HomeMy WebLinkAbout20253444 Mariah Higgins
Subject: FW: Proposed Johnstown DDA Notice for Weld County
Attachments: Letter Weld County Johnstown DDA 12.03.25.pdf
From: Sarah Crosthwaite<SCrosthwaite@JohnstownCO.gov>
Sent:Tuesday, December 9, 2025 2:06 PM
To: Karla Ford <kford@weld.gov>
Cc: Matt LeCerf<MLeCerf@JohnstownCO.gov>; brad@pumaworldhq.com; Naomi Grunditz Lacewell
<naomi@pumaworldhq.com>; Ethan Greene<ethan@pumaworldhq.com>
Subject: Proposed Johnstown DDA Notice for Weld County
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Hi Karla,
We're reaching out to share the attached letter outlining key information about the proposed Downtown
Development Authority(DDA) in Johnstown and the potential tax increment financing(TIF) impacts associated
with the district.We wanted to be sure you had this information so it can be communicated to all Weld County
Commissioners.An election is anticipated in April 2026 for consideration of the DDA and TIF.
The letter includes an overview of the DDA, projected annual TIF contributions from Weld County, and the
anticipated benefits to the Downtown area.We're happy to schedule a time to meet and walk through the details
or answer any questions the Commissioners may have.
Thank you,
Sarah Crosthwaite, MPA
Economic Development Director
—Aar( of Johnstown
SCrosthwaitejohnstownco.gov
970-578-9612
Facebook I Instagram I JohnstownCO.qov
450 S Parish Ave. Johnstown, CO 80534
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12/IS bS 2025-3444
PROGRESSIVE URIAN
MANAGEMENT ASSOCIATES
TO: Weld County
FROM: Brad Segal, President, P.U.M.A.
Naomi Lacewell,Senior Associate, P.U.M.A.
Ethan Greene,Associate, P.U.M.A.
CC: Sarah Crosthwaite,Town of Johnstown
P. U . M .A. RE: Proposed Johnstown Downtown Development Authority
With support from the Town of Johnstown and a Steering Committee comprised of community
stakeholders, a Downtown Development Authority(DDA)is being considered to help finance
improvements in Downtown Johnstown. This memo provides a summary of the proposed DDA
and its potential implications for Weld County.
Progressive Urban Management Associates(P.U.M.A.)is a Denver-based consulting firm that
has been retained by the Town of Johnstown to evaluate the pros and cons of forming a DDA.
P.U.M.A. specializes in downtown management and development and brings 33 years of
experience across 4o states and more than 30o cities. P.U.M.A. has assisted in the planning
and formation of DDAs in Denver, Englewood, Lafayette, Littleton,and Longmont.
What is a DDA?
A DDA is a quasi-governmental entity that provides both financing and leadership for
improving central business districts. DDAs have existed since the 198os and currently operate
in more than two dozen cities including Windsor, Eaton, Loveland, Greeley, Fort Collins,and
Longmont.
A DDA can utilize tax increment financing(TIF),a mechanism that allows future growth in
property and sales tax revenue to be captured and reinvested into projects within the DDA
boundaries. TIF is not a new tax. DDAs can also seek authorization from voters for up to a
five mill increase in property taxes to fund DDA operations(this option is not being pursued in
Johnstown). It is important to note DDAs do not have the power of eminent domain and do
not require a finding of blight in order to utilize TIF. A DDA can only be formed by a vote of
stakeholders within the proposed district(property owners, businesses,and residents). Once
formed,a DDA is governed by a board made up of those same stakeholders.
The Town of Johnstown is supporting DDA formation in order to create professional
management of Downtown,guide private development as Downtown grows,and find
sustainable ways to fund Downtown improvements and programming. The DDA is on track
to be considered for a vote this coming April, 2o26. Eligible electors(i.e. property owners,
business owners,and residents within the proposed DDA boundary)will complete mail
ballots that will s)determine whether to form the DDA and 2)authorize it to use TIF.
Implications for Weld County
There are two implications for Weld County arising from the formation of a Johnstown DDA:
1630 WELTON STREET first,the benefits from a vibrant Downtown Johnstown,and second,the fiscal impact from
SUITE 500C TIF.
DENVER.COLORADO 80202
TEL: 720.668.9991
www.pumaworldhq.com
Community Benefits from a Vibrant Downtown Johnstown: The proposed DDA boundary
(see page 3)includes the retail and business core of Downtown. There are several compelling
community benefits for Weld County to consider:
• Benefits from a professionally managed Downtown Johnstown, including more retail and
restaurants, housing, improved maintenance,and programming.
• Utilization of TIF to help finance future improvements and infrastructure to support new
development and create a more connected Downtown.
• A unified voice representing all of Downtown that can advocate for changes in policies
and investment.
Fiscal Impact: Tax increment financing(TIF)would limit future revenues to Weld County
from property tax growth within the DDA boundary. If a DDA is formed,Weld County would
not receive future property tax revenue resulting from new investment in the district. This
"increment"would instead be reinvested in public infrastructure and other capital
improvements,commercial space, housing,programming, and maintenance within
Downtown Johnstown. These activities will be identified in the DDA's Plan of Development—
a document that provides a list of improvements that are eligible for TIF investment.
Weld County would, however,continue to receive revenue from both the base valuation of
properties in the DDA and natural appreciation. Currently,the DDA boundary accounts for an
estimated $14.1 million in taxable property value in Weld County. Based on the existing mill
levy of 15.96 mills,Weld County is entitled to approximately$225,00o in annual revenue from
within the proposed DDA area. This estimated$225,000 constitutes the base that would
continue to flow to Weld County through the 3o-year term of the DDA. Importantly,this base
will be re-evaluated every two years during the County's property valuation process,and
revenue to Weld County will increase as properties appreciate. Based on our experience from
throughout the state, base appreciation can account for up to 5o%of an area's total growth in
value. The following table summarizes the projected tax increment the proposed DDA would
receive from Weld County's mill levy.
Projected Weld County annual TIF contributions to the Johnstown DDA with an equal amount
being added to Weld County base revenue from appreciation.
Slow-Growth Fast-Growth
Scenario(2%) Scenario(2.5%)
Year 1 $1,126 $2,816
Year 5 $5,746 $14,802
Year 10 $11,785 $31,549
Year 20 $ 24,803 $71,935
Year 3o $39,182 $223,632
The Town of Johnstown would also financially participate in the DDA through both sales and
property tax increment. Increment from most of Town's sales tax'(any amount in excess of
the sales tax base established after the DDA is formed)would be reinvested into Downtown
10.5%of the City's 3.5%sales tax is dedicated to streets and would not contribute to DDA TIF.
improvements. The Town would also contribute its share of property tax increment that
amounts to 23.947 additional mills.
Direction Sought from Weld County
At this point in the process, P.U.M.A. and the Town of Johnstown are seeking to provide
information to and receive input from Weld County on whether it is supportive of the creation
of the Johnstown DDA. No formal action is required.
We would be pleased to answer any questions that Weld County may have, plus P.U.M.A. has
retained independent legal counsel that can respond if needed. Thank you for reviewing this
opportunity for Downtown Johnstown and Weld County.
Please contact Naomi Lacewell for additional information at:
naomi( pumaworldhq.com
303-736-2193
Proposed Johnstown DDA
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