Loading...
HomeMy WebLinkAbout20162618.tiffRESOLUTION RE: APPROVE AGREEMENT FOR PROPERTY TAX INCREMENT REVENUE SHARING AND AUTHORIZE CHAIR TO SIGN - FREDERICK URBAN RENEWAL AUTHORITY WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Agreement for Property Tax Increment Revenue Sharing between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and the Frederick Urban Renewal Authority, commencing upon the full execution of signatures, with further terms and conditions being as stated in said agreement, and WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Agreement for Property Tax Increment Revenue Sharing between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and the Frederick Urban Renewal Authority, be and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 10th day of August, A.D., 2016. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTESgf Mike Freeman, Chair Weld County Clerk to the Board BY APP uty Clerk to the Board ounty Attorney Date of signature: c2Sl ai I ( Cp Se- Conway, Pro -Tern teve Moreno C C.: GC.•. C P> B) $I3o/tC0 2016-2618 BC0049 PROPERTY TAX INCREMENT REVENUE SHARING AGREEMENT (Eagle Business Park Urban Renewal Project) 1.0 A REEM T. This Agreement (the "Agreement") is made and executed effective as of the /0 say of I .. , 2016, by and between the FREDERICK URBAN RENEWAL AUTHORITY (the " uthority") and the COUNTY OF WELD, COLORADO (hereinafter referred to as the "County") (the Authority and the County are also referred to herein collectively as the "Parties" or individually as a "Party"). 2.0 RECITALS. The following recitals are incorporated in and made a part of this Agreement. Capitalized terms are defined in Section 4.0. 2.1 Development Opportunity. The Parties have been advised that the real property described in Exhibit A (the "Property") lying within the corporate limits of the Town of Frederick (the "Town") has been selected by a developer (the "Developer") as the preferred site for the location of a significant manufacturing operation that will create numerous primary manufacturing jobs and related ancillary jobs new to the region, including the Town and the County (the "Private Use"). The Property is the only location in the State of Colorado considered for the Private Use. 2.2 Urban Renewal and Tax Increment Financing. To accommodate the Private Use and to provide certain required public improvements, including_the public streets adjoining and serving the Town, the Property should be included in an urban renewal plan, entitled as the "Eagle Business Park Urban Renewal Plan for the Eagle Business Park Urban Renewal Project" (the "Plan" or "Urban Renewal Plan"), authorizing and utilizing tax increment financing pursuant to the Colorado Urban Renewal Law, Part 1 of Article 25 of Title 31, C.R.S. (the "Act"), to pay Eligible Costs of the Improvements and to offset the cost of additional County infrastructure and services required to serve the Private Use. The proposed Plan is attached to this Agreement as Exhibit B. 2.3 Nature of Urban Renewal Project and Purpose of Agreement. The proposed Urban Renewal Project consists of designing, developing and constructing the Improvements (which includes paying the Eligible Costs) necessary to serve the Private Use and to comply with §31-25- 107(4)(g), C.R.S., that requires the Plan to afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the rehabilitation or redevelopment of the Urban Renewal Area by private enterprise. The Urban Renewal Area contains Agricultural Land that requires compliance with §§31-25-107(1) and (3.5), C.R.S., and is subject to the requirements imposed by §§31-25-107(9) and (9.5), C.R.S., on new urban renewal plans adopted after January 1, 2016. The Authority has submitted to the County the Impact Report required by §31-25-107(3.5), C.R.S., which includes information necessary to comply with the Act. The Impact Report is attached to this Agreement as Exhibit C. 2.3.1 The Urban Renewal Project is projected to create 170 new primary manufacturing jobs and related ancillary jobs that will benefit the Parties and the State of Colorado. 2.3.2 The Duration of time estimated to complete the Urban Renewal Project is the 25 years. 2.3.3 The estimated annual Property Tax Increment Revenue to be generated by the Urban Renewal Project for the 25 -year Duration of the Urban Renewal Project and the portion of such Property Tax Increment Revenue to be allocated to fund the Urban Renewal Project are set forth in the Impact Statement. 2.3.4 The nature and relative size of the revenue and other benefits expected to accrue to the Town, the County, and other taxing entities that levy property taxes in the Urban Renewal Area are set forth in the Impact Statement and include, without limitation: 2.3.4.1 The financial benefit to the County from the step up in value of the Agricultural Land for the purpose of establishing the initial base value of the Urban Renewal Area prior to calculating the subsequent TIF value in accordance with the requirements of §31-25- 107(1) and (3.5), C.R.S.; 2.3.4.2 The financial benefit to the County from the increase in base value resulting from biennial general reassessments for the Duration in accordance with §31-25- 107(9)(e), C.R.S.; 2.3.4.3 The benefit of improvements in the Urban Renewal Area to existing County and other taxing entity infrastructure in accordance with §31-25-107(3.5), C.R.S.; 2.3.4.4 The estimate of the impact of the Urban Renewal Project on County and taxing entity revenues in accordance with §31-25-107(3.5), C.R.S.; 2.3.4.5 The cost of additional County and taxing body infrastructure and services required to serve development in the Urban Renewal Area in accordance with §31-25- 107(3.5), C.R.S.; 2.3.4.6 The capital or operating costs of the Parties, the Town, and other taxing bodies that are expected to result from the Urban Renewal Project in accordance with §§31- 25-107(9) and (9.5), C.R.S.. 2.3.4.7 The legal limitations on the use of revenues belonging to the Parties, the Town, and any taxing entity in accordance with §§31-25-107(9) and (9.5), C.R.S.; 2.3.4.8 The other estimated impacts of the Urban Renewal Project on County and other taxing body services or revenues in accordance with §31-25-107(3.5), C.R.S.. 2.4 Colorado Urban Renewal Law. In accordance with the Act as amended to the date of this Agreement (including the requirements of §§31-25-107(1) and (3.5), and §§31-25-107(9) and (9.5), C.R.S.), the Parties desire to enter into this Agreement to facilitate adoption of the Plan. 3.0 AGREEMENT, in consideration of the covenants, promises and agreements of each of the Parties hereto, to be kept and performed by each of them, it is agreed by and between the Parties hereto as set forth herein. 2 4.0 DEFINITIONS. In this Agreement, unless a different meaning clearly appears from the context: 4.1 "Act" means the Colorado Urban Renewal Law, §§31-25-101, et seq., C.R.S. 4.2 "Agreement" means this Agreement, as it may be amended or supplemented in writing. References to sections or exhibits are to this Agreement unless otherwise qualified. 4.3 "Agricultural Land" shall have the same meaning as defined in §31-25-103, C.R.S.. 4.4 "Authority" means the Party described in Section 1.0, the Frederick Urban Renewal Authority, a body corporate and politic of the State of Colorado. 4.5 "Bonds" shall have the same meaning as defined in §31-25-103, C.R.S. . 4.6 "County" means the Party described in Section 1.0, the County of Weld, Colorado. 4.7 "County Tax Contribution" means 50% of the County personal property tax paid by the Developer pursuant to the County levy on the value of personal property owned by the Developer in the Urban Renewal Area for a period of 10 years. 4.8 "County Tax Levy Allocation Revenues" means the portion of Property Tax Increment Revenues to be paid to or on behalf of the County from the Special Fund as specified in Section 5.1. 4.9 "Duration" means the twenty-five (25) year period that the tax increment or tax allocation provisions will be in effect as specified in §31-25-109(a), C.R.S., the Plan, and the Impact Statement. 4.10 "Eligible Costs" means those costs eligible to be paid or reimbursed from Property Tax Increment Revenues pursuant to the Act for the purposes of financing public infrastructure, such as water, sewer, parks, storm drainage, streets and roads, sidewalks and traffic lights; complying with applicable legal and contractual obligations and eliminating the conditions of blight in the Urban Renewal Area and other purposes agreed to by the parties.. 4.11 "Impact Statement" means the impact statement setting forth the burdens and benefits of the Urban Renewal Project, attached to this Agreement as Exhibit C. 4.12 "Improvements" means the improvements required to serve the Private Use. 4.13 "Party" or "Parties" means the Authority or the County or both and their lawful successors and assigns. 4.14 "Plan" means the urban renewal plan defined in Section 2.2. 4.15 "Project" shall have the same meaning as Urban Renewal Project. 3 4.16 "Property Tax Increment Revenues" means all of the TIF revenues described in §31-25-107(9)(a)(II) of the Act allocated to the Special Fund for the Duration of the Urban Renewal Project. 4.17 "Remainder of the Property Tax Increment Revenues" means all of the Property Tax Increment Revenues remaining after payment of the County Tax Levy Allocation Revenues pursuant to this Agreement. 4.18 "Special Fund" means the fund described in the Plan and §31-25-107(9)(a)(II), C.R.S., into which the Property Tax Increment Revenues will be deposited. 4.19 "TIF" means the property tax increment portion of the property tax assessment roll described in §31-25-107(9)(a)(II), C.R.S. 4.20 "Town" means the Town of Frederick, Colorado. 