Agenda Date: 04/02/2024
Subject:
Title
Resolution 43-2024: Authorizing an Intergovernmental Agreement between the City of Littleton and the City of Englewood designating City of Littleton a Subzone Administrator of the South Metro Enterprise Zone
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Cindie Perry, Economic Development Director |
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Presentations: |
Cindie Perry, Economic Development Director |
PURPOSE:
To approve a resolution authorizing an Intergovernmental Agreement between the City of Littleton and the City of Englewood designating City of Littleton a Subzone Administrator of the South Metro Enterprise Zone specifically for administration of Contribution Projects within City of Littleton zone boundaries as outlined on the attached map.
Currently, the City of Englewood is the designated Enterprise Zone Administrator for the South Metro Enterprise Zone for the cities of Sheridan, Littleton, Englewood, and the Town of Parker. The current zone administrator does not have the capacity to administer a Contribution Project in another jurisdiction. Additionally, it would provide greater transparency for a city to oversee a Contribution Project within its own jurisdiction. City of Littleton economic development staff would continue to promote all other programs available with the Enterprise Zone program and administration of those programs would continue to be overseen by the City of Englewood as it is currently.
LONG-TERM OUTCOME(S) SERVED:
A Robust and Resilient Economy; Vibrant Community with a Rich Culture
DISCUSSION:
Contribution Projects are a state-sponsored economic development tool created to focus community engagement on an issue or opportunity to elicit a shift, create something, and accomplish a stated goal within a defined period. Projects must focus on improving economic conditions and have measurable outcomes. The goal is to garner public participation and contributions for projects that improve the economy for the benefit of the broader community. Currently, Littleton does not have any contribution projects underway; however, we anticipate a minimum of one contribution project application to be submitted upon approval of this agreement.
BACKGROUND:
Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize enterprise zones and is open to contributions by individuals and businesses. The enterprise zone designated in Littleton includes a large area generally along and north of Littleton Boulevard, and west of the railroad corridor. Currently, there are over 300 active contribution projects eligible for investment in Colorado. Historically, Littleton has not taken advantage of these resources offered by the State of Colorado, however, this program is aligned with our Comprehensive Economic Development Strategy to leverage resources to help revitalize distressed areas of the city.
Generally, contribution projects are either capital campaigns and operations projects, though projects may still be eligible if it supports specific and documented economic development objectives for the enterprise zone.
• Capital campaign projects encourage public/private partnerships, raise money for a specific capital project to serve the broader community, and begin construction or implementation within five years.
• Operations projects fund new economic activity in the enterprise zone to achieve near-term goals. Social services are not typically eligible for contribution project status because they do not achieve near-term economic development goals.
The EZ Contribution Tax Credit provides a tax credit to Colorado taxpayers that contribute to targeted enterprise zone projects. When taxpayers make a certified contribution, they can claim:
• 25% of a cash donation as a state income tax credit.
• 12.5% of an in-kind donation as a state income tax credit.
The amount of this tax credit is capped at $100,000 per taxpayer per tax year, and if all credits in a given tax year are not used, the balance can be carried forward up to five years.
As a designated local enterprise zone administrator, Littleton Economic Development staff will work with local partners on proposals for contribution projects with defined timelines that improve the economy, create and retain jobs, expand businesses, and have community support. Additionally, staff would be responsible to review and advise contribution projects for new and existing businesses located in our enterprise zone that may qualify for the credit. Administration of the EZ program does not require action by City Council as staff will work with the State of Colorado Office of Economic Development and International Trade (OEDIT) which manages the tax credits. Economic Development staff will bring forward to OEDIT staff and peer EZ administrators any proposed new project. This review committee will consider the application, offer feedback to tighten the economic development focus and to improve project goals and metrics when warranted. Proposals that receive the approval of the review committee will be presented to the Economic Development Commission (EDC).
Any Colorado taxpayer can support an enterprise zone contribution project with no requirement to live or work in the enterprise zone to invest. As the designated enterprise zone administrator, staff may engage with eligible entities engaged in improving economic conditions within enterprise zones. Either an entire organization or a specific program/project of the organization may be eligible to manage an enterprise zone contribution project, however an enterprise zone contribution project needs to:
• Support the documented economic development goals for the enterprise zone.
• Link to job creation and retention and/or business expansion in the broader enterprise zone (not only at the project organization).
• Have support from the enterprise zone administrator and community.
Prior Actions or Discussions
N/A
FISCAL IMPACTS:
There is no direct fiscal impact with approval of the Resolution. Approval however would enable the city and its partners to leverage public-private partnerships and contributions for eligible projects within the zone.
STAFF RECOMMENDATION:
Approve Resolution 43-2024 authorizing an Intergovernmental Agreement between the City of Littleton and the City of Englewood designating City of Littleton a Subzone Administrator of the South Metro Enterprise Zone.
ALTERNATIVES:
Do not approve Resolution 43-2024 authorizing an Intergovernmental Agreement between the City of Littleton and the City of Englewood designating City of Littleton a Subzone Administrator of the South Metro Enterprise Zone. Without approval the city would not have access to Enterprise Zone contribution project benefits which may limit partnership opportunities.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 43-2024 authorizing an Intergovernmental Agreement between the City of Littleton and the City of Englewood designating City of Littleton a Subzone Administrator of the South Metro Enterprise Zone.