Revitalization Commission Agenda and Packet 2019 04 08

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SUBJECT: URBAN RENEWAL 101 TOPICS DATE: APRIL 8, 2019 PAGE4OF6 County. There is a renegotiation clause in the agreement that states if the County does not enter into a similar agreement with another Boulder County municipality within the first 7 years of the Plan, the County reimbursement percentage changes to 7.15% of TIF revenues and maximum payment is $3,075,000. Property Tax Increment Financing Tax Increment Financing (TIF) is a unique mechanism that enables an urban renewal authority or board to use the net new tax revenues generated by projects within a designated urban renewal area to help finance future improvements. TIF is new source of tax revenue, not an additional tax, which would not be available but for the increased property value that is largely attributable to the new investment. When a redevelopment project is being planned, the urban renewal authority or board analyzes how much additional property and/or sales taxes may be generated once it is completed. That "tax increment" then can be used by the urban renewal entity either to finance the issuance of bonds or to reimburse developers for a portion of their project costs. In either case, the new tax revenue that is created must be used for improvements that have a public benefit and that support the redevelopment effort by eliminating blight, such as site clearance, streets, utilities, parks, the removal of hazardous materials or conditions, or site acquisition. (Source: Denver Urban Renewal Authority) Property tax increment financing has been implemented for the Highway 42 Area, but not for the 550 S. McCaslin area. Sales Tax Increment Financing Urban Renewal Law also allows for Authorities to collect the increase of sales taxes generated within an Area above the base amount established when the area was established. Similar to property tax increment, sales tax increment funds can go towards projects that meet the requirement of the Urban Renewal Plan. Sales tax increment financing is not available in either urban renewal area in Louisville. Eminent Domain Another power Authorities may use is the ability to acquire private property through eminent domain if the Authority (and in Louisville, also the City Council) finds it is necessary for the "public good" and usually as a last resort. Most municipalities are extremely reluctant to use their eminent domain powers for many reasons, not the least of which is the lengthy acquisition and negotiation process. LRC Financial Assistance In 2013, the LRC established an application for assistance for property owners to request the LRC's help in completing a project. The application envisions two ways in which the LRC can assist a development: • Infrastructure Projects LOUISVILLE REVITALIZATION COMMISSION