HomeMy WebLinkAboutStudy Session Packet 04/19/2010
STUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO City Council Chambers 7500 W. 29th Ave. April 19. 2010 6:30 p.m. Individuals with disabilities are encouraged
to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303-235-2826 at least one week in advance of a meeting if
you are interested in participating and need inclusion assistance. APPROVAL OF AGENDA 1. Staff/Council Report(s) £. Present information/future plans for Wheat Ridge Middle School 3.
Incentive Policy and Guidelines 4. Disposal of Park Property at 38th and Kipling
~ City of '~WheatRi9ge ~OFFICE OF THE MAYOR Memorandum TO: City Council FROM: Mayor DiTullio DATE: April 19,2010 SUBJECT: Wheat Ridge Middle School Presentation Superintendent Cindy
Stevenson and other R-I School District Administrative Staff will present an update on Wheat Ridge Middle School's future plans. Dr. Stevenson will provide the opening remarks. Jose
Martinez, the Community Superintendent for 20 I 0-11, will introduce himself and share a few words followed by a power point presentation by WRMS Principal, Joan Chavez.
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, . , City of ~WheatBL-dge ~OFFICE OFTHE Cny MANAGER TO: THROUGH: FROM: DATE: SUBJECT: Memorandum Mayor and City Council Randy Young, City Manag~ ~ Patrick Goff, Deputy City ManagerJ,(j
April 14, 2010 Economic Incentive Policy and Guidelines A discussion concerning the Mayor's proposed Partial Use Tax Waiver Program was originally scheduled for March 29, 20 I O. Staff
suggested at that time that this discussion be deferred until the April 19,2010 meeting to allow Anne Ricker with Leland Consulting to present and discuss a comprehensive economic incentive
policy she is developing on behalf of Renewal Wheat Ridge (R WR). RWR entered into a contract with Leland Consulting in July 2009 to assist RWR with the design and preparation of processes
and materials in the context of Board operating procedures and investment solicitations. The scope of this contract includes an economic incentive policy and project participation criteria.
The criteria will be presented in the context of an incentive policy document for use by the City and R WR. The purpose of this document and the criteria will be to streamline discussions
and create a defensible process for public participation in (re)development projects. Ms. Ricker's presentation and discussion will include the following topics: • Purpose of an incentive
policy • I-low it will be lIsed • Outline of draft policy • Pending changes • Use by other entities (urban renewal, WR2020, others) • Where it will "live" in the City • Council's role
Attachements: I. Mayor's proposal and memorandum dated March 15, 2010 2. Jerry Dahl memorandum dated April 1, 20 I 0 3. Leland Consulting draft Economic Incentive Policy
.. , .' City of 'rP!r Wheat~dge ~OFFICE OF THE MAYOR Memorandum TO: FROM: DATE: City Council Jerry DiTullio, Mayor Council Member Stites March 15,2010 SUBJECT: Proposed Partial Use Tax
Waiver Program for City Council EXECUTIVE SUMMARY A partial use tax waiver option for City Council would provide the City of Wheat Ridge one more financial incentive to encourage new
commercial and industrial development, and redevelopment of existing properties. There is no provision in the Wheat Ridge Code of Laws specifically for a use tax waiver program. Such
a program would be similar to, but more narrowly focused, than the Enhanced Sales Tax Incentive Program (ESTIP) found in Chapter 22 of the Code of Laws at Sections 22-73 through 22-84.
BACKGROUND History The City Council has waived use tax in the past, but the legal language did not exist in the City's code to allow the City COlmcil to waive such fees. The proposed
language corrects this issue and allows Council to have an opportunity to provide additional financial incentives to attract quality development or redevelopment projects within the
City of Wheat Ridge. The use tax calculation is 3 percent of 60 percent of the total valuation of the project. Example: Valuation of a given project: .60 of project: Use Tax: .03 X $600,000
Analysis $1,000,000 $ 600,000 $ 18,000 Below is a Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis on implementing a vendor fee. Strengths • Creates a financial incentive
tool which may be used by City Council to attract quality development or redevelopment projects. • At least 25% of the calculated use tax is still collected by the City on any given
project
City Council March 15, 2010 Page 2 over $5,000 (See recommendations below). • Tool is used on a case by case basis and does not set precedent on any future projects. Weaknesses • Loss
of hard revenue to the City. • Any use tax waivers by City Council are both a quantitative and subjective decision Opportunities • Program promotes the City of Wheat Ridge to the business
community by fostering good will and positive working relationships. • Makes the City of Wheat Ridge more competitive with its neighbors in attracting quality development and redevelopment
projects. Threats • Council will be accused of micro management RECOMMENDATION As the proposed program relates only to a Council-permitted waiver of a portion of use tax, this proposal
could be written as a new Code Section 22-69, appearing as the last section in the present division three of Chapter 22, relating to the use tax. The following is a recommendation of
this proposed language: Section 22-69 Development Incentive Waiver Program. a. Waiver Program Program Established: There is hereby established a development incentive waiver program
(the "program") under which qualifYing taxpayers may request a waiver of a portion of use tax otherwise payable in connection with the development of a new commercial or industrial enterprise
within the City or the redevelopment of an existing commercial or industrial enterprise. b. Eligibility: Any single taxpayer otherwise liable for payment of more than a total of $5,000
in use tax in anyone calendar year pursuant to Section 22-66 and/or Section 22-68, which tax is imposed in connection with the development or redevelopment of a new commercial or industrial
enterprise within the City, shall be eligible to apply for a partial waiver of use tax pursuant to the program. c. Application: Taxpayers wishing to be considered for a waiver shall
file an application on forms provided by the City Treasurer. The application shall, at a minimum, include the following: I. applicant name, address and corporate structure; 2. description
of the new or redeveloped commercial or industrial enterprise to be located within the City; and 3. Estimate of the amount of use taxes to be paid within a 12 month calendar year pursuant
to Code Sections 22-66 and 22-68 for development or redevelopment of the enterprise.
City Council March 15, 20 to Page 3 d. Procedure: Applications for waivers pursuant to the program shall be submitted to the Mayor's Office or the City Manager's Office who shall confirm
their completeness and eligibility for consideration under the program. Applications shall be scheduled for consideration by the City Council within thirty (30) days of their being determined
complete and eligible. The City Council shall have the exclusive authority to grant or deny any application for waiver, in whole or in part, provided, however, that: l. Such waiver is
restricted to any amounts of use tax in excess of $5,000 use tax to be paid in a single calendar year, and 2. Such waiver may not exceed 75% of such eligible use tax in excess of$5,000.
The decision of the City Council shall be final and non-appealable. e. Criteria: In making its decision, the City Council shall consider, in addition to other factors relevant to the
specific application, the following criteria: l. The economic impact of the proposed new or redeveloped commercial or industrial enterprise upon the City, measured in property, sales
and use taxes and permit fees. 2. The number of new jobs created and/or saved 3. Any off site costs or impacts of the project. Example of use tax waiver as proposed: Valuation of a given
project: .60 of project: Use Tax: .03 X $600,000 Total amount eligible to be waived By Council: ($18,000 -$5,000) X .75 $1,000,000 $ 600,000 $ 18,000 $ 9,750 (up to amount) The Mayor's
Office encourages City Council to at least move the proposed use tax waiver program forward to 1st Reading so the program can be debated in a transparent and open forum. Recommended
Consensus: I would ask for a consensus directing the City attorney to draft an ordinance for 1st reading which creates a use tax waiver program as detailed in the Study Session memo
dated March 15'h, 2010 and as discussed at the March 29'h, 2010 City Council Study Session. JD/js
MURRAY .......... DAHL KU~CH~NM~f~TILR RENAUD LLP MEMORANDUM TO: Mayor and Council CC: Randy Young, City Manager FROM: Gerald Dahl, City Attomey DATE: April 1, 2010 RE: Development Incentive
Program You have asked me to briefly outline the major components of an incentive program designed to encourage new commercial and industrial development, as well as redevelopment of
existing properties. As I understand it, the proposal would be to give the Council the ability to grant waivers of sales or use taxes or development fees as an incentive. There is no
provision in the Wheat Ridge Code of Laws specifically for such a program. This would be similar to the Business Development Zone Program, Code Sections 22-85 through 22-96. A copy of
those sections is attached. Notice that program allows Council to waive eligible "city fees, charges and taxes limited to use tax on furniture and fixtures associated with the initial
development or redevelopment "project," use tax on building materials, building permit fees and zoning fees." The Business Development Zone Program does not allow waiver of sales or
property tax. If Council does not want to use the current Business Development Zone Program, there are two options: (1) expand the eligible waivers under the Business Development Zone
Program to include sales and property tax or (2) enact a new program. A new program could be written as a new Code Section 22-130, appearing as a new Article IV of Chapter 22; Taxation.
