Urban Renewal Authority of Dacono

Urban Renewal Authority of Dacono Meeting AGENDA Wednesday, November 3, 2021 6:00 PM 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. Consent Agenda a. *Approval of the May 5, 2021 Urban Renewal Authority of Dacono Meeting Minutes. III. General Business A. *Public Hearing and Approval of Resolution URAD 21-08, approving the 2022 Budget. Presenter: Carrie Bartow, Chief Financial Officer B. *I-25 Corridor Presentation Presenters: Tim Nelson - Galloway, Phil Stuepfert - HR Green, and Jessica Harvey - Harvey Economics IV. Authority Member Reports V. Adjournment *Materials in Packets. Accommodations for the disabled can be made upon request.  Urban Renewal Authority of Dacono Meeting Minutes Wednesday, May 5, 2021 Meeting held remotely via Zoom called to order at 6:00 p.m. Members Present Adam Morehead, Chairman Kevin Plain Joe Baker Danny Long John Wargo Charlie Everitt Lori Saine Chico Garcia Members Absent Jackie Thomas, excused Kathryn Wittman, excused Cody Childers, excused Staff Present AJ Euckert, City Manager Valerie Taylor, Clerk Jennifer Krieger, Secretary/Executive Director Carrie Bartow, Chief Financial Officer I. Consent Agenda a. Approval of the April 7, 2021 Urban Renewal Authority of Dacono Meeting Minutes. Commissioner Plain moved to approve the Consent Agenda as presented. The vote was ayes: Commissioners Baker, Garcia, Long, Plain, Wargo Everitt and Morehead. Commissiomer Saine abstained. Chairman Morehead declared the motion carried. II. General Business A. Presentation of the Financials for Periods Ending March 31, 2021. Carrie Bartow, Chief Financial Officer presented her report. No formal action was taken. B. Presentation of the 2020 Audit. Carrie Bartow, Chief Financial Officer presented the 2020 Audit. Commissioner Plain moved to accept the Annual Audit Report of the Financial Statements of the Urban Renewal Authority of Dacono for fiscal year ending December 31, 2020, prepared by WIPFLI, LLP. The vote was unanimous with Chairman Morehead declaring the motion carried. III. Authority Member Reports None Jennifer stated that meetings are planned for June 2, July 2 and August 3rd. She asked the authority members to let her know of any travel plans or availability during the summer so we can adjust the schedule. Adjournment: With no further business to be discussed the meeting was adjourned at 6:12 p.m. Approved this 3rd day of November, 2021. _______________________________ Adam Morehead, Chairperson Attest: ______________________________________ Jennifer Krieger, Secretary/Executive Director  Agenda Item: III-A. Meeting Date: November 3, 2021 Subject: Resolution 21-08, a Resolution of the Urban Renewal Authority of Dacono Adopting the Annual Budget and Appropriating Expenditures for the Urban Renewal Authority of Dacono for Fiscal Year 2022. Presenter: Carrie Bartow, Chief Financial Officer Jennifer Krieger, Executive Director Background: The proposed amended 2022 budget reflects expected revenues and expenditures for Dacono Plan Area I and Dacono Plan Area II for the Urban Renewal Authority of Dacono. Incremental property tax revenue is the primary funding sources for the URAD. Proposed 2022 projects, funded from the Dacono I Urban Renewal Plan Area I include: • Preliminary roadway engineering and shared construction cost for a portion of Weld County Road 12 (Grand View Blvd). Due to the timing of the property owner’s entitlement process, this project was not completed in 2021. • I-25 corridor land use and economic development study. This project aims to conduct a market study and identify economic development opportunities along the I-25 corridor to leverage private investment in the Dacono Plan Area I. This project began in 2021 and will continue in 2022. • URAD-owned property market study. Incremental revenue generated from the Dacono Plan Area II is pledged revenue for debt service payment of the Authority Tax Increment Revenue Bonds, Series 2020. Recommended Action: Staff recommends approval of Resolution 21-08, adopting the fiscal year 2022 budget.  