4.21 "Urban Renewal Area" means the area included in the boundaries of the Plan. 4.22 "Urban Renewal Plan" means the Eagle Business Park Urban Renewal Plan for the Eagle Business Park Urban Renewal Project attached to this Agreement as Exhibit B. 4.23 "Urban Renewal Project" means all of the undertakings and activities, or any combination thereof, required to carry out the Urban Renewal Plan pursuant to the Act. 5.0 SHARING OF COUNTY TAX LEVY ALLOCATION REVENUES. In compliance with the requirements of §§31-25-107(9) and (9.5), C.R.S., and to obtain the agreement of the County to the inclusion of Agricultural Land in the Urban Renewal Area as required by§ §31-25-107(1) and (3.5), C.R.S., the Parties have negotiated and agreed to the sharing of Property Tax Increment Revenues as set forth herein. 5.1 The County Tax Levy Allocation Revenues. The Authority agrees to calculate and pay to Weld County the County Tax Levy Allocation Revenues being twenty-five per cent (25%) of the net revenue it receives from the Weld County Treasurer each year from the property tax levy of Weld County against the TIF portion of the assessment roll while the provisions of §31-23- 107(9), C.R.S., are in effect in the Urban Renewal Area for Years 1 through 10 of the Duration. The Authority agrees to calculate and pay to Weld County the County Tax Levy Allocation Revenues being fifty per cent (50%) of the net revenue it receives from the Weld County Treasurer each year from the property tax levy of Weld County against the TIF portion of the assessment roll while the provisions of §31-23-107(9), C.R.S., are in effect in the Urban Renewal Area for Years 11 through 25 of the Duration. The County Tax Levy Allocation Revenues to be paid to the County shall be placed in a separate account created for such purpose. Commencing on the date of this Agreement and for a period of twenty-five (25) years that the Authority is authorized to receive Property Tax Increment Revenues pursuant to the Act (the "Duration"), the Authority, on or before the 20th day of each month, shall pay all such County Tax Levy Allocation Revenues received into such account through the preceding month (a) first to the Developer, the amount, if 4 any, of the County Tax Contribution (to the extent received by the Authority for the period of time that the County Tax Contribution is in effect) and (b) the balance remaining in such account to the County. 5.2 Use and Purpose of County Tax Levy Allocation Revenues. The County agrees that the purpose and use of the County Tax Levy Allocation Revenues paid by the Authority pursuant to this Agreement are to comply with the requirements of §§31-25-107(1), (3.5), (9), (9.5) and (11), C.R.S., to address and compensate the County for the impacts of the Plan on County revenues and on infrastructure and services necessary to serve the Urban Renewal Area for the Duration of the Urban Renewal Project. 5.3 Subordination Consent Required. With the prior written consent of the County, as evidenced by a resolution approved by the Board of County Commissioners, the obligation of Authority to pay all or part of the County Tax Levy Allocation Revenues to the County may be made subordinate to any payment of the principal of, the interest on, and any premiums due in connection with Bonds, including loans or advances to, or indebtedness incurred by Authority for financing or refinancing, in whole or in part, the Urban Renewal Project. 6.0 CONSENTS AND WAIVERS. In consideration of the creation of the account and the transfer of the County Tax Levy Allocation Revenues to or on behalf of the County as described in Section 5.1, this Agreement shall constitute the agreement in writing by the County to the following provisions. 6.1 Inclusion of Agricultural Land in Urban Renewal Area. This Agreement constitutes agreement by the County to inclusion of the Agricultural Land in the Urban Renewal Area as required by §§31-25-107(1) and (3.5), C.R.S., and §31-25-107(1)(c)(II)(D), C.R.S. 6.2 Pledge of Remainder of Property Tax Increment Revenues. Except for the County Tax Levy Allocation Revenues, which are governed by this Agreement, the County recognizes and agrees that in reliance on this Agreement, the Authority shall have the unqualified right to irrevocably pledge all or any part of the Remainder of the Property Tax Increment Revenues it receives to payment of the Authority's Bonds in connection with the Urban Renewal Project. The Parties have elected to apply the provisions of §11-57-208, C.R.S., to this Agreement. The Remainder of the Property Tax Increment Revenues, when and as received by the Authority are and shall be subject to the lien of such pledge for the Duration of the Project without any physical delivery, filing, or further act and is and shall be an obligation of the Parties pursuant to §31-25- 107(9) of the Act. The Parties agree that the creation, perfection, enforcement and priority of the pledge of the Remainder of the Property Tax Increment Revenues as provided herein shall be governed by §11-57-208, C.R.S. The lien of such pledge on the Remainder of the Property Tax Increment Revenues shall have priority over any of all other obligations and liabilities of the Parties with respect to the Remainder of the Property Tax Increment Revenues. 7.0 NOTIFICATION OF SUBSTANTIAL MODIFICATIONS OF THE PLAN; AGREEMENT NOT PART OF PLAN. The Authority agrees to notify the County of any intended substantial modification of the Plan as required by §31-25-107(3.5)(a), C.R.S. This Agreement is not part of the Plan. 5 8.0 WAIVER. Except for the notice required by Section 7.0, as authorized by the Act (including the provisions of§§31-25-107(9) and (9.5), C.R.S.,), the County hereby waives any provision of the Act that provides for notice to the County, requires any filing with or by the County, requires or permits consent from the County, and provides any enforcement right to the County for the Duration. 9.0 AGREEMENT CONFINED TO COUNTY TAX LEVY ALLOCATION REVENUES. This Agreement applies only to the County Tax Levy Allocation Revenues, as calculated, produced, collected and paid to the Authority from the Urban Renewal Area by the Weld County Treasurer in accordance with §31-25-107(9)(a)(II), C.R.S., and the rules and regulations of the Property Tax Administrator of the State of Colorado, and does not include any other revenues of the Town or the Authority. 10.0 MISCELLANEOUS. 10.1 Delays. Any delays in or failure of performance by any Party of its obligations under this Agreement shall be excused if such delays or failure are a result of acts of God; fires; floods; earthquake; abnormal weather; strikes; labor disputes; accidents; regulation or order of civil or military authorities; shortages of labor or materials; or other causes, similar or dissimilar, including economic downturns, which are beyond the control of such Party. 10.2 Termination and Subsequent Legislation or Litigation. In the event of termination of the Plan, including its TIF financing component, the Authority may terminate this Agreement by delivering written notice to the County. The Parties further agree that in the event legislation is adopted or a decision by a court of competent jurisdiction after the effective date of this Agreement that invalidates or materially effects any provisions hereof, the Parties will in good faith negotiate for an amendment to this Agreement that most fully implements the original intent, purpose and provisions of this Agreement, but does not impair any otherwise valid contracts in effect at such time. 10.3 Entire Agreement. This instrument embodies the entire agreement of the Parties with respect to the subject matter hereof. There are no promises, terms, conditions, or obligations other than those contained herein; and this Agreement shall supersede all previous communications, representations, or agreements, either verbal or written, between the Parties hereto. No modification to this Agreement shall be valid unless agreed to in writing by the Parties. 10.4 Binding Effect. This Agreement shall inure to the benefit of and be binding upon the Parties and their successors in interest. 10.5 No Third -Party Enforcement. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned Parties and nothing in this agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned Parties that any person or entity other than the undersigned Parties receiving services or benefits under this Agreement shall be an 6 incidental beneficiary only. 10.6 No Waiver of Immunities. No portion of this Agreement shall be deemed to constitute a waiver of sovereign or governmental immunity that the Parties or their officers or employees may possess, nor shall any portion of this Agreement be deemed to have created a duty of care which did not previously exist with respect to any person not a party to this agreement. 10.7 Amendment. This Agreement may be amended only by an instrument in writing signed by the Parties. 10.8 Parties not Partners. Notwithstanding any language in this Agreement or any other agreement, representation, or warranty to the contrary, the Parties shall not be deemed to be partners or joint ventures, and no Party shall be responsible for any debt or liability of any other Party. 10.9 Interpretation. All references herein to Bonds shall be interpreted to include the incurrence of debt by the Authority in any form consistent with the definition of "Bonds" in the Act, including payment of Eligible Costs or any other lawful financing obligation. 10.10 Incorporation of Recitals and Exhibits. The provisions of the Recitals and the Exhibits attached to this Agreement are incorporated in and made a part of this Agreement. 