Revitalization Commission Agenda and Packet 2010 06 14

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EXHIBIT C PLANNING & DEVELOPMENT MEMORANDUM October 8, 2009 FROM: William Simmons, City Manager James Hayes, Director of Planning and DevelopmentJU Patrick Breitenstein, Executive Director, Northglenn Urban Renewal Authori~ Kristin Sullivan, Economic Development Coordinator ~ Travis Reynolds, Senior Plannerl"lIIf%. TO: SUBJECT: Modifying the Northglenn Urban Renewal Plan to Suspend Tax Increment Financing for Property without Active Urban Renewal Projects BACKGROUND: Staff recently prepared a memo and resolution regarding suspension of the tax increment financing (TIF) for NURA areas without redevelopment projects. City Council considered this resolution at its August 13, 2009 meeting. Although this measure did not gamer enough votes to pass, subsequent discussions have indicated that there is interest in more background research on the issue. Staff is aware that the Colorado Legislature may adopt future legislation that may place an enhanced burden on Urban Renewal Authorities. Enhanced legislation may require the City to react quickly to protect the interests ofthe Northglenn Urban Renewal Authority. Based on an opinion from the City Attorney and discussions with the Adams County Assessor, it is possible to stop the TIF clock for certain NURA areas and to continue running the clock in other NURA areas. It is our understanding that this has been done before by other urban renewal authorities in Colorado, including the Wheat Ridge Urban Renewal Authority. Besides the discussions to date with the Adams County Assessor, no outreach to other taxing districts is planned. The area considered for "stopping the clock" was brought into the Urban Renewal Authority in 2004 and is set to expire in 2029. An action to postpone the collection of the tax increment for an established time period would add that time period to the expiration date. For example, if the increment collection was postponed for a period of 5 years, those 5 years would be added to the expiration date (2029), effectively extending the period of collection to 2034. The attached tables show a scenario in which the TIP is stopped for all of the 2004 NURA areas except for two properties: 1) The Vitamin Shoppe / Floyd's building on the southwest comer of 120th Ave. and Washington S1. 2) The four-parcel block bounded by 115th Ave., Pearl St., 114th Ave., and Washington St., where Natural Grocers by Vitamin Cottage is located, as well as a car wash, and an auto service shop. (hereafter referred to as the Vitamin Cottage property) 10