Agenda Date: 09/15/2026
Subject:
Title
Resolution 61-2026: Approving an amended Economic Partnership Incentives Policy
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Rachel King, Economic Development Director |
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Presentations: |
N/A |
PURPOSE:
To consider approval of the updated Economic Partnership Incentive Policy (“Policy”).
LONG-TERM OUTCOME(S) SERVED:
Vibrant Community with Rich Culture; Robust and Resilient Economy ; High-Quality Governance
DISCUSSION:
On September 8, 2026, the Council held a study session to consider Littleton’s competitiveness for the highest quality development opportunities and incentive policies that can help keep Littleton competitive. Council heard a presentation from staff, asked questions, and discussed the relative favorability of various incentive concepts. At the end of the session, the Council directed staff to prepare a final policy draft and return to Council for final consideration of an amended policy.
Economic incentives are a strategic economic development tool offered by cities, counties, and states to remain competitive in business attraction and retention. They are used to partner with the private sector to boost confidence that a project will benefit both the community and be profitable for the developer while delivering the level of infrastructure and community compatibility desired.
This policy has been created as an example of incentive methods that the City of Littleton may use to support economic development activities. It is not meant to be exhaustive or used to limit City Council’s ability to consider and approve incentives or partnerships that best serve the interest of the city. Once adopted by City Council, the updated policy will be used to guide staff and assess requests as they are received.
Littleton is currently competing with other communities that frequently offer aggressive incentive opportunities for regionally attractive retail and entertainment amenities. The city has also prioritized the revitalization of commercial corridors in the community. The Policy highlights the revitalization grants that have been in place for a number of years that help small businesses compete, which, in turn contributes to a robust and resilient economy.
Economic Development staff has updated the Economic Partnership Incentive Policy to provide more clarity to the intent of the policy with minor adjustments to the language. These changes will increase the city’s competitiveness against peer cities and better staff’s negotiating position with future incentive requests.
BACKGROUND:
The city is realizing increasing development and investment interest, which includes businesses and/or developers seeking economic partnerships with the City of Littleton. In 2024, Littleton City Council approved the current Policy that provided a pragmatic framework to align with city fiscal obligations and constraints. The city has approved two incentive agreements since the Policy was approved.
At the September 8, 2026, study session, the discussion focused on the city’s current Policy and the practices of surrounding cities pertaining to incentive levels, complexity, and types. Incentives may be provided in a variety of ways, and may be a combination of real property tax, tax increment financing, sales and use tax, special taxes such as lodger’s tax, and frequently through urban renewal. Littleton is not currently positioned for some of these incentive types and accordingly, the Policy reflects tools commonly used by municipalities in Colorado.
City Council has raised questions in recent project discussions about the degree of flexibility available under Littleton's current Policy - specifically, whether the incentive types and parameters listed in the Policy represent the only tools and terms available to staff, or whether they are meant to be flexible. Staff's intent has been the latter; however, the current Policy language does not make that clear, and this ambiguity has begun to affect how both applicants and staff approach deal structuring.
Prior Actions or Discussions
August 6, 2024: Approval of Resolution 84-2024, adopting the city’s Updated Economic Incentive Policy
Potential updates to the Policy were last discussed at the September 8, 2026, study session. Economic Development initiatives remain a key component of Council’s strategic plan and initiatives.
FISCAL IMPACTS:
The Economic Partnership Incentive Policy provides guidance for City Council to make determinations that may result in significant positive fiscal impacts.
STAFF RECOMMENDATION:
Staff recommends adoption of the updated Economic Partnership Incentive Policy.
ALTERNATIVES:
• Further amend the updated Economic Partnership Incentive Policy.
• Maintain the current Economic Partnership Incentive Policy with no changes.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 61-2026 approving an amendment to the Economic Partnership Incentives Policy.