10.11 No Assignment. No Party may assign any of its rights or obligations under this Agreement. IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized officials to execute this Agreement effective as of the day and year first above written. COUNTY: ATTEST: divfm)COUNTY OF WELD, a political Clerk t• e Board `( �, subdivision of the State of Colorado: By: Deputy Cl ATTEST: y: Mike Freeman AUG i oh2Qr6 AUTHORITY: FRE I R K URB • RENEWAL AUTHORITY By: By: tvt oerr(i C CA fte1 , Chairperson 7 020 /(- „24./6P6) Exhibit "A" Eagle Business Park Urban Renewal Area Legal Description The legal description of Eagle Business Park Urban Renewal Area is as follows: Parcels: LOT 1 EAGLE BUSINESS PARK Rights -of -way: ALL PUBLIC RIGHTS -OF -WAY ASSOCIATED WITH SILVER BIRCH BLVD/WCR 11 FROM ITS INTERSECTION WITH STATE HIGHWAY 52 TO ITS INTERSECTION WITH WCR 20.5 ALL PUBLIC RIGHTS -OF -WAY ASSOCIATED WITH TIPPLE PKWY/WCR 16 FROM ITS INTERSECTION WITH EAST I-25 FRONTAGE ROAD TO ITS INTERSECTION WITH COLORADO BLVD/WCR 13 ALL IN THE TOWN OF FREDERICK, COUNTY OF WELD, STATE OF COLORADO. Exhibit "B" URBAN RENEWAL PLAN FOR THE EAGLE BUSINESS PARK URBAN RENEWAL PROJECT TOWN OF FREDERICK June 2016 I. INTRODUCTION The Urban Renewal Plan for the Eagle Business Park Urban Renewal Project has been prepared pursuant to the provisions of the Colorado Urban Renewal Law, Part 1 of Article 25 of Title 31, C.R.S., as in effect in all respects on the date this Urban Renewal Plan is approved by the Town of Frederick Board of Trustees (the "Town"). The Urban Renewal Plan (sometimes referred to herein alternatively as the "Plan"), including the preparation and execution of any documents implementing it, shall be performed by the Frederick Urban Renewal Authority (the "Authority"). It is the intent of this plan that the objectives of quality development will be achieved by cooperation between the Authority and the private sector utilizing and facilitating financing of required improvements, both public and private incentives and tools from any and all available sources. As required by the Urban Renewal Law, the Plan will afford maximum opportunity, consistent with the sound needs of the Town as a whole, for the development of the Urban Renewal Area by private enterprise. II. AGRICULTURAL LAND AND FIB 15-1348 The Urban Renewal Area consists of land that has been classified by the Weld County Assessor as agricultural land for the purposes of levying and collecting property taxes during the five- year period prior to the date of adoption of this Urban Renewal Plan. The Plan is also subject to the requirements of HB 15-1348 as modified by SB 16-177. It is the intention of the Board of Trustees that the Authority will enter into agreements with taxing bodies who levy ad valorem property taxes in the Urban Renewal Area to assist in financing additional services or infrastructure to serve new improvements in the Urban Renewal Area and to comply with the provisions of law in effect as of the date this Plan is approved by the Town Board. It is also the intention of the Board of Trustees to assure that all revenues remaining and not payable to such taxing bodies under agreements entered into pursuant to HB 15-1348 (the "Remainder of the Property Tax Increment Revenues") shall be immediately subject to the lien provided by the provisions of §11-57-208, C.R.S., effective as of the date this Plan is approved by the Town Board. Such pledge is necessary and required for the benefit of the Authority and private enterprise in order to carry the Urban Renewal Project in accordance with the requirements of §31-25-107(4)(g) of the Urban Renewal Law. The Remainder of the Property Tax Increment Revenues, when and as received by the Authority are and shall be subject to the lien of such pledge for the Duration (as defined below) of the Project without any physical delivery, filing, or further act. The creation, perfection, enforcement and priority of the pledge of the Remainder of the Property Tax Increment Revenues as provided herein shall be governed by §11-57-2O8, C.R.S. The lien of such pledge on the Remainder of the Property Tax Increment Revenues shall have priority over any of all other obligations and liabilities with respect to the Remainder of the Property Tax Increment Revenues. Ill. DEFINITIONS 7 L Any terms used in this Urban Renewal Plan that are not defined herein are governed by definitions in the Colorado Urban Renewal Law or definitions in the Town of Frederick Land Use Code, as applicable. Unless a different meaning is clearly stated, the terms used in this Urban Renewal Plan shall have the following meanings: "Agricultural Land" shall have the same meaning as in §103(1) of the Urban Renewal Law. "Area" and "Urban Renewal Area" means the Area depicted on Exhibit A, attached to and made a part hereof; but excluding all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations while the provisions of this Plan are in effect. "Authority" means the Frederick Urban Renewal Authority, a body corporate and politic of the State of Colorado. "Bonds" shall have the same meaning as in §§103(3) and 109 of the Urban Renewal Law, and, without limitation, specifically includes reimbursement agreements with owners and developers. "Comprehensive Plan" means the Town of Frederick Comprehensive Plan — 2015. "Duration" means the full twenty-year period that the tax allocation provisions of the Urban Renewal Law are in effect. "Plan" and "Urban Renewal Plan" means this urban renewal plan as adopted and approved by the Town Board. The Plan may only be modified by a resolution duly adopted by the Town Board. "Remainder of the Property Tax Increment Revenues" means all TIF revenues available pursuant to the Tax Increment Financing provisions of the Urban Renewal Law not payable to taxing bodies pursuant to agreements entered into by the Authority in accordance with HB 15- 1348. "Tax increment Financing" or "TIE" means tax allocation financing described in §31-25- 107(9) of the Urban Renewal Law, as in effect on the date this Plan is approved by the Town Board. Unless this Plan is formally amended by the Town Board to provide otherwise, Tax Increment Financing shall be required for the full twenty -five-year period required to carry out all the activities and undertakings necessary to complete the Urban Renewal Project. "Town" means the Town of Frederick, Colorado. "Town Board" means the Board of Trustees of the Town of Frederick, Colorado. 3 "Town Land Use and Building Requirements" means the requirements listed in Section VIII of this Plan. "Urban Renewal Law" means the Colorado Urban Renewal Law, Part 1 of Article 25 of Title 31, C.R.S., as in effect in all respects on the date this Plan is approved by the Town Board. "Urban Renewal Pro'ect" means all of the activities and undertakings required for the complete development of the Urban Renewal Area, including, without limitation financing and construction of all public and private improvements and payment of all financing obligations included in the definition of "Bonds" in the Urban Renewal Law. IV. URBAN RENEWAL AREA BOUNDARIES The Urban Renewal Area is entirely within the municipal boundaries of the Town and contains approximately 19.97 acres of platted land. The Area also contains approximately 14.55 acres of public right-of-way associated with Tipple Parkway (WCR 16) from its intersection with East 1-25 Frontage Road to its intersection with Colorado Blvd (WCR 13). The Area also contains approximately 25.45 acres of public right-of-way associated with Silver Birch Blvd (WCR 11) from its intersection with State Highway 52 to its intersection with WCR 20.5. The Area excludes all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations while the provisions of this Plan are in effect. The Area is depicted in Exhibit A. The Area has been classified by the Weld County Assessor as Agricultural Land as defined in the Urban Renewal Law. V. QUALIFYING CONDITIONS An independent consultant, Jac Cuney, experienced in conducting conditions surveys, conducted a field investigation survey to determine if conditions constituting the definition of "blighted area" contained in §103(2) of the Urban Renewal Law exist in the Area. The results of this survey are contained in a report entitled "Eagle Business Park Conditions Survey" dated March 2016 that identified and documented the following statutory conditions as existing in the Urban Renewal Area: A. Predominance of defective or inadequate street layout; B. Faulty lot layout in relation to size adequacy, accessibility, or usefulness; C. Unsanitary or unsafe conditions; D. Unusual topography or inadequate public improvements or utilities; E Environmental contamination of buildings or property; 4 F. The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements. The Conditions Survey is incorporated in and made a part of this Plan as Exhibit B. The above conditions show that the Urban Renewal Area qualifies as a blighted area as defined in the Urban Renewal Law. By definition a "blighted area" substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare of the Town. VI. CONFORMANCE WITH COMPREHENSIVE PLAN As required by the Urban Renewal Law, this Plan conforms with the Town of Frederick Comprehensive Plan, which is a general plan of the Town as a whole. The Comprehensive Plan will govern the execution of this Urban Renewal Project by the Authority in a manner consistent with the following goals and objectives. VII. GOALS OF THE URBAN RENEWAL PLAN A major component of the overall vision for the Town of Frederick Comprehensive Plan is to accommodate light industrial