Agenda Date: 10/04/2022
Subject:
Title
Resolution 60-2022: Confirming city council’s support of a Yes vote on Ballot Measures 3C, 3D, and 3F regarding a Downtown Development Authority (DDA)
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Kathleen Osher, Community Services Director |
PURPOSE:
Does council wish to execute a resolution in support of Littleton Ballot Measures 3C, 3D and 3F?
PRESENTATIONS:
Staff Presenter(s): Kathleen Osher, Community Services Director
Additional Presenter(s): N/A
SUMMARY:
The Colorado Fair Campaign Practices Act (FCPA) allows the City Council to pass a resolution voicing their position on any ballot measure referred to the voters. City Council referred ballot measure 3C, 3D, and 3F to the voters on August 16, 2022.
The City of Littleton, along with a steering committee made up of downtown stakeholders, kicked off a downtown district feasibility study and planning initiative in January 2022. The process involved property owners, business owners, and community members, and resulted in the identification of priority projects for downtown as well as the recommendation to create a Downtown Development Authority (DDA) to implement them.
PRIOR ACTIONS OR DISCUSSIONS:
On August 16, 2022, at a regular meeting, city council voted seven (7) to zero (0) to submit to the registered electors of the City of Littleton three ballot measures regarding the ability of the Downtown Development Authority (DDA) to collect, retain, and expend the full amount of revenues received, the collection of up to 3 mills of property tax within the boundaries of the DDA, and the formation of the DDA.
ANALYSIS:
Staff Analysis
For the past several years the City Council, staff and Downtown Littleton merchants, and property owners have discussed elevating the success of downtown as a center of activity, business, and tourism through a Business Improvement District (BID) or DDA. In 2021, the city council approved a Downtown Improvement District Feasibility Study with Progressive Urban Management Associates (PUMA).
A group of Downtown Littleton stakeholders, city staff, and consultants have met regularly to facilitate the project. The process has included stakeholder engagement, research, education, identifying potential district boundaries, and outlining priorities for investments and services.
Council Goal, Objective, and/or Guiding Principle
Goal 4: Downtown
Fiscal Impacts
The nature of tax increment financing (TIF) limits future revenues to the city from property tax
within the DDA boundary during the time the TIF is in place. Currently, the DDA boundary accounts for an estimated $52.5 million in taxable property value. Based on a mill levy of 2 mills, the city currently receives approximately $105,000 in annual property tax revenue from the proposed DDA area. The estimated $105,000 constitutes the base revenue that will continue to flow to the city through the 30-years the TIF will be in place. Importantly, the base will undergo a re-evaluation during the property valuation process that occurs every two years. The base revenue will increase as properties included in the base appreciate.
The city will not receive its share of property tax from new investment in the DDA boundary. This revenue, or “increment” will be reinvested in public infrastructure and capital improvements in downtown. These improvements are being identified in the DDA’s Plan of Development, a planning document that provides a list of improvements that are eligible for TIF investment.
The City of Littleton will also financially participate in the DDA via sales tax increment. The city’s full sales tax increment, which amounts to 3.75% of each dollar of sales tax collected within the DDA, will be reinvested in downtown improvements. Similar to the property tax increment, the sales tax increment is the amount of excess sales tax generated above the sales tax base within the DDA. That current base is approximately $2,000,000, amounting to about 6.7% of the city’s total annual sales tax collection.
Alternatives
Not support Ballot Measures 3C, 3D, and 3F.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 60-2022 Confirming city council’s support of a Yes vote on Ballot Measures 3C, 3D, and 3F seeking voter approval regarding a Downtown Development Authority (DDA).