Agenda Date: 09/08/2026
Subject:
Title
Economic Development Incentive Strategies
Body
From: James L. Becklenberg, City Manager Prepared by:
Rachel King, Economic Development Director Presentations: Rachel King, Economic Development Director
PURPOSE:
To discuss economic development incentive strategies used by cities across large metro areas to attract and retain investment, with a focus on the range of incentive tools available. Also, this item reviews proposed clarifications to Littleton's current incentive policy, so that it functions as a flexible tool responsive to market needs rather than one that sets fixed parameters.
LONG-TERM OUTCOME(S) SERVED:
Vibrant Community with Rich Culture; Robust and Resilient Economy; High-Quality Governance
DISCUSSION:
Littleton's Landscape – Why Incentivizing Is Important
Cities in the 1st- and 2nd-ring suburbs of a large metro area compete for investment differently than either the core city or exurban, greenfield markets. Several pressures specific to this position shape the incentive conversation:
Land scarcity and an infill/redevelopment-driven growth pattern, rather than greenfield development.
Aging commercial corridors and first-generation retail or office stock that require repositioning to stay competitive.
Fiscal exposure from property and sales tax base competition with neighboring suburbs.
Regional labor and consumer markets shared with the core city that bleed out into the broader region — harder to differentiate borders and remain “unique,” with more risk of leakage.
Littleton-specific considerations
Financial risk: the City relies heavily on sales tax — the most volatile municipal revenue source — as its primary base for the General Fund and the Capital Improvement Fund.
Limited real property tax revenue is returned to the City from the county.
Littleton does not have an Urban Renewal Authority, which addresses much more than “blight” in its historic, narrow connotation.
Littleton's Downtown Devel...
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