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:
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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.
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CITY CLERK
INTRODUCED: April 13, 2009
BY: Judy Weaver
COUNCIL PERSON
APPR 0' } �,
PRESIDENTaf Cfty Council
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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.