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<br />LIGHT, KELLY & DAWES, P.C. <br />ATTORNEYS AT LA W <br /> <br />WRITER SQUARE OFFICE TOWER <br />1512 LARIMER STREET, SUITE 300 <br />DENVER, COLORADO 80202 <br /> <br />TEL. (303) 298-1601 <br />FAX (303) 298-1627 <br />E-MAIL slight@lkdpc.com <br /> <br />SAMUELJ. LIGHT <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Board of Commissioners <br />Louisville Revt,zation C:mmission <br /> <br />Samuel 1. Ligh~ <br /> <br />FROM: <br /> <br />DATE: <br /> <br />June 8, 201 0 <br /> <br />SUBJECT: <br /> <br />Potential Modification to Highway 42 Revitalization Area <br />Urban Renewal Plan (Plan) to Suspend Tax Increment <br />Financing (TIF) for Properties within the Plan Area <br /> <br />This memorandum is to introduce for Board discussion the question of whether to pursue a <br />potential amendment of the Plan to suspend the TIF for properties within the Plan Area. We are <br />aware of two urban renewal authorities that have recently amended their urban renewal plans to <br />stop the TIF clock for identified properties, and direction will be requested at your June 14 <br />meeting as to whether the Board would like staff to further investigate this option for the <br />Highway 42 Plan Area. <br /> <br />By way of background, the Highway 42 Plan approved in 2006 contained a property tax TIF <br />provision. Under the Urban Renewal Law, property taxes divided pursuant to such a provision <br />shall be divided for a period not to exceed twenty-five years after the effective date of adoption <br />of such a provision. C.R.S. S 31-25-107(9)(a). Based on the statutory authority granted to <br />amend an urban renewal plan at any time, we understand the urban renewal authorities for <br />Northglenn and Wheat Ridge have recently amended their urban renewal plans to suspend the <br />running of the TIF clock for certain properties included within their plan areas. Copies of <br />documents relating to these actions are attached. <br /> <br />The result of a Plan amendment to stop the TIF clock would be that TIF revenues are decreased <br />during the period of suspension, and that the TIF collection period is extended by the length of <br />the suspension period. As currently approved, the TIF provision of the Highway 42 Plan <br />provides property tax TIF from tax year 2007 to tax year 2031. As an example, a Plan <br />amendment to suspend the TIF for five years would effectively extend the period of collection to <br />2034. Thus, whether to pursue such an amendment depends on some review of the trade off of <br />deferring near term TIF revenues for later, additional years of incremental revenues. Depending <br /> <br />4 <br />