HomeMy WebLinkAboutReport - Read Before Packet - 6/23/2015 - Information From Tom Leeson Re: Ura Work Session Item #2 -Power Point From Cml Annual Conference1
Sarah Kane
From: Tom Leeson
Sent: Monday, June 22, 2015 2:11 PM
To: Sarah Kane
Cc: Carrie Daggett; John Duval; Josh Birks
Subject: Materials for June 23 Worksession
Attachments: HB1348-CML_Annual_Conference_2015 (2).pdf
Sarah – Carrie and some Council members attended a session at the CML conference on the URA legislation in which this
Powerpoint was presented. They thought it would be helpful for the full Council to review for tomorrow’s work session.
Thanks,
Tom Leeson, AICP
Redevelopment Program Manager
970.416.2231 (O)
970.846.2133 (C)
tleeson@fcgov.com
City of Fort Collins
300 LaPorte Avenue
PO Box 580
Fort Collins, CO 80524
www.renewfortcollins.com
June 23, 2015
TO: Mayor & City Councilmembers
FROM: Darin Atteberry
RE: URA Work Session Item #2 -
URA Legislation
/sek
1
HB 15-1348
What does it mean to me?
Presented by
Carolynne C. White
June 18, 2015
June 22, 2015
2
Does HB 15-1348 apply to my urban renewal
plan or authority?
• If you form a new urban renewal authority after January 1, 2016
• If you adopt a new urban renewal plan or “amend or modify” an
existing urban renewal plan
• Current law uses the term “modification” and requires a governing
body to make a determination whether a modification is “substantial.”
• A substantial modification requires the same notice, public hearing, and
impact report as adoption of a new plan.
• Substantial modification includes a substantial change in “land area,
land use, design, building requirements, timing or procedure.”
• Unclear how “amendment” differs from modification – not used
elsewhere in the statute with respect to urban renewal plans
3
Does HB 15-1348 apply to my urban renewal plan
or authority?
• HB 15-1348 also applies to “urban renewal plan amendments or
modifications adopted on or after January 1, 2016, which
modifications or limitations are limited to:
• any addition of an urban renewal project;
• an alteration in the boundaries of an urban renewal area; or
• or an extension of an urban renewal plan or the duration of a specific
urban renewal project.
• For any such plans or projects, HB 15-1348 applies, regardless
of whether such extension or related changes in duration
require actual alteration of the terms of the urban renewal
plan.
4
Does HB 15-1348 apply to my urban
renewal plan or authority?
• any addition of an urban renewal project
• ‘’urban renewal project’ means undertakings and activities for the
elimination and for the prevention of the development or spread of
slums and blight and may involve slum clearance and redevelopment,
or rehabilitation, or conservation, or any combination or part thereof, in
accordance with an urban renewal plan.” C.R.S. 31-25-103(9)
• Typically, an urban renewal plan contains a single project
• Not likely that an urban renewal project would be added to a plan;
however, possible that the project defined in a plan might evolve or
change. Unclear whether this would be considered to constitute an
“addition of an urban renewal project.”
5
Does HB 15-1348 apply to my urban
renewal plan or authority?
• an alteration in the boundaries of an urban renewal area
• Under current law, governing body makes legislative determination
whether change in the boundaries constitutes a substantial
modification.
• Under HB 15-1348, any alteration in the boundaries, whether
substantial enough to require a substantial modification to the urban
renewal plan, if occurring after January 1, 2016, will require that
existing plan be brought into compliance with HB 15-1348.
6
Does HB 15-1348 apply to my urban
renewal plan or authority?
• or an extension of an urban renewal plan or the duration of a
specific urban renewal project
• Although unclear, “extension” probably refers to time – that is an
extension of the expiration date of an urban renewal plan. Not
technically possible under current law.
• Typically, the duration of a project will coincide with the length of time
during which collection of tax increment is authorized under the urban
renewal plan, namely 25 years or until all debt used to finance the
project is paid, whichever comes first
• In plans covering a large area, such as a downtown, the overall
“project” is probably “remediate blight within the area,” but might have
individual “sub-projects,” such as awning or façade replacements or
upgrades get added frequently.
7
Governor’s Signing Statement
• “We are sensitive that participants in existing urban renewal
plans should not be concerned that technical, interpretation, or
implementation issues will substantially impair their existing
rights or financial expectations.”