development. The activities and undertakings necessary to carry out this Urban Renewal Plan are intended to implement the following specific goals and objectives of the Comprehensive Plan. Commercial and Industrial Areas Goal: Leverage Frederick's strategic location and developable areas to promote employment growth and achieve a jobs -housing balance. Commercial and Industrial Areas Objectives: • Develop distinct and attractive streetscapes for commercial and industrial districts. These may include the use of benches, trash cans, streetlights, planters, parkway trees, wayfinding signage, pavement treatments, lighting, and other amenities, to strengthen sense of place in commercial corridors and districts. • Utilize gateways to identify industrial and commercial districts and communicate a sense of character. • Require the use of fencing and landscaping, such as berms, dense trees, and other treatments, to provide physical and visual separation between incompatible uses and improve areas of poor appearance. • Encourage cross access between adjacent commercial uses to reduce traffic on Town roads. r J Community Facilities & Infrastructure Goal: Provide infrastructure and services to maintain and support a high quality of life for residents and businesses through collaborative efforts and partnerships. VIII. LAND USE REGULATIONS AND BUILDING REQUIREMENTS All development and redevelopment in the Area will be governed by the Comprehensive Plan, the Town Land Use Code, the Town Design Standards and Construction Specifications, and the International Building Code as adopted by the Town with minor modifications (collectively, the "Town Land Use and Building Requirements"). The Plan will implement the provisions of Section 31-25-107(8) of the Urban Renewal Law, which provides that, upon approval of the Plan, the provisions of the Plan shall be controlling with respect to land area, land use, design, building requirements, maximum densities, timing or procedure applicable to the property covered by the Plan. The Plan shall be automatically updated to reflect any revisions made to the Comprehensive Plan as it applies in the Area. IX. PROJECT ACTIVITIES The Authority is authorized to use any and all powers available to it under the Colorado Urban Renewal Law and other applicable laws in order to carry out the activities and undertakings it determines are necessary for the successful execution of this Plan, including, without limitation, those listed below. A. Owner Participation and Cooperation with Special Districts The Authority may enter into ownership participation agreements and cooperation agreements with property owners, developers, and special districts, including metropolitan districts, in the Area for the development, redevelopment or rehabilitation of their property or provision and improvement of public improvements. Owner participation and other agreements of this nature shall contain, at a minimum, provisions requiring: 1. Compliance with the Plan and all applicable ordinances and regulations. 2. Covenants to begin and complete development, construction or rehabilitation of both public and private improvements within a period of time considered to be appropriate by the Authority. 3. The financial commitments of each party. 4. The financial and legal ability to carry out development and redevelopment proposals. 6 B. Property Acquisition If the Authority determines it is necessary to acquire any real property to implement this Plan, the Authority may do so by any means available by law, except that, unless the owner of such property agrees, the Authority is not authorized to acquire any property by exercise of the power of eminent domain. C. Property Management During such time as acquired property is owned by the Authority, such property shall be under the management and control of the Authority and may be rented or leased pending its disposition for redevelopment. D. Relocation Assistance and Payments It is not expected that the implementation of this Plan will require the displacement of any person, family, or business. However, if acquisition of property displaces and person, family, or business, the Authority may assist such party in finding another location, and may, but is not obligated to make relocation payments and provide relocation benefits authorized by the Urban Renewal Law (except to the extent required by law in the event the use of eminent domain is properly authorized and causes such displacement) to eligible residents and businesses in such amounts and under such terms and conditions as required by law. E. Demolition, Clearance, and Site Preparation The Authority may demolish and clear, or contract to demolish and clear, buildings, structures, and other improvements from any property it acquires in accordance with this Plan. The Authority may provide rough and finished site grading and other site preparation services as part of a specific redevelopment program. F. Public Improvements and Facilities In carrying out this Plan, the Authority may cooperate with other public bodies and with private enterprise to provide public improvements and facilities as may be necessary to serve the needs of the Area and respond to community needs as set forth in the Comprehensive Plan and the Town Land Use and Building Requirements. The Authority may make provision and provide funding for such public improvements and facilities in accordance with the goals and objectives of this Plan. G. Property Disposition If the Authority acquires any real property in the Area, the Authority shall dispose of such property it acquires by any legal means, including establishment of a reasonable competitive 7 bidding procedure as required by the Urban Renewal Law. Such requirements may include compliance with the Plan, covenants to begin and complete construction of improvements within a time deemed reasonable by the Authority. The Authority shall also determine the financial and legal ability of any private developer to carry out any redevelopment agreement with the Authority. H. Cooperation and Tax Sharing Agreements For the purposes of planning and carrying out this Plan, the Authority may enter into one or more cooperation agreements with the Town or other public entities, and shall negotiate with all taxing bodies regarding the possible sharing of TIF revenue pursuant to the provisions of HB 15-1348. Without limitation, such agreements may include project financing and implementation; design, location and construction of public improvements and any other matters required to carry out this Plan, including payment or reserving of funds required to provide for or contribute to area impacts as a result of the proposed development and redevelopment of the Area and to comply with the requirements related to inclusion of Agricultural Land in the Urban Renewal Area and other applicable legal requirements. L Other Plan Undertakings and Activities Other Plan undertakings and activities deemed necessary by the Authority to carry out the Plan may be undertaken and performed by the Authority or pursuant to agreements with other public or private entities in accordance with the provisions of the Urban Renewal Law and any other applicable law. X. PROJECT FINANCING; TAX INCREMENT FINANCING The Authority is authorized to finance implementation of the Plan and the Urban Renewal Project by any method authorized by the Urban Renewal Law or any other applicable law, including, without limitation, appropriations, loans or advances from any source, including, without limitation, the Town; federal loans and grants; state loans and grants; interest income; agreements with public and private parties or entities; sale of securities and other assets; property and sales tax increments (if approved by the Town Board by agreement with the Authority); and loans, advances and grants from any other available source. The following methods of financing redevelopment projects are illustrative only and not necessarily inclusive or complete. All financing methods legally available to the Town and/or the Authority, including other public and private entities or agencies, and/or developers may be used to finance the public or private improvements or any other costs described or anticipated in this Plan, or related in any manner to the development and redevelopment of the Area. These methods include, without limitation: Property tax increment financing (but excluding any such financing involving taxation of all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations, which are intended to be excluded from such financing); sales tax increment financing (if approved by the Town Board by agreement with the 8 Authority); general obligation bond financing; special obligation bond financing; municipal revenue bond financing; general and metropolitan improvement district financing; local improvement district and special assessment financing; tax anticipation notes and warrants; installment purchasing; short-term notes and loans; tax exempt financing; industrial development revenue bond financing; conventional financing; and any other method of financing acquisition, improvements, or redevelopment as authorized by law, including, without limitation, reimbursement agreements with the private sector. Such financing methods can be combined to finance individual developments in the Area as well as all activities and undertakings by the Authority to carry out the Plan and the Urban Renewal Project. These methods can also be used insofar as legally allowable to pay the principal of and interest on and to establish reserves for indebtedness (whether funded, refunding, assumed or otherwise) incurred by the Town or the