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Home My WebLink AboutMemo - Mail Packet - 10/27/2015 - Memorandum From Patrick Rowe Re: Urban Renewal Authority - Proposed Midtown Plan Modifications Notification And Impact Report Letter (No-Impact)!!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! !!!!!! SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS REMINGTON TROUTMAN LEMAY SWALLOW STOVER LAKE CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY SENECA BOARDWALK HINSDALE STANFORD BROOKWOOD STUART MANHATTAN KEENLAND PITKIN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA HIGHCASTLE WINDMILL SPRING PARK # # # # # # # # # # # # # # # # # # # # # # ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ###### ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# ############# SHIELDS COLLEGE DRAKE PROSPECT LEMAY HORSETOOTH MASON HARMONY BOARDWALK JOHN F KENNEDY LANDINGS TROUTMAN REMINGTON LEMAY MMiiddttoowwnn UUrrbbaann RReenneewwaall PPllaann TTaaxx IInncc rreemmeenntt FFiinnaannccii nngg DDiisstt rriicctt –– PPrroossppeecc tt SSoouutthh LLaarriimmeerr CCoouunnttyy IImmppaacctt R Reeppoorrtt City of Fort Collins, Colorado August 2011 (Revised Version) Prepared by: Fort Collins Urban Renewal Authority Prepared for: City of Fort Collins, Colorado City Council MIDTOWN URBAN RENEWAL PLAN – TAX INCREMENT FINANCING DISTRICT PROSPECT SOUTH LARIMER COUNTY IMPACT REPORT 1 CONTENTS INTRODUCTION................................................................................................................... 2 COLORADO REVISED STATE STATUTES (C.R.S.) 31‐25‐107 (3.5):.................................... 2 SUMMARY OF URBAN RENEWAL PLAN.............................................................................. 3 Tax Increment Financing District – Prospect South Development Program........................................................................................................ 3 TIMETABLE ...................................................................................................................... 3 SUMMARY OF IMPACTS TO LARIMER COUNTY.............................................................. 4 PROPERTY TAX REVENUE............................................................................................ 4 SALES TAX REVENUE ................................................................................................... 4 COUNTY SERVICES/INFRASTRUCTURE........................................................................ 4 NET IMPACT TO THE COUNTY..................................................................................... 5 CONCLUSION....................................................................................................................... 5 MIDTOWN URBAN RENEWAL PLAN – TAX INCREMENT FINANCING DISTRICT PROSPECT SOUTH LARIMER COUNTY IMPACT REPORT 2 INTRODUCTION This report is a requirement of the Colorado Urban Renewal law. According to the C.R.S. an impact report must be created to analyze the anticipated impact of the proposed Midtown Urban Renewal Plan, Tax Increment Financing (TIF) District on Larimer County (the County). COLORADO REVISED STATE STATUTES (C.R.S.) 31‐25‐107 (3.5): (3.5) (a) At least thirty days prior to the hearing on an urban renewal plan or a substantial modification to such plan, regardless of when the urban renewal plan was first approved, the governing body or the authority shall submit such plan or modification to the board of county commissioners, and, if property taxes collected as a result of the county levy will be utilized, the governing body or the authority shall also submit an urban renewal impact report, which shall include, at a minimum, the following information concerning the impact of such plan: (I) The estimated duration of time to complete the urban renewal project; (II) The estimated annual property tax increment to be generated by the urban renewal project and the portion of such property tax increment to be allocated during this period to fund the urban renewal project; (III) An estimate of the impact of the urban renewal project on county revenues and on the cost and extent of additional county infrastructure and services required to serve development within the proposed urban renewal area, and the benefit of improvements within the urban renewal area to existing county infrastructure; (IV) A statement setting forth the method under which the authority or the municipality will finance, or that agreements are in place to finance, any additional county infrastructure and services required to serve development in the urban renewal area for the period in which all or any portion of the property taxes described in subparagraph (II) of paragraph (a) of subsection (9) of this section and levied by a county are paid to the authority; and (V) Any other estimated impacts of the urban renewal project on county services or revenues. MIDTOWN URBAN RENEWAL PLAN – TAX INCREMENT FINANCING DISTRICT PROSPECT SOUTH