The following is a rough draft of this proposed language: Section 22-130 Development Incentive Waiver Program. a. Waiver Program Established: There is hereby established a development
incentive waiver program (the "Program") under which qualifying applicants may request a waiver of a portion of sales tax, use tax, and/or any development fee or charge under Chapter
26 of this Code ["Eligible Charges") otherwise payable in connection with the development of a new commercial or industrial enterprise within the City or the redevelopment of an existing
commercial or industrial enterprise. GED/WRi Finance/Salcs&UseTax
b. Eligibility: Any single taxpayer otherwise liable for payment of more than a total of $ in Eligible Charges in anyone calendar year, which charges would otherwise be is imposed in
connection with the development or redevelopment of a new commercial or industrial enterprise within the City, shall be eligible to apply for a waiver pursuant to the Program. c. Application:
Taxpayers wishing to be considered for a waiver shall file an application on forms provided by the city treasurer. The application shall, at a minimum, include the following : 1. applicant
name, address and corporate structure; 2. description of the new or redeveloped commercial or industrial enterprise to be located within the city; and 3. estimate of the amount of Eligible
Charges which, absent this waiver, would be paid within a 12 month calendar year in connection with development or redevelopment of the enterprise. d. Procedure: Applications for waivers
pursuant to the program shall be submitted to the City Manager who shall confirm their completeness and eligibility for consideration under the program. Applications shall be scheduled
for consideration by the City Council within thirty (30) days of their being determined complete and eligible. The City Council shall have the exclusive authority to grant or deny any
application for waiver, in whole or in part, and may apply any condition to the waiver provided, however, that: (1) such waiver is restricted to any amounts of Eligible Charges in excess
of $10,000 to be paid in a single calendar year, and (2) such waiver may not exceed 75% of such Eligible Charges in excess of $10,000. The decision of the City Council shall be final
and non-appealable. e. Criteria: In making its decision, the City Council shall consider, in addition to other factors relevant to the specific application, the following criteria: 1.
the economic impact of the proposed new or redeveloped commercial or industrial enterprise upon the City, measured in property, sales and use taxes and permit fees; 2. the number of
new jobs created; and 3. any off site costs or impacts of the project. GEDIWR/Financc/Salcs&UscTax
DIVISION 5. BUSINESS DEVELOPMENT ZONE Sec. 22-85. Program established. There is hereby established within the city the "Wheat Ridge Business Development Zone" program. Sec. 22-86. Legislative
declarations. (a) The city council of the city hereby finds and declares: (1) That the health. safety and welfare of the people of this city are in large part dependent upon the continued
encouragement, development and expansion of opportunities for employment in the private sector in this city; (2) That there currently exists in this city businesses or vacant land which
require new development or revitalization opportunities to overcome conditions of unemployment, underemployment, net out-migration of the population, diminution of tax revenues, chronic
economic distress and blighting influences such as, but not limited to, deterioration of business districts, deterioration of public infrastructures, traffic and drainage problems or
sudden severe economic dislocations; (3) That by creating new development. redevelopment or expansion opportunities for businesses within the city the city council will increase the
likelihood that new and improved businesses will generate more municipal sales and use tax revenues for the city in the future. (b) It is therefore declared to be the policy of the city,
in order to provide incentives for private enterprises to expand or for new businesses to locate in the city, to develop a program which empowers the city council to designate portions
of the city as a "business development zone" and to provide for the abatement of certain categories of fees, taxes and other business development-related charges for new development
or redevelopment within such districts. (c) The city council has enacted this division 5 of article I of chapter 22 of the Code of Laws as a joint benefit to the public at large and
to private owners for the purposes of reducing blight in our business districts and of 'providing the city with increased sales and use tax revenues generated upon and by properties
improved as a result of this program and allowing owners and proprietors opportunities to improve properties which generate sales activities, which improvements make those properties
more competitive in the marketplace and further provide to owners and proprietors additional contingent sources of revenues for ungrading such properties. (d) The city council speCifically
finds and determines that creation of this "business development zone" division and the exercise of the powers enumerated herein are consistent with and promotes the public health, safety
and general welfare of the citizens of Wheat Ridge. (Ord. No. 888, § 1,1-13-92; Ord. No. 1993-947, § 1, 12-13-93; Ord. No. 1272, § 1,12-9-02) Sec. 22-87. Definitions. As used in this
diVision, the following phrases shall have the following meanings unless the context clearly indicates another meaning: . (1) The phraseeligible city fees. charges and taxes shall mean
and shall be limited to use tax on furniture and fixtures associated with the initial development or redevelopment "project," use tax on building materials, building permit fees and
zoning fees. (2) The phraseexpected incremental future sales and use tax revenue shall mean the amount of the additional sales and use tax revenue, as projected by the city, expected
to be generated during the council-designated time period from the time of completion of the "project" over and above the sales and use tax fees generated on the premises in the twelve
(12) months preceding the application described in section 22-88.
ARTICLE l. SALES AND USE TAX· (3) The phraseowner or proprietor shall mean the record owner, tenant or operator of an individual business or, in the case of a shopping center, the owner
of the real property upon which more than one business is operated. (4) Project shall mean the specific development or redevelopment expenditures which relate both to the abatement of
"eligible city fees, charges, and taxes" and "expected incremental future sales and use tax revenues." (Ord. No. 888, § 1,1-13-92; Ord. No. 1272, § 1, 12-9-02) Sec. 22-88. Participation.
Participation in the business development zone program shall be based upon approval by the city council, exercising its legislative discretion in good faith. Any owner or proprietor
of an established, proposed or newly purchased business, or the owner or proprietor of an existing business which wishes to expand, may apply to the city for inclusion within the program.
Abatement or sharing of eligible city fees, charges, and taxes shall, upon approval of the application by the city council, be granted up to the amount of expected incremental future
sales and use tax revenue to be generated by the project during the agreed to time period. (Ord. No. 888, § 1,1-13-92; Ord. No. 1272, § 1,12-9-02) Sec. 22-89. Approval of agreement;
use of funds generally. Approval by the city council of an agreement implementing the provisions of this division shall entitle the applicant to share in the eligible city fees, charges
and taxes up to the amount agreed by the city council; provided, however, that applicant may use such amounts only for the purpose of developing or redeveloping the business within the
approved business development zone, which purposes shall be specifically enumeratec;l in the agreement provided for in section 22-94 hereof. (Ord. No. 888, § 1, 1-13-92; Ord. No. 1272,
§ 1, 12-9-02) Sec. 22-90. Uses enumerated. The uses to which the eligible city fees, charges and taxes may be put by an applicant shall be strictly limited to those which are approved
by the city council and relate directly to the development or redevelopment of businesses within the city, which developed or redeveloped businesses will generate more municipal sales
and use tax revenues for the city in the future. Priority shall be given to all businesses which make application for inclusion within this program and who agree to utilize the eligible
city fees, charges and taxes for the public or public-related purposes identified section 22-78 of this Code of Laws. (Ord. No. 888, § 1,1-13-92; Ord. No. 1272, § 1,12-9-02) Sec. 22-91.
