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HomeMy WebLinkAboutOrdinance-1992-0888 INTRODUCED BY COUNCILMEMBER COUNCIL BILL NO. Ordinance No. 888 Series of 1991 SHANLEY 126 TITLE: AN ORDINANCE AMENDING CHAPTER 22 TAXATION OF THE CODE OF LAWS OF THE CITY OF WHEAT RIDGE, COLORADO, BY ADDING A NEW DIVISION 6 TO ARTICLE II OF CHAPTER 22 OF THE CITY'S CODE OF LAWS AUTHORIZING THE CITY COUNCIL TO DESIGNATE CERTAIN "BUSINESS DEVELOPMENT ZONES," PROVIDING FOR THE ABATEMENT OF CERTAIN CATEGORIES OF FEES, TAXES, AND OTHER DEVELOPMENT-RELATED CHARGES FOR NEW DEVELOPMENT OR REDEVELOPMENT WITHIN SAID BUSINESS DEVELOPMENT ZONES, WHICH BUSINESSES ARE EXPECTED TO GENERATE INCREMENTAL REVENUE TO THE CITY EQUAL TO OR EXCEEDING THE AMOUNT OF ANY ABATEMENT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO, AS FOLLOWS: Section 1. Division 6 of Article II of Chapter 22 of the Code of Laws of the City of Wheat Ridge is hereby amended by adopting the following Division 6: DIVISION 6. BUSINESS DEVELOPMENT ZONE Section 22-85. Proqram Established. There is hereby established within the City of Wheat Ridge the "Wheat Ridge Business Development Zone" program. Section 22-86. Leqislative Declarations. (a) The City Council of the City of Wheat Ridge 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, deterioration of business districts, deterioration of public infrastructures, or sudden severe economic dislocations; (3) That by creating new development 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 of Wheat Ridge, 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 of Wheat Ridge 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 said Districts. (c) The City Council has enacted this Division 6 of Article II of Section 22 of the Code of Laws as a joint benefit to the public at large and to private owners for the purposes 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 lmprove 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 upgrading said properties. (d) The City council specifically finds and determines that creation of this "Business Development Zone" ordinance is consistent that exercise of those powers in this District promotes the public, health, safety, and general welfare of the citizens of Wheat Ridge. Section 22-87. Definitions. As used in this Division 6, the following phrases shall have the following meanings unless the context clearly indicates another meaning: (a) 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. (b) 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 "project" over and above the sales and use tax fees generated on the premises in the twelve months preceding the application described in Section 22-88. 2 (c) 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. (d) "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." Section 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. section 22-89. Generallv. Approval of Aqreement: Use of Funds Approval by the City Council of an Agreement implementing the provisions of this Division 6 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 enumerated in the Agreement provided for in Section 22-94 hereof. Section 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 22-78 of this Code of Laws. 3 section 22-91. Increments, Sharinq of Funds. The base figure for "eligible city fees, charges, and taxes" shall be divided into twelve 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 amount of sales and use taxes generated on the premises in the twelve 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. section 22-92. Capital Improvement Fund. The one percent (1%) 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. Section 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 are reasonably to 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 said Section 22-94. 4 (b) Approval of any application shall be made by motion adopted by a majority of the entire City Council. Section 22-94. Aqreement 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 spent 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 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 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 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; 5 (9) Any other provisions agreed upon by the parties and approved by the city council. section 22-95. Joint Venture Liability. The city council has enacted this Business Development Zone as a joint benefit to the public at a large and to private owners for the purposes of proYiding 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 venturer 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. section 22-96. ESTIP and TIF. If the applicant, owner or proprietor participates in the ci ty' s Enhanced Sales Tax Incentive 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 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. Section 2. The provisions of Article III, Telephone Exchanges, are hereby renumbered as sections 22-100 through 22-106, inclusive. section 3. Severability. If any clause, sentence, paragraph, or part of this ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect application to other persons or circumstances. section 4. Safety Clause. The City Council hereby finds, determines, and declares that this ordinance is promulgated under the general police power of the city of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public, and that this ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The city Council further determines that the ordinance bears a rational relation to the property legislative object sought to be attained. 6 section 5. This ordinance shall become effective 15 day(s) after final publication. INTRODUCED, READ, AND ADOPTED on first reading by a vote of fi to 2 on this 9th day of December , 1991, 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 Januarv 13 , 1992, at 7:30 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED, reading by a vote of January AND ORDERED PUBLI SHED on 7 to 1 this 13th 1992. second and day of final SIGNED by the Mayor on this 1992. 14th day of January ,--) j ( -'~ ,. i ( --jl,'LI '. ( 'J'- ' Ray J. W1-r,vJer, Jr. " M~yor ATTEST: JOIy1 1st publication: December 19, 199'i 2nd publication: January 23, 1992 Wheat Ridge Sentinel: Effective Date: February 7, 1992 APPROVED AS TO FORM BY OFFICE O~~: ATT~~EY ;' <: "" ( . (' / )~_/, E. Hayes; ci, - Attorney 7