Authority to finance, refinance, or refund in whole or in part, the Urban Renewal Project as defined in the Urban Renewal Law and the Plan. It is the policy of the Authority to consider any and all methods of financing by any legal method, or any combination of methods of financing. The Authority is authorized to issue notes, bonds, or any other financing instruments or documents in amounts sufficient to finance all or part of the Urban Renewal Project as defined in the Urban Renewal Law and the Plan. The Authority is authorized to borrow funds and to otherwise create indebtedness through incurring obligations for in -kind contributions from the Town or any other entity in carrying out this Plan, The principal, interest and any premiums due on or in connection with such indebtedness may be paid from tax increments or any other fund available to the Authority. Activities and undertakings pursuant to the Plan may be financed by the Authority under the Tax Increment Financing provisions of the Urban Renewal Law in existence at the time this Plan is approved by the Town Board; provided, however, the legal description of the Urban Renewal Area specifically excludes all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations so that ad valorem property taxes on oil and gas are not subject to division pursuant to the Urban Renewal Law or this Plan. Unless this Plan is formally amended by the Town Board to provide otherwise, Tax Increment Financing shall be required for the full twenty -five-year period required to carry out all the activities and undertakings necessary to complete the Urban Renewal Project. A. Establishment of Special Fund The Authority shall establish a tax increment revenue fund for the deposit of all funds generated pursuant to the division of ad valorem property tax and, upon approval of the Town Board, municipal sales tax revenues described in this section; provided, however, the legal description of the Urban Renewal Area specifically excludes all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations so that ad 9 valorem property taxes on oil and gas are not subject to division pursuant to the Urban Renewal Law or this Plan. B. Base Amount That portion of the taxes which are produced by the levy at the rate fixed each year by or for each public body upon the valuation for assessment of taxable property in the Urban Renewal Area last certified prior to the effective date of approval of the Plan, and, if authorized by the Town Board in an agreement with the Authority, that portion of municipal sales taxes collected within the boundaries of the Urban Renewal Area in the twelve-month period ending in that last day of the month prior to the effective date of the approval of the Plan, or both such portions, shall be paid into the funds of each such public body as all other taxes collected by or for said public body. C. Increment Amount That portion of said property taxes in excess of such base amount or that portion of such municipal sales taxes in excess of such base amount, or both, shall be allocated to and, when collected paid into the tax increment revenue fund to pay the principal of, the interest on, and any other premiums due in connection with the Bonds of, loans or advances to or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, the Authority for financing or refinancing, in whole or in part, the Urban Renewal Project described in this Plan, or as otherwise authorized by the Urban Renewal Law; provided, however, the legal description of the Urban Renewal Area specifically excludes all oil and gas leaseholds and lands, meaning, more specifically, any and all oil and gas well heads, associated equipment and that part of the surface dedicated to or required to service such oil and gas well locations so that ad valorem property taxes on oil and gas are not subject to division pursuant to the Urban Renewal Law or this Plan. Unless and until the total valuation for assessment of the taxable property in the Urban Renewal Area exceeds the base valuation for assessment of the taxable property in the Urban Renewal Area, all of the taxes levied upon taxable property in the Urban Renewal Area shall be paid into the funds of the respective public bodies. If sales tax increment financing is authorized by the Town Board, unless and until all or the relevant part of the municipal sales tax collections in the Urban Renewal Area exceed the base year municipal sales tax collections in the Urban Renewal Area, all such sales tax collections shall be paid into the funds of the Town. When such Bonds, loans, advances and indebtedness, including interest thereon and any premiums due in connection therewith, have been paid, all taxes upon the taxable property in the Urban Renewal Area shall be paid into the funds of the respective public bodies. The increment portion of the taxes, as described in this subsection C, may be irrevocably pledged by the Authority for the payment of the principal of, the interest on, and any premiums due in connection with such Bonds, loans, advances and indebtedness incurred by the Authority to finance the Urban Renewal Project, but excluding any offsets collected by the County Treasurer for return of overpayments or any reserve funds reserved by the Authority for such purposes in accordance with §31-25-107(9)(a)(Ill) and (b), C.R.S., and also excluding a 10 reasonable amount each year as determined by the Authority for payment of maintenance and operating expenses associated with administering the Plan, carrying out the Urban Renewal Project, and maintaining the existence of the Authority. The Remainder of the Property Tax Increment Revenues (as described and defined in Sections II and III of this Plan) shall be immediately subject to the lien provided by the provisions of §11-57-208, C.R.S., effective as of the date this Plan is approved by the Town Board. Such pledge is necessary and required for the benefit of the Authority and private enterprise in order to carry the Urban Renewal Project in accordance with the requirements of §31-25-107(4)(g) of the Urban Renewal Law. The Remainder of the Property Tax Increment Revenues, when and as received by the Authority are and shall be subject to the lien of such pledge for the Duration of the Project without any physical delivery, filing, or further act. The creation, perfection, enforcement and priority of the pledge of the Remainder of the Property Tax Increment Revenues as provided herein shall be governed by §11-57-208, C.R.S. The lien of such pledge on the Remainder of the Property Tax Increment Revenues shall have priority over any of all other obligations and liabilities of the Authority with respect to the Remainder of the Property Tax Increment Revenues. XI. CHANGES IN APPROVED PLAN This Plan may only be modified by formal resolution of the Town Board pursuant to and in accordance with §31-25-107(7) of the Urban Renewal Law governing such modifications, including all protections afforded by law to owners, lessees, and holders of Bonds, including rights to reimbursement payments. XII. MINOR VARIATIONS The Authority may in specific cases allow minor variations from the provisions of the Plan if it determines that a literal enforcement of the provisions of the Plan would constitute an unreasonable limitation or restriction beyond the intent and purpose of the Plan. XIII. EXHIBITS Exhibit A: Map of Urban Renewal Area Exhibit B: Conditions Survey 11 1St dfttelw tt. �Ow,it�nt CIldewSwaR CO am) EXHIBIT A: MAP OF URBAN RENEWAL AREA Frtdadaic Mr Soiandary an Mai Renewal Agee 8otj{ 0 VA Ys Eagle Business Park Urban Renewal Area N 1 A 12 EXHIBIT B: CONDITIONS SURVEY (See Attached Document) 13 EAGLE BUSINESS PARK Conditions Survey Frederick, Colorado March 2016 1.0 Introduction The purpose of this survey (the "Conditions Survey") is to analyze conditions within an area described as Eagle Business Park, Town of Frederick, County of Weld, State of Colorado (the "Survey Area") to determine if factors that meet the definition of a "blighted area" in Section 31-25103(2) of the Colorado Revised Statutes are present and whether the Survey Area is, therefore, eligible as an urban renewal area under the provisions of the Colorado Urban Renewal Law. The Survey Area contains one platted parcel (Lot 1, Eagle Business Park) consisting of approximately 19.97 acres located at 7051 Eagle Blvd, northwest of the intersection of Tipple Parkway (WCR 16) and Eagle Blvd. The Area also contains approximately 14.55 acres of public right-of-way associated with Tipple Parkway (WCR 16) from its intersection with East 1-25 Frontage Road to its intersection with Colorado Blvd (WCR 13). The Area also contains approximately 25.45 acres of public right-of-way associated with Silver Birch Blvd (WCR 11) from its intersection with State Highway 52 to its intersection with WCR 20.5. Property owner of record was notified that the Survey was being conducted as required by statute. The Survey Area is depicted in Exhibit A, attached to and made a part hereof. Photographs of the Survey Area are included in Exhibit B, attached to and made a part hereof. 