To: Honorable Mayor and Members of Town Council
From: Robert J. Slentz, Town Attorney
Title
Ordinance Accepting a Petition for the Organization of a General Improvement District in the Town of Castle Rock, Colorado, to be known as Town of Castle Rock Festival Park Commons General Improvement District; Declaring the Necessity of the Formation of the District; Establishing and Creating the District; Providing Other Details Relating Thereto; and Providing for its Emergency Adoption on Second and Final Reading (Second Reading) [location of current Town Hall parking lot and adjacent properties]
Body
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Executive Summary
The Ordinance was approved on first reading July 17, 2018 by a vote of 5-0.
On May 1, 2018, the Council approved a Memorandum of Understanding (“MOU”) outlining terms of a proposed public/private partnership to develop a parking garage in conjunction with the mixed-use Festival Park Commons project (“Project”). As outlined in the attached MOU, one of the funding sources by which the Town will recover its initial investment in the parking garage is a 20-30 mill levy to be imposed by a new General Improvement District (“GID”) encompassing the Project. The Town has received a conforming petition from all of the landowners within the initial boundaries of the GID which supports the Town Council approving the formation of the GID by ordinance. Approval of formation of the GID will allow for the submission of necessary TABOR authorization at the November election. However, any final action by and through the GID will be dependent on the Town, DDA and development interests approving a definitive development and financing agreement consistent with the outline in the MOU.
General Improvement Districts are authorized and structured under statute for the purpose of developing, financing and operating public improvements. The Town Council serves as the governing board of the District. Accordingly, the Town Council will annually certify a mill levy to fund the GID. Here it is proposed that the GID will principally function as a funding source to defray in part the Town’s investment in the 300 public parking spaces the Town will acquire in the parking garage and adjacent surface parking to be constructed as part of the Project. The GID will be a party to the development and financing agreement between the Town, DDA and developer in which the financial commitments of the GID will be specified. In order for the GID to have the tax and debt authority it is necessary for a TABOR election to be held which can only occur in a November election. The preference of all parties is for the TABOR election to take place this November, which requires that the GID refer ballot questions in early September. Consequently, it is necessary for the GID formation ordinance to be considered by Council on an emergency basis on second reading on August 21st.
We want to acknowledge the assistance of Kim Crawford of Butler & Snow in preparation of the GID formation documents.
Staff Recommendation
Staff recommends approval of the Ordinance as presented on second reading.
Proposed Motion
“I move to approve the Ordinance as introduced by title on an emergency basis on second and final reading.”
Attachments
Attachment A: Ordinance
Attachment B: Memorandum of Understanding
Attachment C: Petition