URBAN RENEWAL AUTHORITY OF DACONO RESOLUTION NO. 21-08 A RESOLUTION OF THE URBAN RENEWAL AUTHORITY OF DACONO ADOPTING THE ANNUAL BUDGET AND APPROPRIATING EXPENDITURES FOR THE URBAN RENEWAL AUTHORITY OF DACONO FOR FISCAL YEAR 2022 WHEREAS, the Urban Renewal Authority of Dacono’s proposed annual budget for the fiscal year 2022 has been prepared and submitted to the Board of Commissioners; and WHEREAS, such budget contains all of the matters required by law, and said budget is in balance as required by law; and WHEREAS, a public hearing has been held on the proposed budget following public notice of the same; NOW THEREFORE, BE IT RESOLVED BY THE URBAN RENEWAL AUTHORITY OF DACONO: Section 1. The Annual Budget for the Urban Renewal Authority of Dacono, for the Fiscal Year beginning January 1, 2022, and ending December 31, 2022, is hereby approved and adopted. Such 2022 Annual Budget document is attached hereto and made a part of this Resolution. Section 2. Moneys are hereby appropriated for said fiscal year as provided in said budget document. INTRODUCED, READ, and ADOPTED this 3rd day of November 2021. Adam Morehead, Chairperson ATTEST: Jennifer Krieger, Executive Director/Secretary URBAN RENEWAL AUTHORITY OF DACONO ANNUAL BUDGET FOR THE YEAR ENDING DECEMBER 31, 2022  URBAN RENEWAL AUTHORITY OF DACONO SUMMARY 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 BEGINNING FUND BALANCES $ 31,815 $ 2,267,691 $ 2,327,813 $ 2,327,813 $ 2,585,399 REVENUES Incremental property taxes - Plan Area I 410,975 810,424 783,599 797,106 927,863 Incremental property taxes - Plan Area II - 18,807 18,419 18,421 12,889,450 Interest income 418 500 559 700 500 Royalties - - 29,511 35,000 35,000 Transfer from City - 3,000 3,303 3,303 - Bond proceeds - series 2020 16,043,000 - - - - Total revenues 16,454,393 832,731 835,391 854,530 13,852,813 TRANSFERS IN - 315,111 53,605 166,312 1,229,329 Total funds available 16,486,208 3,415,533 3,216,809 3,348,655 17,667,541 EXPENDITURES General Accounting 21,016 50,000 27,404 45,000 50,000 Auditing - 7,000 5,750 5,750 7,000 County Treasurer's fee 6,164 12,438 12,028 12,233 207,260 Legal services 45,823 60,000 4,385 40,000 60,000 Professional services 60,250 100,000 - 50,000 100,000 Staffing - 70,000 96,818 135,000 185,000 Contingency - 10,844 701 1,000 9,082 Property tax increment payments - 7,613 7,308 7,461 5,036,461 Debt Service Trustee fees - 3,000 - 3,000 3,000 Bond interest - - - - 2,171,804 Bond principal - - - - 5,400,000 Capital Projects Bond issue costs - Series 2020 525,142 - - - - Capital outlay - Plan Area I - 315,000 53,605 70,000 1,250,000 Capital outlay - Plan Area II 13,500,000 2,000,900 227,500 227,500 1,791,976 Total expenditures 14,158,395 2,636,795 435,499 596,944 16,271,583 TRANSFERS OUT - 315,111 53,605 166,312 1,229,329 Total expenditures and transfers out requiring appropriation 14,158,395 2,951,906 489,104 763,256 17,500,912 ENDING FUND BALANCES $ 2,327,813 $ 463,627 $ 2,727,705 $ 2,585,399 $ 166,629 No assurance provided. See summary of significant assumptions. 1 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA I 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 ASSESSED VALUATION - WELD COUNTY TIF Increment $ 3,017,862 $ 5,921,051 $ 5,921,051 $ 5,921,051 $ 6,848,711 Total TIF Certified Assessed Value $ 3,017,862 $ 5,921,051 $ 5,921,051 $ 5,921,051 $ 6,848,711 MILL LEVY General Fund 136.181 136.872 136.069 136.069 135.480 Total mill levy 136.181 136.872 136.069 136.069 135.480 PROPERTY TAXES General Fund 410,975 $ 810,424 $ 805,672 $ 805,672 $ 927,863 Levied property taxes 410,975 810,424 805,672 805,672 927,863 Adjustments to actual/rounding - - (13,507) - - Refunds and abatements - - (8,566) (8,566) - Budgeted property taxes $ 410,975 $ 810,424 $ 783,599 $ 797,106 $ 927,863 BUDGETED PROPERTY TAXES General Fund $ 410,975 $ 810,424 $ 783,599 $ 797,106 $ 927,863 $ 410,975 $ 810,424 $ 783,599 $ 797,106 $ 927,863 No assurance provided. See summary of significant assumptions. 2 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA II 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 ASSESSED VALUATION - WELD COUNTY TIF Increment $ - $ 159,460 $ 159,460 $ 159,460 $ 109,674,750 Total TIF Certified Assessed Value $ - $ 159,460 $ 159,460 $ 159,460 $ 109,674,750 MILL LEVY Debt Service - 117.942 115.521 115.521 117.524 Total mill levy - 117.942 115.521 115.521 117.524 PROPERTY TAXES Debt Service $ - $ 18,807 $ 18,421 $ 18,421 $ 12,889,450 Levied property taxes - 18,807 18,421 18,421 12,889,450 Adjustments to actual/rounding - - (2) - - Budgeted property taxes $ - $ 18,807 $ 18,419 $ 18,421 $ 12,889,450 BUDGETED PROPERTY TAXES Debt Service $ - $ 18,807 $ 18,419 $ 18,421 $ 12,889,450 $ - $ 18,807 $ 18,419 $ 18,421 $ 12,889,450 No assurance provided. See summary of significant assumptions. 