LARIMER COUNTY IMPACT REPORT 3 SUMMARY OF URBAN RENEWAL PLAN Tax Increment Financing District – Prospect South Development Program The proposed development program for the Midtown Urban Renewal Plan ‐ Tax Increment Financing District Prospect South is consistent with current policy documents and plans for the City of Fort Collins and is subject to change. The anticipated development program is summarized in Table 1. Table 1 Midtown Urban Renewal Plan – TIF District Prospect South Proposed Development Program TIMETABLE The development timetable for the proposed program presented above will ultimately be determined by prevailing market conditions, however no longer than 25 years. A critical component of the analysis presented here is the assumption that key parcels within the planning area will be redevelopment into a mix of retail/commercial, and student related residential uses, as this location is in close proximity to Colorado State University. Building New Redevelopment (25 Years) SF/Units Single Family Detached 0 Multifamily Units – Student Housing 220 Office 0 Retail 8,000 MIDTOWN URBAN RENEWAL PLAN – TAX INCREMENT FINANCING DISTRICT PROSPECT SOUTH LARIMER COUNTY IMPACT REPORT 4 SUMMARY OF IMPACTS TO LARIMER COUNTY PROPERTY TAX REVENUE Table 2 at the end of this report provides a summary of the generally estimates, using the joint model derived by the partnership between the City and the County to measure potential impacts generated from new redevelopment within the Midtown Urban Renewal Plan Area TIF District Prospect South. Estimates are based on the development program outlined above in Table 1 and anticipate the 25‐year tax increment period. For purposes of this analysis, it is assumed that 100% of the total property tax increment over the 25 year period would be dedicated to the Midtown Urban Renewal Plan Area TIF District Prospect South. Based on the proposed development program, investment in the Urban Renewal TIF District Prospect South could generate approximately $7,900,000 in incremental property tax revenues over the 25‐year analysis period. Currently, the property tax base in the Midtown Urban Renewal Plan Area TIF District Prospect South is approximately $8,763,460, according to Larimer County Assessor data. During the 25‐year analysis period, the County’s revenue impact is estimated to be $1,297,036 or $51,881 annually, based on the results of the model (Table 2). SALES TAX REVENUE The URA will not be collecting sales tax increment in the Midtown Urban Renewal Plan Area TIF District Prospect South at this time. The City of Fort Collins will fully retain the current sales tax rate of 3.85% and the Larimer County will fully retain the current sales tax rate of 0.8%. COUNTY SERVICES/INFRASTRUCTURE Because the entire Urban Renewal Area is located within the City of Fort Collins’ municipal boundaries, there is anticipated to be a minimal impact on County services, approximately $51,881 annually although likely less. Infrastructure impacts associated with the proposed development program are assumed to be financed by the development, Urban Renewal Authority or City of Fort Collins with incremental revenues and/or some combination of increment dollars with another appropriate funding source. Impacts to the County’s general government services could increase due to an increase in non‐residential and residential development, but such impacts should also be minor, and no more than estimations at $51,881 projected by the model. MIDTOWN URBAN RENEWAL PLAN – TAX INCREMENT FINANCING DISTRICT PROSPECT SOUTH LARIMER COUNTY IMPACT REPORT 5 NET IMPACT TO THE COUNTY Because the entire proposed plan area is located within the City of Fort Collins’s municipal boundaries and growth management area, as mentioned before, there is anticipated to be minimal impact on County services, approximately $51,881 annually. Infrastructure impacts within the proposed plan area are assumed to be financed by the City of Fort Collins with increment revenues and/or some combination of increment dollars, general fund dollars and special district dollars. County Health and Human services and Sheriff costs are minimal for commercial/office/retail properties, within the proposed plan area boundary. Impacts to the County’s general governmental services could increase due to an increase in non‐residential and residential development, but such impacts should also be offset by the increase in value realized by properties contiguous to the proposed plan area. CONCLUSION In summary, and regarding “the impact of the reinvestment project on County revenues and on the cost and extent of additional County infrastructure and services required to serve the development within the proposed reinvestment area”, there do not appear to be any additional County infrastructure requirements required of development in the proposed Urban Renewal Area. Further, the City does not contemplate that the County will have to provide any public