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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2008 - SECOND READING OF ORDINANCE NO. 101, 2008, EXTENDI ITEM NUMBER: 13 AGENDA ITEM SUMMARY DATE: September 2, 2008 FORT COLLINS CITY COUNCIL STAFF: Chip Steiner SUBJECT Second Reading of Ordinance No. 101,2008,Extending the Period During Which the Fort Collins, Colorado Downtown Development Authority May Allocate and Collect in the Downtown Development Authority Tax Increment Fund a Portion of Property Taxes. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance,unanimously adopted on First Reading on August 19,2008,allows the Downtown Development Authority (DDA) to extend the period during which a portion of the property taxes may be allocated,in accordance with the provisions of Senate Bill 170-08,and when collected,paid into the DDA's Tax Increment Fund. This extension is for 20 years. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- August 19, 2008. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 21 AGENDA ITEM SUMMARY DATE: August 19, 2008 FORT COLLINS CITY COUNCIL FF: Chip Steiner SUBJECT First Reading of Ordinance No. 101, 2008, Extending the Period During Which the Fort Collins, Colorado Downtown Development Authority May Allocate and Collect in the Downtown Development Authority Tax Increment Fund a Portion of Property Taxes. RECOMMENDATION Staff and the DDA Board recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance allocates one h dyed a ent(1 ° o , e ' property tax increment to be paid into the DDA's Tax Incremen and d g the I xtensio eriod. EXECUTIVE SUMMARY The Downtown Development Authority(DDA)is asking Council to extend the period during which a portion of the property taxes may be allocated, in accordance with the provisions of Senate Bill 170-08, and when collected, paid into the DDA's Tax Increment Fund. This extension is for 20 years. BACKGROUND The Downtown Development Authority was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. TheKDi s at at 1 ve b n made in public infrastructure improvements and redevelopthi e D ea, ealizes that certain objectives and purposes of the DDA Plan hae n mpl ed d requir further work. The DDA finds that, in order to achieve the objectrposes, ojec d pro s of the DDA Plan,it is necessary to continue the use of tax increment financing beyond the original TIF term as provided by the DDA Statute. ATTACHMENTS 1. Downtown Development Authority Board minutes, July 10, 2008. ORDINANCE NO. 101, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO EXTENDING THE PERIOD DURING WHICH THE FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY MAY ALLOCATE AND COLLECT IN THE DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT FUND A PORTION OF PROPERTY TAXES WHEREAS,on April 21, 1981,the City Council adopted Ordinance No.046, 1981,creating pursuant to C.R.S. Sections 31-25-801 et seq. (the "DDA Statute") a Downtown Development Authority(the"Authority")and establishing the boundaries of the Downtown Development District (the"District'); and WHEREAS,on September 8, 1981, by Resolution 1981-129, the City Council approved the Fort Collins Downtown Development Authority Plan of Development, which also describes the boundaries of the District; and WHEREAS,on May 14,2008,the Colorado Legislature passed Senate Bill 08-170 amending the DDA Statute by extending the period of time that a downtown development authority may utilize tax increment financing; and WHEREAS,under amended Section 31-25-807,C.R.S., in the final ten years of the original thirty years that a downtown development authority may allocate and collect property taxes, the downtown development authority may, through the passage of an ordinance by the governing body, extend the period by one additional twenty year period(the "Property Tax Extension"); and WHEREAS, on the first day of the Property Tax Extension the established base year for the allocation of property taxes (the"Base") must be advanced by ten years, and upon the completion of the first ten years of Property Tax Extension, the Base must be advanced by one year for every additional year through the final ten years; and WHEREAS,the Board of Directors of the Authority believes that the Property Tax Extension would further the objectives and purposes of the District as contained in the Plan of Development and has, by adopting Resolution 2008-006, attached as Exhibit"A"and incorporated herein by this reference, recommended approval of the Property Tax Extension by the City Council; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby approves a twenty-year extension of the period during which the Downtown Development Authority may allocate and collect property taxes. Section 2. That on the first day of the extension of property taxes the established base year for the allocation of property taxes is advanced by ten years. Section 3. That upon the completion of the first ten years of extension of property taxes, the base year for the allocation of property taxes be advanced by one year for every additional year through the final ten years. Introduced, considered favorably on first reading, and ordered published this 19th day of August, A.D. 2008, and to be presented for final passage on the,2TOday o'f September, A.D. 2008. ATTEST: May City Clerk Passed and adopted on final reading on the 2nd day of September, A.D. 2008. Mayor ATTEST: City Clerk