To: Honorable Mayor and Members of Town Council
From: Robert J. Slentz, Town Attorney
Title
Ordinance Authorizing the Organization of the Miller’s Landing Business Improvement District, Designating the Service Area of the District as a Location for New Business or Commercial Development, Appointing the Board of Directors, and Placing Certain Restrictions and Limitations on the Exercise of District Powers Prior to Approval of an Operating Plan and Budget for the District (Second Reading) [Northwest of Plum Creek Parkway and I-25]
Body
________________________________________________________________________________
The Ordinance was approved on first reading September 6 by a vote of 7-0. Attached please find a response from the organizer’s counsel addressing issues raised on first reading (Attachment D).
Executive Summary
This Ordinance approves organization of the Miller’s Landing Business Improvement District (“District”), a new local government (Attachment A). The District boundaries encompass 65 acres at the northwest quadrant of Plum Creek Parkway and I-25, as depicted in the attached vicinity map (Attachment B). The District service area is coextensive with the Citadel Station - Castle Meadows Urban Renewal Plan (“URA”). The petitioners for the District are seeking formation of the District which will make improvements and provide services to a proposed commercial development on the site. The Ordinance will permit the District to seek District debt and tax authorization at the November 2016 general election. Because of the conceptual nature of the underlying development proposal, significant limitations are placed on the spending and operational authority of the District until development-specific business and financial plans are approved by the Council and URA Board, respectively.
Discussion
There are currently no Business Improvement Districts in the Town. Typically, the development and financing of public improvements for developing areas in the Town is accomplished through metropolitan districts servicing a specific planned development. Metropolitan district formation is regulated under the Municipal Code. There is no equivalent provision for Business Improvement Districts.
BID’s are more often utilized to enhance existing commercial areas (e.g. Cherry Creek), although utilization of a BID for vacant land development is not unprecedented in Colorado. Counsel for the petitioners has summarized the rationale for utilizing the BID and the necessity for advancing the District consideration before Council in the August 15th letter attached to this memorandum (Attachment C).
Ideally, the consideration of the formation of the District would follow the approval of the development plan for the project and consummation of the contractual financial commitments for the project through the URA. However, the proponents perceive a tangible benefit to obtaining standby voter authorization for a debt and property tax authorization at the November, 2016 general election. The Ordinance restricts the right of the District to undertake any development activity until the proposed rezoning of a portion of the BID service area and operation plan and budget as required under the BID statute are approved by Council. In addition, the District authority is conditioned on URA approval of the tax increment financing for the project.
The operations plan for the District that will later be submitted will include the following information:
• improvements and services to be provided
• taxes, fees and assessments to be imposed
• estimated principal amounts of bonds to be issued
• other information requested by the Town
Staff Recommendation
Staff recommends approval of the Ordinance, as presented.
Proposed Motion
“I move to approve Ordinance as introduced by title on first reading.”
Attachments
Attachment A: Ordinance
Attachment B: Vicinity Map
Attachment C: August 15, 2016 Letter
Attachment D: Memo from Organizer’s Counsel