Increments, sharing offunds. The base figure for eligible city fees, charges and taxes shall be divided into twelve (12) monthly increments, which increments are subject to agreement
between the parties and approved by the city council, and which increments shall be reasonably related to the amount of sales and use taxes generated on the premises in the twelve (12)
months preceding the application received by the city for participation in this program. The accounting and payment provisions of sections 22-79 and 22-80 hereof are hereby declared
to be applicable to any application approved hereunder. '1 I''){\/''')() 1 (\
ARTICLE l. SALES AND USE TAX' (Ord. No. 888, § 1, 1-13-92; Ord. No. 1272, § 1,12-9-02) Sec. 22-92. Capital improvement fund. The one (1) percent of use taxes earmarked for the capital
improvement fund may be utilized in this business development zone program for public improvements so long as the same are within the meaning of the phrase capital improvements as defined
in the voter-approved sales tax referendum previously held within the city, and provided the public improvements are found and determined by the city council to be capital improvements
which could be provided by the city from the capital improvement fund but for the provision of such improvements by the applicant. (Ord. No. 888, § 1, 1-13-92; Ord. No. 1272, § 1,12-9-02)
Sec. 22-93. Criteria for approval of application. (a) Approval of an application for inclusion in this business development zone program shall be given by the city council at a public
hearing held as a portion of a regularly scheduled city council meeting based upon the following criteria: (1) The amount of expected incremental future sales and use tax revenue which
[can) reasonably be anticipated to be derived by the city through the expanded or new tax generating business; (2) The public benefits which are provided by the applicant through public
works, public improvements, additional employment for city residents, etc.; (3) The amount, if any, of city expenditures which may be deferred based upon public improvements to be completed
by the applicant; (4) The conformance of the applicant's property or project with the comprehensive plan and zoning ordinances of the city; (5) The agreement required by section 22-94
hereof having been reached, which agreement shall contain and conform to all of the requirements of such section. (b) Approval of any application shall be made by motion adopted by a
majority of the entire city council. (c) The city council may by three-fourths ( 3/4) majority vote approve exceptions to the provisions of this division when such exceptions are found
to be in the public's interest and such exceptions provide substantial benefit to the city. (Ord. No. 888, § 1, 1-13-92; Ord. No.1993-947, § 2,12-13-93; Ord. No. 1272, § 1,12-9-02) Sec.
22-94. Agreement required. Each application for approval to the city council shall be subject to approval by the council solely on its own merits. Approval of one application shall not
require, or be deemed precedent for, approval of any other application. Approval of an application shall require that an agreement be executed by the owner and the city, which agreement
shall, at a minimum contain: (1) A list of those public or public-related improvements which justify applicant's approval, and the amount which shall be spend on such improvements; (2)
The maximum amount of expected incremental future sales and use tax revenue and the maximum time during which the agreement shall continue, it being expressly 1.H-_.IfI:l. . ___ ." _
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, ~RTICLE L SALES AND USE TAX' understood that any such agreement shall expire and be of no further force and effect upon the occurrence of the earlier to be reached of the maximum time
of the agreement (whether or not the maximum amount to be shared has been reached) or the maximum amount to be shared (whether or not the maximum time set forth has expired); (3) A statement
that this is a personal agreement which is not transferable and which does not run with the land; . (4) That this agreement shall never constitute a debt or obligation of the city within
any constitutional or statutory provision; (5) The base amount which is agreed upon by month, and the fact that if, in any month as specified, expected incremental future sales and use
tax revenue received from the property does not at least equal such amount, that there shall be no sharing of funds for such month; (6) The base amount shall be agreed upon, which shall
consider the use taxes generated by the property in question, or a similar property within the city in the event of a new business; (7) A provision that any expected incremental future
sales and use tax revenue shall be escrowed in the event there is a legal challenge to this business development zone program; (8) An affirmative statement that the obligations, benefits
and/or provisions of this agreement may not be assigned in whole or in any part without the expressed authorization of the city council, and further that no third party shall be entitled
to rely upon or enforce any provision hereof; (9) Any other provisions agreed upon by the parties and approved by the city council. (Ord. No. 888, § 1, 1-13-92; Ord. No. 1272, § 1, 12-9-02)
Sec. 22-95. Joint venture liability. The city council has enacted this business development zone as a joint benefit to the public at large and to private owners for the purposes of providing
the city with increased tax revenues generated upon and by properties improved as a result of this program; public improvements being completed by private owners through no debt obligation
being incurred on the part of the city, and allowing applicants an opportunity to improve properties which generate sales and other business activities. The city council specifically
finds and determines that creation of this business development zone is consistent with the city's powers as a home rule municipal corporation, and that exercise of such powers in the
manner set forth herein is in furtherance of the public health, safety and welfare. Notwithstanding any provision hereof, the city shall never be a jOint venture in any private entity
or activity which participates in this business development zone program, and the city shall never be liable or responsible for any debt or obligation of any participant in this business
development zone. (Ord. No. 888, § 1,1-13-92; Ord. No. 1272, § 1, 12-9-02) Sec. 22-96. ESTIP and TIF. If the applicant, owner or proprietor participates in the city's Enhanced Sales
Tax Incentive Program ("ESTI P") or if the owner's or proprietor's business is located in an urban renewal area in which all or a portion of sales tax revenues have been pledged as part
of a tax increment financing program, he or she shall be ineligible for participation in this business development zone program. (Ord. No, 888, § 1,1-13-92; Ord. No. 1272, § 1, 12-9-02)
RENEWAL WHEAT RIDG' Incentive Policy & Guidelines GENERAL PURPOSE AND OBJECTIVES The City of Wheat Ridge ("City") believes that certain types of investment in the City lead to positive
economic growth and stabilization while also advancing a public benefit. As a result, in accordance with the provisions and conditions of this policy statement ("Policy"), the City will,
under specified criteria, on a case-by-case basis, consider the granting of incentives in order to attract new, or improve existing commercial and/or non-commercial assets' and to encourage
the growth
of Wheat Ridge in accordance with community-adopted goals and objectives. The City also acknowledges that different areas of Wheat Ridge face varying degrees of challenges in attracting
private sector capital for quality (re) development. Therefore, the City has designed this Incentive Policy to: provide greater assistance to meritorious projects in areas of Wheat Ridge
where market activity either has, or has the potential to, lag behind community needs and goals; and /or, raise standards of development, in an effort to level the financial "playing
field" and effectively ready the environment for catalyzing investment. (See discussion of Catalyst Investment Areas.) Specifically, it is the objective of this Policy that the City's
strategiC investment of its incentive resources improve Wheat Ridge's entire portfolio of community assets and facilitate the development and redevelopment of projects that provide a
public benefit. Further, it is the City's intent to manage the implementation of the Incentive 1 Those investment projects (new development and redevelopment) which advance the City
vision. 1
RENEWAL WHEAT RID E' Policy so that incentives are fairly distributed across geographic and market sectors and appropriately applied based on the community vision. This Policy provides
private property and business interests and advocacy entities with tools to meet the challenges presented by (re) development and particularly infill development and redevelopment. Resources
that are available through the City are designed to accomplish the following guiding principles: Guiding Principles • Promote development that conforms to the community's vision as expressed
in Envision Wheat Ridge, the City's Comprehensive Plan, and other widely accepted community plans. • Provide preference for projects in targeted areas that: provide a public benefit,
are vibrant, expand the community's residential base, connect concentrated areas of uses, emphasize sustainability in design and bUilding materials, promote local flavor and economic
