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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/20/2007 - RESOLUTION 2007-012 SUBMITTING THE DOWNTOWN URBAN ITEM NUMBER: 23 AGENDA ITEM SUMMARY DATE: February 20, 2007 FORT COLLINS CITY COUNCIL STAFF: Clark Mapes SUBJECT Resolution 2007-012 Submitting the Downtown Urban Renewal Plan to the Planning and Zoning Board, the Larimer County Board of Commissioners, and the Poudre School District Board of Education. RECOMMENDATION Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY Staff is taking the necessary steps to bring forward a Downtown Urban Renewal Plan (URP) for a Council adoption hearing on March 20. One of the necessary steps required by Colorado's Urban Renewal Law is for the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation regarding conformance with City Plan, which is the general plan for development of the municipality as a whole. The Council must also allow the Poudre School District to "participate in an advisory capacity." The Planning and Zoning Board is scheduled to review the proposed Urban Renewal Plan on March 15,2007. The Council is scheduled to conduct a public hearing and consider resolutions approving a"Blight Study"and the Downtown Urban Renewal Plan at its March 20 regular meeting. Adoption of Resolution 2007-012, referring the Plan to the other respective bodies, does not commit the Council to approving the Blight Study and Downtown Urban Renewal Plan at its March 20 meeting. BACKGROUND In 1982, the Fort Collins City Council created an Urban Renewal Authority(URA)and designated itself as the governing board (known as the "Authority"). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions related to certain"blight factors"in the community. State statutes gives the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds and acquire property voluntarily or by eminent domain,among others. Urban renewal projects may be financed in a variety of ways. URAs are authorized to borrow money, issue bonds, and accept grants from public or private sources. The principal method of financing urban renewal projects is through obligations secured by property tax or sales tax increments from the project area ("tax increment financing"). An URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. February 20, 2007 -2- Item No. 23 In 2004,the City Council adopted an update to City Plan,the City's Comprehensive Plan. Principle GM-8 of City Plan states the following: The City will promote compatible infill and redevelopment in areas within the Growth Management Area boundary. And, Policy GM-8.1 of City Plan states the following: Targeted Redevelopment/Infill. Redevelopment and infill development will be encouraged in targeted areas. The purpose of these areas is to channel growth where it will be beneficial and can best improve access to jobs, housing and services with fewer and shorter auto trips. The targeted areas are parts of the city where general agreement exists that development or redevelopment is beneficial. A major goal is to increase economic activity in the area to benefit existing residents and businesses and, where necessary, provide the stimulus to redevelop. These areas should be defined from City Plan, Subarea Plans,Zoning and locational criteria such as: a. Underutilized land b. Areas already undergoing positive change, which is expected to continue C. Areas where infrastructure capacity exists d. Areas where public investment is warranted from a policy perspective e. Areas with special opportunities, such as where major public or private investment is already planned f. Transportation opportunities: • Along travel corridors • Along enhanced travel corridors City Plan also contains a map (copy attached) which depicts "Targeted Redevelopment Areas" in the Growth Management Area boundary. The Downtown (Area #5) is one of the Targeted Redevelopment Areas. In recent months, the Downtown Development Authority has evaluated options for continuing its program of projects, and establishing an URP at this time has been found to be the best solution. This issue was the subject of a Council Work Session on Tuesday, February 13, 2007. By adopting Resolution 2007-012 the Council will formally submit the Urban Renewal Plan to the Planning and Zoning Board,the Poudre School District Board of Education,and the Larimer County Board of Commissioners for their review and, with respect to the Planning and Zoning Board, for written recommendation as to its conformity with City Plan. Adoption of Resolution 2007-012 does not commit the Council to approve the Urban Renewal Plan for the Downtown area at this time. ATTACHMENTS 1. Targeted Redevelopment Areas map from City Plan. • xe - J a k F a V r - Lt r v L rrnev �yc' i I Areas Identified by r,I;, Targeted Redevelopment Areas Subarea Plans(Additional) Redevelopment t East Mulberry Corridor 5-Downtown Potential Intensification Areas and I n f i l l 2-Mason Street Corridor 6-Foothills Mail per Zoning without a