Development and Public Finance Agreements
In March, 2013, the Town of Superior and RC Superior, LLC (Ranch Capital), entered into two agreements relating to the STC. The Development Agreement generally identified:
- Developer Obligations
- Town Obligations
- Construction and Warranty Information
- Operation and Maintenance of Public Improvements
- Zoning and Development Information
- Municipal Services
- Vested Property Rights
The Cost Sharing Agreement was approved in October, 2013, and replaces the Public Finance Agreement approved in March, 2013. The agreement generally identified:
- Reimbursable public infrastructure expenses in total and SURA's share of these expenses (to be paid with new/incremental STC Property Tax (TIF) Revenues)
- Reimbursable expenses must be documented with proof of payment and certified by an independent third party engineer as a valid cost
- Civic Space/Facilities, and the Developer's obligation to build and finance
- Utility System Development Fees for the southern properties (Spicer/Schuck) are not eligible for reimbursement from TIF revenues
- Any future Town, Boulder County, and/or Boulder Valley School District property tax rate increase will be excluded as TIF/Pledge revenue, and will flow back to the taxing entity
In May, 2013, the Town reviewed and approved Service Plans for three Metropolitan Districts associated with the STC. The purpose of the districts are to assist in financing the construction, operation and maintenance of needed STC infrastructure. Language in each District Service Plan is the same. Only the geographic boundaries of each district vary.
Superior Urban Renewal Authority (SURA) and Tax Increment Financing
SURA will be using property tax increment financing to assist with public improvement development cost reimbursement in the SURA plan area to alleviate existing conditions which impede the development. As identified in the Second Amendment to Urban Renewal Plan and the Cost Sharing Agreement (above), a majority of incremental/new STC property tax revenues will be available to reimburse the Developer and/or Metropolitan Districts for repayment of their expenses associated with public improvement development costs for a period of up to 25 years. Neither the Town nor SURA is issuing any debt associated with the STC. The Town's/SURA financial responsibilities are limited to reimbursing the Developer/District incremental/new property tax revenues as identified in the agreements. Also included is the SURA Boulder County Impact Report which meets the requirements outlined in C.R.S. 31-25-107 (3.5)
STC Financial Summary
Town staff projects annual revenues and expenses associated with the STC at build out in this Financial Summary Presentation. This information was presented at the June 10, 2013 Town Board meeting. Generally, new annual revenues are projected at $3.9 million and new annual operating expenses are projected at $1 million.
On June 26, 2013, Superior Town staff hosted a meeting to discuss a STC financing overview with citizens and interested parties. In addition to one-time and ongoing STC revenue/expense impacts, the topics of Urban Renewal Authorities and Tax Increment Financing were discussed.