|
Total Revenues |
$280,000,000 |
TBD |
Additional information will be discussed by Town staff at the June 25 TOEURA meeting.
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Safe and Healthy Community
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 24-005
2. Exhibit A-1 - TIF Agreement_Summerfield Metro Districts, No 1-3
3. Exhibit A-2 - TIF Agreement_North Station Metro District, No 2
4. Exhibit A-3 - TIF Agreement_St Vrain Valley School District
5. Exhibit A-4 - TIF Agreement_Town of Erie
6. Exhibit A-5 - TIF Agreement_Weld County
7. Exhibit A-6 - TIF Agreement_High Plains Library District
8. Exhibit A-7 - TIF Agreement_Northern Colorado Water Conservancy District
9. Staff Presentation