3 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO GENERAL FUND 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 BEGINNING FUND BALANCES $ 31,815 $ 267,291 $ 309,537 $ 309,537 $ 686,850 REVENUES Incremental property taxes - Plan Area I 410,975 810,424 783,599 797,106 927,863 Royalties - - 29,511 35,000 35,000 Total revenues 410,975 810,424 813,110 832,106 962,863 TRANSFERS IN Debt Service Fund - administration fees - 111 - 113 75,528 Total transfers in - 111 - 113 75,528 Total funds available 442,790 1,077,826 1,122,647 1,141,756 1,725,241 EXPENDITURES Accounting 21,016 50,000 27,404 45,000 50,000 Auditing - 7,000 5,750 5,750 7,000 County treasurer's fee 6,164 12,156 11,754 11,957 13,918 Legal services 45,823 60,000 4,385 40,000 60,000 Professional Services 60,250 100,000 - 50,000 100,000 Staffing - 70,000 96,818 135,000 185,000 Contingency - 10,844 701 1,000 9,082 Total expenditures 133,253 310,000 146,812 288,707 425,000 TRANSFERS OUT Capital Projects Fund - Plan Area I - 219,765 53,605 70,000 1,042,530 Capital Projects Fund - Plan Area I (Mountain View Fire) - 95,235 - 96,199 111,271 Total transfers out - 315,000 53,605 166,199 1,153,801 Total expenditures and transfers out requiring appropriation 133,253 625,000 200,417 454,906 1,578,801 ENDING FUND BALANCES $ 309,537 $ 452,826 $ 922,230 $ 686,850 $ 146,440 No assurance provided. See summary of significant assumptions. 4 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO DEBT SERVICE FUND 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 BEGINNING FUND BALANCES $ - $ - $ - $ - $ 10,874 REVENUES Incremental property taxes - Plan Area II - 18,807 18,419 18,421 12,889,450 Transfer from City - 3,000 3,303 3,303 - Total revenues - 21,807 21,722 21,724 12,889,450 Total funds available - 21,807 21,722 21,724 12,900,324 EXPENDITURES Trustee fees - 3,000 - 3,000 3,000 County Treasurer's fee - 282 274 276 193,342 Property tax increment payment - AIMS Junior College - 94 90 92 93,187 Property tax increment payment - School Dist RE1J - 4,567 4,326 4,417 2,889,025 Property tax increment payment - School Dist RE8 - 88 91 93 94,340 Property tax increment payment - St Vrain Sanitation - 74 70 71 47,079 Property tax increment payment - Weld County - 1,179 1,157 1,181 812,275 Property tax increment payment - Mountain View Fire - 1,457 1,425 1,455 1,000,440 Property tax increment payment - Northern Colorado Water - 154 149 152 100,115 Bond interest - - - - 2,171,804 Bond principal - - - - 5,400,000 Total expenditures - 10,895 7,582 10,737 12,804,607 TRANSFERS OUT General Fund - Administation fees - 111 - 113 75,528 Total transfers out - 111 - 113 75,528 Total expenditures and transfers out requiring appropriation - 11,006 7,582 10,850 12,880,135 ENDING FUND BALANCES $ - $ 10,801 $ 14,140 $ 10,874 $ 20,189 No assurance provided. See summary of significant assumptions. 5 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA I 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 BEGINNING FUND BALANCES $ - $ - $ - $ - $ 96,199 REVENUES Total revenues - - - - - TRANSFERS IN General Fund - 315,000 53,605 166,199 1,153,801 Total transfers in - 315,000 53,605 166,199 1,153,801 Total funds available - 315,000 53,605 166,199 1,250,000 EXPENDITURES I-25 Corridor (market analysis) - 150,000 40,160 50,000 100,000 URAD Property (site planning) - 65,000 13,445 20,000 65,000 County Road 12 (design/survey) - 100,000 - - 100,000 County Road 12 (construction) - - - - 985,000 Total expenditures - 315,000 53,605 70,000 1,250,000 Total expenditures and transfers out requiring appropriation - 315,000 53,605 70,000 1,250,000 ENDING FUND BALANCES $ - $ - $ - $ 96,199 $ - No assurance provided. See summary of significant assumptions. 6 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA II 2021 BUDGET WITH 2020 ACTUAL AND 2021 ESTIMATED For the Years Ended and Ending December 31, 10/28/2021 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2020 2021 9/30/21 2021 2022 BEGINNING FUND BALANCES $ - $ 2,000,400 $ 2,018,276 $ 2,018,276 $ 1,791,476 REVENUES Bond proceeds - Series 2020 16,043,000 - - - - Interest income 418 500 559 700 500 Total revenues 16,043,418 500 559 700 500 Total funds available 16,043,418 2,000,900 2,018,835 2,018,976 1,791,976 EXPENDITURES Bond issue costs - Series 2020 525,142 - - - - Capital outlay 13,500,000 2,000,900 227,500 227,500 1,791,976 Total expenditures 14,025,142 2,000,900 227,500 227,500 1,791,976 Total expenditures and transfers out requiring appropriation 14,025,142 2,000,900 227,500 227,500 1,791,976 ENDING FUND BALANCES $ 2,018,276 $ - $ 1,791,335 $ 1,791,476 $ - No assurance provided. See summary of significant assumptions. 