improvements and minimal services to serve such development as properties in the area are entirely located within the municipal boundaries of the City and will therefore be served by the City. Finally, any additional demands (direct or indirect) on County services due to a general increase in population within the Urban Renewal Area should be more than offset by increases in the base assessed value due to periodic adjustment in the base assessment roll, as well as increases in property value located in proximity to the Urban Renewal Area. TABLE 2 CITY OF FORT COLLINS MIDTOWN URBAN RENEWAL AREA TAX INCREMENT FINANCING DISTRICT ‐ PROSPECT SOUTH LARIMER COUNTY IMPACT AUGUST 2011 Year 1 234567 Property Tax Revenue 2012 2013 2014 2015 2016 2017 2018 Residential 1 $ - $ - $ - $ - $ - $ - $ - Residential 2 $ - $ - $ - $ - $ - $ - $ - Residential 3 $ - $ - $ - $ - $ - $ - $ - Residential 4 $ - $ - $ - $ - $ - $ - $ - Retail 1 $ - $ - $ - $ - $ - $ - $ - Retail 2 $ - $ - $ - $ - $ - $ - $ - Office $ - $ - $ - $ - $ - $ - $ - Non Taxable $ - $ - $ - $ - $ - $ - $ - Industrial $ - $ - $ - $ - $ - $ - $ - Property Taxes Subtotal $ - $ - $ - $ - $ - $ - $ - Other Revenue Residential $ - $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 Commercial $ - $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 Other Revenue Subtotal $ - $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 Total Revenues From Project $ - $ 141,919 $ 145,467 $ 149,104 $ 152,832 $ 156,652 $ 160,569 Revenues from Residential $ - $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 Revenues from Commercial $ - $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 Residential Expenditures $ - $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 Commercial Expenditures $ - $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 Total Expenditures from Project $ - $ 210,653 $ 215,920 $ 221,318 $ 226,851 $ 232,522 $ 238,335 Revenue Tax Base Readjustment Total Project Net Surplus (Deficit) $ - $ (68,734) $ (70,452) $ (72,214) $ (74,019) $ (75,870) $ (77,766) Cumulative Surplus (Deficit) $ - $ (68,734) $ (139,187) $ (211,400) $ (285,420) $ (361,289) $ (439,055) Net Present Value at 4% ($1,297,036) Fiscal Impact Larimer County Fiscal Model 8 9 10 11 12 13 14 15 16 2019 2020 2021 2022 2023 2024 2025 2026 2027 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 164,583 $ 168,697 $ 172,915 $ 177,238 $ 181,669 $ 186,210 $ 190,866 $ 195,637 $ 200,528 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 244,293 $ 250,401 $ 256,661 $ 263,077 $ 269,654 $ 276,396 $ 283,305 $ 290,388 $ 297,648 $ (79,711) $ (81,703) $ (83,746) $ (85,839) $ (87,985) $ (90,185) $ (92,440) $ (94,751) $ (97,120) $ (518,766) $ (600,469) $ (684,215) $ (770,055) $ (858,040) $ (948,225) $ (1,040,665) $ (1,135,416) $ (1,232,535) 17 18 19 20 21 22 23 24 25 2028 2029 2030 2031 2032 2033 2034 2035 2036 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 135,081 $ 205,542 $ 210,680 $ 215,947 $ 221,346 $ 226,879 $ 232,551 $ 238,365 $ 244,324 $ 250,432 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 134,150 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 930 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 192,992 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 7,511 $ 305,089 $ 312,716 $ 320,534 $ 328,547 $ 336,761 $ 345,180 $ 353,810 $ 362,655 $ 371,721 $ (99,548) $ (102,036) $ (104,587) $ (107,202) $ (109,882) $ (112,629) $ (115,445) $ (118,331) $ (121,289) $ (1,332,083) $ (1,434,119) $ (1,538,706) $ (1,645,908) $ (1,755,790) $ (1,868,418) $ (1,983,863) $ (2,102,194) $ (2,223,483) MMiiddttooww nn UUrrbbaa nn RReennee wwaall PPll aann - FFooootthh iillllss TTaaxx II nnccrreemm eenntt FF iinnaanncc iinngg DD iissttrrii cctt LLaarriimmee rr CCoouunn ttyy IImmpp aacctt RRee ppoorrtt City of Fort Collins, Colorado January 25, 2013 Prepared by: Fort Collins Urban Renewal Authority Prepared for: Larimer County Board of Commissioners City of Fort Collins City Council MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 1 This page intentionally left blank. MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 2 CONTENTS INTRODUCTION ................................................................................................................... 3 FOOTHILLS TAX INCREMENT FINANCING DISTRICT ............................................................ 4 DEVELOPMENT PROGRAM ............................................................................................. 4 TIME FOR PROJECT COMPLETION ................................................................................... 4 ESTIMATED PROJECT INCREMENT AND USES ................................................................. 5 ESTIMATED IMPACTS TO LARIMER COUNTY ...................................................................... 6 PROPERTY TAX REVENUE IMPACTS ................................................................................ 