Archive for the ‘Downtown Development Authority’ Category

Methods of Financing

September 14th, 2017 by Downtown District

Another important element of the DDA Plan of Development is the allowable methods of financing.  State law allows DDAs to impose a property tax levy, not to exceed five mills, however, revenue generated from the property tax may only be used for maintenance and operations within the Plan area.  In addition, the law authorizes tax increment financing (TIF) from both or either property or sales tax as a means of repaying financial obligations.   TIFs are a tool utilized by municipalities throughout the country to finance public improvements in identified areas of need, known as redevelopment districts or DDA’s.

A DDA can provide public amenities that encourage and facilitate corresponding “new development” within an approved geographic district and may use TIFs generated from a new development or a redevelopment to participate in the financing for new streetscapes, plazas, sidewalks, streets or simply to improve traffic/pedestrian circulation that would help to make the new development possible.

A DDA can also provide assistance to existing property owners who might want to rehabilitate or expand their property.  An example of this might be a façade improvement reimbursement program.  This financing tool is not new and has been utilized around the country for decades to help fund public improvements and encourage redevelopment.

Property Tax. Once a DDA is established and a Plan of Development is adopted, the property tax base for the district is frozen.  This means that after the date of the plan adoption, the assessed value to which the mill levy for the City, the school district, the county and other taxing jurisdictions would be the same each year thereafter with adjustment only for general reassessments (which occurs every odd year).

For example, if the assessed value in a DDA is $1 million on the date of plan adoption, then the mill levy for each of the overlapping taxing jurisdictions is applied to that $1 million base assessment each year.  As the properties in the DDA begin to increase in value due to redevelopment efforts, that increase in assessed value times the combined mill levy of the overlapping taxing jurisdictions goes to the DDA.

Another way of looking at it is, if the assessed value of property in the district increases to $10 million in year 5 of the plan, the taxes derived from multiplying the combined mill levy times the $1 million base go to the overlapping taxing jurisdictions and the mill levy times the $9 million increase would go to the DDA.  So, essentially, revenues that would have ended up with the county and other entities through increases in tax revenues tied to redevelopment, stay in the City and more specifically, in the DDA.

Sales Tax.  The plan can also affect City sales tax revenue, but not state or county sales tax revenues.  The Loveland DDA Plan dedicates sales tax revenues above the base year revenues to the DDA.

Once these revenues are captured, this new stream of revenue can be utilized to pay debt service on bonds that can be issued by the City(DDA) for public improvements.  Bonding may be necessary, as it would typically take a period of time to acquire enough revenue to fund public improvements.

Lending institutes find TIF a very stable source of revenue and therefore readily lend money when secured by TIF.  Bonds are only put in place once construction of public improvements begins and assuming the DDA has the financial capacity to repay the debt.  TIF can be utilized for up to 25 years from the date of establishment.

Is TIF a new tax?

No.  No new taxes are established using TIF nor are taxes (either property tax or sales tax) increased.  The revenues produced by increased property values and increased retail sales activity are simply redistributed to benefit the DDA for public improvements in the district.

The following graph generally depicts how Property TIF revenues are captured by the DDA:

TIF Model

(Inspired by graphics from CDFA and Stephen Friedman.) ULI

What is a Downtown Development Authority?

August 31st, 2017 by Downtown District

Downtown development authorities (DDAs) are state-authorized financing mechanisms designed to catalyze the revitalization and redevelopment of the physical components of a downtown.

The most important goal of a DDA is to halt property value deterioration, increase property tax valuations, work toward eliminating the causes of deterioration, promote economic growth, and create and provide for the general operation and maintenance of the physical DDA assets.

Is there a strategy for improvements in the downtown?

Simply, yes.  A Plan of Development (Plan) is a critical first step, and one required by state law, in the long-range master planning efforts for the downtown.

A Plan of Development recognizes the needs of the downtown and is essentially a “plan” for potential projects in the downtown over the next 30-50 year. D[RE]evelopment, infrastructure (including water, sewer, electric, streets, sidewalk, curb and gutter, beautification), and other projects are conceptual and the Plan is not limited to those projects identified, alone. As things have changed in the downtown throughout its rich history, things will continue to change into the future and the work that’s done today will continue speaking for that same rich history in the downtown as the City’s heart and soul.

Plan Elements

The Plan, recently approved by City Council, identifies the physical boundaries of the DDA, and the state law provides that residents, property owners and business entities within that boundary have the potential to be benefitted by the enhanced investment and/or may also be impacted by an additional property tax for maintenance and operations, and therefore these parties have the most vested in the decision making – and, for that reason are identified as the voters of the District.

