To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the Tax Increment Revenue Agreement Between the Town of Castle Rock and the Castle Rock Urban Renewal Authority with Regard to the Proposed Brickyard Urban Renewal Plan
Body
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Executive Summary
The proposed resolution authorizes the Town of Castle Rock (the “Town”) to execute a Tax Increment Revenue Agreement with the Castle Rock Urban Renewal Authority (“CRURA”) consenting to the utilization of 100% of the Town’s incremental property tax revenues in accordance with the Brickyard Urban Renewal Plan.
Discussion
The Town has been in negotiations with CD-Acme, LLC (the “Developer”), regarding the redevelopment of the former site of the Acme Brick Company at 401 Prairie Hawk Drive (the “Property”). The Developer is proposing a mixed-use development, with a maximum of 583 multi-family dwelling units consisting of townhomes and apartments, 92,000 square feet of non-residential uses including office, retail, and restaurant, a 99,000-square foot, 125 room hotel with a conference center and an outdoor performance venue. In addition, a 145,000-square foot sports development center is planned to be constructed by the Developer for the Town on 10.36 acres of public land to be dedicated by the Developer within the boundaries of the Property.
To facilitate the redevelopment of the Property, the Town is considering the designation of the Brickyard Urban Renewal Area and the approval of the Brickyard Urban Renewal Plan (the “Plan”). The Plan authorizes the utilization of tax increment financing in accordance with the Colorado Urban Renewal Law, Section 31-25-101, et seq., C.R.S., to pay for public improvements undertaken in association with the redevelopment of the Property. In particular, the Plan provides for the allocation of incremental property tax revenues derived from the ad valorem property taxes levied by the Town, Douglas County, Douglas County School District RE-1, Douglas County Library District, and Cedar Hill Cemetery Association (each, individually, a “Taxing Entity” and, collectively the “Taxing Entities”).
With the passage of House Bill 15-1348 by the Colorado General Assembly, all urban renewal plans adopted after January 1, 2016, require, as a prerequisite to approval, notification of the governing boards of each Taxing Entity. See § 31-25-107(9.5)(a), C.R.S. CRURA representatives are required to meet with each Taxing Entity for the purpose of negotiating an agreement addressing the impacts of the urban renewal plan on the services provided by such Taxing Entity and the sharing of incremental property tax revenue allocated pursuant to the urban renewal plan.
The proposed resolution authorizes the Town to execute a Tax Increment Revenue Agreement with CRURA. This will allow Town Council to move forward with the designation of the Brickyard Urban Renewal Area and the adoption of the Brickyard Urban Renewal Plan.
Budget Impact
None.
Staff Recommendation
Town staff recommends that the Town Council adopt the resolution.
Proposed Motion
“I move to approve the resolution as introduced by title.”
Attachments
Attachment A - Resolution
Attachment B - Agreement