6 SALES TAX REVENUE IMPACTS ........................................................................................ 6 NET IMPACTS ON COUNTY INFRASTRUCTURE/SERVICES ............................................... 7 CONCLUSION ....................................................................................................................... 9 MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 3 INTRODUCTION Colorado Revised Statues (C.R.S.) 31-25-107(3.5) requires a governing body to create an urban renewal impact report and submit it to the Board of County Commissioners in order to analyze the anticipated impact of redevelopment that occurs within a tax increment financing (TIF) District. The Fort Collins City Council adopted the Midtown Urban Renewal Plan (the “Plan”) in September 2011 (ratification and amendment to be considered on February 28, 2013). At the time the Plan was adopted it included a provision establishing a TIF district for the Prospect South area, with the intention of creating multiple additional TIF districts within the Plan area based on imminent redevelopment projects. In July 2012, Foothills Mall and adjacent properties were acquired by Walton Foothills Holdings IV, LLC (Walton) with the intent to complete a significant redevelopment. Redevelopment of Foothills Mall has been a top priority for the City of Fort Collins for numerous years, and the land acquired by Walton was identified as a key area for redevelopment in the Midtown Urban Renewal Plan in anticipation of using TIF to provide needed public investment in support of redevelopment, in accordance with the Colorado Urban Renewal Law. Without TIF financing the redevelopment of the Foothills Mall is not expected to take place as contemplated in the Plan. On February 28, 2013, the Fort Collins City Council will consider an amendment to the Midtown Urban Renewal Plan which would create the Foothills TIF District in a portion of the Plan area to help rehabilitate the Foothills Mall, which is blighted and has been in a steady state of decline for years. The City and the Fort Collins Urban Renewal Authority (URA) have made it a policy to keep the TIF districts in the larger Midtown Urban Renewal Plan Area as small as possible so that increases in assessed value in the larger urban renewal plan area will benefit the taxing bodies that levy property and sales taxes in those areas in the Plan that are not subject to TIF. This report is being provided In accordance with C.R.S. 31-25-107(3.5). MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 4 FOOTHILLS TAX INCREMENT FINANCING DISTRICT DEVELOPMENT PROGRAM The development program for the Foothills tax increment financing (TIF) District is based upon proposals submitted by the owner of nearly all of the Foothills Mall property, Walton Foothills Holdings IV, LLC. Under this proposal, Walton proposes to redevelop the existing Foothills Mall, along with adjacent properties, into a revitalized indoor-outdoor retail destination with multifamily housing. This development program is consistent with adopted City plans and policies, and is summarized in Table 1. Table 1: Foothills TIF District, Proposed Development Program It is important to note that the existing Foothills Mall and surrounding properties contain 684,000 square feet of commercial space and no residential units; therefore, the net new development includes approximately 50,000 square feet of commercial and 800 new multi-family residential units. The redevelopment within the TIF District is also expected to lead to additional redevelopment in areas adjacent to the TIF District that will also benefit the County and other taxing bodies. In addition to a conceptual proposal submitted to the Fort Collins proposed development program is based on the most recent submittal by the Owner and may be subject to change pending the outcome of the City’s entitlement process. TIME FOR PROJECT COMPLETION The development timetable for the proposed program presented above will ultimately be determined by prevailing market conditions; however, it is not anticipated to be longer than 5 years. The proposed development schedule is provided in Table 2. Table 2: Foothills TIF District, Proposed Development Schedule Interior Mall Improvements January 2013 – February 2014 Deconstruction March 2013 – March 2014 New Buildings September 2013 – October 2014 Site work February 2013 – October 2014 Building New Redevelopment SF/Units Single Family Detached 0 Multifamily Units 800 Office 0 Retail 730,147 MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 5 ESTIMATED PROJECT INCREMENT AND USES The development program for the Foothills tax increment financing (TIF) District is expected to generate estimated average property tax increment revenue over the proposed 25-year life of the TIF District of approximately $2.0 million per annum. Based on estimates of costs of infrastructure and site improvements necessary to accomplish redevelopment of the Foothills Mall, it is assumed that 100% of the total