DDA Mission and Objectives

There is a wide-ranging set of objectives identified in the Plan, but the primary focus of a DDA is to promote the safety, prosperity, security and general welfare of the downtown and to improve and sustain the economic vitality. The DDA is one of many strategies to be implemented that will help to not only rebuild the physical downtown, but give it economic life for years to come.  A heathy downtown provides the motivation for additional private investment, and a healthy downtown will eventually bring prosperity to the entire community.

Why Invest in Loveland's Downtown?

August 22nd, 2017 by Downtown District

No matter how you look at it, the history of downtown alone screams “gosh this is cool – just imagine what’s happened downtown over the past hundred or more years”.  Downtowns throughout the country represent the image and character of a community.  They are iconic and commanding symbols, typically comprised of historic landmarks and buildings, unique and distinguishing features, and unique neighborhoods. Our downtown is the core, the heart, and the soul of the Loveland community.

Revitalization – building upon what we have today – is challenging and our history alone (building remnants of the past) is an asset, but it also becomes one of the many hurdles we have to overcome. Loveland’s downtown is filled with a new resurgence and energy – there’s a focus on business creativity, we’ve seen how neighborhood activism plays a part, and we offer a diverse economy, one that’s building into providing attraction for residents, visitors, seniors, families, and those that have the luxury of both living and working in the downtown.

The City of Loveland has recently played a brave and significant role in kick-starting major public-private investments in the downtown.  New development and redevelopment projects, along with critical updates to the downtown infrastructure (parking garage, utilities, streets, sidewalks, etc.) will play an important role in not only rebuilding the physical downtown, but also the downtown as a more cultural and civic hub.  That public reinvestment in the downtown is providing the impetus for additional private investment, and is encouraging the continuing economic growth of center core of the city, and prosperity to the community at large.

WANT TO LEARN MORE ABOUT THE FOUNDRY PROJECT? 

February 14th, 2017 by Jacque Wedding-Scott

cancelled

Conceptual Illustration - The Foundry - Loveland Colorado

 

 

 

 

 

PLEASE NOTE:

The meeting listed in this 2/14/17 post has subsequently been CANCELLED.
Post updated 2/20/17

The City’s Development Services office will be posting signs on The Foundry site beginning this Friday (2/17/17) to notice the Planning Commission meeting on February 27th at 6:30 in the Council Chambers.

The Planning Commission’s review is a technical review to determine if the site plan is in compliance with the provisions of the Downtown BE zoning district.  The review occurs in a public meeting setting, not as a public hearing, however it is anticipated they will accept public comment.

If you are unable to attend the Planning Commission meeting and would like more project information, please feel free to either stop by our office and take a look at our project boards, or give me a call @ 970-744.4796.

Hope to see you there!
Jacque

 

April 29th, 2016 by Jacque Wedding-Scott

LOGO-Downtown District, Loveland ColoradoHere at the Loveland Downtown Partnership and Downtown Development Authority (we go by “LDP | DDA” for short) we are excited about unveiling our brand and website at the “Branding the Downtown” Business Breakfast on Friday, April 29th.

It has been a nine-month process of meetings, gathering input, working with businesses and volunteers, all to create a deeper sense of community and advocacy for our downtown.

We have a jamb-packed summer coming up with events downtown that are always favorites and draw people into our city, strengthening our economy and reputation as a great place to LIVE, WORK and PLAY.

  1. Plein Air Governor's Art Show (May 7th)
  2. Night on the Town (May 12th and every 2nd Friday throughout the year)
  3. Tour de Pants (May 7th), Loveland StartupWeek (May 19th, 20th & 21st)
  4. Loveland Loves BBQ, Bands & Brews (July 15th & 16th)
  5. Old-Fashion Corn Roast Festival (August 19th & 20th)
LoriEvand-JWS_2368

Graphic Designer Lori Evans and Jacque Wedding-Scott discuss logo and website designs.

We will make sure we keep you up to date on renovation and revitalizations projects, new businesses opening in downtown and businesses relocating to “The District,” so be sure to come back here and see what’s happening.

 

Happening right now:
Mo 'Betta Gumbo, the restaurant that brought Cajun & Creole cuisine to Loveland, is expanding into the space directly west of their current location at northwest corner of 4th & Cleveland.

A new, up and coming business, Dark Heart Coffee Bar, is on the cusp of locating downtown.

More to come, so stay tuned …

I am proud to be working with our dynamic boards as advocates for the Downtown District, downtown businesses and residents. Loveland is THE place to be.

Jacque Wedding-Scott
Executive Director
LDP | DDA
350 North Cleveland Avenue, Loveland, CO 80537
Direct 970.744.4796