diversity, and support transit-oriented development utilizing multiple modes of transportation • Generate positive financial impacts and effectively leverage private dollars. • Provide
short-term assistance for eligible projects that have verifiable finanCing gaps., • Capitalize on near or mid-term market opportunities. • Provide assistance for the minimum possible
length of time. The incentives offered under this Policy are not intended to replace other project financing from private or public sources. Rather, it is intended to be a flexible resource
that spurs worthy projects by bridging funding gaps which may be created by the difficult and sometimes costly 2
RENEWAL WHEAT RID nature of such purposeful developments due to geography. product mix and /or development standards. The primary incentive programs available include: • Land Transactions
• Urban Renewal (Tax Increment Financing) • Infrastructure Cost Participation • Pedestrian Enhancements and Linkages • Operating and Maintenance Costs • Tax Abatement and Rebates • Tax
Exempt Bond Financing • Local Grants • Low Interest Loans • Federal and State Grants • Predevelopment Due Diligence • Fee Waivers • Special Districts • Parking Districts • Loan Pools
• Project Participation • Business Relocation /Retention Assistance • Development Approval Facilitation 3
CITY PARTICIPATION RENEWAL WHEAT 10 The City's decision to invest in a project centers on a number of important findings. Four of the key determinants include: • number and type of public
benefit elements (direct or indirect); • potential of the project to succeed; • advancement of the Policy's guiding principles (as presented above); • demonstrable financial need; and,
• evidence that the project accomplishes the goals of the community as specified in Envision Wheat Ridge, (list other relevant community plans) and all other Councilapproved community
plans related to the growth and development of the City (see Catalyst Project Investment Areas). Once these criteria are satisfactorily addressed, City staff will work with the applicant
to further analyze specific details about the project's financial need and other factors as warranted. The financial need of the project will be determined based upon the nature and
extent of the gap between total project costs and amount of private investment to cover those costs, assuming a market-average rate of return on the private investment. Based upon this
information, City staff will then determine the extent of the City's participation in the project. The level of City participation will be dependent, in part, on the fiscal impact of
the project to the City and expected private investment leverage resulting from its participation. Another factor will include the extent of public benefit the project provides. The
map below illustrates the City's target areas for catalyst private investment. Final documentation for meritorious projects will be 4
RENEWAL WHE. TRIO E packaged along with City staff recommendations for final review and consideration by City Council. CATALYST INVESTMENT AREAS Together with Renewal Wheat Ridge, City
Council has identified geographic areas of the community within which to target its incentives. Collectively they acknowledge that different geographic areas face varying degrees of
challenges in attracting private sector capital for development consistent with the community's goals and objectives. Wheat Ridge's commercial corridors have demonstrated a range of
challenges related to retrofitting the existing physical fabric which is not as prevalent in other locations with larger property assemblages, sufficient lot depths, and compatible land
uses. Therefore, while projects outside these areas might prove worthy, the City has specifically targeted its incentives to provide greater assistance to catalyst projects in areas
of Wheat Ridge where/market support has either lagged behind community needs and goals, or where economic economic conditions are fragile or susceptible to market forces. What follows
describes the Authority's and City's catalyst investment areas and the criteria by which they will be evaluated. The vision for each of these target investment areas are presented below.
Target Investment Areas City of Wheat Ridge Comprehensive Plan (Envision Wheat Ridge) A general plan for the City known as the Envision Wheat Ridge was adopted in the Fall of 2009. The
plan specifically states, "Wheat Ridge will be a prominent and sustainable city, with a 5
RENEVVAL WHEATR 0 prosperous future built upon the foundation of the community's major assets (comfortable neighborhoods, unique culture and history, abundant open space, terrific views,
and proximity to Denver and the Rocky Mountains). The City will grow a broad and resilient local economy that provides family wage jobs and thriving business districts to balance with
the community's friendly and established neighborhoods. In addition, Wheat Ridge will offer convenient transportation options, valuable services, and high quality of life for all residents.
The City recognizes that attaining this vision will require an aggressive approach and willingness of the community to embrace change." Insert vision statements from urban renewal plans
and I or description of targeted redevelopment areas identified in Envision Wheat Ridge. Catalyst Project Criteria The following comprehensive list of characteristics describes those
elements common to most of the catalyst investment areas and used by the City in their identification.2 Projects outside these areas should possess a majority of the following characteristics,
but at a minimum, show evidence of a market opportunity and I or development project with potential in the near-or long term. Characteristics include: 1. Development program addresses
a market opportunity (void or niche) in the near-or longterm. 2 Exceptions include those areas determined by state or federal guidelines. 6
RENEVVAL III'H T 10 2. Demonstrates a quantifiable need for the public resources in order to make the project feasible (forms will be provided to applicants). 3. Provides an opportunity
to strengthen and link existing or planned districts or activity centers. 4. Suggests ability to leverage existing or planned public investment. 5. Located with adjacency to physical
features including parks and open space, that will enhance their likelihood of success. 6. Presents potential for creating entryways or gateway project. 7. Site possesses favorable ownership
patterns including existing assemblage, public acquisition opportunity, motivated seller, etc. 8. Presence of unified, energetic stakeholders that are willing to advocate for project.
9. Evidence of stability in property values or upward trend in adjacent investment. 10. Located in an area that is able to access additional funding (beyond public resources). 11 . Addresses
a demonstrated community need, both perceived and quantified including workforce and I or affordable housing commercial Incubator space, etc. 12. Advances municipal sustainability goals.
In order to be considered for City incentives, a project falling within a catalyst investment area must advance and exceed stated community goals and positively address the above characteristics
applicable to their location. A project possessing a majority of the above characteristics, yet outside a preference area, may also be considered for City incentives, but will be expected
to undergo a greater level of scrutiny to ensure that it is consistent with stated goals and objectives and Policy Guiding Principles presented herein. 7
RENEWAL WHEAT R E Catalyst Investment Defined This Incentive Policy defines catalyst investment areas as follows: "A catalyst investment area is an 'urbanized' place that has a concentration
of jobs, housing units, commercial uses, public spaces, public transportation, and /or pedestrian activity and a sense of place. These areas are frequently located at significant activity
nodes. Predominant land uses are commercial, non-commercial and public. Within these relatively compact geographic areas, different land uses are found side by side or within the same
structures. The mix of uses are often located in developments with minimal setbacks, reduced parking requirements and taller structures, all in an effort to achieve higher densities
necessary to support multiple nodes of transportation and pedestrian activity (where relevant) , private investment and a sense of place. These areas are catalysts for public and private
investment and economic activity, effectively building off Ihe strengths of the surrounding area and connecting to surrounding uses. Implementation and management of catalyst areas is
generally the responsibility of a combination of entities including business organizations, special districts, neighborhood and other interest groups, and individual property owners."
BENCHMARKING THE MARKET The ability of the Policy to successfully marry market opportunity with market investment will hinge upon continual feedback to the City by representatives of
the real estate and business investment markets and incentive recipients. Therefore, the City has an expectation of 8
RENEWAL WHEAT RIDGE investment partners to provide information on the performance of projects during start-up and through stabilization3. The receipt of project information beyond the
period during which the City participates will be appreciated, but not required. Access by the City to this information will assist in staying current on market conditions and expectations
among different geographic and market sectors, as well as provide the basis for refinements to the Policy and the City's decision-making parameters for participation in future projects.