property tax increment over the 25-year period will be dedicated to improvements in the Foothills TIF District. MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 6 ESTIMATED IMPACTS TO LARIMER COUNTY Impacts to Larimer County were estimated using a model that Larimer County and City of Fort Collins staffs worked together to develop in 2007 for the purpose of estimating potential impacts generated from new redevelopment (the “Model”). While the Model does not account for revenue increases and benefits to the County as required by C.R.S. 31-25-107(3.5), it was used to project possible impacts within the proposed Foothills TIF District based on the development program outlined above in Table 1 and the expected 25-year tax increment period. The Model assumes 4% to determine net present value. While actual rates may be higher or lower, over the course of the TIF District 4% is agreed to be a fair assumption. Additional assumptions include: • The commercial component of the project will begin construction in 2013 and be completed by 2014 • The residential component of the project will be completed by 2015 • 10% of the County’s general fund budget is fixed, and 90% is variable Exhibit A to this report provides a summary of the model output. PROPERTY TAX REVENUE IMPACTS During the proposed 25-year tax increment period, the County’s share of property tax revenue would be limited to its share of the property tax base (reflecting the current property value of the blighted Mall), which is approximately $277,196 annually, or a cumulative total of $6.9 million over the next 25 years. Note that this value does not include the biennial base adjustment, which would generally result in a progressively greater amount of tax retained by the County over the course of the 25-year period. After the 25-year tax increment period is completed, the County’s share of property tax revenues would rise to approximately $965,403 on an annual basis. Increases in assessed valuation in areas of the Plan adjacent to the TIF District will benefit from the redevelopment within the TIF District, which redevelopment will result from the pledge of TIF revenue to complete the necessary redevelopment. SALES TAX REVENUE IMPACTS The financing model for the redevelopment project provides for the URA will pledge a portion of the City’s sales tax increment revenue generated within the Foothills TIF District. Of the City’s 3.85% sales tax, up to 2.25% of the annual increment may be pledged to assist with the total financing for the redevelopment program, subject to URA Board approval. An initial analysis estimates approximately $111 million annually in net new sales generated by the redeveloped mall. The County would continue to collect sales tax revenue; at the current rate of .6%, which would generate approximately $666,000 annually in net new revenue. While it is understood this revenue is earmarked for the County’s open space program, jail expansion, and the Larimer County Fairgrounds and Events Center, redevelopment of the mall would MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 7 provide an increase to those funds that will not otherwise be available without the redevelopment of the TIF District. NET IMPACTS ON COUNTY INFRASTRUCTURE/SERVICES The entire proposed Foothills TIF District is centrally located within the City of Fort Collins’ municipal boundaries, and therefore the City is the primary provider of local government services and infrastructure for this area. The Model projects an impact on County services totaling approximately $6.8 million over the 25-year TIF District. While this is not an insignificant impact, the increased revenue from biennial property tax base adjustments and surrounding properties’ increased property values due to the mall’s improvements is anticipated to more than offset County costs. It is important to note that the Model is “designed to be an illustrative abstraction of reality; it is not anticipated that the impacts estimated will precisely mirror those that actually occur” (BBC Research & Consulting, third-party consultant that helped the County and City develop the Model). Infrastructure impacts associated with the proposed development program will be financed by the development, Urban Renewal Authority or City of Fort Collins with incremental revenues and/or some combination of increment dollars with other appropriate funding sources. No additional County infrastructure is anticipated to be necessary to serve development within the Foothills TIF District. The Model projects that the Foothills Mall redevelopment may increase the burden on the County’s general government services due to an increase in non-residential and residential development. The Model estimated that such impacts would not likely exceed a cumulative total of $5.6 million over the proposed 25-year TIF periods. The Model projects County Health and Human Services and Sheriff costs to be minimal for commercial/office/retail