2.0 Definition of Blight For purposes of this Conditions Survey, conditions that constitute a blighted area are based upon the following definition in Section 3125-103(2) of the Colorado Urban Renewal Law. "Blighted area" means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare: (a) Slum, deteriorated, or deteriorating structures; (b) Predominance of defective or inadequate street layout; (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; 2 (d) Unsanitary or unsafe conditions; (e) Deterioration of site or other improvements; (f) Unusual topography or inadequate public improvements or utilities; (g) Defective or unusual conditions of title rendering the title non - marketable; (h) The existence of conditions that endanger life or property by fire or other causes; (i) Buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidations, deterioration, defective design, physical construction, or faulty or inadequate facilities; (j) Environmental contamination of buildings or property; (k5) The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements; if there is no objection of such property owner or owners and the tenant or tenants of such owner or owners, if any, to the inclusion of such property in an urban renewal area, "blighted area" also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs (a) to (k.5) of this subsection (2), substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals or welfare. For purposes of this paragraph (1), the fact that an owner of an interest in such property does not object to the inclusion of such property in the urban renewal area does not mean that the owner has waived any rights of such owner in connection with laws governing condemnation. (1) The determination of whether an area constitutes a "blighted area" is a legislative determination within the discretion of a municipal governing body. The purpose of this Conditions Survey is to provide documentation of the above defined physical, environmental and social factors as they exist within the Survey Area. It is not necessary for every factor to be present in an area in order for it to qualify as a "blighted area". Rather, an area qualifies as blighted when four or more factors are present. As explained in item (I) above, this threshold may be reduced to the presence of one blighting factor in cases where property owners and tenants in the Survey Area do not object to inclusion in an urban renewal area. As explained later in this report, conditions evidencing blight were found in the Survey Area. 3.0 Study Methodology An independent consultant, Jac Cuney, experienced in conducting conditions surveys, conducted field investigations for the purpose of documenting conditions within the categories of blight shown above. The consultant used a checklist of conditions within each statutory factor to aid in the identification and characterization of blight factors. (a) Slum, deteriorated, or deteriorating structures This factor is said to be present when the physical condition of structures in the area present specific life -safety concerns. Sub -categories include: • Roof deterioration/damage ■ Wall, fascia board and soffit deterioration/damage ■ Foundation problems (can also be inferred from subsidence) ■ Gutter/downspouts: deterioration or absence • Exterior finish deterioration (i.e. peeling or badly faded paint, crumbling stucco, cracked masonry) ■ Window and/or door deterioration/damage ■ Stairway/fire escape deterioration/damage ■ Mechanical equipment (problems with or damage to major mechanical elements of primary structure) • Loading areas: damage/deterioration • Fence/wall/gate damage or deterioration ■ Other structures: deterioration to significant non -primary structures (b) Predominance of defective or inadequate street layout This factor is said to be present when the layout (or non-existence) of streets or roads creates problems impacting health, safety, welfare or sound development, Sub -categories include: ■ Vehicular access: ingress and/or egress options for automobile traffic are unsafe, missing, or significantly inconvenient for visitor or customers • Internal circulation: non-public, internal roadways or driveways are unsafe, significantly inconvenient or present safety problems relative to their interaction with public roads 4 ■ Driveway definitions/curb cuts: unsafe or significantly inconvenient ■ Parking layout substandard: causing safety or access problems ■ Traffic accident history: (when data is available), disproportionate share of reported vehicular accidents (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness This factor is said to be present when lot size or configuration inhibits or is likely to inhibit sound development. Sub -categories include: ■ Faulty lot shape or layout: narrow, triangular, split, and other shapes incompatible with most land uses. Includes parcels that are blocked from direct vehicular access by other parcels. ■ Vehicular access unsafe, missing or significantly inconvenient. Because access involves the interplay between lots and roadways, parcels with poor access are usually found to have both category (b) and (c) present. ■ Inadequate lot size. This can depend on the context (i.e. downtown and/or historical environments can often develop successfully with smaller lots, whereas suburban locales are expected to have larger parcels available for development) (d) Unsanitary or unsafe conditions This factor is said to be present when safety hazards and conditions are likely to have adverse effects on the health or welfare of persons in the area due to problems with a lack of infrastructure. Sub -categories include: ■ Poorly lit or unlit areas ■ Cracked or uneven sidewalks ■ Hazardous contaminants ■ Poor drainage ■ Flood hazard: substantially within a 100-yr floodplain, according to FEMA ■ Steep slopes and difficult grade changes that are a safety hazard ■ Unscreened trash or mechanical equipment: openly accessible dumpsters (note: this is scored as a safety problem under this statutory factor even if not a municipal code violation) or potentially dangerous mechanical equipment • Pedestrian safety issues: often related to other blight factors, this sub- category is present when pedestrian and cyclists face a clear danger from sidewalk problems, lack or crosswalks/crossing lights, fast-moving traffic • High crime incidence: (when data available), usually defined as an area with a disproportionate share of police calls for service • Vagrants/vandalism/graffiti: while usually not a direct safety threat, can be indicative of unsafe urban environments (e) Deterioration of site or other improvements This factor is present when land and/or structures have been either damaged or neglected. Sub -categories include: • Neglected or poorly maintained properties, streets, alleys, sidewalks, and other public improvements if Trash/debris/weeds • Parking surface/curb/gutter deterioration/damage • Lack of landscaping: reserved for properties with an expectation of landscaping (due to zoning or context) but with none (or landscaping that has become neglected) (f) Unusual topography or inadequate public improvements or utilities This factor represents the combination of two formerly separate factors. To that end, it is said to be present when the topography is steep and incompatible with development or properties are lacking complete or inadequate public infrastructure. Sub -categories include: • Slopes or unusual terrain • Street pavement deterioration or absence • Curb and gutter deterioration or absence • Street lighting inadequate, damaged or missing • Lack of sidewalks (or significant damage) • Water/Sewer service: missing or in need of repair/replacement • Storm sewer/drainage missing or damaged (g) Defective or unusual conditions of title rendering the title non -marketable This factor is said to be present when there are problems with the marketability of property titles, including unusual restrictions or unclear ownership. Due to the expense of title searches, this blight factor is typically not examined unless developers or land owners provide documentation of known title issues. (h) The existence of conditions that endanger life or property by fire or other causes This factor is said to be present when site and / or building maintenance or use issues exist that may threaten site users. This factor also includes potential threats from fire or other causes. Sub -categories include: ■ Fire safety problems: identified through fire code violation data (where available), discussions with fire department personnel, or evidence of recent fires ■ Hazardous contaminants: an "other cause" posing danger to life/property ■ High crime incidence (note: included in other factors) ■ Floodplain/flood hazard (note: included in other factors) (1) Buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidations, deterioration, defective design, physical construction, or faulty or inadequate facilities This factor is said to be present when primary improvements, specifically those described in the context of factors (a) and (d) above, as well as property, poses a danger to the extent that habitation and/or daily use is considered unsafe. Sub- categories include: • Hazardous contaminants ■ High crime index ■ Building/facilities unsafe: this determination is best made through interior inspection but can be obvious with outside observation in some cases. (j) Environmental contamination of buildings or property This factor is said to be present when there exist threats from chemical or biological contamination. Unlike category 0) above, this factor can be said to exist even when such contamination does not pose a direct health hazard, so long as it causes other problems (i.e. inhibits development). Sub -categories include: ■ Hazardous contaminants (k.5) The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements This factor is said to be present when properties or their improvements are underutilized; or, there is a disproportionate amount of public service being provided, such as properties generating frequent calls for police, code enforcement or fire service and therefore, requiring more than their share of municipal services. Sub -categories include: ■ High fire call volume ■ High crime incidence (reflected in police calls for service) • Site underutilization (vacant land or buildings more than approximately 20 percent vacant) or sites that are underutilized because of incompatible uses 4.0 Survey Area Facts The Survey Area consists of one platted parcel of unimproved land and connected rights -of -way described in Section 1.0 and depicted on the vicinity map, Exhibit A. According to the Weld County Assessor, the Survey Area has been classified and assessed as agricultural land in the five-year period prior to the date of this Conditions Survey. 