Urban Renewal Fact or Fiction
What is Parker Authority for Reinvestment?
Parker Authority for Reinvestment (PAR) is an Urban Renewal Agency (URA) that is governed by Colorado State statutes.
Do the Colorado State statutes require Urban Renewal Areas to share back increment funds with other taxing entities?
URAs that were created or have had major URA plan amendments prior to January 1, 2016 are not obligated to share back funds per Colorado State statute. Parker Authority for Reinvestment was created in 2006 with all area plans created in 2008 and 2014.
Are URAs required to incur debt through bonds which they pay back rather than collecting the revenues and using them for various purposes?
There are varying tools that URAs have available to utilize TIF funds and they are not limited to incurring debt through bonds and loans. Redevelopment agreements with private parties are a common use of TIF funds throughout Colorado and the United States.
Are URAs required to be voter approved?
No, because URAs are not creating any additional taxes. Colorado law only requires voter approval on any new or increased taxes.
What types of projects qualify for URAs Tax Increment?
TIF can be utilized on a variety of projects including:
- New development on vacant land and/or redevelopment of an existing property
- Acquisition or disposition of property
- Demolition and removal of buildings
- Public infrastructure; streets, sidewalks, bridges and utilities
- Public parks, plazas or any public improvements
- Environmental cleanup
How long can Parker Authority for Reinvestment collect Tax Increment?
Each URA district is limited to a 25 year maximum. After 25 years, the URA will no longer collect the tax increment and all property taxes would be passed on to the other taxing agencies.
What is an example of PAR using Tax Increment in Parker?
The former Cottonwood King Soopers is an example of PAR using TIF in an Urban Renewal Area. The previous King Soopers sat vacant for over a decade and the impact this vacancy had on Cottonwood was greater than only the commercial area near the vacant building. PAR utilized a TIF agreement with the developer of King Soopers to incentivize the redevelopment of the building in 2014. The redevelopment of this building has positively impacted economic conditions in Cottonwood and stimulated growth in the area.
Is all of Parker designated as an Urban Renewal Area?
No, there are three URAs in Parker, all administered by the Parker Authority for Reinvestment.