City Council Minutes 2019 05 14 - Laserfiche WebLink

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City Council Meeting Minutes May 14, 2019 Page 4 of 7 Councilmember Stolzmann asked about new taxes that started after the URA was put in place She noted these are new taxes not a tax increment generated by development in the URA. For example the new tax for the Rec Center is treated as TIF in those areas and goes to the LRC Kelly stated to change that would require modification to the urban renewal plan or a new agreement with the LRC Director DeJong reviewed the Highway 42 Renewal Plan including the blight factors, the purpose is to eliminate and prevent blight and encourage reinvestment. The area generates a property tax TIF, but no sales tax TIF City Attorney Kelly stated to add a sales tax TIF the LRC would have to ask for a change and it would require Council approval Mayor Pro Tem Lipton asked why parts of Main Street were included in the plan Mayor Muckle stated in 2005 downtown wasn't what it is today and there was some concern it would require help from the LRC to redevelop However, it did redevelop on their own Director DeJong stated eminent domain authority for the URA in the Hwy 42 area is no longer an option For 550 McCaslin it might be an option but would require a supermajority of both LRC and Council and the consent of the property owner Director DeJong reviewed the City/LRC Cooperation Agreement. It includes support services for the LRC, states the Council has control of the LRC budget; and Council approves agreements, bonds, and financial commitments of the LRC However, the LRC and the Council are separate political entities. Director DeJong reviewed the agreement with Boulder County (The Tri-Party Agreement) It includes a shareback of TIF revenue at specific levels. No other Boulder County municipality has a similar agreement. Director DeJong reviewed the LRC budget and projections, he noted the budget is approved annually by the Council The 2020 TIF projection is almost $1 M in revenue exceeding expenses. Director DeJong reviewed the tools available for urban renewal authorities in the statute: tax increment financing for property tax or sales tax, facilitating projects, and the ability to fund projects with financial assistance. Director DeJong gave an example of how TIF would be calculated on a hypothetical project. The LRC has assisted in funding five projects to date including the South Street gateway and DELO Core Area Infrastructure Bonds. Councilmember Stolzmann stated the bonds for the core area were appropriate but she doesn't think there is still blight in the street network. She asked if someone could ask for help to alleviate blight for the same reason now Mayor Pro Tem Lipton stated each project would have to do its own analysis and determine its own factors at the time of