HomeMy WebLinkAbout20102137.tiff tOWN OF R
COLORADO
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September 10, 2010
Mr. Douglas Rademacher, Chairman
Weld County Board of County Commissioners
915 Tenth Street
P.O. Box 758
Greeley, CO 80632
RE: Downtown Development Authority
Dear Mr. Rademacher:
In cooperation with the downtown business owners,the Town of Windsor is currently in the process of
creating a Downtown Development Authority (DDA) in order to promote and encourage growth,
development and the continued success of Downtown Windsor. If approved, the DDA will take effect in
the first quarter of 2011.This letter is to inform you of this current proposal, provide information
regarding what a DDA is and how it would affect your organization.
First,what is a DDA?A DDA is a quasi-judicial entity that is created by a municipality with the purpose of
revitalizing downtowns through development and redevelopment efforts. DDA's have the power to buy,
lease, sell, develop and demolish property. They can install public improvements, provide services and
create long-range economic plans. DDA's are governed by a board of appointed members who reside,
own or lease property within the boundaries of the DDA.That board is responsible for creating an
annual budget, reviewing development and redevelopment plans and proposals within the boundaries
of the DDA, creating financial incentives, developing programs and other similar activities.
Second, how would the DDA affect your organization?The DDA is financed two ways. First,the DDA can
levy up to 5 mils of personal property tax within the boundaries of the DDA. This money is usually used
for the operation of the DDA including, but not limited to, hiring staff and legal counsel. Second,the
DDA may benefit from tax increment financing (TIF). TIF is a funding source derived from the increase in
property taxes resulting from a physical improvement. All property tax increment within the boundaries
of the DDA is used for projects and programs related to the revitalization of downtown. Initially, 100%of
the property tax increment generated within the DDA is retained by the DDA for a period of 30 years; at
the end of the initial 30-year period,the DDA then retains 50%of TIF revenues for an additional 20
years.
Due to the fact that the DDA retains 100%of the property tax increment, none of the other taxing
entities within the DDA boundary will be eligible to collect any portion of the property tax increment,
and this is how the proposal will affect your taxing district. Please note, however, that from the time the
DDA is created, each taxing agency will continue to receive the same share of taxes that they received at
the time the DDA was created, but that those shares will not rise as property taxes increase. The
s}, tc 301 Walnut Street •Windsor, Colorado • 80550 •
phone
970-674-2400 •fax 970-674-2456
.s i\9'4" J -) 1 2010-2137
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proposed DDA boundaries just include the core of downtown Windsor(see the attached map), but since
this proposal will affect your organization to some degree, the Town is providing you with this
information and the opportunity to ask any questions or make any comments before the DDA is
formed.
The following is the current schedule of events for the DDA.This is subject to change.
9/20/10— Town Board Work Session to discuss the DDA and election proceedings
9/27/10— Town Board first reading of ordinance submitting election question to electors and vote to
amend, adopt or reject the ordinance.
10/11/10— Town Board second reading of ordinance and adopt ordinance.
1/11/11- DDA Election Day
Please feel free to contact me regarding this information or if you have questions.
Sincerely,
Arnold
Town Manager
Cc: Monica Mika, Director of Finance &Administration, Weld County
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