HomeMy WebLinkAboutOrdinance 1553CITY OF WHEAT RIDGE, COLORADO
INTRODUCED BY COUNCIL MEMBER STARKER
COUNCIL BILL NO. 07-2014
ORDINANCE NO. 1553
Series 2014
TITLE: AN ORDINANCE CONCERNING ECONOMIC DEVELOPMENT, AND IN
CONNECTION THEREWITH, AMENDING THE ENHANCED SALES TAX
INCENTIVE PROGRAM (ESTIP) AND BUSINESS DEVELOPMENT ZONE
(BDZ) PROGRAM WITHIN THE CITY
WHEREAS , the City of Wheat Ridge is a home rule municipality operating under
a charter approved by the electorate pursuant to Article XX of the Colorado Constitution ;
and
WHEREAS, the Wheat Ridge City Council, in the exercise of its power to adopt
ordinances for the general welfare of the City, has previously adopted Divisions 4 and 5
of Article 1 of Title 22 of the Wheat Ridge Code of Laws , specifically, the "Enhanced
Sales Tax Incentive Program," and the "Business Development Zone Program ," and
WHEREAS, the City Council finds that the two programs have served a valuable
public purpose in attracting new and revitalized businesses to the City; and
WHEREAS , in order to improve the operation of the Programs and to eliminate
internal inconsistencies between them , the Council finds that the Code of Laws
provisions governing the Programs should be amended .
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WHEAT RIDGE , COLORADO :
Section 1. Enhanced Sales Tax Incentive Program Amended:
Division 4 of Article I of Title 22 of the Wheat Ridge Code of Laws , entitled
"Enhanced Sales Tax Incentive Program ," is hereby amended to read :
Sec. 22-73. Program established.
There is hereby established within the city an enhanced sales tax
incentive program .
Sec. 22-74. Purpose.
The purpose of the enhanced sales tax incentive program created by this
di vision is to encourage the establishment and/or substantial expansion of retail
sales tax generating businesses within the city , thereby stimulating the economy
of and within the city , thereby providing employment for residents of the city and
others, thereby further expanding the goods available for purchase and
co n sumption by residents of the city , and further increasing the sales taxes
collected by the c ity, which increased sales tax collections will enable the city to
provide expanded and improved munic ipal services to and for the benefit of the
residents of the city, while at the same time providing public or public-rel ated
improvements at no cost, or at deferred cost, to the c ity and its taxpayers and
residents .
Sec. 22-7 5. Defin it ions.
The following words , terms and phrases, when used in this d ivision , shall
have the meanings ascribed to them in this section , except where the context
clearly indicates a different meaning:
Enhanced sales tax shall mean the amount of sales tax collected by the
city over and above a base amount negotiated by, and agreed upon by, the
applicant and the city, and which amount is approved by the city council , which
base amount shall never be lower than the amount of sales taxes collected by
the city at the property in question in the previous twelve (12) months plus a
reasonable and agreed upon percentage of anticipated increase in sales taxes ,
or, in the case of a newly established business , an amount which represents the
good faith determination by the applicant and the city as to the amount of sales
taxes which could be generated from the new business without the participation
by applicant in the ESTIP created under this division .
EST/P means the enhanced sales tax incentive program created under
this division .
Owner or proprietor shall mean the record owner 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 (1) busi ness is operated , provided that the
owner (whether an individual, corporation , partnership or other entity) is the
owner or lessor of the individual businesses operated thereon.
Sec. 22-76 . Participation.
Participation in ESTIP shall be based upon approval by the city council
exercising its legisl ative discretion in good faith . Any owner or proprietor of a
newly established or proposed retail sales tax generating business or location , or
the owner or proprietor of an existing retail sales tax generating business or
location which wishes to expand substantially, may apply to the city for i nclusion
within the ESTIP provided that the new or expanded business is reasonably
likely, IN THE COUN CIL'S JUDGMENT, to generate enhanced sales taxes of at
least five thousand dollars ($5,000 .00) TEN THOUSAND DOLLARS ($10,000) in
the first year of operation. 12 MONTHS FOLLOWING THE EFFECTIVE DATE
OF AN AGREEMENT.
Sec. 22-77. Approval of agreement; use of funds generally.
Approval by the city council of an agreement implementing this ESTIP
shall entitle the successful applicant to share in enhanced sales taxes derived
from applicant's property or business in an amount which shall not in any event
exceed the enhanced sales taxes ; provided , however, tAa! THE applicant may
use such amounts only for public and/or public-related purposes such as those
specified herein and which are expressly approved by the city council at the time
of consideration of the application . The time period in which the enhanced sales
taxes may be shared shall not commence until all public or public-related
improvements are completed, and shall be limited by the city council , in its
discretion, to a specified time, or until a specified amount is reached .
