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RESOLUTION APPROVING A PROPERTY TAX INCREMENT REVENUE AGREEMENT WITH ADAMS COUNTY, COLORADO
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Summary and Background Information:
Project Updates
REGen LLC has executed a Letter-of-Intent with DelWest for the construction of the residential portions of the project. Specifically, the agreement contemplates a takedown schedule in three phases:
Phase 1 - Single Family Home blocks
Phase 2 - Affordable Rental block - to close within 12 months after closing Phase 1.
Phase 3 - Remaining central block - to close within 18 months after Phase 2.
The project work is divided along the same lines as the MDA with REGen, LLC providing roads, water, sewer, storm water, and open space infrastructure. DelWest will build out the vertical product and all the improvements from the back of curb to the center of the parcel including sidewalks, tree lawns, alleys, internal utilities, and internal greenspaces.
URA Plan Process
The URA board has taken additional steps in the URA process, as required by House Bill 1348. Specifically, three Additional URA Board seats have been added and filled. Further, HB 1348 requires agreements be in place with all taxing entities for the property. To date, good progress has been made:
1. South Adams County Fire Protection District - Agreement approved by the Board on April 18, 2017.
2. South Adams County Fire Protection District - Agreement approved by the Board on May 10, 2017.
3. Urban Drainage Flood Control District - Agreement approved by the Board on June 15, 2017.
4. Rangeview Library District - Agreement approved by the Board on June 21, 2017, although the Library Board made some amendments to the version they approved. The URA staff and attorney analyzed some changes they made in the version they approved and judged the changes acceptable.
5. Adams County - After providing all of the supplemental information requested by Adams County, the Board of Commissioners considered the request on June 27, 2017. At a follow up meeting on July 13, the County requested additional information, which REGen is providing this week, and staff and REGen are returning to the Adams County Board tomorrow, August 15 for consideration by the Adams County Board.
Property Tax Increment Revenue Agreement with Adams County
The purpose of the meeting on October 16 is to consider the adoption of the Property Tax Increment Revenue Agreement with Adams County. URA staff and REGen have met with County staff multiple times, and presented to the Board of County Commissioners on August 15. The attached draft agreement is the product of these efforts. Major deal points include:
• Adams County agrees that the URA may retain and expend 100% of the TIF received from the County property tax levy within the tax increment area
• Urban Renewal Plan initially authorizes 25 year TIF for Phase I Tax Increment Area. The URA Plan anticipates that City Council will amend the Plan in the future to include additional phases of Tax Increment Areas. The TIF for each additional phase will last for 25 years from the time that City Council amends the Plan to add the phase and authorize TIF for it. While approval of future phases requires public notice and hearings by City Council to amend the Plan, the County waives further negotiation of the IGA for future phases
• Collection of TIF terminates upon repayment of all eligible costs
• The commercial and educational parcels outlined in the PUD shall not be rezoned to residential uses
• If County electors approve a new or increased mill levy, any incremental revenues derived from the future mill levy shall not be considered part of the TIF and shall be passed through to the County
• If future BRT is located at the MHGP URA area, the TIF will count as the Adams County’s local match at that time
• The IGA requires 150 income-qualified housing units (income restrictions < 60% of AMI). Of those, at least 10 units will have deeper levels of affordability (less than 50% AMI)
• Providing an additional 25 units at 80% of AMI elsewhere in the development
Staff Responsible (Department Head): Chris Cramer, community Development Director
Staff Member Presenting: Chris Cramer, Community Development Director
Outside Presenter: Rick Wells, REGen LLC
Financial Impact: TBD
Funding Source: N/A
Staff Recommendation: Approval
Suggested Motion: I move to approve Resolution Res URA 2017-04