8
Governor’s Signing Statement
• “To reassure existing urban renewal beneficiaries, we will work
with the General Assembly at the outset of the 2016 legislative
session on legislation that will help alleviate any perceived
technical, implementation or interpretation issues with HB 15-
1348. Working together with a commitment from General
Assembly leaders, our proposal will be consistent with the
intended effect of HB 15-1348: it will distinguish between urban
renewal projects that are materially affected by a substantial
modification (which will be described in additional detail) and
those that are unaffected, for which the mediation provisions
should not be invoked.”
9
Okay, HB 15-1348 applies to me. What do I
have to do?
• Add commissioners to the Board;
• Negotiate with other taxing bodies;
• Mediate if no agreement reached.
10
Addition of Commissioners
• After January 1, 2016, each urban renewal board required to
comply with HB 15-1348 must add three additional
commissioners representing the following taxing bodies:
• counties
• special districts
• school districts
• If the boundaries of the municipality extend into multiples of
any of these, then the taxing bodies decide among themselves
who the appointee is
11
Who can sit on the Board?
• Anyone appointed by the Board of County Commissioners,
regardless of whether the urban renewal Board of
Commissioners consists of appointed citizens or the governing
body.
• Note: the 2014 version of this legislation, HB 14-1375, and SB 15-135
required that the appointee be a resident of the municipality. HB 15-
1348 contains no such requirement.
• While the county representative may be anyone appointed by
the county or counties, the special district and school district
representatives must be an elected board member.
• If the appointment of the three taxing body representatives
creates an even number, the Mayor may appoint an additional
board member to create an odd number.
12
Negotiation with Taxing Bodies
• Must “notify” each taxing entity prior to approval of an urban
renewal plan prior to the adoption of any urban renewal plan
that “allocates any taxes of any public body.”
• Notice, negotiation, and mediation provisions do not apply to
urban renewal plans which allocate only sales tax increment.
• Note: urban renewal plans do not allocate “taxes” of any public
body. Rather, plans allocate incremental property tax revenues
attributable to the application of the mill levy of such taxing
bodies to the increased value created by the urban renewal
project. This is probably the intent, despite the incorrect
terminology.
13
Negotiation with Taxing Bodies
• Notice must be no later than 90 days prior to public hearing at
which urban renewal plan is scheduled to be adopted
• Then representatives of each such governing body and the
municipality must “meet and attempt to negotiate an
agreement” concerning what tax revenues may be included in
the plan and how they will be spent
• Agreement may be in the form of a master agreement among
all taxing bodies, or individual agreements with each taxing
body
14
Negotiation with Taxing Bodies
• It appears that HB 15-1348 may make available incremental
sales tax revenues of counties and special districts, if such taxing
bodies agree.
• “Any such allocated shared tax revenues governed by any
agreement are limited to all or any portion of the taxes levied
upon taxable property by the public body within the area
covered by the urban renewal plan in addition to any sales tax
revenues generated within the area covered by the urban
renewal plan by the imposition of the sales tax of the
municipality and any other public body.”
• Probably not in urban renewal plan, but in agreement, thus
subject to annual appropriation.
15
“Mediation”
• If no agreement is reached after 120 days, parties must
participate in a dispute resolution process; result is binding.
• The mediator will issue “findings of fact” as to “the appropriate
allocation of costs and shall promptly transmit such information
to the parties.”
• The subject of the mediation is “the issue of appropriate
allocation of urban renewal project costs among the
municipality and all other taxing entities whose taxes will be
allocated” pursuant to the urban renewal plan.
• Mediator must issue findings of fact within ninety (90) days of
the conclusion of the mediation.
16
“Mediation”
• Mediator must consider:
• nature of project;
• nature and relative size of revenue and other benefits expected to
accrue to municipality and other taxing entities as a result of the
project;
• any legal limitations on the use of revenue belonging to the
municipality or other taxing bodies; and
• any capital or operating costs that are expected to result from the
project.
17
“Mediation”
• The municipality may agree to the mediator’s findings by
including in the urban renewal plan provisions that allocate
municipal and “incremental tax revenues of taxing bodies in
accordance with the cost allocations determined by the
mediator” or by entering into an intergovernmental agreement
with the taxing body providing an alternative cost allocation
methodology.
18
Implementation
• Education and training
• Appointment of new board members
• Agreements with taxing bodies
• Analysis of existing urban renewal plans/financing
• Participate in 2016 legislative process