s_fin_2017a_2017-04-18t14:00:56z2 Hearing Summary

Date: 04/18/2017

Location: SCR 357

02:15 PM -- SB17-285



Senator Grantham, prime sponsor, presented Senate Bill 17-285, which makes several changes to statutes related to Downtown Development Authorities (DDA). The changes apply to all DDAs created on or after January 1, 2018. If any development plan managed by a DDA includes the use of tax increment financing, the DDA's board of directors must include representatives from the counties, school districts, and special districts whose property taxes are subject to allocation under the DDA plan. The bill sets conditions for the selection, terms, and replacement of these additional, non-municipal board members of a DDA. Before a DDA may implement a plan of development that includes the allocation of tax revenue from taxing entities other than the municipality, the DDA is required to notify the governing boards of the entities whose property tax increment will be allocated. The taxing entities, the DDA, and the municipality are then required to meet and attempt to negotiate an inter-governmental agreement (IGA) governing the sharing of incremental property tax revenue. If the parties are unable to negotiate an IGA within 120 days, the bill requires that the parties participate in mediation. The mediation must be conducted by a jointly agreed upon mediator, or if no agreement can be reached, by separate mediators selected by each taxing entity. Within 90 days the mediator(s) must issue findings of fact, and the municipality must either incorporate the findings into the DDA plan and the IGA, amend the plan to exclude the taxing entity's incremental revenue, or enter into new negotiations with the taxing entities. The bill prohibits any property tax increment from being credited to the DDA unless the municipality and DDA have satisfied the bill's negotiation and mediation requirements.



02:20 PM -- Commissioner Dave Paul, representing Teller County and Colorado Counties, Inc., testified in support of the bill. Commissioner Paul responded to committee questions.



02:31 PM -- Mayor Herb Atchison, representing the City of Westminster, testified in opposition to the bill.



02:35 PM -- Jim Mokler, representing Greeley DDA, testified in opposition to the bill.



02:39 PM -- Kevin Tillson, representing Castle Rock DDA, testified in opposition to the bill. Mr. Tillson distributed a handout to the committee (Attachment A). Mr. Tillson responded to committee questions.



17SenateFin0418AttachA.pdf



02:52 PM



Mr. Mokler, Mayor Atchison, and Mr. Tillson responded to committee questions.



03:10 PM -- Kimberly McKee, representing Longmont DDA, testified in opposition to the bill.



03:14 PM -- Kevin Bommer, representing the Colorado Municipal League, testified in opposition to the bill.



03:25 PM -- Kathie Barstnar, representing NAIOP Colorado, testified in opposition to the bill. Mr. Bommer responded to committee questions.



03:39 PM -- Nick Colglazier, representing the Colorado Competitive Council, testified in opposition to the bill.



03:41 PM -- Carol Brzeczek, representing herself, testified in support of the bill.



03:48 PM -- Matt Cook, representing the Colorado Association of School Boards, testified in support of the bill. Mr. Colglazier responded to a committee question.



03:51 PM -- Angela Dougan, representing Americans for Prosperity, testified in support of the bill.



03:52 PM -- Commissioner Nancy Sharpe, representing Arapahoe County, testified in support of the bill.



04:00 PM -- Ron Carl, representing Arapahoe County, testified in support of the bill. Commissioner Sharpe responded to committee questions.



04:11 PM -- Gini Pingenot, representing Colorado Counties, Inc., testified in support of the bill.



04:19 PM -- Tim Dienst, representing the Ute Pass Regional Health Service District, testified in support of the bill.



04:23 PM -- Mike Krause, representing the Independence Institute, testified in support of the bill. Committee members received a handout from Mr. Krause (Attachment B).



Attachment B can be viewed at Legislative Council.





04:27 PM -- Evan Goulding, representing the Special District Association, testified in support of the bill.





04:32 PM



Ms. Pingenot responded to committee questions. Curt Settle, representing the Division of Property Taxation, came to the table to respond to committee questions.





04:42 PM



Senator Grantham wrapped up his presentation of SB 17-285.

04:57 PM



The committee adjourned.