Subarea Plan Source:Fort Collins&EDAW 3-Campus West 7-CSU (_, , City Limits • 4-North College 8-South College 0.5 t Miles p 9-CSU Foothills Campus Growth Management Area FIGURE GM-8 ��`. Growth Management City Plan Principles and Policies 141 May , 2004 RESOLUTION 2007-012 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUBMITTING THE DOWNTOWN URBAN RENEWAL PLAN TO THE PLANNING AND ZONING BOARD, THE LARIMER COUNTY BOARD OF COMMISSIONERS AND THE POUDRE SCHOOL DISTRICT BOARD OF EDUCATION WHEREAS, the Council of the City of Fort Collins has heretofore established an Urban Renewal Authority; and WHEREAS, the Fort Collins Urban Renewal Authority has the capability to utilize tax increment financing for the promotion of urban renewal projects in the downtown area if the URA establishes a Downtown Urban Renewal Plan; and WHEREAS, a proposed Downtown Urban Renewal Plan has been prepared and presented to the City Council for submission to the Planning and Zoning Board , the Larimer County Board of Commissioners and the Poudre School District Board of Education, all as required under the Colorado Urban Renewal Law; and WHEREAS,the City Council has determined that this proposed Downtown Urban Renewal Plan should be submitted to the Planning and Zoning Board for its advice and recommendation regarding the propriety thereof and should also be submitted to the Larimer County Board of Commissions and the Poudre School District Board of Education in accordance with the requirements of the provisions of Colorado Revised Statute Section 31-25-107. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, in accordance with Section 31-25-01-107 of the Colorado Revised Statutes , the proposed Downtown Urban Renewal Plan (the "Plan"), in substantially the form attached hereto as Exhibit "A", shall be promptly submitted by the City Manager to the City's Planning and Zoning Board,the Poudre School District Board of Education and the Larimer County Board of Commissioners with specific instructions to the Planning and Zoning Board to review the proposed Plan and give written recommendations to the Council within thirty days after receipt of the proposed Plan, specifically and solely as to whether or not the proposed Plan complies with the City's Comprehensive Plan(City Plan). Section 2. That the City Manager is hereby authorized to submit to the Planning and Zoning Board, the Poudre School District Board of Education and the Larimer County Board of Commissioners any impact reports or substantive amendments to,or updates of,the proposed Plan, so as to ensure compliance with the requirements of the Colorado Urban Renewal Law. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th day of February, A.D. 2007. Mayor ATTEST: City Clerk EXHIBIT "A" DRAFT Downtown Urban Renewal Plan City of Fort Collins Prepared for: City of Fort Collins and Fort Collins Urban Renewal Authority February 14, 2007 Downtown Urban Renewal Plan 1 Table of Contents 1. Preface and Intent ......................................................................................... 3 2. Finding of "Blight" ........................................................................................ 5 3. Plan Objectives.............................................................................................. 6 4. Renewal Activities......................................................................................... 7 5. Development Standards and Procedures.................................................... 8 6. Conformance ................................................................................................. 8 UrbanRenewal Law...........................................................................................................8 CityPlan.............................................................................................................................8 7. Project Financing .......................................................................................... 9 PropertyTax Increment...................................................................................................12 SalesTax Increment........................................................................................................10 Tax Increment Reimbursement..........................................................................10 8. Modifications to the Plan ............................................................................ 13 9. Reasonable Variations ................................................................................ 