City Council Agenda and Packet 1997 01 14

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issue revenue bonds, with any taxation or bonding subject to voter approval. CML worked on the bill last year to pro- vide municipalities that chose not to be a member of an authority with the ability to control to what extent their jurisdiction chose to participate in an authority in other ways. Support legislation granting to local governments outside the RTD area the ability to form transportation authorities to build, operate, and maintain highway and other transportation facilities with a variety of taxing, fees, and charges powers as an additional transportation financing tool, contingent upon pro- viding nonparticipant municipalities with adequate protection. Abandoned railroad rights -of -way (Jan Gerstenberger )—The TLRC has endorsed a .bill intended to address preservation of abandoned railroad cor- ridors in Colorado. It establishes two methods for the state to gain ownership of these properties donation by the railroads and purchase by CDOT. Of particular import to local governments: an incentive to donate abandoned right- of -way is provided to the railroads by offering them a personal property tax credit on 50 percent of the net liquida- tion value of the donated right -of -way (in addition to an income tax credit of 50 percent of the net liquidation value). If the state subsequently sells the prop- erty, local governments would be enti- tled to reimbursement of the personal property tax credit to the extent there are available funds, except that an entity cannot accept the reimbursement if the entity is in any way limited by TABOR, in which case the state keeps the money. The bill provides that CDOT must choose to accept the donated right -of- way before a railroad can donate it. It then requires CDOT to sell, trade, or otherwise convey the donated right -of- way to a company capable of operating a freight or passenger service, or it may allow the use of the property for any CML Statehouse Report public purpose that is not inconsistent with those purposes. It prohibits the use as a recreational trail in an agriculturally zoned area without the consent of the adjacent property owners. CDOT is also authorized to purchase abandoned railroad rights -of -way sub- ject to approval by the general assembly through the legislative members of the TLRC. With the anticipated abandonment of several rail lines in various parts of the state, a state rail policy to preserve these corridors is timely. But deciding the best way to do this is not easy. Some issues to consider are: Is the donation to the state an appropriate transfer mecha- nism? If the property is donated, should local governments' budgets be impacted twice —once through the loss of a pri- vately owned property to the state and again with a further reduction through property tax credits? How does this donation or purchase concept work in conjunction with the portions of rail lines that went to the railroads with a reversion to the original property owner provision? Will the state's planning process provide for a reasonable dia- logue with local governments about the reuse possibilities? Are the transfer to other use provisions likely to result in reuse of the corridors? Are there other major policy issues that should be inte- grated? Support appropriate methods to protect abandoned railroad corridors for trans- portation purposes and oppose giving railroad companies financial incentives at the expense of local government rev- enues without local approval. Privatization of RTD Tots (Jan Gerstenberger) —RTD will request legislation that would permit joint development authority on RTD -owned or operated transit facilities for the pur- pose of providing retail or commercial goods and services to the public. It would make any such retail or commer- cial goods and services subject to taxa- tion (to the extent of the private entity's December 6, 1996