5.0 Survey Results The Conditions Survey documented the presence in the Survey Area of six of the eleven blight factors listed in the Colorado Urban Renewal Law, including (i) predominance of defective or inadequate street layout; (ii) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (iii) unsanitary or unsafe conditions; (v) unusual topography or inadequate public improvements; (vi) environmental contamination of buildings or property; (vii) the existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings or other improvements. The Survey Area is comprised of vacant and unimproved land. Factors that were observed and identified include lot and street layout problems, inadequate provisions for pedestrian safety, inadequate public improvements, lack of infrastructure easements, and site underutilization, all of which would support a finding that the Survey Area is blighted. The six blight factors specified by the law found in the Survey Area are described in more detail in the discussion that follows (The letter in parentheses in the title to the following paragraphs corresponds to the letter for that factor in Section 31-25-103(2), C.R.S.). (b) Predominance of defective or inadequate street layout Predominance of defective or inadequate street layout can be considered present when existing roads are insufficient to meet the needs of improvements within the Area, or there is a lack of streets or the streets that are in place are deteriorating. The Survey Area is comprised of a vacant, unimproved parcel and connected rights -of -way. The vacant parcel therefore lacks driveway definitions and curb cuts. Along with a lack of internal streets is a lack of lighting, sidewalks and parking areas. The following sub -categories of factor (b) were found in the Survey Area: ■ Vehicular access - ingress and egress is non-existent ■ Driveway definitions and curb cuts are unsafe or do not exist ■ Internal streets and roadways are non-existent (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness Because poor vehicular access is also a characteristic of faulty lots, the Area suffers from this blight factor for the reasons explained under (b) above. ■ Vehicular access unsafe and inconvenient or non-existent ■ Vehicular access unsafe, missing or significantly inconvenient. Because access involves the interplay between lots and roadways, parcels with poor access are usually found to have both category (b) and (c) present. (d) Unsanitary or unsafe conditions Multiple factors contribute to unsafe conditions in the Area. Among them is a lack of improved roadways, as explained under (b) above. Additionally, steep slopes (described in factor (f) below) combined with insufficient lighting and incomplete sidewalks and trails are considered a danger to pedestrians. There is no lighting along the major rights -of -way that border the Area creating an unsafe environment for pedestrians. There is no interior lighting on the property. The following sub -categories of factor (d) were found in the Survey Area: ■ Poorly lit or unlit areas ■ Grading/steep slopes/elevations below grade. Property slopes significantly to the West ■ Pedestrian safety issues including no street lights or sidewalks. No interior lighting. ■ Potential hazardous contaminants due to nearby oil/gas wells and pipes and appearance of pipeline(s) through property. (f) Unusual topography or inadequate public improvements or utilities As explained above, there is no lighting along the rights -of -way that border the Area, creating an unsafe environment for pedestrians. Public improvements and utilities that are lacking and which will require completion as part of any development program include: connections to water and sanitary sewer mains; internal roadways, curbs and gutters; sidewalks and trail improvements; street lighting; on -site provisions for storm drainage; and, water quality features. Although utilities are available in the vicinity of the Survey Area, existing inadequacies constitute a deterrent to development within its boundaries. Additional sub -categories of factor (f) were found in the Survey Area: ■ Slopes and unusual terrain. Property slopes significantly to the West. ■ Non-existent Street pavement on Tipple Pkwy West to service road and North half of Eagle Blvd. ■ Curb and gutter absence on virtually all streets in Plan area a Street lighting missing ■ Lack of sidewalks on virtually all streets in Plan area ■ Water and sewer service incomplete 10 ■ Storm sewer and drainage incomplete and inadequate (j) Environmental contamination of buildings or property This factor is said to be present when there exist threats from chemical or biological contamination. Unlike category (i) above, this factor can be said to exist even when such contamination does not pose a direct health hazard, so long as it causes other problems (i.e. inhibits development). Sub -categories include: ■ Potential hazardous contaminants due to presence of nearby oil/gas wells and pipes • Possible threat from chemical contamination ■ Oil/gas wells and pipes could possibly inhibit development • Oil and gas safety setbacks of 200' and 350' as required by the Town Land Use Code encroach into lot. The setbacks limit the amount of land that can be built upon on the site, (k.5) The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements This factor is said to be present when, as here, the site is vacant, or properties or their improvements are underutilized; or, there is a disproportionate amount of public service being provided - for instance, properties generating frequent calls for police, code enforcement or fire service and therefore requiring more than their share of municipal services. Sub -categories include: ■ High fire call volume (not found on this site) • High crime incidence (not found on this site) • Site underutilization (vacant land or buildings more than approximately 20 percent vacant. This condition is present in the Area) Summary of Factors Table 1 summarizes the findings across the surveyed parcel. As shown, six factors of the 11 total possible factors were found, to some extent, within the Survey Area. In this case, all six factors (as discussed earlier) were present to a degree that appeared likely to have a significantly negative impact on safety, welfare and/or sound development. Table 1 11 Summary of Findings Blight Qualifying Factor Present M... (a) Slum, deteriorated or deteriorating structures (b) Predominance of defective or inadequate street layout X (c) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness X (d) Unsanitary or unsafe conditions X (e) Deterioration of site or other improvements (f) Unusual topography or inadequate public improvements or utilities X (g) Defective or unusual conditions of title rendering the title non - marketable (h) The existence of conditions that endanger life or property by fire or other causes (1) Buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidations, deterioration, defective design, physical construction, or faulty or inadequate facilities 0) Environmental contamination of buildings or property X (k5) The existence of health, safety, or welfare factors requiring high levels X of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements Total Factors 6 12 EXHIBIT A- VICINITY MAP 13 4 i.„....,,. ,.::: A..,_ tote R O J �.r'w1wM�t fprSpt S InsISRa- —.me tiill TS acv 14 Eagle Busk ss Park Urban Renewal Area I Looking north/northeast at oil and gas facilities adjacent to western boundary of Lot 3. along the Godding Hollow waterway. Looking east/northeast from western boundary of Lot 1-- Note the sloping lot (east to west), overhead powerlines and lack of sidewalks and lighting. Looking west from eastern boundary of Lot 1— Note the sloping the sloping lot (east to west) and lack of sidewalks, utilities and other site improvements. Looking north generally from intersection of Silver Birch Blvd (WCR 11) and Godding Hollow Pkwy (WCR 1S) — Note the narrow roadway and lack of shoulders. 2 Looking North from Hwy 52 along Silver Birch Blvd — Note the narrow, unstriped roadway and shoulders, overhead powerlines, and lack of sidewalks and lighting. , Looking NW from Eagle Blvd. and Tipple Pkwy onto Lot 1— Note the inadequate shoulder at the intersection and lack of sidewalks and lighting. 3 Looking west on Tipple Pkwy from Eagle Blvd — Note the overhead powerlines, narrow roadway and shoulder and lack of sidewalk and lighting. Looking West along Tipple Pkwy from the western boundary of Lot 1— Note the lack of pavement, sidewalks and lighting and overhead powerlines. 4 Looking North along Silver Birch Blvd — Note the narrow, unstriped roadway and shoulder, overhead powerilnes and lack of sidewalks and lighting. Looking East along Tipple Pkwy east of Silver Birch Blvd towards Colorado Blvd — Note the narrow roadway and shoulder and absence of sidewalks and lighting. 