INCENTIVES For those incentives where developers are directly involved and in direct receipt of public dollars, the City maintains a policy that the developer pledge the following: •
A participation goal for minOrity and disadvantaged businesses to proVide services and supplies • A stated goal to proVide construction and/or permanent employment opportunities for
Wheat Ridge reSidents Award of any incentive will be contingent on approval of the project by City City Council. • Land Transactions • Urban Renewal (Tax Increment Financing) • Infrastructure
Cost Participation 3 The total value of the incentives will only be available at a level not to exceed the incremental dollars generated by the planned investment as determined by the
City through regular review of the project's performance (open books). Select information will be kept confidential from the general public. 9
• Pedestrian Enhancements and Linkages • Operating and Maintenance Costs • Tax Abatement and Rebates • Tax Exempt Bond Financing • Local Grants • Low Interest Loans • Federal and State
Grants • Predevelopment Due Diligence • Fee Waivers • Special Districts • Parking Districts • Loan Pools • Project Participation • Business Relocation I Retention ~ssistance • Development
Approval Facilitation 1. Land Transactions Purpose of Incentive RENEWAL WHEAT RID E. PrO<.J'~h~ fhrouqt> ,t".,.,)"", The purpose of this incentive is to assist developers with land acquisition
and assemblage for meritorious projects in targeted investment areas. 10
RENEVVAL V"HIAr 10 E Project Use • The City may make available publicly-owned lands in priority preference areas for projects, which advance the guiding principles of this Policy. •
The City may initiate the development of surplus public lands as a joint venture with private developers. • The City may consider contributing publicly-owned land for appropriate infill
projects, or swapping publicly-owned property for developer-owned parcels. • The City may pay for costs associated with Phase I environmental assessments on publicly-held properties,
and where possible will, complete these analyses and include the appropriate documentation related to this assessment prior to disposition of the property to private interests. Note:
This effort is often completed under the incentive Predevelopment Due Diligence. Limitations As identified through policies of the City Council. 2. Urban Renewal (TIF) Purpose of Incentive
Tax Increment Financing (TIF) is a tool authorized under Colorado State statute by which local governments can publicly finance the rehabilitation or demolition of existing structures,
construct or install new streets, utilities, open space and other improvements 11
RENEVVAL WHEAT 0 that serve a public purpose. Expenditures are made within a defined area called an urban renewal area. The tax increment is derived from the difference in appraised
value between the year in which the area and TIF was formally established by Council (base year) and each year is in existence, for a period not to exceed 25 years. The increment is
generated by real property taxes resulting from new construction and increases in market values due to public improvements and redevelopment efforts. Project Use • The City will consult
with property owners within a designated area to ensure that TIF is awarded to meritorious projects. Note: This is accomplished through creation of an urban renewal area where the project
is located. • The City may provide a rebate to the developer of the property tax increment or pledge the increment as payment of principal and interest on bonds issued to fund the improvements.
The City may also elect to retain tax increment to meet operating or other demands within the TIF area. • The percent of TIF revenue made available to projects will be negotiated on
a caseby-case basis and considered relative to those factors described in this Policy's guiding principles. Limitations TIF can only be used on expenses that provide a public benefit.
Eligible project costs include: capital costs, financing costs, real property assembly costs, professional service costs for public improvements, imputed administrative costs, relocation
costs, 12
RENEWAL WHEA 10 Eo organizational costs, interest before and during construction, and costs associated with operating the urban renewal area and project facilities. 3. Infrastructure
Cost Participation Purpose of Incentive The City may elect to participate, either through a formal program or on a case-by-case basis, in the cost of construction and lor maintenance
of infrastructure that will benefit multiple projects and properties. Project Use • The City will work with the developer and I or property owner to identify all on-site and off-site
capital improvements necessary to service and I or support the project. • Where dollars have already been earmarked (i.e. , in the City Capital Improvement Plan) or quantified; and public
expenditures are imminent, the City may elect to contribute these dollars to the project. • Where dollars have not been earmarked, but improvements are considered to benefit from the
project and area, the City may still elect to contribute dollars to the project. • The City will consider the quality of materials and their consistency with prevailing policies, standards
and regulations. In instances where the City desires to raise standards of design and I or development, it may elect to participate in the cost of delivering these improvements. 13
RENEVVAL W' 'EAT "10 E Limitations As identified through policies of the City Council. 4. Pedestrian and Roadway Enhancements and Linkages Purpose of Incentive It is the City's intent
(and past practice) to encourage pedestrian connections, access to multiple modes of transportation and linkages among activity areas both within the City's economic core and surrounding
neighborhoods. To this end, the City may participate in projects that advance this objective in the form of expending capital for infrastructure and maintenance of public improvements.
In the context of the catalyst areas, public improvements are considered to encompass streetscape and roadway improvements that encourage pedestrian and transit access, as well as public
space amenities. Project Use The City may use CIP, bond and I or general funds for redevelopment within the catalyst areas to leverage grants and private funding sources. Grant programs
are often administered by the Federal Highway Administration, the Federal Transit Administration, and the Colorado Department of Transportation. The City's goal is to use funds to leverage
private dollars, yielding investment for streetscape improvements in the nearterm. 14
RENEVVAL WHE T Du; Proq,ess It" ........ gh f'al ! , .".t,' .... Limitations The City will identify and evaluate projects as grant and/or other funds become available. Projects will
be selected according to the criteria established by the grant program and any additional criteria that further the goals of this Policy and other adopted plans and policies. These criteria
may include, but are not limited to, the following: • Consistency of proposed improvements with the purpose of the grant program • Equitable distribution of funds among the catalyst
areas (over time) • Ratio of private investment to public investment Limitations In order for the City to expend funds, resources must be in support of a catalyst project that advances
the vision for that area. 5. Operating & Maintenance Costs See discussion above under Incentive 4. 15
RENEWAL WHEAT RID' ;E 6. Tax Rebates Purpose of the Incentive Tax rebate is a tool which allows eliJlible bu~iness interests to be reimbursed all or a ~: rt\"ai) , .... ~t tt>.'j. ,
'ou.i\"(V'~ uS"! 'rfA.f.. portion of ad oalOl &ill taxes for a specified period of time. The purpose of this incentive can be to minimize expenses associated with starting and I or relocating
a business or moving a development towards stabilization as expeditiously as possible. Project Use Although the City may consider all applications for tax rebates that meet the eligibility
requirements set forth in this Policy and compliant with relevant restrictions stated in the City Charter, it is especially interested in development projects that: • Result in the creation
of new full-time jobs for Wheat Ridge residents • Increase the number and diversity (product type and price point) of residential units • Result in developments with little or no additional
cost to the City • Have a positive impact on the larger Wheat Ridge community Retail Sales -Project Use • The City will provide a rebate of a percentage of the sales tax increment attributable
to appropriate capital improvements. 16
RENEVVAL WHEAT RI 'GF ProqrtOSS rhowI.g' F> .. rt, U', .. h,1-' • The rebate shall be made either to the site developer as a reimbursement for site improvement expenses or rent discounts
offered in an effort to reach project stabilization; or to the retail tenants of the improved center in order to assist in relocation or expansion-related costs of the tenants, or fac;:ade
or signage improvements. • The percent of the City's sales tax rebate and length of time will be negotiable. Limitations Until an urban renewal area is established, or City Council adopts
a rebate policy, this incentive can only be granted on a case-by-case basis with approval by a majority of City Council. 7. Tax Exempt Bond Financing Purpose of Incentive The purpose
of this incentive is to provide long-term financing for select economic development projects. Bonds are issued by the City and exempt from state and local taxes. Project Use Bond revenue
can be used for specific purposes, as determined by the bond documentation, including right-of-way improvements (public and private), parking, 17
RENEWAL WHEAT RIDGE Pro9,es .. lhru .. gh P".tpe'sl"f.> streetscape, infrastructure, as well as land acquisition. The City may provide support to projects that meet the City's bond documentation
criteria for funding. The funds will be available in the form of 1) loans, 2) loan guarantees, 3) equity investments, and I or subordinated debt for construction, or, 4) permanent financing.
Bond revenue may also be available to projects located in an urban renewal area. Criteria for funding within an urban renewal area are defined in the urban renewal plan for that area.