11 Downtown Urban Renewal Plan 2 1 . Preface and Intent The Downtown Renewal Plan (Plan) is an Urban Renewal Plan prepared for the Fort Collins Urban Renewal Authority (Authority) and the City of Fort Collins (the City), pursuant to the provisions of the Urban Renewal Law, Colo. Rev. Stat. §§ 31-25-101 et seq. (Urban Renewal Law). Terms used in the Plan have the same meaning as in the Urban Renewal Law. The jurisdictional boundaries of the Authority are the same as the boundaries of the City. Within the City boundaries there may be one or more urban renewal areas. This Plan describes the framework for certain public undertakings constituting urban renewal projects and other authorized activities under the Urban Renewal Law in the Downtown area, located in the City of Fort Collins, Larimer County, Colorado. The boundary of the area to which this Plan applies generally includes those properties located within the area bounded by: ■ an irregular line generally extending along E. Mulberry Street and W. Laurel Avenue on the south, ■ an irregular line generally along E. Vine Drive on the north, • an irregular line generally along S. Meldrum on the west, ■ and irregular line generally extending along N. Lemay Ave, also known as 9`"Street on the east. The plan area is depicted on the Boundary Map on the following page. A legal description of the area is attached hereto as Appendix A. Downtown Urban Renewal Plan 3 1 . I I I JIMr i LP' �i .fir ■ -HL�.',' ■ F I ■I _111 ■ � � nun - _,IIIIIIII "N. s—film IIIII r 1 IIIIL IIII. . .■— —rill m IL�� 1 1 n �w H IIII = �.� • i ._ IL'� �� Ili Ippl� unllll i■17 � � IIII IIIA `�' ��� . > : i II III6" — ` 0111111! Inh a■ �I� lum= i ui' l' alln. °IIII: �' IIIII "■ 1n11 �11111= _= idly tiim _ .ai 1�1111' Jlllli . ME 1 ■ �_ u IIIL_ n111I 1. , i. Illlllll i == rTr= =u Itll IN ME = =w r _ ■II. �e iNlll. M= Mlrl.ollic 13 =IIII ■_ ■� ..,III I'�'� _: IIIII ac 1 111111'11 ... r Mill. =11■ �Ilti i111f IIIIIIIe Er= =_ • -a- _�i_ �, : Ili I�_�=� e_ =r/__ cr_ r= ___ �� _�Igr =� - -_ �= _ _! =w s= == �o ■■ == ■_. awn:-= -= , w � - IIIII Ci■ uII IIII Illlf� �- - 5— �= =rIU% =un ■- 'ii� uma�� IIII'!" nm =�1' © IN Cam'== cllla ■1= Tr illlllli Irl�:'::' '■�I ��WNlx — ,i��inn iiiiiiii uunii iillllll IrH II�11( � If11� I����:��111:. ■■�CIII IIIII /1111111 Illllllill : QI r 1: '�, :f y'!I Irrr =111 Ifl 11 :IIIIII IIIIIIII � �■ �11��116:Ca.-- .1 :.■■ . . unll urr.. �..� � .■ This Plan was prepared for adoption by the City Council in recognition that the Renewal Area requires a coordinated strategy, with financing possibilities, to eliminate blight and prevent the spread of blight, and accomplish the City's development and redevelopment objectives for improving the viability of the area. The Plan effort reflects broad public support for public initiatives to assist with ongoing challenges involving the physical fabric and economic health of the Downtown area. As a group, Downtown stakeholders recognize the importance of eliminating blighted conditions and preventing the spread of blight, which constitutes a threat to the health, safety and the economic security of the area. The driving interest in the establishment of this Plan is to offer tax increment financing as a tool to stimulate and leverage both public and private sector development (including redevelopment), to help eliminate blight and prevent the spread of blight. It is the intent of this Plan for any development projects and other implementation actions to be done in a responsive manner, with full consideration for interests and concerns of property owners in the area. Development and redevelopment in the area is anticipated to occur incrementally over a substantial period of time that can consist of a period of up to 25 years as authorized by the Urban Renewal Law. 2. Finding of "Blight" To be determined by the City Council. Downtown Urban Renewal Plan 5 3. Plan Objectives The overall objective of this Plan is to remedy blight and prevent the spread of blight by assisting implementation of the relevant provisions contained in the following documents: ■ Downtown Development Authority Plan of Development • Downtown Plan ■ Downtown Strategic Plan • Downtown River Corridor Implementation Program • A Report on Redevelopment Policies, Strategies and Future Directions • East Mulberry Corridor Plan ■ City of Fort Collins Master Street Plan ■ Fort Collins Infill Infrastructure Report ■ City Plan (The City of Fort Collins Comprehensive Plan) ■ City of Fort Collins Master Transportation Plan To do this, this Plan is intended to stimulate private sector development and to support programs and activities intended to stimulate economic activity in and around the Renewal Area. A combination of private investment, Authority financing, and public investment will assist progress toward the following additional objectives: ■ To address and remedy conditions in the area that impair or arrest the sound growth of the city ■ To facilitate redevelopment and new development by private enterprise through cooperation among developers and public agencies to plan, design, and build needed improvements ■ To implement the Comprehensive Plan and its related elements ■ To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area ■ To implement cultural and economic programs that improve the competitive vitality of the Urban Renewal Area ■ To effectively utilize undeveloped and underdeveloped land ■ To improve pedestrian,bicycle, and