URBAN RENEWALURBAN RENEWAL in Colorado’s Front in Colorado’s Front

RangeRange

Center for the American Center for the American DreamDream

Independence InstituteIndependence Institute

Jennifer LangJennifer Lang

OutlineOutline

• Tax Increment Financing

• Urban Renewal and Transit

• City Examples

• In the News

Cities with Urban Renewal Cities with Urban Renewal Authorites, 20+Authorites, 20+

Urban Renewal DevicesUrban Renewal Devices

• Tax Increment Financing (TIF)

• Bond Issuance• Property

Improvement Fee (PIF)

• Public/Private Partnerships

• Eminent Domain • Blight: 4 out of 11

criteria must be met• Colorado Urban

Renewal Law 31.25.101-115

How it worksHow it works

• No mill levy with TIF• URA assesses need and does economic research,

history, potential of area• Any new development generating a higher increment of

tax is then diverted from regular property revenues and used to repay URA bonds or developers

• Any pre-existing structures in a TIF district reassessed with higher value, taxes go to city

• 25 year time window for Urban Renewal tax increments • 25 years worth of that tax revenue increment is being

diverted away from schools, public services

Current and Recent Urban Renewal Current and Recent Urban Renewal Projects in the Denver MetroProjects in the Denver Metro

Arvada City Center

Arvada Ralston Fields

Arvada Jefferson Center

Aurora City Center

Aurora Fitzsimmons Medical Research Campus

Aurora/Fletcher Plaza Original Downtown

Boulder Valley Regional Center

Boulder 9th & Canyon

Broomfield West 120th Avenue Gateway Corridor

Broomfield Hunter Douglas Project

Broomfield Shopping Center

Broomfield U.S. 36 Interlocken Business Center

Broomfield Events Center, Arista TOD

Englewood City Center/TOD

Golden Safeway

Golden Bent Gate/Outdoor Gear

Golden Gem/office/retail

Golden Clear Creek Commons Senior Center

Golden Clear Creek Square/Jackson Ct

Golden Gateway Station/PUD

Lakewood Belmar

Lakewood Creekside (Colfax-Wadsworth)

Thornton 104th to 84th Avenue

Westminster Mandalay Gardens

Westminster NorthGate, 72nd-Federal

Westminster South

Wheatridge Town Center

Wheat Ridge 38th Ave Corridor

City and County of DenverCity and County of DenverCurrent TIF DistrictsCurrent TIF Districts

Alameda Square

American National

California St. Parking Garage

City Park South

Downtown Denver

Executive Tower Hotel

Guaranty Bank

Highlands Garden Village

Lowry Urban Development

Mercantile Square

Elitch's

Northeast Park Hill

Pepsi Center

Point Urban

South Broadway

St. Lukes Hospital #1

St. Lukes Hospital #2

Stapleton Development

Westwood

38th and York

TAXESTAXES

• Denver URA (urban renewal authority)

4.27 % URA of total city and county tax

• Broomfield URA5.08 % URA of total city and county tax

Tracking Tax Dollars & URATracking Tax Dollars & URA

• Abstract of assessment

• TIF districts• URA in Miscellaneous

section `

Denver City and County Loss to DURA

$10,930,735

Denver School System Loss to DURA

$15, 425,592

Source http://www.rtd-denver.com/fastracks/index.html

Transit and Urban RenewalTransit and Urban Renewal

FasTracks is driving URATransit Oriented Developments (TOD)

Marketed as smart growth and progressive

Glosses over fact of financing

Could be in anytown USA

TOD PLAN TOD PLAN

Source: http://www.denvergov.org/TOD/Source:

City of Englewood (EURA)City of Englewood (EURA)

• 55 acre Cinderella City Mall into TOD

• Bonds sold in 1985, TIF in early days– Currently, EURA bonds in default for

$45 million, not backed in full faith/credit by city

• Repayment accelerated

• Bondholders sued EURA to require city to pay the debt of EURA

City Center

Englewood, Colorado

ResultsResults

• What you subsidize you get more of – what you tax you get less of.

• Lost accountability• Corporate welfare• Challenges: Unclear Market

Demographics and Demand• Creating a certain life style and making

them pay for it, sacrificing schools, fire, police, and public services

Belmar- City of LakewoodBelmar- City of LakewoodLakewood Reinvestment AuthorityLakewood Reinvestment Authority

Former Villa Italia MallFormer Villa Italia Mall

104 acre URA site104 acre URA site

Windmill Farms in the parking lots

BelmarBelmar Parking Parking Garages Garages

Lily pads, polka dots, Lily pads, polka dots, retro retro

Smart Growth = Smart Growth = Building upBuilding upFull of infillFull of infill

Fancy gov’t housing?Fancy gov’t housing?Will urban renewal need Will urban renewal need

urban renewal in 20 urban renewal in 20 years?years?

High Density Living: Look up to High Density Living: Look up to see the sky, nevermind the skylinesee the sky, nevermind the skyline

City of LouisvilleCity of LouisvilleLouisville Revitalization CommissionLouisville Revitalization Commission

• August 16, 2006, Public hearing was standing room only, 100+

• Delayed a decision to created a UR area along Hwy42

• Eminent domain seizure concern

• Purpose: to create higher sales tax revenue to compete with other cities

• Vague goals, what will this accomplish?

• Conflicting numbers in the projections/impacts– City estimates $77.5

million in new tax revenue over next 25 yrs, most that would be put back in URA

– County estimates a loss of $16.5 million to the county in next 25 yrs

City of Boulder City of Boulder Boulder Urban Renewal AuthorityBoulder Urban Renewal Authority

• Tension: urban renewal & historic preservation• 9 historic districts• 2 urban renewal projects

– Boulder Valley Region Center started 1979• Redeveloped old mall, $20million in bonds sold

– 9th and Canyon• 200 room hotel and 556 public parking garage• Bonds issued through parking district,• TIF $500,000/yr

• Next: Transit Village Area Plan-TOD

TIF Reforms?TIF Reforms?TransparencyAccountabilityPublic hearing for community desiresURA is not elected, but appointed by the mayor

and approved by city council, five year termsFinancial SafeguardsDemocratic, rather than collective Redefining need, blight, and public goodReveal the true market price without TIFEconomic feasibilities studiesOwnership and private investment benefit

FUTURE DIRECTIONSFUTURE DIRECTIONS

• Research needed• Public Awareness • Future landscape of Denver Metro• Truth seekers• When will it stop• Beyond Smart Growth-the next big trend• Backlash• Stop ignoring market indicators of how people

want to live

Questions?

Thank YouThank You

• Independence Institute associates- Joe, Kay, Anne, Julie, Dennis

• Randal O’Toole