Limitations Limitations will be largely dictated by the rules and regulations associated with the bond issuance and the terms and conditions that the City may ask developers to pledge
when issuing the bonds. Private Activity Bonds Private activity bonds are designed to provide taxable and tax-exempt bond financing primarily for local improvement projects. Private
Activity Bonds (PAB) are bonds that can be issued for specific purposes, as determined determined by federal tax law. PABs are not a direct source of funding, but rather a tax-financing
mechanism. 18
RENEVVAL WHEA D';E 8. Local Grants Purpose of Incentive The purpose of local grants is to reimburse private developers for the range of expenses which may contribute to a financing gap
yielding projects financially infeasible. To this end, the City will also be sensitive to the taxable implications these grants may have for the developer and where possible, use transfer
mechanisms (i.e., soft loans, accrual notes, etc.) which result in a favorable financial impact. Limitations This incentive is often used as a gap-financing tool of last resort. The
use of this incentive is for projects facing extraordinary impediments to development and offering significant positive impact to the community and the surrounding area where the project
is located. Limitations on how this incentive is used are predicated on the source of the funds and terms and conditions of the award to the City and the project. 19
RENEVVAL WHEAT RID' _ 9. Low Interest Loans Purpose of Incentive The purpose of this incentive is to provide funds to developers at a lower rate of interest compared to conventional
loans. This incentive effectively reduces the financial gap of a project, thereby enhancing its financial feasibility. ~ooi Jed b.J w4l. ~ot\o Project Use The City may facilitate the
provision of this type of support to development projects that meet the City's criteria for funding . Loans can be used to support commercial, residential or mixed-use development projeots,
for both rehabilitation and new construction related expenses. Types of loans available include predevelopment, interim financing and bridge. The program can be expanded to include a
set-aside for fa<;:ade improvements in targeted areas. Limitations Limitations will be largely dictated by the rules and regulations associated with the funding source and the terms
and conditions of the specific award. 20
RENEVVAL WHEAT RID' E 10. Federal and State Grants Purpose of Incentive The fundamental premise of the City's Incentive Policy is to catalyze investment and reinvestment in targeted
areas. Whereas experience has proven that "catalyst projects" serve to prove to private sector investment markets that demand for community-beneficial developments exists; they set a
positive precedent for future development. Given the importance of supporting catalyst projects in priority areas, the City may, at its sole discretion, elect to compete for federal
or state grants to support deserving real estate development projects. Project Use If awarded, the City may provide this type of support to projects in an effort to close a demonstrable
funding "gap." Use of the funds will be contingent on the project's ability to advance key community goals including sustainable development principals, as well as the guiding principals
of this Policy. Grant funding is generally used for infrastructure improvements, environmental remediation, pedestrian and streetscape enhancements in the public right-of-way, and other
costs as appropriate to the funding source. However, they may also be used for a range of economic development initiatives including business retention, relocation and expansion initiatives.
21
RENEVVAL "'HCAT DGE Limitations Limitations on how this incentive may be used are often predicated on the source of the funds and terms and conditions of the award to the City and the
project. City Council will determine which projects they will submit for competition. Submittal is not a guarantee of City funding and City participation will be contingent upon award
of grants. 11. Predevelopment Due Diligence Pu rpose of Incentive r The purpose of this incentive is to provide property owners and developers with market, financial, design, engineering
and other related information in an effort to both educate them about opportunities, as well as save them pre-development dollars. Project Use • The City will establish an electronic
"library" of studies and reports solicited by, and shared with, the City in the context of development and investment projects in targeted areas. • As these studies and reports are made
available, they will be submitted to the library for use by the private sector. 22
RENEVVAL WHE T "10' • The City may also elect to dedicate staff or retain the services of consultants and other professionals at no cost to the developer in an effort to save them predevelopment
dollars, while ground-truthing project feasibility. Limitations As identified through policies of the City Council. 12. Fee Waivers 4 Purpose of Incentive The purpose of this Incentive
IS to' encourage Investment by waiving 01 delaYing developmenl fees until the developer sees a positive cash flow Prolect Use The Cily may waive or delay proJect-related development
fees on a case-by-case baSIS fOI meritorious projects ~ Based on preliminary consideration by City staff, tools I resources presented in red may not be available and will requIre additional
discussion. 23
RENEWAL WHEAT RIDGE Proq'es~ II1,uug/1 p ... ·!" .. ,~l"" limitations Developers will need to negotiate with the City a specific thl eshold (to be determlllE'd) that they can demonstrate
In order to be eligible for waivers or delays. 13. Special Districts and Improvement Districts Purpose ofJncentive Special districts are special-purpose units of local government created
to provide a serVICE or services to a specific group of constituents. Assessed taxes ale exclusively propelty taxes. Improvement districts allow a municipality to levy and collect speCial
asse~sments on property that IS within the Cit)! or the City's extraterritonal JUI isdlction (ET J) to be used in the distnct. The assessment can be used to fund things includrng streetscape,
Infrastructure, security, parks, recreation, parking and other public Improvements Project Use • In order for a special dislrict to be established 51 Yo of the property owners must submit
a petition request. • Upon receipt of the petition request and establishment
of the district the City Council will appoint an AdvIsory Board to prepare and advance an improvement pliln for the area. 24
RENE\lVAL WHE TR • Upon creation of the dlStllCt, property owners will be assessed an ddditional feE "J fund improvement plOJects and /or pay for the cost of maintaining these IInplovements.
• The district can pledge the assessment revenue as payment of principal alll1 Illtel E"st on bonds Issued to fund public ImplOvements which benefit projects withlll It. limitations
As improvement districts are enacted, pllmarily to ra ise money for the provIsion of celtaln services or ImplOvements, eligible projects which require the revenue of a speCie I distrrcf
must serve a public purpose. 14. Parking Districts Purpose of Incentive A parking district is a deSignated area wherein parking design, development and management issues, beyond those
provided for by standard municipal levels of service, are contlOlied by a select entity. The purpose of this incentive is to allow property and business owners to share in the cost of
infrastructure and services in an effort to stabilize and distinguish a business and/or neighborhood district, and thereby potentially improve its market position. 25
Project Use RENEVVAL WHEAT RID! ,E • In order for a parking district to be established, 51 % of the property owners must submit a petition request. • Upon creation of the district, property
owners will be assessed an additional fee to fund improvement projects within its area. • The district can then pledge the assessment revenue as payment of principal and interest on
bonds issued to fund public improvements which benefit projects within it. Limitations As improvement districts are enacted primarily to raise money for the provision of certain services
or improvements, eligible projects which require the revenue of a special district must serve a public purpose. 15. Loan Pools Purpose of Incentive The purpose of this incentive is to
spread risk across multiple funding entities. Pools can be assembled with private, public and semi-public dollars. An obvious resource can be Community Reinvestment Act (CRA) dollars,
managed by private lending entities that are required to be invested directly in the community. community. Commitments can take the form of 26
RENE'WAL WHE T ROE Pr09":tl>!-n"uug" t'e"".'~I"IJ loans, letters of commitment and stock purchases. Loan pools may also include program partnerships. Project Use • The City will facilitate
discussions with various local and regional lending entities (PUbliC~nd semi-private) to identify set-asides for a loan pool to be used by credible borrowers for the development of projects
in targeted areas. • The City may consider subordinating the loan pool fund, if necessary. Limitations Limitations will be largely dictated by the rules and regulations associated with
the funding sources and terms and conditions of the specific award. 16. Project Participation Purpose of Incentive The purpose of this incentive is to offer public sector support to
projects in an indirect way, as an alternative to direct financial participation. 27
RENEVVAL WHEAT ' 10 E' Project Use • The City will consider taking space (relocating a department) in a newly developed or redeveloped commercial project. • If their CI P plan includes
the expansion of public facilities or spaces, the City may consider doing this in cooperation with the developer. (See Pedestrian Enhancements and Linkages.) • The City may provide the
services of one of their departments or affiliates (Chamber, Economic Development) to either the developer or tenants in the development to advance the success of the project or their
individual business. Limitations As identified through policies of the City Council. 17. Business Relocation I Retention Assistance Purpose of Incentive The purpose of this incentive
is to assist existing businesses with their expansion, retention and relocation needs. Costs associated with relocation are an acceptable expense within an urban renewal area. However,
projects not located within an urban renewal area may be required to buy-out leases (at a minimum) and possibly cover 28
RENEWAL WHE· TRIO E relocation expenses in an effort to advance (re) development projects in infill areas. In addition to providing dollars for actual expenses, the City may partner
with various economic development entities to assist with marketing and disruptions in operations. Project Use • The City may identify and/or retain someone to serve as a pOint-person
for relocation inquiries. • Within existing urban renewal areas, the City will make sure that a relocation plan with specific provisions is in place. • The City may preemptively solicit
the participation of a range of economic development partners to assist the City in their redevelopment goals and objectives. Limitations As identified through policies of the City Council
and any other participating entities. 18. Development Approval Facilitation (Streamlining) Purpose of Incentive The City's organizational structure is expressly designed to allow for
interdepartmental coordination for development projects. Its mission is to focus on and provide assistance to 29
RENEWAL WHE TRIO E priority projects that are eligible as defined under this Policy. Through staff project facilitation, the City will attempt to resolve questions that arise through
a main point of contact who will then work with other departments as necessary, in order to facilitate a streamlined process for projects in pre-development. Project Use • City staff
representatives on the team will host a pre-development conference to address construction, platting, zoning and permitting issues. • A project manager from the City will be assigned
to serve as the primary contact for addressing internal problems and issues related to the project. • Key staff will continue to facilitate issues that arise and eventually serve as
advocates for projects be~een departments and with City CounCil, assisting with formal presentations and soliciting timing guarantees. Limitations This service applies to projects which
meet the catalyst project criteria as outlined in this Policy. 30
RENEVVAL WHE R DGE DEFINITIONS Capitalized terms used in this Policy, but not defined elsewhere, shall have the following meanings: Business Recruitment I Retention: Program, frequently
administered by an economic development entity, which assists with the recruitment (attraction) or retention of business either into or within a designated area; program elements, might
include financial assistance, regulatory assistance, and lor marketing. Capital Improvement Plan (CIP): Dollars earmarked for improvement and extension of infrastructure in municipalities.