vehicular circulation and safety ■ To ultimately contribute to increased revenues for all taxing entities ■ To encourage the voluntary rehabilitation of buildings, improvements and conditions ■ To facilitate the enforcement of the laws and regulations applicable to the Renewal Area ■ To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement and rehabilitation projects. Downtown Urban Renewal Plan 6 4. Renewal Activities To support progress toward the objectives, the Authority may undertake any of the following renewal activities, as deemed appropriate for the elimination or prevention of blight factors within the renewal area, pursuant to the Urban Renewal Law: a. Public Improvements. The Authority may cause, finance or facilitate the design, installation, construction and reconstruction of public improvements in the Renewal Area. In order to promote the effective utilization of undeveloped and underdeveloped land in the Renewal Area, the Authority may, among other things, enter into financial or other agreements with the City of Fort Collins to provide the City with financial or other support in order to encourage or cause the City to invest funds for the improvement of storm drainage and street conditions and deficiencies in the Renewal Area. b. Programs and Activities. The Authority may develop and implement economic and cultural programs and activities to facilitate the economic revitalization of the urban renewal area. c. Purchase of Property. In the event that the Authority finds it necessary to purchase any real property for an urban renewal project to remedy blight factors pursuant to the Urban Renewal Law and this Plan, the Authority may do so by any legal means available, including the exercise of the power of eminent domain, pursuant to the Urban Renewal Law. If the power of eminent domain is to be exercised for the purpose of transfer of property to another private person or entity, the Authority's decision whether to acquire the property through eminent domain shall be guided by the following criteria, with the understanding that these guidelines shall not be construed to constrain the Authority's legal ability to exercise the power of eminent domain: all requirements of the Urban Renewal Law, including eminent domain procedures, have been met; • other possible alternatives have been thoroughly considered by the Authority; • good faith negotiations by the Authority and/or the project developer have been rejected by the property owner; • reasonable efforts have been undertaken to: (a) understand and address the property owner's position and his or her desires for the property and for any existing business on the site, and (b) work with the owner to either include the owner in project planning or purchase the property and relocate the owner in accordance with the Urban Renewal Law on terns and conditions acceptable to the owner. d. Demolition. The Authority may provide for the demolition of existing development and clearance of sites as part of specific projects. e. Participation Agreements. The Authority may enter into participation agreements with property owners or developers in the renewal area to facilitate participation and assistance that the Authority may choose to provide to such owners or developers. These may include provisions regarding project planning, public improvements, financing, design, and any other matters allowed pursuant to the Urban Renewal Law. f. Relocation Assistance. It is not expected that the activities of the Authority will displace any person, family, or business. However, to the extent that in the future the Authority may purchase property causing displacement of any person, family, or business, it shall develop a relocation program to assist any such party in finding another location pursuant to the Urban Renewal Law, and provide relocation benefits consistent with the Urban Renewal Law. There shall be no Downtown Urban Renewal Plan 7 displacement of any person or business without there being in place a relocation program, which program shall become a part of this Plan when adopted. g. Hiring. The Authority may employ consultants, agents, and employees, permanent and temporary, and it shall determine their qualifications, duties, and compensation. h. Legal Authority. The Authority may also exercise all other powers given to it under the Urban Renewal Law. 5. Development Standards and Procedures Development within the Renewal Area shall be designed and processed in accordance with the City of Fort Collins Land Use Code and other applicable standards, in the City's standard development review procedures. 