Centennial updates incentives policy to include housing; council approves changes

The Centennial City Council on May 6 approved Resolution 2025-R-17, updating the city’s economic development incentives policy to explicitly add housing as an eligible project type for incentives that historically targeted retail and employment uses.

Melanie Ward, the city’s manager of development foresight and infrastructure readiness, and David King, senior planner, presented the staff recommendation and explained the update is intended to give developers clearer guidance on tools the city can use to make certain housing projects feasible. Ward said the policy additions “provide council with policy guidance to consider when and how to incentivize certain projects,” and that staff recommends approval.

Under the revised policy, eligible housing projects can request incentives already in the policy — for example, construction use tax reimbursement and fee reductions — as well as additional tools staff added, including land banking, an allocation of private activity bond authority, and administrative land-use review assistance. King said Centennial receives roughly $6.9 million in private-activity bond allocation capacity annually and that the bonds must be used for low- and moderate-income housing; the city can allocate that federal bond capacity to private developers.

Council members asked how the policy would be applied in practice. Council member Sheehan asked whether a typical market-rate apartment would be competitive for incentives; Ward said such projects “would not be very competitive” unless they offered benefits aligned with the city’s housing goals. Council member Tharp asked what “deed-restricted units” might mean; staff replied these would typically be units restricted to households at, for example, 60–80% of area median income for a set period (staff noted 30 years as a common term) but that specifics would remain flexible and negotiated per project.

Several council members emphasized that the policy provides a toolbox but that any final incentives remain discretionary: each request would come to council for formal consideration. Council member Sweetland noted the policy will make Centennial’s options transparent to developers and may shorten early-stage negotiations, but Ward and King confirmed council retains final approval on any incentive award.

Mayor Pro Tem Sutherland moved approval of Resolution 2025-R-17; Council member Sweetland seconded. The clerk recorded an 8-0 roll call; the motion carried.