Urban Renewal Authority of Dacono

Urban Renewal Authority of Dacono Meeting AGENDA Wednesday, March 3, 2021 6:00pm This meeting will be held remotely. Members of the public interested in joining the electronic meeting, please visit: https://www.cityofdacono.com/1079/Urban-Renewal-Authority-of-Dacono I. Roll Call II. General Business A. *Approval of the February 3, 2021 Urban Renewal Authority of Dacono Meeting Minutes B. *Schedule of Cash Position as of February 25, 2021 C. *Urban Renewal Presentation D. Authority Member Reports III. Adjournment *Materials in Packets. Accommodations for the disabled can be made upon request.  Urban Renewal Authority of Dacono Meeting Minutes Wednesday, February 3, 2021 Meeting held remotely via Zoom called to order at 6:01 pm Members Present Adam Morehead Kathryn Wittman Kevin Plain Joe Baker Jackie Thomas Cody Childers Danny Long Members Absent Lori Saine Chico Garcia Staff Present AJ Euckert, City Manager Valerie Taylor, Clerk Jennifer Krieger, Secretary/Executive Director Carolynne White, Special Counsel Carrie Bartow, Chief Financial Officer General Business Election officers- Chair and Vice-Chair Executive Director, Jennifer Krieger and General Counsel Carolynne White presented their reports. Commissioner Plain moved to appoint Adam Morehead as Chairperson. The vote was unanimous. Commissioner Morehead moved to appoint Kevin Plain as Vice-Chairperson. The vote was unanimous. Approval of the December 15, 2020 Urban Renewal Authority of Dacono Meeting Minutes. Commissioner Baker moved to approve the December 15, 2020 Urban Renewal Authority of Dacono Meeting Minutes. The vote was unanimous with Chairperson Morehead declaring the motion carried. Budget Amendment Public Hearing, URAD Resolution 21-01, a Resolution of the Urban Renewal Authority of Dacono Amending the Annual Budget and Appropriating Expenditures for the Urban Renewal Authority of Dacono for Fiscal Year 2020. Chairperson Morehead opened the public hearing. Chief Financial Officer Carrie Bartow, presented her report. With no further comments Chairperson Morehead closed the public hearing. Commissioner Plain moved to approve URAD Resolution 21-01, a Resolution of the Urban Renewal Authority of Dacono Amending the Annual Budget and Appropriating Expenditures for the Urban Renewal Authority of Dacono for Fiscal Year 2020. The vote was unanimous with Chairperson Morehead declaring the motion carried. (Commissioner Thomas had an emergency and left the meeting at 6:13PM.) Page 1 of 3  Presentation of Financial Statements for the period ending December 31, 2020. Chief Financial Officer Carrie Bartow, presented her report. No formal action was taken. URAD Res 21-02, A Resolution Approving an Engagement Letter by and between the Urban Renewal Authority of Dacono and WIPFLI, LLP., for Audit Services. Chief Financial Officer Carrie Bartow, presented her report. Commissioner Wittman moved to approve URAD Res 21-02, A Resolution Approving an Engagement Letter by and between the Urban Renewal Authority of Dacono and WIPFLI, LLP., for Audit Services. The vote was unanimous with Chairperson Morehead declaring the motion carried. URAD Resolution 21-03, a Resolution Accepting an Appointment of a Commissioner to the Urban Renewal Authority of Dacono. Executive Director, Jennifer Krieger and General Counsel Carolynne White presented their reports. Commissioner Baker moved to approve URAD Resolution 21-03, a Resolution Accepting an Appointment of a Commissioner to the Urban Renewal Authority of Dacono. The vote was unanimous with Chairperson Morehead declaring the motion carried. URAD Resolution 21-04, a Resolution Approving a Professional Services Agreement by and Between the Urban Renewal Authority of Dacono and Galloway and Company, Inc., for the I-25 Corridor Subarea Plan. Executive Director, Jennifer presented her report. Michael Chalona, Jessica Harvey and Martin Landers with Galloway & Co gave brief presentations and were available for questions. Commissioner Baker moved to approve URAD Resolution 21-04, a Resolution Approving a Professional Services Agreement by and Between the Urban Renewal Authority of Dacono and Galloway and Company, Inc., for the I-25 Corridor Subarea Plan. The vote was unanimous with Chairperson Morehead declaring the motion carried. URAD Resolution 21-05, a Resolution Approving a Professional Services Agreement by and Between the Urban Renewal Authority of Dacono and Galloway and Company, Inc., for Market Analysis and Master Planning Services. Executive Director, Jennifer presented her report. Michael Chalona with Galloway & Co gave a brief presentation. Commissioner Wittman moved to approve URAD Resolution 21-05, a Resolution Approving