6. Conformance URBAN RENEWAL LAW This Plan is in conformity with and subject to the applicable statutory requirements of the Urban Renewal Law. CITY PLAN The City's adopted Comprehensive Plan, known as City Plan, describes desirable land use and transportation patterns, with goals and policies for those topics along with community appearance and design, the environment, open lands,housing, the economy, and growth management. Briefly summarized, the land use pattern envisioned by these plans for the Renewal Area is a retail/entertainment district in the historic core, surrounded by transitional areas that will leverage the core's energy, reinforce the market strength within the core, and connect with Colorado State University in the southern portion of the Plan area. The mix of land uses in these infill/transition areas will blend with surrounding residential neighborhoods. The Renewal Area is envisioned to evolve with improved community design and streetscapes, in an interconnected framework of streets and blocks. One of the purposes of this Plan is to implement the vision for the Renewal Area as a commercial corridor with mixed-use residential improvements. This Plan is intended to provide mechanisms to facilitate implementation of City Plan, and therefore it is in direct conformance with City Plan. The following excerpts from City Plan highlight the ties between City Plan and the need for this Urban Renewal Plan. The excerpts are listed in approximate order of relevance to this Urban Renewal Plan, rather than the alpha-numeric order of City Plan. These are representative excerpts, and not an all- inclusive listing of relevant aspects of City Plan: Downtown Urban Renewal Plan 8 PRINCIPLE GM-7: Strategies will be explored to seed initial development in specified locations, and to provide the special features that offset the impacts associated with increased densities. Policy GM-7.1 Strategic Locations. The City will explore strategies that will sufficiently influence market conditions to make Community Commercial Districts, Downtown, and Medium Density Mixed-Use Neighborhoods more attractive for private development than other locations. Strategies that should be explored include,but are not limited to, seeking opportunities to modify land use regulations and permit processes that make project timelines, land use, and mitigation costs more predictable; and public funding of up-front infrastructure, streets, and public amenities. Policy GM-7.2 Public Amenities. The City will explore strategies to offset the impacts of denser development by encouraging new projects to contribute to the public amenities needed to support these greater densities. PRINCIPLE GM-8: The City will promote compatible infill and redevelopment in areas within the Growth Management Area boundary. SEE FIGURE GM-8. [Urban Renewal Plan Note: Figure GM-8 is a map of Targeted Redevelopment and Infill Areas; Downtown is included as one of those areas.] Policy GM-8.1 Targeted Redevelopment/Infill. Redevelopment and infill development will be encouraged in targeted locations. The purpose of these areas is to channel growth where it will be beneficial and can best improve access to jobs, housing and services with fewer and shorter auto trips. These targeted areas are parts of the city where general agreement exists that development or redevelopment is beneficial. A major goal is to increase economic activity in the area to benefit existing residents and businesses and, where necessary, provide the stimulus to redevelop. These areas should be defined from City Plan, Subarea Plans, Zoning and locational criteria such as: a. Underutilized land b. Areas already undergoing positive change, which is expected to continue c. Areas where infrastructure capacity exists d. Areas where public investment is warranted from a policy perspective e. Areas with special opportunities, such as where major public or private investment is already planned f. Transportation opportunities: i) Along travel corridors ii)Along enhanced travel corridors Downtown Urban Renewal Plan 9 Policy GM-8.4 Remedy Infrastructure Deficiencies. The City will consider opportunities to selectively correct infrastructure deficiencies in targeted areas, such as storm drainage and streets, so that infill development or redevelopment does not pay an infrastructure"penalty" to remedy past problems in existing developed areas. Policy GM-8.5 Public Investment. The City will consider opportunities, and the costs and benefits for targeted public investment in order to encourage redevelopment and infill development in appropriate locations. [Urban Renewal Plan Note: Policy GM-8.5 is accompanied by photos of Downtown development projects.] PRINCIPLE ECON-1: The City will pursue a balanced and sustainable economic development program. Policy ECON-1.3 Infrastructure and Capital Facilities. The City will ensure that the infrastructure needed to support the economy is in place within the constraints of City financial resources in the following ways: a. The City will ensure access to employment centers and will also develop efficient transit networks and trip reduction programs, such as telecommuting, to reduce single occupancy vehicle trips. b. The City will encourage the location of child care facilities and other "everyday"needs, in or near major employment centers. c. The City will encourage housing