7 PRELIMINARY DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The Economic Development Authority of Dacono was formed by resolution passed March 23, 2015, by the City Council of the City of Dacono, Colorado (the City) pursuant to the Colorado Urban Renewal Law, Colorado Revised Statutes. On June 8, 2020, a resolution was passed to change the name of the organization to the Urban Renewal Authority of Dacono (Authority). The purpose of the Authority is to acquire and develop certain blighted areas in the City to maintain the public welfare. The Authority is considered a component unit of the City since the Authority’s tax increment financing indicates financial accountability with the City, due to the benefits redevelopment will provide the City. The Mayor appoints the Authority board members and the City Council reviews the Urban Renewal Plans and any changes thereto. Legal counsel is of the opinion that under state statues, the City is not liable with respect to the bonds issued by the Authority. The Authority has no employees and all administrative functions are contracted. The Authority prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes C.R.S. 29-1-105 using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Revenues Incremental Property Taxes The Authority receives incremental property tax revenue for each of the active Urban Renewal areas. Incremental property tax revenues are the property tax revenues in excess of an amount equal to the ad valorem property taxes produced by the levy at the rates fixed for such year by or for the governing bodies of the various taxing jurisdictions within or overlapping the Urban Renewal area upon a valuation for assessment equal to the property tax base amount. The property tax base amount is certified by the County Assessor as the valuation for assessment of all taxable property within the Urban Renewal area last certified by the County Assessor prior to the adoption of the Urban Renewal plan. The base amount may be proportionately adjusted for general reassessments in accordance with Colorado law. The calculation of the incremental property taxes budgeted is displayed on the Property Summary Information pages the budget at the estimated mill levies for each project area. Interest Income Interest earned on the Authority’s available funds has been estimated based on the current average interest rate. PRELIMINARY DRAFT - SUBJECT TO REVISION 8  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures Administrative Expenditures Administrative expenditures include the services necessary to maintain the administrative viability such as legal, accounting, audit, contractual, and professional services, and other administrative expenses for the Authority. County Treasurer’s Fees County Treasurer’s collection fees have been computed at 1.5% of the incremental property taxes. Property Tax Increment Payment City Cooperation Agreement. On December 16, 2019, the Authority entered into a Cooperation Agreement (Dacono II Urban Renewal Plan) with the City (the “City Cooperation Agreement”). Pursuant to the City Cooperation Agreement, the parties agreed that, in furtherance of carrying out the purposes of the Plan, the Authority may retain and expend, 100% of the following revenue: (a) incremental property tax revenues derived from the City’s mill levy and transferred by the County Treasurer to the Authority for deposit into the Special Fund (the “City Property Tax Increment”) and (b) the incremental sales and use tax revenues from the portion of the City’s 3.0% general fund sales and use tax which are in excess of the sales tax base amount which revenues are deposited into the Special Fund by the City (the “City Sales Tax Increment” and together with the City Property Tax Increment, the “City Increment”). Under the City Cooperation Agreement, the Authority agreed to use the City Increment to pay eligible costs of the redevelopment of the TIF Area. The City Sales Tax Increment is not pledged to the Bonds and will be used by the Authority for other uses. The City presently imposes a debt service mill levy for the payment of general obligation indebtedness (2.62 of its 25.082 mills imposed in 2019, all of which will contribute to the Pledged Revenues) with a final maturity date of December 1, 2025. County Tax Increment Revenue Sharing Agreement. On December 16, 2019, the Authority entered into a Tax Increment Revenue Sharing Agreement with the County (the “County Sharing Agreement”). The parties agreed that the Authority may retain 50% of the net property tax increment revenues generated from the County’s mill levy during the TIF Period (the “County Increment”) and the Authority will remit to the County the remaining 50% of the net property tax increment revenues. St. Vrain Valley School District IGA. On December 16, 2019, the Authority and St. Vrain Valley School District RE-1J (the “St. Vrain School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and St. Vrain Valley School District (the “St. Vrain School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the St. Vrain School District’s mill levy (currently in the amount of 24.995 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “St. Vrain Total Program Mill Levy Increment”) and the Authority will remit to the St. Vrain School District all of the property tax increment revenues derived from the St. Vrain School District’s other mill levies and any future mill levies. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. PRELIMINARY DRAFT - SUBJECT TO REVISION 9  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) Weld RE-8 School District IGA. On December 11, 2019, the Authority and Weld RE-8 School District (the “Weld School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and Weld RE-8 School District (the “Weld School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the Weld School District’s mill levy (currently in the amount of 12.143 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “Weld Total Program Mill Levy Increment”) and the Authority will remit to the Weld School District all of the property tax increment revenues derived from the Weld School District’s other mill levies and any future mill levies. Carbon Valley Parks and Recreation District IGA. On November 19, 2019, the Authority and Carbon Valley Parks and Recreation District (the “Parks and Recreation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Carbon Valley Parks and Recreation District) (Dacono II Urban Renewal Plan) (the “Parks and Recreation District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 100% of the property tax increment revenues generated from the Parks and Recreation District’s mill levy (the “Parks and Recreation District Increment”). The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the incremental property tax revenue received by the Authority to pay the administrative costs of the Authority. Mountain View Fire Rescue District IGA. On December 9, 2019, the Authority and Mountain View Fire Rescue District (the “Fire District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Mountain View Fire Rescue District) (Dacono II Urban Renewal Plan) (the “Fire District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 42% of the property tax increment revenues generated from the Fire District’s mill levy (the “Fire District Increment”), subject to a limit of $16,000,000 (the “Fire District Increment Cap”). If the Authority collections hit the Fire District Increment Cap prior to expiration of the TIF Period, then the Authority will not be entitled to retain the Fire District Increment and will remit it to the Fire District. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the property tax increment revenues received by the Authority to pay the administrative costs of the Authority. The Authority agreed to use the Fire District Increment solely for transportation infrastructure projects identified in the Plan. Given the restrictions on the use of the Fire District Increment in the Fire District IGA, the Fire District Increment is not pledged to the payment of the Bonds. High Plains Library District IGA. On December 16, 2019, the Authority entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (High Plains Library District) (Dacono II Urban Renewal Plan) with High Plains Library District (the “Library District”) (the “Library District IGA”). The parties agreed that the Authority will remit to the Library District all of the property tax increment revenues derived from the Library District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of such property tax increment revenues to pay the administrative costs of the Authority. PRELIMINARY DRAFT - SUBJECT TO REVISION 10  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) St. Vrain Sanitation District IGA. On November 20, 2019, the Authority and St. Vrain Sanitation District (as previously defined, the “Sanitation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (St. Vrain Sanitation District) (Dacono II Urban Renewal Plan) (the “Sanitation District IGA”). The parties agreed that the Authority will remit to the Sanitation District all of the property tax increment revenues derived from the Sanitation District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. Aims Junior College District IGA. On December 3, 2019, the Authority and Aims Junior College District (the “College District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Aims Junior College District) (Dacono II Urban Renewal Plan) (the “College District IGA”). The parties agreed that the Authority will remit to the College District all of the property tax increment revenues derived from the College District’s mill levy allocated to the Special Fund. Northern Colorado Water Conservancy District. On November 25, 2019, the Authority sent a letter to the Northern Colorado Water Conservancy District (the “Water District”) to