Denver seeks voter approval for major downtown development plan

In a recent government meeting, Denver officials discussed a significant proposal regarding the Downtown Denver Development Authority (DDA). Council President Sandoval highlighted the importance of the DDA in revitalizing the downtown area, referencing its role in the transformation of Union Station into a vibrant hub. The council is preparing to present a ballot question to voters in a special election scheduled for November 5, 2024, seeking approval to extend the DDA's authority without raising taxes.

The DDA, established in 2008, is a quasi-public entity designed to spur economic growth through funding various projects. Donna Wilder from the Department of Finance explained that the DDA operates under state statutes and is governed by a board of directors, with Sandoval serving as a member. The authority can only exist within a municipality's central business district, and any expansions must adhere to specific guidelines.

A key aspect of the proposal is the use of Tax Increment Financing (TIF), which allows the DDA to capture increased property and sales tax revenues resulting from improvements within the district. This mechanism does not raise taxes but instead utilizes the growth in tax revenue generated by enhanced property values to fund further developments.

The current term of the DDA is set to expire in 2038, but the statute permits extensions for additional 20-year terms, with provisions for revenue sharing with other taxing entities, including the City and County of Denver and Denver Public Schools. The proposed plan aims to stimulate economic growth and address urban deterioration, reflecting a broader vision for the future of downtown Denver.