development near major employment centers to foster reduce travel time to work. The price range and mix of housing types should complement wages generated by nearby employment so that housing can attract nearby workers. Policy ECON-1.5 Maintain and Expand City Revenue Base. The City will ensure that commercial uses that generate the sales and use tax revenues which support the City's financial base are maintained and expanded. The City will also explore other options to expand and diversify its revenue base, including targeted annexations of existing commercial corridors, such as the Mulberry Corridor, as well as revenue sharing agreements with other communities. a. ... b. The City will seek to strengthen existing commercial districts, such as the Downtown, North College, Campus West, and the Foothills Mall. c. The City will seek to maintain and enhance its attractiveness as a place to do business in order to maintain its share of the region's sales and use tax base. Downtown Urban Renewal Plan 10 PRINCIPLE DD-1: The Downtown will provide a balanced mix of land use activities. While encouraging a mix of land uses throughout the Downtown, the predominant land use character of each sub-district will be maintained. Land use intensity should decrease as distance from the center of each sub-district increases—establishing a transition between urban uses and adjacent neighborhoods. A mix of housing types for all income levels, family types, and age groups, with a variety of prices and rent levels, will be encouraged. PRINCIPLE DD-2: Promote and expand facilities, programs and events that reinforce the Downtown as the center for cultural, recreation, and entertainment in the community and region, and expand educational opportunities in Downtown. PRINCIPLE DD-3: The design of streets, parking areas, public spaces and buildings in the Downtown will reinforce the unique and distinctive character of Downtown. PRINCIPLE DD4: Historically and architecturally significant buildings in Downtown will be preserved and enhanced. PRINCIPLE DD-5: The Downtown District will be served by a balanced transportation system designed for motor vehicle,bus transit, pedestrian, bicycle and, if feasible, passenger rail travel. PRINCIPLE T-5: The City will acknowledge pedestrian travel as a practical transportation mode and elevate it in importance to be in balance with all other modes. Direct pedestrian connections will be provided from places of residence to transit, schools, activity centers, work and public facilities. PRINCIPLE T-7: The City will encourage the development of attractive and easy to navigate pedestrian facilities to create an interesting pedestrian network. PRINCIPLE T-8: The City will develop secure pedestrian settings by developing a well-lit inhabited pedestrian network and by mitigating the impacts of vehicles. PRINCIPLE CAD-5: The quality of life in Fort Collins will be enhanced by the preservation of historic resources and inclusion of heritage in the daily life and development of the City and community. PRINCIPLE CAD-6: Artistic enrichment and cultural opportunity are vital to community values, quality of life, and economic and social wellness. The City will promote, encourage and stimulate the growth of cultural development and participation. PRINCIPLE ENV-9: The City will continue to develop and implement sustainability practices that address long-term social, environmental and economic considerations of the Fort Collins community. Policy DD-3.1 Character of Downtown. The visual distinctiveness of Downtown and its component sub-districts will be maintained and reinforced. Downtown Urban Renewal Plan II 7. Project Financing Specific projects (whether a capital project or a program or activity) may be financed in whole or in part by the Authority, under the tax increment financing (TIF) provisions of CRS § 31-25-107(9)(a) of the Urban Renewal Law, or by any other available source of financing authorized to be undertaken by the Authority pursuant to CRS § 31-25-105 of the Urban Renewal Law. The Authority is authorized to: (a) finance urban renewal projects within the Renewal Area with revenues from property tax increments, sales tax increments, interest income, federal loans or grants, agreements with public, quasi-public or private parties and entities, loans or advances from any other available source, and any other available sources of revenue; (b) issue bonds and incur other obligations contemplated by the Urban Renewal Law in an amount sufficient to finance all or any part of a project within the Renewal Area; and (c) borrow funds and create indebtedness in any authorized form in carrying out this Plan. Any principal and interest on such indebtedness may be paid from property tax increments, sales tax increments or any other funds, revenues, assets or properties legally available to the Authority. Such methods may be combined to finance all or part of the Plan activities. PROPERTY TAX INCREMENT A fund for financing projects may be