5 - EVAG, BURA Future Role, 6/4/03, A Primer on Urban Renewal and Redevelopment
EVAG :: BURA Future Role :: ]une 4, 2003
A Primer on Urban Renewai and Redevelopment
Three Era's of Redeveloament
Federal: 1948 to early 1980's
. Large Scale, Central City-Focused
• Almost Exclusively Federally Funded (Housing Act, CDBG, UDAG)
• Massive Relocation Required-Gave Rise to Community Activism
• Referred as the "Scorched Earth Days"
States: Enabling Legislation
. Response to Loss of Federal Funding in 1980's
. Existing URA's Given New Tools, New URA's Created-Some in
Suburban Areas
. California Very Aggressive--Other States Followed
• Main Financing Vehicle Became Tax Increment Financing (TIF). Some
States Allow Oniy Property TIF, Others Allow Property and Sales TIF
• All Projects Have to Meet Eligibility Requirements (e.g. blight) and
Financing Must be for Public Purpose
Colorado: The Urban Renewal Law
. Colorado Urban Renewal Law Governs URA's, Which Are State Public
Corporatior,s
. Primary Tools: 1). Urban Renewai Plans Which Include Specific
Development Requirements; 2). TIF; 3). Eminent Domain. May be
Employed to Ensure a Public Purpose
• 26 URA's in the State. Most Large Cities Have a URA, Even Some
Smaller Communities (e.g. Sterling, Delta)
• Most Called Urban Renewal Authority. Some called Redevelopment
Authority. Lakewood is Reinvestment Authority
• Must Have a Board--Either Council or Citizens. Cannot be Delegated
to Planning Board or Another Commission. URA's Formed by Council
. Traditional Financing Was TIF-backed Bonds. TABOR put Bond Issues
on Hold for Years--So Financing was Shifted to Direct Reimbursement
to Developers (with interest) for Expenses, From TIF Proceeds.
Colorado Supreme Court Ruled in '02 That URA's Are Not Subject to
TABOR--Bond Financing Can Resume
."But For..." Common question: But for Action by the URA, a Project
Won't Happen. Typical Reasons for UR Involvement: Public
Improvement Financing Required; Multiple and/or Disagreeing
Property Owners Can't Come Together, Gap Between Private Financing
and Project Goals
. While Many URA's Employ the Powers Granted Under the Urban
Renewal Law, Many Also Act as a Conduit for Redevelopment Through
Informal Methods
Boulder's Storv
. BURA Formed in 1979 to Direct Crossroads Mall's First Redevelopment
. Urban Renewal District is the Boulder Valley Regional Center (BVRC:
300 acres, 50% of Boulder's retail space, 26% of sales tax revenues).
• Mall Was Successful--Opened in 1983--Had a Good Run of 15 Years.
Issued $20m in TIF Bonds, Retired in 2002. After Debt Service and
BURA's Admin Expenses, the City Netted $62 Million in Tax Revenue
• Main Focus in Last Few Years Has Been Crossroads' Second
Redevelopment. Public/Private Negotiations with Macerich Not
Successful-Ended Late 2002
• Ninth and Canyon Site Has Been an Urban Renewal District Since
1988. With Construction Beginning, Main BURA Task is to Act as
Conduit of the TIF Revenue for CAGID. Plan Also Calis for
Implementing the 20% Civic Use Requirement.
• BURA Board is 8 Citizens and 1 Council Member. Currently Z.0 FrE's
(admin support was recently eliminated). 1980-2002 Funding was
From BVRC Revenues (part of bond financing). 2003 Funding is From
the City's General Fund. No General Fund Monies in 2004.
. BURA Has a Fund of $530,000 to Support Public Improvement and
Other Authority Issues and Projects.
How a Proiect Works
. An area is designated by city council for investigation of urban renewal
eligibility. The main task is a blight survey. If the council determines
an area is blighted, then:
• An urban renewal plan is prepared. UR plans typically have
development and design goals, a relocation plan (if existing
owners/tenants must move), and a financing pian, if required. The
pian is adopted by the URA, submitted to the planning board for vote
on its compliance with the comp plan. Council adopts, then:
• One of two developer solicitation processes follows:
Owner Participation Agreement-the URA negotiates directly with the
property owner(s) in the area to determine if they (or their designated
developer) are capable of fulfilling the plan's goals.
Developer Solicitation - the URA can issue a RFQ or RFP to any
number of developers to solicit bids for the project, then:
A development agreement is negotiated between the URA and the
developer which covers all aspects of the project (size/scale, phasing,
relocetion, financing, operation, etc.). The project then proceeds to
construction.
TIF Chart
Tu Rerenuc
illll~lllllllllllllllllllllll
Canslmetion - Revrnue Availablt for Projec4TIF
,///llllllllllllllllllllllllllllll
I~
_
_ - Ndtvelopment I'lan AJopmd-Oose LsnhlisM1ed _ _ _
Revenue w/out