Fountain approves East Infill Urban Renewal Area and 50/50 sales-tax sharing agreements

The Fountain City Council on Nov. 18 approved four resolutions to amend an existing urban renewal area and establish a new East Infill Urban Renewal Area intended to address blight, attract private investment and fund necessary transportation and infrastructure improvements.

Kimberly Bailey, executive director of the Fountain Urban Renewal Authority (FURA), presented the East Infill plan to council during a public hearing. She said the proposed East Infill area covers roughly 213 acres across 22 parcels and that the consultant’s block analysis found the area meets nine of the 11 statutory conditions used to justify an urban renewal designation under state law. Bailey described a previously identified infrastructure deficit in the corridor (water and electric) of about $1,200,000 and said new transportation requirements identified by the Colorado Department of Transportation create a larger, unforeseen need she estimated at about $23,000,000 for road and safety improvements tied to improving access for the corridor.

Carolyn White, special counsel with Brownstein Law Firm, explained legal requirements and the financial mechanics: planning commission review occurred on Oct. 1 and found the plan consistent with the comprehensive plan; the proposal before council involved a series of four resolutions — an amendment to the existing US Highway 85 Corridor URA, adoption of the East Infill Urban Renewal Plan, and two cooperation agreements to share sales and use tax increment. White said the new plan proposes only sales tax sharing (not property tax diversion), with a 50/50 sales/use tax sharing arrangement over a maximum statutory period of 25 years.

Council moved through the four resolutions in sequence. Votes recorded were unanimous (5–0) on each item: Resolution 25-054 (finding a proposed modification to the US Highway 85 Corridor Urban Renewal Plan to be a minor modification) was moved by Councilmember Estes and seconded by Councilmember Geeke; Resolution 25-055 (legislative findings and approval of the East Infill Plan) was moved by Councilmember Hinton and seconded by Councilmember Rick; Resolution 25-056 and Resolution 25-057 (cooperation agreements approving sales tax and use tax sharing with FURA to finance the East Infill project) were each moved and seconded and recorded as approved 5–0.

Carolyn White said projected development within the plan area could support the necessary transportation investments over the plan term by capturing incremental sales tax revenues and sharing them with FURA to finance capital projects.

What’s next: Implementation of the East Infill URA will depend on execution of the cooperation agreements and subsequent development activity; the URA term under the plan may extend up to 25 years, per the plan language explained in the hearing.