5 IMPACT REPORT URBAN RENEWAL PLAN FOR THE EAGLE BUSINESS PARK URBAN RENEWAL PROJECT NATURE OF THE PROJECT The nature of the project is to develop commercial/industrial uses in the urban renewal area, focusing on primary job creation. The urban renewal project will result in jobs that are new to Colorado and the region. But for this urban renewal project such new uses and the jobs created would not be located in Colorado. As part of the establishment of the urban renewal area elimination of blight will be the objective to facilitate the commercial industrial development. The properties in the area are zoned industrial and business light industrial. ESTIMATED DURATION OF THE PROJECT The duration of time required to complete the urban renewal project is more than 25 years. NUMBER OF PRIMARY AND ANCILLARY JOBS Within the first 7 years, an estimated 170 jobs will be created in the project area paying an average wage of approximately $77,000 per year — with bonus compensation is $90,000 and with benefits it swells to over $106,000. Ancillary jobs created by the project is undetermined at this time, but are expected to be significant. ESTIMATED ANNUAL PROPERTY TAX INCREMENT The estimated property tax increment will vary every year based on improvements and reassessments of the property in the UR Area. Included with this Narrative Impact Statement is Attachment A, which shows the estimated annual property tax increment in dollars format. INCREASE IN BASE VALUE GOING FROM AGRICULTURAL TO VACANT CLASSIFICATION The current assessed value of all land in the proposed urban renewal area classified as agricultural is $5,670. In accordance with Section 31-25-107(9)(g), C.R.S., the Weld County Assessor has stated that the statutory base value for the purposes of calculating future property tax increment revenue shall be established at $504,618.56 upon approval of the urban renewal plan by the Town Board of Trustees. Thus, all public bodies that levy ad valorem property taxes in the area will enjoy an immediate increase in tax revenue as a result of the urban renewal project. Included with this Narrative Impact Statement is Attachment A, which shows the estimated and increasing base values in dollars format beginning with the initial increase in revenue resulting from reclassification from agricultural to vacant. INCREASE IN LAND VALUATION In addition to the increased base value at the outset of the project, the taxing bodies will benefit from the exclusion of all oil and gas sites from the urban renewal plan and the increase in base value resulting from the periodic revaluation of the base after increases in assessed value due to construction of buildings and other improvements and the corresponding increase in personal property in the urban renewal area. All such increases are included in Attachment A. BENEFIT OF IMPROVEMENTS TO EXISTING TAXING ENTITY INFRASTRUCTURE Streets and roads in the urban renewal area have been damaged by heavy truck traffic associated with oil and gas operations and from flood damage. The benefits of the improvements to the existing taxing entity infrastructure will include the development and construction of new roads which are resilient to natural disasters when compared to their current conditions, expansion of the raw water system, electrical distribution system, additional water resources, and other transportation network enhancements. ESTIMATE OF THE IMPACT OF UR PROJECT ON TAXING ENTITIES There are no direct effects upon the taxing entities that will not be more than offset by the increases to the revenue from increases in the base value directly attributable to the urban renewal project. The impacts that may occur would only when services are delivered directly and those would only include the fire district. Other taxing bodies generally would not provide services directly to the commercial property. The fire district stands to receive about $4 million over the life of the project as a result of the area development the impact. There will be nowhere close to this cost associated with impact directly from this project. NEW CAPITAL AND OPERATING COSTS AS A RESULT OF UR PROJECT All utility infrastructure is in place near the urban renewal area. No new capital costs are expected to be incurred by any taxing body that will not be more than offset by the revenue from increases in the base value directly attributable to the urban renewal project as shown in Attachment A. Operating and maintenance costs to maintain new roads and streets will be the responsibility of the Town, which is expected to be less than the cost to maintain a gravel road on a weekly basis. LEGAL LIMITATIONS ON USE OF REVENUES There are no expected legal limitations on use of revenues belonging to the municipality or any taxing entity as all uses will be within the prescriptive uses as outlined in the state statute, as amended to the date of the Plan. OTHER ESTIMATED IMPACTS OF UR PROJECT As stated above, the increased base value (from agricultural to vacant) at the outset of the project, the benefit to taxing bodies from the exclusion of all oil and gas sites from the urban renewal plan, and the continuing increase in base value resulting from the periodic revaluation of the base after increases in assessed value due to construction of buildings and other improvements and the corresponding increase in personal property in the urban renewal area more than offset other estimated impacts of the urban renewal project on taxing bodies. No other impacts of the urban renewal project will be placed on the county and taxing body services as current services provided by these entities which may be necessary will be covered to service additional development that would occur in the area. Most of these services including infrastructure needs are currently provided and will continue to be provided by the municipality including water, roads, and electric infrastructure. TOWN OF FREDERICK URBAN RENEWAL PLAN TIF ANALYSIS - APOTHECARY MAY 2016 Land Land Use: Se. Ft. Commercial 870,033 Building Building Construction Construction 2016 2017 0 27,440 Building Construction 201 82,318 Building Construction 019 3,658 Building Construction 2020 0 Building Construction 2021 18,291 Building Construction 2022 0 Building Construction 2023 18,293 Total Buildings 150,000 Annual Property Tax Revenue Estimates Estimated Total Tax Base and Year Total Appraised inflation Appraised Dtimated Estimated Base Multiplier Estimated Estimated Development Estimated Estimated Tax ; Estimated Total Tag. Total Tax Total Tax Total Appraised Revenues Base '.Mint fromni Su. Ft Person! property Assessed Base Assessed With New Revenue from Without Created" Tax - Constructed Value Property Value Value Value Base New Rase Develoarrient Development ,TTotal IMIIIIIii _ 2016 0 4,350,165 0.00% 0 4,350,165 1,261,5413 100.00% 1,261,548 1,261,548 117,647 117,6474 539 117,108 2017 2018 27,440 109,758 9,834,778 1.98%'; 0 9,834,778 2,852,086 47.30% 4,651,850 1,349,036 265,974 125,806 $50 265;424 24,981,903 0.00%' 0 0 24,981,903 7,244,752 18.62% 4,651,630 1,348,973 675,617 125,&'h7 675; 36 561 _ 2019 113,416 26,469,587 1.98% 26,469,587 7,676,180 18.14% 4,801,583 1,392,459 715,850 129,E55 572 715,278 2020 113,416 26,469,587 0.00% 0 26,469,587 7,676,180 18.14% 4,801,583 1,392,459 715,859 ' 129,255 ! S3 , .715;267 ,. 2021 131,707 30,014,984 1.98% 0 30,014,984 8,704,345 16.09% 4,829,411 1,400,529 811,732 130,208 595 811,38 811,1.26 2022 131,707 30,014,984 0.00% 0 30,014,984 8,704,345 16.09% 4,829,411 1,400,529 811,732 130,603 605; 2023 150,000 33,553,090 1.98% _ 0 33,553,090 9,730,396 16.09% 5,398,692 1,565,621 907,418 146,004 $12 x+,7991 _ 2024 150,000 33,553,090 0.00% 0 33,553,090 9,730,396 16.09% 5,398,692 1,565,621 907,418 146,004 631 " 906w7,87 2025 150,000 34,217,441 1.98% 0 34,217,441 9,923,058 16.09% 5,505,586 1,596,620 925,385 148,894 :643'.' . ' 24p. 42 2026 150,000 ; 34,217,441 0.00% 0 34,217,441 9,923,058 16.09% 5,505,586 1,596,620 925,385 148,894 656' ' 7- 2027 150,000 ' 34,894,946 1.98% 0 34,894,946 10,119,534 16.09% 5,614,597 1,628,233 943,707 151,843 659 ' 1 1p3$ 2028 - 150,000 34,894,946 0.00% 0 34894946 10119534' 16.09% 5,614,597 1,628,233 943,707 15143 682 2029 150,000 35,585,866 1.98% 0 35,585,866 10,319,901 16.09% 5,725,766 1660 472 962,391 154 49 696 OlSti4 2030 150,000 35,585,866 0.00% 0 35,585,866 10,319,901 16,09% 5,725,766 1,660,472 962,393 154,849 ..... 709 9!tr1;4 ; 98Q, !25 2031 150,000 36,290,466 _ _ 1.98% 0 36,290,466 10,524,235 16.09% 5,839,136 1,693,349 981,448 157,915 123 2032 150,000 36,290,466 0.00% 0 36,290,466 10,524,235 16.09% 5,839,136 1,693,349 981,448 157,915 73$' 980,71f 2033 150,000 37,009,018 1.98% 0 37,009,018: 10,732,615 16.09% 5,954,751 1,726,878 1,000,881 161,042 7aZ1 1,000,128 1,0d1i,J.iB• 2034 150,000 37,009,018 0.00% 0 37,009,018. 10,732,615 16.09% 5,954,751 1,726,878 1,000,881 161,042` 767 2035 150,000 37,741,796 1.98% 0 37,741,796; 10,945,121 16.09% 6,072,655 1,761,070 1,020,698 16423x}. 782 1,019,916 2036 150,000 37,741,796 0.00% 0 37,741,796' 10,945,121 16.09% 6,072,655 1,761,070 1,020,698 164,2 e'58 1,019,900' 2037 150,000 38,489,084 1.98% 0 38,489,084 11,161,834 16.09% 6,192,894 1,795,939 1,040,908 167A821 614 1,040,094 , 2038 150,000 - 38,489,084 0.00% 0 38,489,084: 11,161,834 16,09% 6,192,894 _ 1,795,939 1,040,908 167,46 .. 830 1,ti40,078 2039 150,000 39,251,168 1.98% 0 39,251,168 ; 11,382,839 16.09% 6,315,513 1,831,499 1,061,518 170798≥ 846 1,060,672672 2040 150,000 39,251,168 0.00% 0 39,251468; 11,382,839 16.09% 6,315,513 1,831,499 1,061,518 170,79S $63 1,060,655 2041 150,000 40,028,341 1.98% 0 40,028,3411 11,608,219 16.09% 6,440,560 1,867,762 _ 1,082,536 174180' $80 1,081,656 Total 22,885,649 3,910,472 18,105 22,867,545 Assumptions: inflation Weld County Milts Total Mill Levy Commercial Assessment Property Appreciation In Reappraisal Years Personal Property has not been included in calculations 1.98% 15.800 93.256 29.00% 1.98% Hello