Castle Pines North may "blight" area slated for development days before law would ban doing so
By Carlos Illescas
The Denver Post
Posted: 04/23/2010 01:00:00 AM MDT
Updated: 04/23/2010 05:54:29 AM MDT
Castle Pines North might declare 3,300 acres of land slated for commercial and residential development "blighted" just days before a state law kicks in that would probably prevent the city from doing so.
House Bill 1107 becomes law June 1. With a few exceptions, it would prevent local governments from using urban-renewal authority to declare agricultural land blighted in order to create a tax increment financing district.
Tax increment financing districts allow towns and cities to fund improvements made by developers through special property taxes.
Castle Pines North Mayor Jeff Huff said the city isn't trying to pull a fast one by declaring The Canyons blighted. He said the plan to use urban-renewal authority to help fund improvements to the land, east of Interstate 25 and south of Reuter Hess Reservoir, has been in the works for months. That the city is scheduled to take up the issue a week before the law takes effect is just coincidence, he said.
"I realize there is controversy surrounding the way this has been implemented in the past," Huff said. "But we're not doing it in a sense to beat the clock."
Critics say governments for years have been abusing urban-renewal laws, initially intended for cities to use to redevelop rundown urban areas. The current law says that cities can declare undeveloped land as blighted if several criteria are met, such as if infrastructure is needed there.
Aurora recently did that for a massive development called Horizon Uptown and offered the developer, Lend Lease, $89 million in tax incentives.
Huff said the council has not yet decided about offering tax breaks for The Canyons project, which could include up to 2,500 homes and 2 million square feet of commercial space.
"This is not intended to become a windfall to a developer," Huff said. "If incentives were made, then the city would require that the money be reinvested in projects that would benefit the project."
The sponsor of the new law, Rep. Randy Fischer, D-Fort Collins, said he is frustrated that Castle Pines North is moving to get urban-renewal designation before his law kicks in.
"I think people that live in those surrounding communities would be sort of appalled to know they are trying to ram something through without very much public notice or involvement," Fischer said. "It's counter to my beliefs that government ought to be operating in an open and transparent manner."
Tom Ragonetti, a lawyer representing The Canyons project, said the developer is OK with its property potentially receiving urban-renewal designation. He said the designation gives The Canyons more options as it develops the property.
"Having the availability of any tool is helpful," he said.
Castle Pines North might also include two existing commercial areas in the urban-renewal boundary to help fund improvements.
Castle Pines North has been moving quickly on The Canyons project. The land was annexed last fall, and the city plans to consider creating an urban-renewal authority at its meeting next week. A public hearing and vote on the urban-renewal plan are scheduled for next month.
"Our intent is to provide an avenue for balanced growth in our community, both in the newly annexed portion and the business districts that have been there several years," Huff said.
Carlos Illescas: 303-954-1175 or cillescas@denverpost.com
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