| I. Background The Thornton Development Authority (TDA) is an urban renewal authority established in 1981 by the City of Thornton for the purpose of undertaking certain urban renewal activities within the City. The TDA utilizes tax increment financing to fund public improvement and economic development projects which stimulate private sector capital investment and job creation. Per statute, the tax increment financing will remain active for a twenty-five (25) year period, expiring in 2006 II. Goals and Objectives The stated goals of the Urban Renewal Plan as established in 1981 remain equally as important today, with emphasis on stimulating the development of new office, retail, residential, and high-technology industrial activities by providing the necessary infrastructure improvements to accommodate these activities. One of Thornton City Council's goals for the community is to continue to improve the City's economic condition. Certainly, the continued successful utilization of the Thornton Development Authority will assist in achieving this goal. Goals as Established by the Urban Renewal Plan
Improve the transportation system, both into and within the Project Area by reducing congestion and enhancing vehicular access and pedestrian circulation through the implementation of effective traffic improvements. Stimulate, encourage, and facilitate the development of new office, retail, residential, and high technology activities within the Project Area. Expand, increase, and improve shopping opportunities and the City's sales tax base. Encourage the improvement of existing properties within the Project Area. Establish a major new image area for the community, offering a diverse mix of business, employment, cultural, residential, and retail opportunities. Create new employment opportunities within the community. Provide for the most beneficial, profitable, and efficient utilization of the land within the Project Area. III. Project Area The urban renewal area is located on approximately 1,000 acres consisting of an enclave of substantially undeveloped and underdeveloped properties adjacent to Thornton's primary commercial area. This area has been determined by the Thornton City Council as a blighted area in accordance with statutory criteria. The Project Area is generally bounded by Washington Street on the east, 84th Avenue on the south, Huron Street on the west, and 104th Avenue on the north, including some commercial tracts west of Huron Street. All single family subdivisions and apartment complexes existing at the adoption of the Plan, as well as Adams County School District No. 12 property, are excluded from the Project Area. Current zoning in the Project Area is primarily regional commercial, city center, business park, and medium to high density residential. Existing commercial or professional office establishments have been developed under commercial or PD zoning. For additional information about the TDA area, contact the Business Development Office. IV. Thornton Development Authority - Redevelopment Process The Thornton Development Authority (the Authority) operates under the requirements of state statute which generally provide that the prevention or redevelopment of slums, blight or other land use that are injurious to public health are a matter of public policy and should be demolished or rehabilitated. The Authority was created by the City of Thornton in 1981 and an urban renewal area was defined through the Thornton Community Improvement Plan. The Plan was created to further the Authority objectives regarding appropriate land uses, facilities, and other public improvements in the urban renewal area. Since that time, the Authority has created individual urban renewal projects to carry out the Plan. Each project defines a specific site for redevelopment, indicates lands to be acquired, identifies structures for demolition, and proposes installation, construction or reconstruction of streets, utilities, parks and other public improvements. Once a project area has been defined by the Authority, the Authority pays for numerous studies and reports to have a complete understanding of the condition of the area. These studies may include a survey, a title insurance commitment report, a phase one environmental report, an appraisal of properties in the area, a traffic report and/or a drainage report. The Authority is required by statute to competitively bid any land it is going to sell to qualified redevelopers. This competitive process provides all interested redevelopers an equal opportunity to submit a proposal to the Authority. Request for Proposals (RFP) are advertised for two weeks in the local newspapers. A detailed plan for redevelopment as well as evidence of financial status is required in the RFP. The Authority selects the redeveloper from the bidders based on the redevelopment proposal, past experience of the redeveloper, the degree to which the redevelopment proposal complies with the Thornton Community Improvement Plan, the financial and legal ability of the bidder to carry out the proposal, and the overall benefits the Authority and the City would derive from the redevelopment. The Authority may refuse all submitted proposals if the criteria are not satisfied. Upon selection of the redeveloper, the Authority and the redeveloper sign an agreement for exclusive negotiations. This agreement allows the redeveloper a specific time period to negotiate a Redevelopment Agreement with the Authority. A good faith deposit is submitted to the Authority by the redeveloper to assure that the redeveloper is serious about the proposal and negotiations. Changes to the proposed redevelopment plan may occur during these negotiations. If a Redevelopment Agreement cannot be reached, then the Authority returns to the list of RFP submittals in an effort to select another redeveloper for negotiations. The Redevelopment Agreement that is negotiated contains all the obligations and requirements for completing the redevelopment project. The Agreement specifies the site plan, the uses, the size and type of structures, architecture for all structures, the landscaping and drainage improvements, all public improvements as well as the timing and costs of the improvements and a schedule of performance and completion. The actual properties that comprise the development are defined and whether the redeveloper or the Authority will be responsible for acquisition of any property. If the Authority is required to acquire any property for the redeveloper, the Authority expects to be repaid by the redeveloper for all expenses of purchase, including court costs. If there are any costs associated with the relocation of tenants from a property, the redeveloper also pays those expenses. The redeveloper must also demonstrate adequate financial resources and a financing plan with specific commitments and a schedule for financing from a lender. The rights of the lender in the event of a default must be defined for the Authority. There are clauses in the Redevelopment Agreement to protect the Authority from default by the redeveloper. Protection of security and guarantees of performance, penalties for delay of completion, covenants and restrictions on the use of the property which are binding on later owners, insurance, and ultimately the Authority's right to enter and take possession are also provided in the Agreement. Upon completion of negotiations on the Redevelopment Agreement, the redeveloper signs the Agreement and it is presented to the Authority for review and approval. If the Agreement is approved by the Authority, the land acquisition process by the redeveloper and the Authority may begin. The Redeveloper may then apply to the City for rezoning, resubdivision, and development permit review. These reviews require detailed site plans and traffic, drainage, and engineering studies as part of the application. When the applications have had complete review by the City staff and the North Metro Fire Rescue Authority, the applications are scheduled for Planning Commission public hearing and City Council action. After the rezoning, resubdivision, and development permit are approved, the redeveloper may request a grading and building permit. Demolition may occur at this time for existing structures or may occur during the time of review of resubdivision. The process then continues in accordance with the provisions of the Redevelopment Agreement. V. Financing Available in Project Area The City, TDA and State of Colorado have cooperated in providing programs to assist in the development of projects within the Project Area. The TDA and City have authorized the use of special improvement districts, capital projects funding, Promotional Grant Program, Economic Development Incentive (EDIP) Program, and other programs to finance improvement and businesses within the Project Area. The State has designated a portion of the Project Area as an Enterprise Zone, offering business assistance and tax incentives to eligible expanding businesses. The enterprise zone is undergoing transformation which, if new areas are approved by the State, will provide an expanded area within the TDA boundaries. For more information about grant programs, contact the Business Development Office. |
