Loading...
HomeMy WebLinkAbout11584RESOLUTION NO. 11584 A RESOLUTION ESTABLISHING A CITY COUNCIL POLICY RELATING TO URBAN RENEWAL PLANS FOR GREENFIELD AREAS AND THE USE OF TAX ALLOCATION FINANCING FOR RESIDENTIAL DEVELOPMENT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SGrTlr)Kl 1 The City Council of Pueblo hereby adopts and establishes the following policy for new urban renewal plans for undeveloped environmental -free land areas ( "greenfield areas ") containing tax allocation financing provisions set forth in Section 31 -25- 107(9), C.R.S., as amended ( "TIF ") or modifications to existing urban renewal plans for greenfield areas to include TIF: (a) Property or properties assessed as residential by the Pueblo County Assessor's Office shall be excluded from TIF, and (b) TIF revenues shall not be used for residential development but shall be used only for commercial or industrial development and related infrastructure which either generates sales tax revenues or creates new primary jobs, or both. SECTION 2 The City Council of Pueblo hereby finds and determines that the foregoing policy will promote the public health, safety and welfare and the orderly development of the City. SECTION 3 This Resolution shall become effective upon final passage and approval. A77TSTDD SY: CITY CLERK INTRODUCED: April 13, 2009 BY: Judy Weaver COUNCIL PERSON APPR 0' } �, PRESIDENTaf Cfty Council L) 4 Background Paper for Proposed RESOLUTION AGENDA ITEM # 32 DATE: April 13, 2009 DEPARTMENT: OFFICE OF THE CITY MANAGER JERRY M. PACHECO, INTERIM CITY MANAGER LARA K. BARRETT. INTERIM DEPUTY CITY MANAGER TITLE A RESOLUTION ESTABLISHING A CITY COUNCIL POLICY RELATING TO URBAN RENEWAL PLANS FOR GREENFIELD AREAS AND THE USE OF TAX ALLOCATION FINANCING FOR RESIDENTIAL DEVELOPMENT ISSUE Should City Council establish a policy excluding residential development from the tax allocation financing increment associated with urban renewal areas? BACKGROUND At the March 16, 2009 City Council Work Session, City Administration discussed fiscal concerns associated with residential tax increment financing. Unlike commercial development that produces sales tax revenue, residential development does not provide an alternative revenue source to backfill the City's property tax revenue diverted to the Urban Renewal Authority. Without any other revenue source City taxpayers, as well as taxpayers of other taxing entities, would effectively be subsidizing municipal services provided to new residential urban renewal plan areas. RECOMMENDATION Approval of the Resolution FINANCIAL IMPACT The property tax increment from residential development that would have gone to the Urban Renewal Authority for new urban renewal plan areas will be preserved by the City to provide essential municipal services.