Sec. 22-78. ELIGIBLE Uses enumerated.
The uses to which the shared enhanced sales taxes may be put by an
applicant shall be strictly limited to those which are public or public-related in
nature. For the purposes of this division , public or public-related purposes shall
mean public improvements , including but not limited to streets, sidewalks, curbs,
gutters , pedestrian malls, street lights , drainage facilities , landscaping , decorative
structures, FACADES , statuaries , fountains , identification signs, traffic safety
devices, bicycle paths , off-street parking facilities , benches, restrooms ,
information booths , public meeting facilities , and all necessary, incidental, and
appurtenant structures and improvements, together with the relocation and
improvement of existing utility lines , and any other improvements of a similar
nature which are specifically approved by the city council upon the city council's
finding that said improvementS are public or public-related improvements, and
that such improvements shall enhance the competitive position of the applicant
within the Denver metropolitan area marketplace.
Sec. 22-79. Increments, sharing of funds.
The base figure for sales taxes shall be divided into twelve (12) monthly
increments , which increments are subject to agreement between the parties, and
approval by the city council , and which increments shall be reasonably related to
the average monthly performance of the business or property in question , or
similar businesses in the area (i.e . adjust for seasonal variations). If in any month
the agreed upon figure is not meet by THE applicant so as to create enhanced
sales tax for that month , no funds shall be shared with THE applicant for that
month , and no increment shall be shared until that deficit, and any other
cumulative deficit, has been met, so that at the end of any twelve-month cycle,
NO funds HAVED BEEN SHARED in excess of THE AGREED enhanced sales
taxes. agreed to be shared shall not have been shared with any applicant.
Sec. 22-80. Revenues restricted.
It is an overriding consideration and determination of the city council that
existing sources of city sales tax revenues shall not be used , impaired, or
otherwise affected by this ESTIP enhanced sales taM incenti\'e program.
Therefore, it is hereby conclusively determined that only enhanced sales taxes
generated by the properties described in an application shall be subject to
division under this ESTIP . It shall be the affirmative duty of the treasurer SALES
TAX DIVISION to collect and hold all such enhanced sales taxes in a separate
account apart from the sales taxes generated by and collected from the other
sales tax generating uses and businesses within the city and to provide an
accounting system which accomplishes the overriding purpose of this section . ~
is conclusi'lely stated by tThe city council FINDS AND DECLARES that this
division would not be adopted or implemented but for the provisions of this
section .
Ses. 22 81. Capital iR=tpra•JemeAt fYAEI.
The one (1) percent of sales and use taxes earmarked for the capital
imprO \'ement fund may be utilized in this ESTIP for public improvements so long
as the same are v.'ithin the meaning of the phrase capital improvements as
defined in the voter appro·+'ed sales taM referendum previously held within the
city, and provided that the same 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;
pro•1ided, however, that such use of capital impFO\'ement funds as part of this
ESTIP shall be limited to the amount agreed pursuant to section 22 83 hereof;
pro•.'ided further , hm\lever, that nothing contained heroin shall limit the city
council in the determination to appropriate additional capital improvement funds
for capital improvements affecting the property in question as a part of the city's
regular appropriation and budget process.
Sec. 22-821. Criteria for approval of applisatiaA AGREEMENT.
Approval of an application ESTIP AGREEMENT for inclusion in this ESTIP
shall be given by the city council , at a public hearing , held as a portion of a
regularly scheduled city council meeting . NOTICE OF WHICH HAS BEEN
PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION AT LEAST
SEVEN (7) DAYS PRIOR TO THE HEARING. THE COUNCIL'S
DETERMINATION OF THE AMOUNT OF SALES TAX TO BE SHARED SHALL
BE BASED UPON THE IDENTIFIED NEED OR VALUE THE BUSINESS
OFFERS TO THE COMMUNITY IN TERMS OF SALES TAX GENERAT ION ,
INVESTMENT IN THE COMMUNITY OR INCREASED EMPLOYMENT based
upon the following criteria:
(1 ) The amount of enhanced sales taxes which are reasonably to be anticipated to
be derived by the city through the expanded or new retail sales tax generating
business;
(2) The public benefits which are provided by t he applicant through public works ,
public improvements , additional employment for city residents , etc.;
(3) The amount of expenditures which may be deferred by the city 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 22-832 having been reached , whish
agreement shall contain and conform to all requirements of section 22 83 .
(6 ) Approval shall be by motion adopted by a majority of the entire oity oounoil.
Se c . 22-832. Agreement requ i red.
