Arvada for ALL the People urges the passage of urban renewal reform legislation now working its way through the Colorado General Assembly.
In Arvada, we have recently witnessed a glut of tax-giveaway schemes perpetrated by the Arvada Urban Renewal Authority (AURA). The more infamous uses of 'tax increment financing' (TIF) to provide government subsidies to the private developers have been for constructing the Park Place Olde Town (PPOT) apartments, the Solana apartments and the proposed Hilton hotel.
These urban renewal formulas shortchange tax revenue that should be going to school districts, and recreation and fire districts.
Typically, cities will create the urban renewal area, suspend the taxes on property or sales in the designated area and developers use the savings to finance their projects.
But in doing so, county governments, school districts and special taxing districts can lose out on revenue from taxes they levy on the same property unless financial agreements are made beforehand between the various taxing entities.
[Colorado urban-renewal reform battles take a twist with 2 legislative votes-Ed Sealover, Denver Business Journal; April 20, 2015]
The reform legislation would make these important improvements to urban renewal authorities:
The bill has three main components: First, it will provide more representation on urban renewal authority boards for affected districts — one seat for a county government official, one seat for a school district official and one seat to represent collectively all other special districts. Second, after the 25 years have concluded, if there's any money left in the authority's bank accounts, it will be distributed back proportionally among the various districts. Third, starting in 2016, cities would need to seek local negotiations with affected entities — either come to an agreement on how much property tax increment can be invested in a project from local government entities, or if they can't come to an agreement, cities can choose to allocate an equal percentage of their sales tax increment to the project as the other local entities' property tax increment.
[Counties support latest urban renewal reform bill-Loveland Reporter-Herald; April 11, 2015]
Contact your Arvada area legislator and urge support of this bill: HB 15-1348. There isn't much time left, this General Assembly session is scheduled to conclude on May 6, 2015:
Tracy Kraft-Tharp House District 29
Telephone:303-866-2950
E-mail: [email protected]
Lang Sias, House District 27
Telephone: 303-866-2962
E-mail: [email protected]
Laura Woods, Senate District 19
Telephone: 303-866-4840
E-Mail: [email protected]
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HB 15-1348 Concerning Modifications to Statutory Provisions Governing Urban Renewal Redevelopment to Promote the Equitable Financial Contribution Among Affected Public Bodies in Connection With Urban Redevelopment Projects Allocating Tax Revenues
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