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RESOLUTION: 2002-61
SUBJECT: Revenue Sharing Agreement with the Town of Morrison and Developers Diversified Realty Corporation.
LOCATION: Approximately 65 Acres in the Town of Morrison located north of Morrison Road, east of C470 and west of Rooney Gulch.
RECOMMENDATION: Approve
FUNDING SOURCE: From Revenues of Proposed Project
SUMMARY AND BACKGROUND OF SUBJECT MATTER: In 2000 Morrison and Lakewood entered into an Intergovernmental Agreement for the Rooney Valley which provides for 1) a unified land development process, 2) sharing revenues such as sales tax and property tax from development and 3) utilizing revenues from development to pay for the cost of municipal services. The agreement also provides that Lakewood and Morrison may enter into agreements with commercial property owners to remit up to 50% of revenues remaining after payment for municipal services to assist in paying for public improvement costs. Lakewood and Morrison then equally share the remaining revenues.
A revenue sharing agreement with Morrison and Developers Diversified Realty has been negotiated which provides for remitting 50% of sales tax revenues from the project for a period not to exceed 20 years or until the time required to pay off bonds for public improvements, whichever is less.
The commercial project that is the subject of this agreement is a proposed retail center with gross retail space of not less that 450,000 nor more than 900,000 square feet located entirely in the town of Morrison. The developer will be required to process a final development plan through the Rooney Valley Joint Project Review Committee which consists of three representatives from Morrison and three from Lakewood. The developer will also be required to adhere to the Rooney Valley Development Standards which control items such as grading, architecture, color, signs, landscaping, parking and building materials. In addition to using a portion of the 3% Morrison sales tax for public improvements, the developer also plans to impose a public improvement fee of 1% to also help pay for public improvements.
Using conservative calculations of sales tax revenue and deducting the costs of providing municipal services and the amount remitted to the Developer, it is estimated that Morrison and Lakewood will each receive between $500,000 and $750,000 of annual income after cost of services and revenue sharing with the developer. The timing for the project depends on a number of factors including market conditions, availability of funds from the bond market and resolution of water and sewer service. Current estimates are that the project would break ground in the 2003 - 2004 timeframe. Approval of this revenue sharing agreement is a necessary initial step so that the developer can show evidence of funding for public improvements as part of an overall financing package.
RESOLUTION ADOPTION DATE: September 9, 2002
ORIGINATED BY: CMO/Public Works
STAFF PERSON RESPONSIBLE: Mike Rock, City Manager, 303-987-7050
DOCUMENTS ATTACHED: Resolution 2002-61
SUBMITTED BY:
Dick Plastino, Director of Public Works
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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