A ) Each application for approval AGREEMENT submitted to the city oounoil shall
be subject to approval by the council solely on its own merits . Approval of an
application shall require that an THE APPROVED agreement SHALL be
executed by the owner and the city, A ND whish 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 spent on such improvements ;
(2) The maximum amount of enhanced sales taxes to be shared , and the
maximum time during which the agreement shall continue , it being expressly
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 THE AGREEMENT tRiG is a personal agreement which is
not transferable and which does not run with the land ;
(4) That THE tffis 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 , sales taxes received from the property do 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 historic level
of sales at the property in question , or a similar property within the area in the
event of a new business, and a reasonable allowance for increased sales
due to the improvements and upgrades completed as a result of inclusion
within this program ;
(7) A provision that any enhanced sales taxes subject to sharing shall be
escrowed in the event there is a legal challenge to this enhanced sales tax
incentive program or the app roval of any application therefor;
(8) An affirmative statement that the obligations , benefits, and/or provisions of
this agreement may not be assigned in w hole or in any part wi t hout the
expressed authorization of the city council , and further that no third party
shall be entit led to rely upon or enforce any provision hereof;
(9) Any other provisions agreed upon by the parties and approved by the city
council.
B) APPROVAL SHALL BE BY MOTION ADOPTED BY A MAJORITY OF THE
ENTIRE CITY COUNCIL.
Sec. 22 -843. NO Jjoint ventureR; liability.
The city council has enacted this ESTIP as a joint benefit to the public at
large and to private owners for the purposes of providing the city with increased
sales 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 activities, which
improvements make those properties more competitive in the marketplace and
f urther provide to the applicant additional contingent sources of revenues for
upgrading such properties . Tho city council specifically finds and determines that
creation of this ESTIP is consistent with the city's po•Nors as a home rule
municipal co rporation, and that o>Eercise of such powers in the manner set forth
herein is in furtherance of tho public health , safety and welfare . Notwithsta nding
any provision hereof, BY ADOPTING THIS PROGRAM AND APPROVING
AGREEMENTS UNDER THE SAME, the city shall never be a joint ventureR in
any private entity or activity which participates in t his ESTIP and the city shall
never be liable or responsible for any debt or obligation of any participant in
ESTIP .
Section 2. B usin ess Development Zone Program Amended.
Division 5 of Article I of Title 22 of the Wheat Ridge Code of Laws is amended to
read :
Sec. 22-85 . Pr ogram establi shed .
There is hereby established within the city the 'Wheat Ridge Business
Development Zone" program .
Sec. 22-86. Legislative declarations.
(a) The city council of tho oity 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
AND CREATE ADDITIONAL EMPLOYMENT OPPORTUNITIES, which
improvements make those properties more competitive in the marketplace
and further provide to owners and proprietors additional contingent sources of
revenues for 4ffiUPgrading 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 .
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 phrase eligible 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 phrase expected 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 "p roject" over and above the sales and use
tax fees generated on the premises i n the twelve ( 12) months
preceding the application described in section 22-88.
(3) The phrase owner 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 ."
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
f.a+tR . 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 A N D IN VEST AT LEAST $250 ,000 IN PRIVATE IMPROVEMENTS IN
THE PROJECT, 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 AGREEMENT by the city council , be granted up to the
amount of eMpected incremental future sales and use taM re•;enue to be
generated by the project during the agreed to ti me period ACCORDING TO THE
FOLLOWING REBATE SCHEDULE:
Amount of Investment i n Proj ect El i g i ble Ci ty Fees, Charges a nd
Tax es R e bate
$250 ,000 to $499,999 25%
$500 ,000 to $999,999 50 %
$1 ,000 ,000 or higher 75%
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 appl icant 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 enumerated in the agreement provided for in
section 22-942 hereof.
Sec. 22 -90. Uses e nume r ated .
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
counci l and relate d irectly to the development or redevel opment 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
aft6 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.
Se6. 22 9 1. l nG r emen t&, shari ng e f t-Yn ds.
The base figure for eligible city fees , charges and taMes shall be di¥ided
into twel\'e (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 twel¥e (12) months preceding the application received by the city
for participation in this program . The accounting and payment provisions of
sections 22 7Q and 22 80 hereof are hereby declared to be applicable to any
application appro¥ed hereunder.
SeG. 22 92. Capital impro•Jement 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
impro•.'ements so long as the same are within the meaning of the phrase capital
impro• .. ements as defined in the voter approved sales tax referendum previously
held within the ci~. and provided the public improvements are found and
determined by the ci~ council to be capi-tal impro¥ements which could be
pro'.'ided by the city from tho capital improvement fund but for the prO'.'ision of
such impro•.'ements by the applicant.
Sec . 22-931. Criteria for approval of AGREEMENT application.