notify the Water District that the Authority would remit to the Water District all of the property tax increment revenues derived from the Water District’s mill levy. Accordingly, the Authority did not enter into an intergovernmental agreement with the Water District governing the sharing of incremental property tax revenues. Debt and Leases City Loan Between 2016 and 2019, the City of Dacono General Fund loaned the Authority $877,677 to implement plan objectives. These objectives include eliminating and preventing the spread of blight within the Plan Area and to stimulate growth and investment within the Area boundaries. The funds were used for property acquisition and public improvements in the Plan Area. Currently, the Authority is to retain all of the TIF funds collected. In future years, the Authority anticipates TIF revenues to increase and the loan will be repaid at that time. Tax Increment Revenue Bonds, Series 2020 On October 28, 2020, the Authority issued $16,043,000 in Tax Increment Revenue Bonds, Series 2020. Proceeds from the bonds will be used to: (i) acquire certain water rights known as the Windy Gap Units for use in the TIF Area and elsewhere within the City, (ii) finance a portion of the costs of the design, construction, acquisition, and equipping of certain water and sewer infrastructure within the TIF Area and elsewhere within the City, and (iii) pay costs of issuing the bonds. The bonds bear interest rate of 6.250% per annum and are payable annually on December 1, beginning on December 1, 2020 from and to the extent of available pledged revenue. The bonds mature on December 1, 2039 an are subject to mandatory redemption on December 1 of each year to the extent PRELIMINARY DRAFT - SUBJECT TO REVISION 11  URBAN RENEWAL AUTHORITY OF DACONO 2022 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases (Continued) Tax Increment Revenue Bonds, Series 2020 (Continued) of available pledged revenue. The bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Pledged revenue consists of pledged property tax revenues and any other legally available moneys, which the Authority determines, in its absolute discretion, to transfer to the Trustee for application as pledged revenue. Pledged property tax revenues are generally defined as that portion of the property tax increment revenues that is derived solely from property classified as oil and gas real property or oil and gas personal property as certified by the County Assessor in the TIF Area, net of any costs of collection of the City and/or County and any tax refunds or abatements authorized by or on behalf of the City and/or County. Property tax increment revenues generated from other taxable property in the TIF Area are not pledged to the payment of the bonds. To the extent principal of any bonds is not paid when due, such principal shall remain outstanding until the termination date of December 2, 2044 and shall continue to bear interest at the rate then borne by the bonds. To the extent interest on any bonds is not paid when due, such interest shall compound annually on each interest payment date at the rate then borne by the bonds. The bonds will be deemed discharged on the termination date. The District has no capital or operating leases. This information is an integral part of the accompanying budget. PRELIMINARY DRAFT - SUBJECT TO REVISION 12  Agenda Item: III-B. Meeting Date: November 3, 2021 Subject: Presentation on I-25 corridor study progress. Presenter: Jennifer Krieger, Executive Director Tim Nelson, Galloway Phil Stuepfert, HR Greene Jessica Harvey, Harvey Economics Background: The URAD I-25 Corridor Subarea Plan aims to develop a future land use plan of action for URAD to reduce, eliminate, and prevent the spread of blight and stimulate and catalyze growth and investment within the URAD's I-25 corridor study area. The project scope proposes an I-25 subarea plan that updates and expands upon the objectives for the I-25 corridor established in the 2015 Dacono Urban Renewal Plan. The URAD I-25 Corridor Subarea Plan will include an updated future land use plan for the I-25 corridor based on new economic market analysis and recommendations for the creation of zoning tools to implement the subarea plan. The I-25 corridor study area encompasses three square miles and is bounded on the west by 1-25, on the east by WCR 11/York Street, on the south by WCR 8/Summit Boulevard, and the north by SH 52. Recommended Action: No action is required by the URAD Board on this agenda item. City of Dacono Market Study Presented to URAD Presented by Jessica Harvey, Susan Walker Harvey Economics he@harveyeconomics.com 720-889-2755 October 2021 CONFIDENTIAL  10/11/2021 