Density Bonuses: Incentive offered to developers of projects that meet specified goals (i.e., affordable housing, public spaces, transit, etc.) which reward them in the form of fee waivers,
abatements, etc. for building-out their development envelope and advancing community goals. Development Fee Waivers: Monetary charges on development, capital and operating that are required
to accommodate a project, which can be recouped (all or a portion). Note: Fees for sewel f VOI!leF Reek tll'~ building permits, processing fee, etc. can be waived or delayed until the
developer sees a positive cash flow as a means to encourage infill projects. Improvement District: Both an organizing and financing technique for area revitalization. Districts provide
a stable stream of income for activities and projects considered special to area 31
R E NEVVAL WHEAT RID E or in addition to general municipal services. Districts are a vehicle for providing additional services for a fee and should not be considered a substitute for
services funded through traditional tax revenues. Infrastructure Cost Participation: Cost of infrastructure (either on-site or off-site) shared by developers and /or property owners
with an entity (public, private, or semi-private organization) which will benefit from its availability -can be offered through a formal program or on a case-bycase basis. Land Assembly:
Land assembled by public, private or non-profit entities in an effort to position it for development of larger projects. Assemblies can happen through purchases of properties, vacations
and /or the rerouting of streets, alleys, etc. Land Donation /Write-Down: Property owner -public, private or semi-private organization -contributes land to a project either as a donation
without an expected return , or at a reduced price. City-acquired property through fee simple transactions and foreclosures are an obvious source for land contributions. Land Swap: To
develop specific infill sites in speCified way, potentially contrary to the intentions of existing property owners and/or developers, cities can offer an exchange of city-owned land
of similar value in an alternative location. Loan Pool (Lending Pools): Several lending organizations contributing financing to a project or projects, thus sharing risk. An amount of
capital pledged by several entities for lending to 32
RENEVVAL WHEAT RID Proq'f<S~ I.",ugh ,>.. "" ... ,,.1,,,:. businesses based on some agreed upon goals or other criteria. Pledges can be in the form of loans, letters of commitment and
stock purchases. Pools can be either organized formally or on a case-by-case basis. Parking District: Designated area wherein parking design, development and management issues among
multiple facilities beyond that provided for by standard municipal levels of service are controlled by a select entity. Pedestrian Enhancements and Linkages: Various public, private
and non-profit initiatives to improve the pedestrian environment in a designated area, i.e., permanent and temporary streetscape elements, sidewalk widening, reduced speeds, etc. The
resulting environment is designed to accommodate the needs of pedestrians, as well as through-and destination-traffic, by incorporating select infrastructure improvements, design elements,
and traffic management I mechanisms. Methods to achieving this include: separating traffic through the the use of parallel streets; limiting access points; linking parking lots; coordinating
traffic signals; adding alternative transportation lanes; widening sidewalks; providing crosswalks, street lights and furniture; preventing "deadening" uses without building fronts;
and, incorporating transit stops. Predevelopment Funding Grants: Financing for project expenses incurred prior to construction, i.e., soft costs including consulting, design, engineering,
planning, marketing, etc. Note: The Economic Development Administration (EDA) has funds for predevelopment and construction costs. 33
RENEVVAL WHEAT RID E Public Subordination: City I County provide a guarantee to the lending organization that, in the event of default, debt service will be paid. Redevelopment: The
reconstruction or improvement of an area within an existing builtenvironment. Revenue or General Obligation Bond: If a project has a secure revenue stream, such as parking fees resulting
from construction of a parking structure, bonds may be issued and amortized by the anticipated revenue which results from the improvement that was funded. Bonds are not secured against
the taxing authority of the City, and they do not require a public vote. Sales Tax Refund I Sharing: Refunds, on net sales, use, franchise, transfer or other taxes. Sharing -future sales
from a development can be rebated to the developer to pay for infrastructure -City I County agrees to split sales tax revenue with development, and then developer uses it to pay for
infrastructure. Streamlined Development Approval: Initiative by government entity to facilitate a timely approval process for (re) development projects meeting certain criteria. Also
referred to as a "green-tape" permitting program. Critical elements of program: 1) streamlined permit and entitlement process; 2) greater predictability; and, 3) fairness in fees and
exactions. Components: 1) appOinted case manager; 2) consolidated permit process; 3) waived or reduced fees; 4) reduced number of changes to previously approved plans; 5) stoppage to
the 34
R ENEWAL WHEAT ,IOu issuance of conflicting requirements by different departments; 6) a single public hearing; 7) streamlined environmental review process. Streetscape: Improvements
to streets that enhance pedestrian activity. Streetscape enhancements may include: special paving, trees, planters, kiosks, fountains, plazas, benches, bicycle racks, vehicular and pedestrian
lighting, and other public space amenities deemed desirable by the City. Tax Abatement or Rebate: Taxing entity (usually the City) abates or rebates a portion of a project's tax burden;
this can happen in the form of an adjustment on an individual property basis, or in an abatement zone. Tax Exempt Bond Financing: Method pffinancing long-term debt issued by the government
whereby bondholders need not include interest payments on taxable income. Tax Increment Financing (TIF): A district obtains funds from increases in regular tax revenues that arise from
new development in the district; incremental increase in tax revenues over deSignated base year revenues is diverted to a special fund; diversion of regular tax revenues rather than
additional fees to generate revenue for district investments. Can be used in conjunction with municipal bond issues whereby increment is pledged to repayment of the bond issue, or actual
increase allocated to an administering agency directly to finance redevelopment activities. 35
RENEVVAL WHEAT RID' I"'rnq.es!> Ihrougt, J"'.f, ... ,~l"f.-Transfer of Development Rights (TOR): Ability to transfer property entitlements from one property to another when one of the
parcels is located in a designated development area. Urban Renewal: Tool used for the purpose of eliminating slum or blighted areas within a municipality, and positioning properties
for development or redevelopment. Actions under urban renewal include demolition of structures; construction of infrastructure and public spaces; sale of property; and, relocation of
businesses and residents. 36
Leland Consulting Group Leland Consulting Group Incentive Policy and Guidelines Discussion with: City of Wheat Ridge, Colorado Wheat Ridge City Council 19 April2010 7:00 p.m. Leland
Consulting Group Formal policy and guidelines for qualifying projects Defensible process for granting incentives (participating) Greater efficiency for staff Tool to advance
community goals … based on the belief that positive economic growth and stabilization will result from the provision of incentives packaged to attract new investment and reinvestment
