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County signs TIF revenue-sharing IGA to support Parachute Inn renewal project
Summary
The Board approved an intergovernmental agreement allowing the Parachute Urban Renewal Authority to capture county property tax increment for the Parachute Inn redevelopment project up to a $45,000 cap over 25 years; sales tax was removed from the agreement.
Garfield County commissioners authorized an intergovernmental agreement (IGA) April 14 that permits the Parachute Urban Renewal Authority to capture the county's share of property tax increment financing (TIF) for the Parachute Inn redevelopment project, subject to a not-to-exceed cap and a sunset schedule.
Travis Elliott, Parachute town manager speaking on behalf of the Parachute Renewal Partnership (the URA), described the project as a renovation of a blighted, vacant motel into a 68-unit affordable housing development with about 3,100 square feet of ground-floor commercial space. Elliott said public infrastructure work will include street reconstruction, curb, gutter, sidewalk, crosswalks, street lighting, and utility upgrades on Third Street behind the building.
Elliott and county staff said the IGA covers only county property tax increment (not sales tax); the parties removed municipal sales tax from paragraph 4 of the draft IGA during finalization. The IGA sets a not-to-exceed threshold of $45,000 in cumulative TIF revenue shared for the county's portion over a 25-year sunset; staff said projected net cumulative TIF from property taxes is about $36,000 under expected valuations and the $45,000 cap provides a contingency.
The project secured a DOLA More Housing Now grant supported with energy impact funds that will cover part of an estimated $1.4 million in public-infrastructure costs. Project representatives said asbestos abatement was underway with demolition expected within weeks, and that the URA expects the completed development to catalyze further investment on adjacent parcels.
Commissioner Sampson, who sits on the URA, spoke in favor of the agreement and the county's staff recommended approving the IGA with the agreed edits. The board approved the IGA and authorized the chair to sign.