a Professional Services Agreement by and Between the Urban Renewal Authority of Dacono and Galloway and Company, Inc., for Market Analysis and Master Planning Services. The vote was unanimous with Chairperson Morehead declaring the motion carried. URAD Project Update Executive Director, Jennifer Krieger asked the commissioners if the first Wedneday of every of month would work as standing meeting dates. The Windy Gap water purchase was closed. The Authority drew on the bond for the sanitary sewer lift station engineering design and ROW acquisition. Page 2 of 3  Authority Member Reports None Adjournment: With no further business to be discussed the meeting was adjourned at 6:55p.m. Approved this day of March, 2021. _______________________________ Chairperson Morehead Attest: ______________________________________ Jennifer Krieger, Secretary/Executive Director Page 3 of 3  URBAN RENEWAL AUTHORITY OF DACONO SCHEDULE OF CASH POSITION December 31, 2020 Updated as of February 25, 2021 General Debt Service Capital Projects Fund Fund Fund Total TBK Bank - Checking Account Balance as of 12/31/2020 $ 314,585.51 $ - $ - $ 314,585.51 Subsequent activities: 01/19/21 Check #88 (956.55) - - (956.55) 01/25/21 Checks #89-91 (4,093.07) - - (4,093.07) 02/08/21 Checks #92-93 (4,762.92) - - (4,762.92) 02/10/21 January Ptax TIF 4,341.92 - - 4,341.92 309,114.89 - - 309,114.89 UMB Bank - Tax Incr Rev 2020 - Proj Fd Balance as of 12/31/2020 - - 2,000,412.84 2,000,412.84 Subsequent activities: 01/13/21 Requisition #2 - City of Dacono - (227,500.00) (227,500.00) 01/31/21 Interest Income - - 133.17 133.17 - - 1,773,046.01 1,773,046.01 UMB Bank - Tax Incr Rev 2020 - COI Fd Balance as of 12/31/2020 - - 17,863.44 17,863.44 Subsequent activities: 01/31/21 Interest Income - - 1.31 1.31 - - 17,864.75 17,864.75 $ 309,114.89 $ - $ 1,790,910.76 $ 2,100,025.65 1  URBAN RENEWAL AUTHORITY OF DACONO DACONO URA - PLAN AREA I TIF Revenue Reconciliation 2021 Current Year Prior Year Delinquent Net % of Total Property Total % of Total Property Property Taxes, Rebates Treasurer's Due to Amount Taxes Received Cash Taxes Received Taxes and Abatements Interest Fees County Received Monthly Y-T-D Received Monthly Y-T-D January $ 4,408.03 $ - $ - $ (66.11) $ - $ 4,341.92 0.54% 0.54% $ 2,363.64 0.58% 0.58% February - - - - - - 0.00% 0.54% 72,795.93 17.95% 18.54% March - - - - - - 0.00% 0.54% 27,451.88 6.77% 25.31% April - - - - - - 0.00% 0.54% 156,952.25 38.71% 64.01% May - - - - - - 0.00% 0.54% 13,639.61 3.36% 67.38% June - - - - - - 0.00% 0.54% 63,747.90 15.72% 83.10% July - - - - - - 0.00% 0.54% 185.70 0.05% 83.15% August - - - - - - 0.00% 0.54% - -0.06% 83.09% September - - - - - - 0.00% 0.54% 65,964.66 16.33% 99.41% October - - - - - - 0.00% 0.54% 1,650.72 0.41% 99.82% November - - - - - - 0.00% 0.54% 58.54 0.01% 99.84% December - - - - - - 0.00% 0.54% - 0.00% 99.84% $ 4,408.03 $ - $ - $ (66.11) $ - $ 4,341.92 0.54% 0.54% $ 404,810.83 99.84% 99.84% Property Taxes % Collected to Taxes Levied % of Levied Collected Amount Levied Property Tax General Fund $ 810,424 100% $ 4,408.03 0.54% $ 810,424 100% $ 4,408.03 0.54% Treasurer's Fees General Fund $ 12,156 100% $ 66.11 0.54% $ 12,156 100% $ 66.11 0.54% 2  URBAN RENEWAL AUTHORITY OF DACONO DACONO URA - PLAN AREA II TIF Revenue Reconciliation 2021 Current Year Delinquent Net % of Total Property Property Taxes, Rebates Treasurer's Due to Amount Taxes Received Taxes and Abatements Interest Fees County Received Monthly Y-T-D January $ - $ - $ - $ - $ - $ - 0.00% 0.00% February - - - - - - 0.00% 0.00% March - - - - - - 0.00% 0.00% April - - - - - - 0.00% 0.00% May - - - - - - 0.00% 0.00% June - - - - - - 0.00% 0.00% July - - - - - - 0.00% 0.00% August - - - - - - 0.00% 0.00% September - - - - - - 0.00% 0.00% October - - - - - - 0.00% 0.00% November - - - - - - 0.00% 0.00% December - - - - - - 0.00% 0.00% $ - $ - $ - $ - $ - $ - 0.00% 0.00% Property Taxes % Collected to Taxes Levied % of Levied Collected Amount Levied Property Tax Debt Service $ 18,807 100% $ - 0.00% $ 18,807 100% $ - 0.00% Treasurer's Fees Debt Service $ 282 100% $ - 0.00% $ 282 100% $ - 0.00% 3  Urban Renewal Authority of Dacono (URAD) Urban Renewal Refresher Presented by: Carolynne White March 3, 2021 1 February 24, 2021 URA and TIF Summary Legal Requirements ▪Sunshine Laws ▪Transparency History of URA Legislation ▪CO HB 15-1348 ▪Board 2 Urban Renewal was created to: • Direct private sector investment to blighted areas • Reduce urban sprawl • Revitalize local economies • Stabilize property values • Remediate contaminated sites • Improve overall quality of life 3 Why would development need help? • Environmental contamination – soil, water, building • Complicated property assemblage • Number of tenants • Aging infrastructure/utilities • Topography • Flood plain/way issues • City/URA requirements 4 Statutory Authorization • C.R.S. § 31-25-101 et seq. • Purpose: eliminate slum and blight • Not: • job creation • economic development • increase tax revenue 5 BUT . . . • Elimination of slum and blight through redevelopment almost always results in: • job creation • economic development • increased tax revenue 6 Factors of Blight a. Deteriorated or deteriorating structures b. Defective or inadequate street layout c. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness d. Unsanitary or unsafe conditions e. Deterioration of site or other improvements f. Unusual topography or inadequate public improvements or utilities g. Defective or unusual conditions of title rendering the title non-marketable h. Conditions that endanger life or property by fire or other causes i. Buildings that are unsafe or unhealthy for people to live or work in j. Environmental contamination of buildings or property K5. Existence of health, safety, or welfare factors requiring high levels of municipal services or substantial underutilization or vacancy of buildings, sites, or improvements 7 5 How much “blight” is enough? ▪ If there is no objection by the property owner or owners and the tenant or tenants of such owner or owners . . . one factor... ▪ If private property is to be acquired by eminent domain, then “blighted area” means . . . at least five factors... ▪ Otherwise . . . four of the factors... ▪ Based upon an area “taken as a whole,” and not on a building-by- building, parcel-by-parcel, or block-by-block basis. ▪ Statute does not require a certain minimum quantity of conditions within any one of the blight factors to be found in order for that blight factor to be considered present in the area. 8  Tax Increment Financing (TIF) A way to catalyze redevelopment by contributing the difference between the base year tax revenue and the increased tax revenue generated, year over year. 9 9 What is Tax Increment Financing (TIF)? • TIF can be sales, property, use and/or lodging tax • When a Plan is adopted the tax base for that Urban Renewal Area is established • The existing taxing agencies receive that base amount for the next 25 years • If any of the taxes increase over the base amount, URAs receives that incremental revenue 10 How is increment calculated? New revenue over the base is reinvested within the Area Tax base, paid to taxing entities Increment 11  Boundaries • Authority’s boundaries same as municipality • May have multiple areas, the boundaries of which shall be “narrowly drawn to accomplish purposes of Act” • Can only have one authority, but can have multiple areas • Generally, must be within municipal boundaries • BUT may now include contiguous unincorporated areas, with consent of county 12 13  Other Roles and Responsibilities City Council ▪ Approve urban renewal plans and amendments ▪ Acquire real property by eminent domain, if that is the will of the City Council ▪ Enter into agreements with urban renewal authority Planning and Zoning Commission ▪ Review proposed urban renewal plan for consistency with comprehensive plan ▪ Consider (and opine on) proposed projects within the urban renewal area in typical P&Z role 14 8 Other Governance Issues • Colorado Sunshine Act (C.R.S. 24-6-401 et seq.) applies to urban renewal authorities • Colorado Open Records Act (CORA) (C.R.S. 24-72-201 et seq.) applies to urban renewal authorities • Colorado Local Government Budget Act, (C.R.S. 29-1-101 et seq.) • Adoption of bylaws not expressly required, but advisable • Adoption of other policies or form documents • Intergovernmental Agreement with Town • Grant Guidelines • Public Art • Grant Agreement Template 15 • TIF Agreement Template • Relocation Policies URA Board Responsibilities • Attendance • Preparedness • Conflict of interest/ethics • Confidentiality (e.g. executive session) • Fiduciary duty 16 Fiduciary Responsibility of URA Board • Stewards of taxpayer funds, just as other elected officials • Urban Renewal Conflict of Interest provisions • C.R.S. 31-25-104(3) • “No commissioner . . . shall acquire any interest, direct or indirect, in any project or in any property included or planned to be included in any project . . .” • Different than municipal/county/special district conflict of interest provisions 17  Dacono Economic Development Authority • Established 2015 • One plan area created under prior URA law • 2019 – reconstituted Board to position for consideration of new plan area • December 2019 – Adopted new Urban Renewal Plan (Dacono II) • October 2020 – Issued debt for water and sewer in support of urban renewal plans 18 19 Plan Area II Map 20