… Incentive Policy 6 Leland Consulting Group Who will use it? Any entity, private, public, non‐profit or partnership of these that is requesting City assistance in advancement of a project
What partner entities are mentioned in the Policy? Renewal Wheat Ridge WR2020 Others Where will it live? To Be Determined How an Incentive Policy is Used 3 Leland Consulting Group What
will Council’s role be? Council will continue to approve specific partnership terms, using the Policy Policy as a platform for decisions What are the by products of having a Policy such
as this? Forces private sector to understand the City’s goals before asking for assistance Sends the message that City is open to partnerships, but that projects seeking assistance
must be meritorious Streamlines decision‐making How an Incentive Policy is Used 4 Leland Consulting Group Land Transactions Urban Renewal (Tax Increment Financing) Infrastructure
Cost Participation Pedestrian Enhancements and Linkages Operating and Maintenance Costs Tax Abatement and Rebates Tax Exempt Bond Financing Local Grants Low Interest Loans
Federal and State Grants Predevelopment Due Diligence Tools With Potential Application 5 Leland Consulting Group Fee Waivers Special Districts Parking Districts Loan Pools
Project Participation Business Relocation /Retention Assistance Development Approval Facilitation Tools With Potential Application (cont’d) 5
Leland Consulting Group Catalyst Areas Map 7 Leland Consulting Group Components … General Purpose and Objectives Guiding Principals Statement of City’s Commitment Catalyst Investment
Areas – Catalyst Areas Map – Catalyst Project Criteria Benchmark Indicators Potential Available Tools (individually or as a package) Definitions Process Diagram Supporting
Forms Incentive Policy (cont’d) 8 Leland Consulting Group Based on preliminary staff input … Gather input from various departments (received from public works) Discuss amending building
code language regarding fee waivers Prepare final map identifying catalyst areas Add explanation that City will cover their own costs before providing incentives Add City’s logo
Add “and /or Authority” to City references Under Tax Rebates replace “ad Valorem taxes” with “use – business personal property, sales and building use tax” Under Tax Exempt Bond
Financing – Purpose – change “City” to “Authority” Add date Policy adopted to each page Pending Changes 9 Leland Consulting Group Based on preliminary staff input (cont’d) … Provide
links to other agencies under Low Interest Loans and clarify that as of the date of the Policy the City does not currently offer this incentive Revisit language under Special Districts
Under definitions explain that “City” could also mean “Authority” Under Development Fee Waivers definition – delete the reference to “water hook‐ups” Pending Changes 9 Leland Consulting
Group Public‐Private Partnership Criteria (proposed) 1. Development program addresses a market opportunity 2. Demonstrates a quantifiable need for public resources 3. Provides an opportunity
to link activity centers 4. Suggests ability to leverage public investment 5. Located adjacent to physical features that will enhance likelihood of success 6. Presents potential for
gateway improvement 7. Favorable ownership patterns 8. Presence of unified stakeholders 9. Evidence of stability in property values 10. Ability to access additional funding 11. Addresses
a demonstrated community need 12. Advances municipality sustainability goals 10 Leland Consulting Group Next Steps Refine Incentive Policy (Council, Renewal Wheat Ridge and Staff Input)
Adopt /Accept Catalyst Project Criteria Prepare Process Diagram Share with Partner Organizations 11
". ~'r City of "rY!:Wheat&.-dge ~ARKS AND RECREATION Memorandum TO: Mayor and City Council THROUGH: Randy Young, City Manager FROM: Joyce Manwaring, Parks and Recreation Director Tim
Paranto, Public Works Director DATE: April 19, 2010 SUBJECT: Disposal of Park Property/Acquisition of Right of Way -38th and Kipling BACKGROUND A master plan for the park property located
at 38th and Kipling was completed and approved in 2008. The park master plan addressed the actual park design, as well as accommodated the parking lot deficiency of the Appleridge Cafe,
located at the NW corner of38th and Kipling. The park master plan included a pedestrian! bicycle trail along Kipling Street. However, there is insufficient Kipling right-of-way adjacent
to the Appleridge Cafe to extend the trail to 38th Avenue. Acquisition of property trom the restaurant site would allow construction of the trail connection and provide continuity to
38th Avenue. The current restaurant site is not large enough to meet their parking needs or provide convenient access to their trash dumpster. The City has accommodated this business'
needs for many years through a license agreement for use of the park property south of the restaurant site for trash truck access. Selling a portion of the park property to the restaurant
owner, while buying a portion of the restaurant site along Kipling, will provide a permanent solution concerning the restaurant parking issue and will allow the City to construct the
trail to 38th Avenue. City Council approved a resolution to obtain an appraisal on the applicable portion of park property adjacent to the Appleridge Cafe on August 28, 2008. City Council
approved the transfer of the reverter clause from this park parcel to the Baugh House property on September 28, 2009 as one of the required steps to allow for the future disposal of
the park property. The City Council now has greater latitude in disposing of this property. ISSUE The City has presented a contract to the property owner with the following components
based on the appraised price. 1. Owner purchase 11 ,431 square feet of park property for the purchase pnce of $110,197.60
Disposal of Park Property Apri I 19, 20 I 0 Page 2 2. City will receive Kipling Right of Way from property owner in the amount of 4,572 square feet. 3. The City will, in exchange for
the right of way, construct the new addition to the restaurant parking lot for an amount not to exceed $103,000. Per Gerald Dahl, City Attorney, the Wheat Ridge Charter addresses the
disposal of park land in Section 16.5. "The city shall not sell or dispose of municipally owned buildings or real property for a public purpose, without first obtaining the approval,
by ordinance, of three-fourths of the entire council. Unanimous approval of the entire council, by ordinance, shall be necessary for sale or disposition of designated park land". The
park master plan was designed to achieve a win-win situation with the existing restaurant business located on the corner. The plan (attached) identifies the northeast corner of the parkland
as an area for future development. The restaurant property owner at this time does not wish to purchase the entire .85 acres. A lot will be platted for future sale when, and if, the
restaurant property re-develops. This park parcel will remain vacant in the future to allow for future development, sale and or lot consolidation with the restaurant property. PROS Allows
future consolidation of corner properties to accommodate development Improves restaurant access and parking lot aesthetics Removes access to the restaurant through the Kipling deceleration
lane Allows continuation of pedestrian sidewalk to 38th Avenue RECOMMENDA nONS: I. Budget amendment to appropriate funds for the construction of parking lot in exchange for Kipling ROW.
2. Approval of Purchase and Sale contract 3. Unanimous vote to dispose of park land ATTACHEMENTS: I. Park Property Map 2
L ORNAMENTAL ORCHARD PLANTING POTENTIAL EXPANSION _ I , _ . __ --...r _ i~ I APPLE RIDGE ~ CAFE KlPLINGST. 38th and Kiplin£ -I--MAIN PARK GATEWAY ~ --/-----RETAINING WAll SKATE PARK
... 1·lo.000S.F. ~PLAYAREAS WI SHADE SHELTERS CLIMBING WALL CHILDREN'S GARDEN & NATURAL PLAY .......... • NAC11CE SHADE SHELTER AND POTENTIAL COMMUNITY FACIUTY SITE SWING BENCH LOOP
WALK 1.I~i Final Master Plan ..tZ:.;.yD~~~~ Ot" "E£o.~(" , r r ~ filil ~