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HomeMy WebLinkAbout12914 RESOLUTION NO. 12914 A RESOLUTION SUPPORTING EFFORTS TO MODERNIZE COLORADO’S STATE INCOME TAX CREDIT FOR THE REHABILITATION OF COLORADO’S MAIN STREETS AND HISTORIC COMMERCIAL BUILDINGS WHEREAS, Colorado was one of the first states to create a Historic Preservation tax Credit in 1990; and WHEREAS, there is a significant need to improve this tax credit so that Colorado remains competitive with neighboring states and that the credit can be better used to attract critical commercial reinvestment, rehabilitation, and revitalization of main streets across the state; and WHEREAS, it is important to protect Colorado’s unique historic structures while increasing cultural heritage tourism; and WHEREAS, HB-1311, Colorado Job Creation & Main Street Revitalization Act, proposes to improve the existing tax credit and is modeled after successful bipartisan legislation passed in other states that provide critical incentives to get languishing building back to viable use while simultaneously spurring tremendous economic growth, job creation, and historic preservation in rural and metro areas; and WHEREAS, the tax credit can be taken directly by the property owner or transferred to a financial partner who provides funds for the rehabilitation work and combined with additional federal incentives, thereby driving new revenue into local communities and closing the development gap that arises from the high cost of rehabilitating historic structures. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Pueblo City Council recognizes that Pueblo could stand to benefit from a revised tax credit by having large vacant buildings in the community renovated, as well as having vacant schools re-purposed. SECTION 2 The Pueblo City Council supports HB-1311, Colorado Job Creation & Main Street Revitalization Act. SECTION 3. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution to effectuate the policies and procedures described herein. SECTION 4. This Resolution shall become effective upon passage and approval. INTRODUCED: _ March 24, 2014 BY: Chris Nicoll COUNCILPERSON City Clerk’s Office Item # M-4 REGULAR MEETING AGENDA ITEM COUNCIL MEETING DATE: March 24, 2014 TO: President Sandra K. Daff and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Chris Nicoll, Council Member At Large SUBJECT: A RESOLUTION SUPPORTING EFFORTS TO MODERNIZE COLORADO’S STATE INCOME TAX CREDIT FOR THE REHABILITATION OF COLORADO’S MAIN STREETS AND HISTORIC COMMERCIAL BUILDINGS SUMMARY: This Resolution demonstrates the Council’s support of HB-1311, Colorado Job Creation & Main Street Revitalization Act, sponsored by Rep. Leroy Garcia, Rep. Tim Dore, Sen. Pat Steadman, and Sen. Larry Crowder, which proposes to improve the existing tax credit by providing critical incentives to help get languished buildings back into viable use thereby spurring economic growth, job creation, and historic preservation throughout Colorado communities. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Many of Colorado’s traditional main streets are at a tipping point. Buildings are vacant, their historic facades in decay and their local economies in desperate need of investment and revitalization. Colorado was one of the first states to create a Historic Preservation Tax Credit in 1990, but there is significant need to improve this tax credit so that Colorado remains competitive with neighboring states and that the credit can be better used to attract critical commercial reinvestment, rehabilitation, and revitalization of main streets across our state. The challenge is to create jobs and boost new economic development in communities across Colorado, to attract private capital investment that is currently flowing into other states to revitalize historic main streets and commercial buildings, and to create new business, housing, and shopping opportunities while generating local government revenue. It is also important to protect Colorado’s unique historic structures while increasing cultural heritage tourism. HB-1311, Colorado Job Creation & Main Street Revitalization Act, proposes to improve the existing tax credit and is modeled after successful bipartisan legislation passed in other states that provide critical incentives to get languishing buildings back into viable use while simultaneously spurring tremendous economic growth, job creation, and historic preservation in rural and metro areas. The tax credit can be taken directly by the property owner or transferred to a financial partner who provides funds for the rehabilitation work and combined with additional federal incentives, thereby driving new revenue into local communities and closing the development gap that arises from the high cost of rehabilitating historic structures. Studies in other states have proven that transferable tax credits for historic commercial projects create good paying jobs and have a ripple effect that brings rural main streets back to life. FINANCIAL IMPLICATIONS: There are no direct financial implications to this Resolution of support; however, if HB-1311 were to pass, the Pueblo community could benefit from increased revenues as a result of future revitalization. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: None. ALTERNATIVES: Council could choose not to support this Resolution. RECOMMENDATION: This Resolution is at the request of Council Member Chris Nicoll. PROPOSED MOTION: This Resolution will be placed on the March 24, 2014, Consent Agenda. Attachments: Provided by Representative Leroy Garcia How the Bill Works THE PROOF MAIN STREETS ACROSS COLORADO ARE IN CRITICAL NEED