(a) Approval of A BDZ AGREEMENT 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 ,
NOTICE OF WHICH HAS BEEN PUBLISHED IN A NEWSPAPER OF
GENERAL CIRCULATION AT LEAST SEVEN (7) DAYS PRIOR TO THE
HEARING . THE COUNCIL'S APPROVAL OF A BDZ AGREEMENT SHALL
BE BASED UPON THE IDENTIFIED NEED OR VALUE THE BUSINESS
OFFERS TO THE COMMUNITY IN TERMS OF SALES AND USE TAX
GENERATION , INVESTMENT IN THE COMMUNITY OR INCREASED
EMPLOYMENT 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 c o nformance of the applicant's property or project with the
comprehensive plan and zoning ordinances of the city;
(5) The agreement required by section 22-942 hereof having been reached ,
which agreement shall contain and conform to all of the requirements of
such section .
(b ) Approval of any application AGREEMENT shall be made by motion adopted
by a majority of the entire city counci l.
(c) The city council may by throe fourths (~') majority vote approve e~<Geptions to
the provisions of this di•1ision when such o~<Geptjons are f.ound to be in the
public's interest and such mmeptions pro>1ido substantial benefit to the city .
Sec. 22-942. Agreement required.
Each application AGREEMENT for approval to tho city council shall be
subject to approval by the council solely on its own merits . Approval of one
application AGREEMENT shall not require , or be deemed precedent for,
approval of any other application AGREEMENT. Approval of an application
AGREEMENTS shall require that an agreement be executed by the owner and
the city, AND wRiGA THE agreement shall, at a mini mum conta in :
(1 ) A list of those public or public related improvements which justify
applicant's approval , and the amount which shall be speneT on such
improvements ;
(2 ) The maximum amount of expected incremental future sales and use
tax revenue ; and the maximum time during which tho agreement shall
continue, it being expressly understood that any such agreement shall
expire and be of no further f.orce and effect upon tho occurrence of the
earlier to be reached of tho 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 tho 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 ) A STATEMENT Tthat this agreement shall never constitute a debt or
obligation of the c ity within any constitutional or statutory prov ision;
(5 ) The base amount ~ovhioh is agreed upon by month , and the fact that if,
in any month as specified , expected incremental future sales and use
ta>E re·.~enue recei¥ed 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 pro¥ision tThat 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 affirmati¥e 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.
Sec. 22-963 . NO J j oint v entu reR liab ility.
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 de¥elopment zone is consistent with the city's
powers as a home rule municipal corporation , and that e>Eercise of such powers
in the manner se t forth herein is in furtherance of the public health, safety and
welfare. Notwithstanding any provision hereof, the city shall never be a joint
ventureR in any private entity or activity which participates in this business
development zone program , and the city shall never be liab le or responsible for
any debt or obligation of any participant in this business development zone.
Sec. 22-964. i S TI P aA d TI F.
If the applicant, owner or proprietor participates in the city's Enhanced
Sales Ta>E lncenti¥e Program ("ESTIP") or if the owner's or proprietor's business
is located in an urban renewal area in which all or a portion of sa les tax revenues
have been pledged as part of a tax increment financing program , he or she shall
be ineligible for partic ipation in this business development zone program .
Se es. 22 -9~5-22 -987. Reserved.
Secti on 3 . Severability, Conflicti ng Ord inances Repea led . If any section ,
subsection or clause of this Ordinance shall be deemed to be unconstitutional or
otherwise invalid , the validity of the remaining sections , subsections and clauses
shall not be affected thereby. All other ordinances or parts of ordinances in
conflict with the provisions of this Ordinance are hereby repealed .
Section 4 . Effective Date . This Ordinance shall take effect fifteen (15) days
after final pu b lication , as provided by Section 5 .11 of the Charter.
INTRODUCED, READ , AND ADOPTED on firs t reading by a vote of 7 to 0 on
this 28th day of July, 201 4 , ordered published in full in a newspaper of general
circulation in the City of Wheat Ridge , and Public Hearing and consideration on final
passage set for August 11 , 2014 at 7 :00p.m ., in the Council Chambers , 7500 West 291h
Avenue , Wheat Ridge , Colorado.
READ , ADOPT ED A ND O RDERED PUBLISHED on seco nd and final re ading by
a vote of _7_ to _o_, this llthday of Augu st , 2014.
SIG N ED by the M ayor on this __
ATTEST:
First Publication : July 31, 20 14
Second Publication: August 14 , 2014
Wheat R idge Transcript
Effective D ate: August 29 , 20 14
Published :
August 2014 --=----' .
Wheat Ridge Transcript and www.ci.wheatridge.co.us