Task Two Goals What is the geographical market? Consumer spending power in the market? What development should the City of Dacono promote in the Commercial and Residential space? CONFIDENTIAL  10/11/2021 Market Interviews ➢ Neighboring Towns/Cities ▪ Paula Mehle, Town of Firestone, Director of Economic Development & FURA ▪ Ryan Johnson, Town of Frederick, Economic Development Manager ▪ Jennifer Krieger, Community Development Director, City of Dacono ▪ AJ Euckert, City Manager, City of Dacono ▪ Lucas Workman, Town of Erie, Economic Development Coordinator ➢ Galloway ▪ Tim Nelson, Planning & Landscape Architecture Team Manager ➢ Mike Eisenstein ▪ Developer, Land Capital ➢ Upstate Colorado Economic Development ▪ Audrey Herbison, Economic Development Manager CONFIDENTIAL  10/11/2021 Additional Research Demographic and Economic Data Collection: ▪ Bureau of Labor Statistics ▪ US Census Bureau ▪ Colorado Department of Local Affairs ▪ Colorado Department of Revenue ▪ ESRI ▪ Academic Studies ▪ Industry Articles CONFIDENTIAL  10/11/2021 Market Interview Data Collected What is the geographic market area? Consumer spending patterns in Dacono and market area? Sufficient commercial base in Dacono and market area? Commercial development trends? Commercial development – What’s missing? Residential development trends? Residential development - What’s missing? CONFIDENTIAL  10/11/2021 The Market? ❑ Carbon Valley Town of Firestone, Town of Frederick and City of Dacono ❑ Town of Erie? ❑ City of Fort Lupton? ❑ Town of Mead? ❑ Survey suggests Carbon Valley + Erie CONFIDENTIAL  10/11/2021 Market Area Households, Income and Expenditures Households Total Income Retail / Service Purchases Total Market Total Market Total Market Dacono Dacono Dacono Area Area Area 2019 2,091 21,167 2019 $159,999,000 $2,490,590,000 2019 $85,948,000 $1,337,885,000 2031 2,820 28,546 2031 $255,418,000 $3,726,721,000 2031 $137,205,000 $2,001,905,000 Gain 729 7,379 $ Gain $95,419,000 $1,236,131,000 $ Gain $51,257,000 $664,020,000 35% Household Growth % Gain 60% 50% % Gain 60% 50% • Considerable household growth • Substantial income gains 54% 46% • A large % of expenditures made on “local” retail/service items • Opportunities for $ capture Retail/Services Purchases Other Notes: CONFIDENTIAL Retail / Service purchases exclude e-commerce  10/11/2021 Consumer Spending Patterns Best Estimate of the Percent of Total Household Expenditures by General Type and Location Outside the Individual Online Purchases Type of Expenditure Community, within Bigger Cities Community the Corridor Survey Response Survey Response Survey Response Survey Response Best Estimate Best Estimate Best Estimate Best Estimate Convenience Retail (Shopping twice a week) 15% 60% 10% 15% Convenience Service (Shopping twice a week) 35% 60% 5% 0% Other Retail (i.e. hardware store) 15% 40% 20% 25% Personal Services (i.e. dentist) 35% 40% 25% 0% Big Ticket Retail Items (i.e. appliances) 10% 20% 40% 30% CONFIDENTIAL  10/11/2021 Commercial Development Sufficient Commercial Base? • Resounding No! Commercial Development Historical Trends • Commercial development oriented towards the highway (119, and I-25) • Convenience retailing in some of the areas within the market area • Industrial and light industrial in some of the areas within the market area Commercial Development - What’s Missing? • Convenience retail - especially all goods/department type store (Walmart, Target, TJ Maxx, Old Navy, etc.) • Grocery stores • Restaurants (national brands, fast casual, boutique restaurants, NOT fast food) • Entertainment/hospitality/hotels (music venue, brewery, bars) • Offices/daytime employment • Medical services and other services • Daycares • NOT NEEDED: Auto dealerships and auto service CONFIDENTIAL  10/11/2021 Retail / Service Sector Purchases and Leakage - Dacono Dacono Resident Expenditure Patterns - 2019 Retail/Service Purchased in Purchased Outside of Purchases Dacono Dacono % Lost Food Food at home $10,011,000 $4,832,000 $5,179,000 52% Food away from home $7,588,000 $2,009,000 $5,579,000 74% Alcoholic beverages $857,000 $413,000 $443,000 52% Housing Shelter $3,146,000 $370,000 $2,776,000 88% Utilities, fuels, and public services $8,530,000 $1,002,000 $7,528,000 88% Household operations $2,939,000 $345,000 $2,594,000 88% Housekeeping supplies $1,697,000 $199,000 $1,497,000 88% Household furnishings and equipment $4,430,000 $4,430,000 $0 0% Apparel and services $3,777,000 $0 $3,777,000 100% Transportation Vehicle purchases $9,838,000 $9,838,000 $0 0% Gasoline, other fuels, motor oil $4,558,000 $4,104,000 $453,000 10% Other vehicle expenses $7,960,000 $3,679,000 $4,282,000 54% Public and other transportation $1,627,000 $752,000 $875,000 54% Healthcare Health Insurance $0 $0 $0 0% Medical Services $3,177,000 $1,468,000 $1,709,000 54% Drugs $1,208,000 $0 $1,208,000 100% Medical Supplies $485,000 $0 $485,000 100% Entertainment Fees and admissions $1,827,000 $0 $1,827,000 100% Other $5,817,000 $0 $5,817,000 100% Personal care products and services $1,740,000 $0 $1,740,000 100% Reading $208,000 $0 $208,000 100% Education $2,054,000 $0 $2,054,000 100% Tobacco products and smoking supplies $497,000 $58,000 $439,000 88% Miscellaneous $1,977,000 $503,000 $1,475,000 75% Cash contributions $0 $0 $0 0% Personal Insurance and pensions $0 $0 $0 0% Total $85,948,000 $34,002,000 $51,945,000 60% Notes: CONFIDENTIAL Retail / Service purchases exclude e-commerce Purchase data rounded to nearest thousand dollars  10/11/2021 Retail / Service Sector Purchases and Leakage – Market Area Market Area Retail and Service Sector Expenditure Patterns - 2019 Retail/Service Purchased in Purchased Outside of Purchases Market Area Market Area % Lost Food Food at home $155,836,000 $141,844,000 $13,992,000 9% Food away from home $118,114,000 $38,382,000 $79,732,000 68% Alcoholic beverages $13,334,000 $12,137,000 $1,197,000 9% Housing Shelter $48,973,000 $792,000 $48,181,000 98% Utilities, fuels, and public services $132,777,000 $2,148,000 $130,629,000 98% Household operations $45,750,000 $740,000 $45,010,000 98% Housekeeping supplies $26,412,000 $427,000 $25,985,000 98% Household furnishings and equipment $68,960,000 $48,614,000 $20,346,000 30% Apparel and services $58,792,000 $1,237,000 $57,556,000 98% Transportation Vehicle purchases $153,142,000 $103,878,000 $49,264,000 32% Gasoline, other fuels, motor oil $70,945,000 $25,594,000 $45,351,000 64% Other vehicle expenses $123,906,000 $55,310,000 $68,595,000 55% Public and other transportation $25,324,000 $11,304,000 $14,020,000 55% Healthcare Health Insurance $0 $0 $0 0% Medical Services $49,456,000 $22,077,000 $27,379,000 55% Drugs $18,797,000 $3,640,000 $15,156,000 81% Medical Supplies $7,551,000 $1,462,000 $6,089,000 81% Entertainment Fees and admissions $28,436,000 $0 $28,436,000 100% Other $90,546,000 $6,980,000 $83,566,000 92% Personal care products and services $27,087,000 $5,246,000 $21,841,000 81% Reading $3,245,000 $250,000 $2,995,000 92% Education $31,978,000 $2,465,000 $29,513,000 92% Tobacco products and smoking supplies $7,744,000 $125,000 $7,618,000 98% Miscellaneous $30,782,000 $4,912,000 $25,870,000 84% Cash contributions $0 $0 $0 0% Personal Insurance and pensions $0 $0 $0 0% Total $1,337,887,000 $489,564,000 $848,321,000 63% Notes: CONFIDENTIAL Retail / Service purchases exclude e-commerce Purchase data rounded to nearest thousand dollars  10/11/2021 Commercial and Non-Residential Opportunities Opportunities in Many Sectors: ▪ Grocery Stores ▪ Restaurants and Bars ▪ Entertainment (Venues and Retailers) ▪ Including music, sports, pets, books, etc. ▪ Clothing and Other Apparel ▪ Medical Services and Supplies ▪ Personal Care ▪ Light “Industrial” ▪ i.e., office buildings, non-retail employment CONFIDENTIAL  10/11/2021 Commercial and Non-Residential Development Potential Retail / Service $ to be Captured within Dacono Low End High End Dacono Residents - $ Lost $51,945,000 $51,945,000 % captured by Dacono 70% 80% $ captured by Dacono $36,362,000 $41,556,000 Other Market Area Residents - $ Lost $796,376,000 $796,376,000 % captured by Dacono 15% 25% $ captured by Dacono $119,456,000 $199,094,000 Total Captured by Dacono $155,818,000 $240,650,000 Sales per Acre of Commercial Land $270,000 $300,000 Non-Residential Acres (Dacono) 577 802 Note: Based on 2019 expenditure levels CONFIDENTIAL  10/11/2021 Residential Development Sufficient Residential Development? • Resounding No! Residential Development Historical Trends • Single-family detached and modular homes • No product diversity • Not million-dollar homes (houses cost between $400-600K) Residential Development-What’s Missing? • Product diversity (townhomes, smaller houses with smaller floor plans and small backyard, rowhomes, multi-family homes, apartments) • Entry level residential development • Senior housing/independent living/ dependent living • Town buildout/sanitary service/water service/roads/sidewalks • Mostly owned properties but some rentals would be good • NOT NEEDED: Modular homes CONFIDENTIAL  10/11/2021 Market Area Collaboration Biggest Asset to the City of Dacono is its Neighbors! • All the communities have faced challenges • All communities talked about the Why? region as a whole • All communities talked about partnering with Dacono • “Rising tides float all boats” CONFIDENTIAL THANK YOU 720.889.2755 HE@HarveyEconomics.com HarveyEconomics.com