To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Robert J. Slentz, Town Attorney
Title
Resolution: Approving an Amendment to the Castle Rock Downtown Development Authority Plan of Development
Body
________________________________________________________________________________
Executive Summary
This Resolution approves an amendment to the 2008 Downtown Development Authority Plan of Development (Plan) to clarify what portion of the municipal sales tax increment must be deposited into the DDA special fund each year. Consistent with Town Council direction, disposition of the sales tax increment in excess of the mandatory deposit into the DDA special fund dictated by this Amendment may be determined annually by the Town Council. The amendment also makes certain editorial corrections and updates to the Plan.
Discussion
The Plan of Development currently addresses the application of municipal sales tax increment in a manner that may not recognize the statutory ability of the Town Council to allocate the total sales tax increment between (i) the DDA special fund for payment of debt or obligations incurred by the Town for DDA projects, and (ii) the general fund. The amendment provides that sales tax increment must first be deposited to the DDA special fund as necessary to meet the following requirements:
The sum of:
(1) the total amount required to pay the amount due in the such year the principal of, interest on, and any premiums due in connection with the bonds of, loans or advances to, or indebtedness incurred by the Town (the “Debt”) to finance or refinance a development project in the Plan of Development Area, plus
(2) the replenishment of any reserves required by the documents authorizing the issuance of such Debt (the “Documents”), plus
(3) any coverage of annual debt service required by the Documents, minus
(4) the amount of property tax increment allocated and paid into the special fund in such year.
This amendment has been approved by the DDA Board and FirstBank and its counsel. The Amendment was authored by Dee Wisor, the Town’s financial and bond counsel.
Staff Recommendation
Staff recommends approval of the Amendment as presented.
Proposed Motion
“I move to approve the Resolution approving an amendment to the Castle Rock Downtown Development Authority Plan of Development”
Attachments
Attachment A: Resolution
Attachment B: Letter of Support from the Downtown Development Authority