properties, which will be the primary type of development for this TIF District, totaling approximately $810,000 over 25-years. Additionally, the Model projects that impacts to the Road and Bridge Fund could reach approximately $380,000 over 25 years. FUNDING OF COUNTY INFRASTRUCTURE AND SERVICES There do not appear to be any additional County infrastructure requirements created as a result of the redevelopment in the proposed TIF District. Furthermore, the City does not contemplate that the County will have to provide any public improvements and minimal services to serve this development as properties in the area are entirely located within the municipal boundaries of the City and will therefore be served by the City. Allowing the area to deteriorate further may, in fact, have a greater, and detrimental, impact on the revenue available and services if no public investment is made. Any additional demands (direct or indirect) on County services due to a general increase in MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 8 population within the proposed Foothills TIF District (which, it should be noted, may not result in an actual increase in County population) is expected to be more than offset by increases in the base assessed value due to periodic adjustment in the base assessment roll, as well as increases in property value and sales tax revenue located in proximity to the TIF District. OTHER ESTIMATED IMPACTS TO COUNTY SERVICES OR REVENUES Consideration of other factors not reflected in the Model reinforces further that the County’s financial well-being will on balance be benefitted, rather than burdened, by the redevelopment of the Mall. Property values of Foothills Mall properties, as well as retail sales and other income generation associated with Foothills Mall, have been in decline and would be expected to continue a steady and significant decline without a major redevelopment of the Mall. The City has made vigorous efforts to promote the redevelopment of the Mall over the course of the past decade or more, and those efforts have until recently been unrewarded. The City and the Fort Collins Urban Renewal Authority do not expect significant redevelopment to move forward without the financial support that a TIF District would allow. Furthermore, the City is confident that the redevelopment of Foothills Mall will result in significant benefits to Larimer County (as well as to the City of Fort Collins) that are indirect and less easily quantified, such as: • Increased regional economic activity due to the presence of a new premier regional shopping and entertainment destination, and related quality of life improvements for existing and future residents ; • New construction jobs, as well as new full time and part time jobs from new and existing retail tenants in the Mall; • Reduced vehicle miles traveled by Fort Collins residents and related reduction in burden on County roads and bridges; and • Promotion of sustainability goals espoused by both Larimer County and the City of Fort by ensuring retail and entertainment centers are woven into the fabric of the community, close to where people live and, therefore, easy for pedestrians to access, and by utilization of existing infrastructure along major transportation routes. MIDTOWN URBAN RENEWAL PLAN – FOOTHILLS TAX INCREMENT FINANCING DISTRICT LARIMER COUNTY IMPACT REPORT – January 25, 2013 9 CONCLUSION In summary, and regarding “the impact of the reinvestment project on County revenues and on the cost and extent of additional County infrastructure and services required to serve the development within the proposed reinvestment area”, there do not appear to be any additional County infrastructure requirements created as a result of the redevelopment in the proposed TIF District. Furthermore, the City does not contemplate that the County will have to provide any public improvements and minimal services to serve this development as properties in the area are entirely located within the municipal boundaries of the City and will therefore be served by the City. Allowing the area to deteriorate further may, in fact, have a greater, and detrimental, impact on the revenue available and services if no public investment is made. Any additional demands (direct or indirect) on County services due to a general increase in population within the proposed Foothills TIF District is expected to be more than offset by increases in the base assessed value due to periodic adjustment in the base assessment roll, as well as increases in property value and sales tax revenue located in proximity to the TIF District. Exhibit A - Summary of Fiscal Impact Model Output Year 1 2 3 4 5 6 7 8 9 10 Property Tax Revenue 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Residential 1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential 3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential 4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Retail 