Castle Pines URA adopts TIF award policy, removes project-level ROI requirement

The Castle Pines Urban Renewal Authority voted to adopt Resolution 24-07 on Sept. 3, 2024, approving a tax increment financing (TIF) award policy for the Castle Pines West Commercial district and removing a provision that would have required each applicant’s requested TIF to be no greater than the incremental property tax revenue projected to be generated by that specific project.

City Manager Michael Penney, who presented the resolution, said the policy establishes a reimbursement-based approach: the URA would reimburse eligible project costs after completion, and staff would develop application forms, submittal requirements and initial evaluation criteria. Penney said the recommended removal of section 3.2.1(b) and the following paragraph would spare applicants the cost of detailed ROI analyses for small improvements that are difficult to quantify, such as signage, landscaping or lighting. "Requiring a return analysis on a small sign replacement can be prohibitively expensive and hard to calculate," Penney said. "This change reduces that administrative and applicant burden while preserving the Authority’s ability to evaluate public value."

Commissioners asked how the Authority would track and measure use of funds over the URA’s 25-year planning horizon. Penney responded that because the policy is reimbursement-based, staff would still verify that expenses were eligible and tracked, and that assessed value increases across the urban renewal area would be monitored over time. "Tracking will be more complex for larger projects, but reimbursement and project agreements should make verification straightforward," he said. He cautioned that cumulative revenue projections over 25 years remain an important consideration when approving projects.

Members and staff emphasized that removing the project-level ROI requirement does not eliminate discretion to deny projects that do not provide sufficient public benefit. Commissioner Blue said the removal "doesn't eliminate our ability to say, 'hold on a second, that's not going to give much value.'" Penney reiterated that applicants must still submit a pro forma and demonstrate need under the policy’s eligibility and funding standards.

During the meeting a member moved to adopt Resolution 24-07 with the removal of subsection 3.2.1(b). Another member proposed and the board approved an amendment to also remove the subsequent paragraph that had exempted city infrastructure projects from proving the ROI standard. The Authority then adopted the amended motion by voice vote; the chair announced the motion passed and the resolution was adopted.

Penney said staff will coordinate with DCI (a contract outreach partner), the chamber and property owners to develop application materials and conduct tenant- and owner-focused outreach. He identified early potential uses of the URA, including sign updates at the Safeway property, exploratory work in the Dukes/Pinos plaza, and conversions of private roads to public roads to enable pedestrian and safety improvements. Penney said no additional URA meetings are currently scheduled for 2024 unless an application is received.

The URA adopted Resolution 24-07 at the Sept. 3 meeting; the authority will proceed to finalize application forms, outreach materials and project agreements consistent with the approved policy.