accrued and used by the Authority under the property tax allocation financing provisions of the Urban Renewal Law. Under this method, property taxes levied after the effective date of the approval of this Plan upon taxable property in the Renewal Area each year by or for the benefit of any public body shall be divided for a period not to exceed twenty-five(25) years after the effective date of the adoption of the tax allocation provision, as follows: Base Amount - That portion of the taxes which are produced by the levy at the rate fixed each year by or for such public body upon the valuation for assessment of taxable property in the Renewal Area last certified prior to the effective date of approval of the Plan or, as to an area later added to the Renewal Area, the effective date of the modification of the Plan, shall be paid into the funds of each such public body as are all other taxes collected by or for said public body. Increment amount - That portion of said property taxes in excess of such base amount shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of, the interest on, and any premiums due in connection with the bonds of, loans or advances to, or indebtedness incurred by (whether funded, refunded, assumed or otherwise) the Authority for financing or refinancing, in whole or in part, a specific project. Such increment amount shall also be used to pay for the Authority's financial obligations incurred in the implementation of this Plan. Unless and until the total valuation for assessment of the taxable property in the Renewal Area exceeds the base valuation for assessment of the taxable property in the Renewal Area, all of the taxes levied upon taxable property in the Renewal Area shall be paid in to the funds of the respective public bodies. In the event that there is a general reassessment of taxable property valuations in Larimer County, which are subject to division of valuation for assessment between base and increment, as provided above, the portions of valuations for assessment to be allocated as provided above shall be proportionately adjusted in accordance with such reassessment. Note that at the time of this Plan adoption, such a general reassessment occurs every two years, in the odd-numbered years. Downtown Urban Renewal Plan 12 When such bonds, loans, advances, indebtedness, and financial obligations, including interest thereon and any premiums due in connection therewith, have been paid, all taxes upon the taxable property in the Renewal Area shall be paid into the funds of the respective public bodies. SALES TAX INCREMENT The project may also be financed by the Authority under the sales tax allocation financing provisions of the Urban Renewal law. The act allows that upon the adoption or amendment of an Urban Renewal Plan, sales taxes flowing to the City may be "frozen" at their current level. The current level is established based on the previous twelve months prior to the adoption of this Plan. Thereafter, the City can continue to receive this fixed sales tax revenue. The Urban Renewal Authority thereafter may receive all, or an agreed upon portion of the additional sales taxes (the increment) which are generated above the base. The Authority may use these incremental revenues to finance the issuance of bonds, reimburse developers for public improvement costs, reimburse the City for public improvement costs and pay off financial obligations and other debts incurred in the administration of the Urban Renewal Plan. This increment is not an additional sales tax,but rather is a portion of the established tax collected by the City, and the sales tax increment resulting from redevelopment efforts and activities contemplated in this Plan. TAX INCREMENT REIMBURSEMENT Tax increment revenues may be used to reimburse the City and/or a developer for costs incurred for improvements related to a project to pay the debt incurred by the Authority with such entities for urban renewal activities and purposes. Tax incremental revenues may also be used to pay bonded indebtedness, financial obligations and debts of the Authority related to urban renewal activities under this Plan. 8. Modifications to the Plan This Plan may be modified pursuant to requirements and procedures set forth in CRS §31-25-107 of the Urban Renewal Law governing such modifications. 9. Reasonable Variations The Board shall have the ability to approve reasonable variations (as determined by the Board) from the strict application of these Plan provisions, so long as such variations reasonably accommodate the intent and purpose of this Plan and the Urban Renewal Law. Plan provisions may be altered by market conditions, redevelopment opportunities and/or the needs of the community affected by the Plan. Downtown Urban Renewal Plan 13 Appendix A - Legal Description DESCRIPTION OF THE BOUNDARY OF THE DOWNTOWN URBAN RENEWAL PLAN AREA The Downtown Urban Renewal Plan Area is located in Sections INSERT LEGAL DESCRIPTION HERE Downtown Urban Renewal Plan 14