1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Retail 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Office $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Non Taxable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Industrial $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Property Taxes Subtotal $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other Revenue Residential $ - $ - $ - $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 Commercial $ - $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 Other Revenue Subtotal $ - $ 4,865 $ 4,865 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 Total Revenues From Project $ - $ 5,112 $ 5,240 $ 492,094 $ 504,397 $ 517,007 $ 529,932 $ 543,180 $ 556,759 $ 570,678 Revenues from Residential $ - $ - $ - $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 Revenues from Commercial $ - $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 Residential Expenditures $ - $ - $ - $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 Commercial Expenditures $ - $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 Total Expenditures from Project $ - $ 56,262 $ 57,669 $ 907,006 $ 929,681 $ 952,923 $ 976,746 $ 1,001,165 $ 1,026,194 $ 1,051,849 Total Project Net Surplus (Deficit) $ - $ (51,150) $ (52,429) $ (414,912) $ (425,284) $ (435,917) $ (446,814) $ (457,985) $ (469,434) $ (481,170) Cumulative Surplus (Deficit) $ - $ (51,150) $ (103,580) $ (518,491) $ (943,776) $ (1,379,692) $ (1,826,507) $ (2,284,491) $ (2,753,926) $ (3,235,096) Net Present Value at 4% ($6,821,167) Fiscal Impact Larimer County Fiscal Model Midtown Urban Renewal Plan - Foothills Tax Increment Financing District Larimer County Impact Report - January 25, 2013 Exhibit A - Summary of Fiscal Impact Model Output Year Property Tax Revenue Residential 1 Residential 2 Residential 3 Residential 4 Retail 1 Retail 2 Office Non Taxable Industrial Property Taxes Subtotal Other Revenue Residential Commercial Other Revenue Subtotal Total Revenues From Project Revenues from Residential Revenues from Commercial Residential Expenditures Commercial Expenditures Total Expenditures from Project Total Project Net Surplus (Deficit) Cumulative Surplus (Deficit) Net Present Value at 11 12 13 14 15 16 17 18 19 20 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 584,945 $ 599,569 $ 614,558 $ 629,922 $ 645,670 $ 661,812 $ 678,357 $ 695,316 $ 712,699 $ 730,517 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 1,078,145 $ 1,105,099 $ 1,132,726 $ 1,161,044 $ 1,190,070 $ 1,219,822 $ 1,250,318 $ 1,281,576 $ 1,313,615 $ 1,346,455 $ (493,200) $ (505,530) $ (518,168) $ (531,122) $ (544,400) $ (558,010) $ (571,960) $ (586,259) $ (600,916) $ (615,939) $ (3,728,296) $ (4,233,825) $ (4,751,993) $ (5,283,115) $ (5,827,515) $ (6,385,525) $ (6,957,485) $ (7,543,744) $ (8,144,660) $ (8,760,599) Midtown Urban Renewal Plan - Foothills Tax Increment Financing District Larimer County Impact Report - January 25, 2013 Exhibit A - Summary of Fiscal Impact Model Output Year Property Tax Revenue Residential 1 Residential 2 Residential 3 Residential 4 Retail 1 Retail 2 Office Non Taxable Industrial Property Taxes Subtotal Other Revenue Residential Commercial Other Revenue Subtotal Total Revenues From Project Revenues from Residential Revenues from Commercial Residential Expenditures Commercial Expenditures Total Expenditures from Project Total Project Net Surplus (Deficit) Cumulative Surplus (Deficit) Net Present Value at 21 22 23 24 25 2033 2034 2035 2036 2037 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 445,813 $ 748,780 $ 767,499 $ 786,687 $ 806,354 $ 826,513 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 440,948 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 4,865 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 768,151 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 53,551 $ 1,380,117 $ 1,414,620 $ 1,449,985 $ 1,486,235 $ 1,523,391 $ (631,337) $ (647,121) $ (663,299) $ (679,881) $ (696,878) $ (9,391,936) $ (10,039,056) $ (10,702,355) $ (11,382,236) $ (12,079,114) Midtown Urban Renewal Plan - Foothills Tax Increment Financing District Larimer County Impact Report - January 25, 2013 STOVER SWALLOW LAKE STUART CENTRE COLUMBIA OAKRIDGE WHEATON WABASH MEADOWLARK TROUTMAN COLONY HINSDALE STANFORD BOARDWALK BROOKWOOD MANHATTAN WHALERS CENTENNIAL PARKWOOD WELCH RICHMOND RESEARCH STARFLOWER MONROE CENTER MATHEWS TICONDEROGA WINDMILL SPRING PARK STOVER STOVER STUART PARKWOOD Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend #### ####New Plan Area Excluded Area Fort Collins Urban Renewal Authority Proposed Plan Area Boundry - Midtown EXHIBIT B Packet Pg. 28 Attachment2: Exhibit B (3540 : URA-Modify Midtown Plan Area RESO) STOVER STUART STOVER Streets Midtown Urban Renewal Plan Area (the "Plan Area") Foothills Mall I Legend Foothills Mall Boundary !!!! !!!!Prospect South Boundary Fort Collins Urban Renewal Authority Existing Plan Area Boundry - Midtown EXHIBIT A